Sunday 18 March 2012

Nigeria’s economy Bringing quick recovery through wealth creation

 by EMMANUEL ADENIYI,tribune  Share
From right, demand chain General Manager, BATN, Mr Hugo Norman, second right, the representative of Senator Hosea Agboola, third right, head of leaf, BAT Iseyin Agronomy, Mr Thomas Omofoye and some award recipients.
From right, demand chain General Manager, BATN, Mr Hugo Norman, second right, the representative of Senator Hosea Agboola, third right, head of leaf, BAT Iseyin Agronomy, Mr Thomas Omofoye and some award recipients.Though labelled an oil-dependent economy, due to its neglect of agriculture, calls for the diversification of the economy, especially in the area of agriculture, have again resurfaced. EMMANUEL ADENIYI, who was at the 2012 BATIA farmers’ productivity award ceremony, reports that using the vehicles of wealth creation and incentives in agricultural sector could facilitate quick recovery of the nation’s economy.
NIGERIA’S quest for economic prosperity has largely been hindered by a number of factors, which are largely systemic in nature. Truth be told, it has failed to improve on certain macro-economic indicators, such as its national output as measured by the GDP, high unemployment rate and persistent price increase.

Reports released so far by the National Bureau of Statistics (NBS) have identified structural imbalance, lack of diversification, poor infrastructural facilities and insecurity as insidious factors crippling the nation’s economy, yet little has been done to tackle these issues.

With the inability of the economy to diversify and its dependent on oil as well as the neglect of agriculture, which used to be its mainstay, the poor state of the economy should, therefore, not be unexpected.

Agriculture that ought to be the largest source of employment has had little or no local or foreign direct investments (fdi). Though still practised at subsistent level, it has not contributed as expected to the national output of the economy.
Worse still, farmers are not encouraged as those who have the mind of embarking on mechanised farming are denied access to soft loans and other necessary inputs, thus making farming the exclusive preserve of the elderly who barely grow enough to feed their mouths.

Individuals and corporate bodies that ought to invest in the sector have always shied away from it citing various reasons.
However, the British American Tobacco Nigeria (BATN) in partnership with the British American Tobacco Iseyin Agronomy (BATIA), has been toeing a different path towards repositioning agriculture in the country and restoring its lost glory. It has helped to facilitate the elusive foreign direct investments which the agricultural sector of the economy needs if it must grow.

In the last few years, it has given different incentives to tobacco farmers thus increasing their share value from about N224 million to N526 million. In 2011 alone the cash value of tobacco produced by farmers hit over N500 million, with the farmers making a huge profit.

Mr Olomitutu Ogunmodede, one of the farmers, who won a motorcycle for high volume production of tobacco at the 2012 BATIA productivity award ceremony, held at Iseyin, said he made whopping sum of N2 million within nine months. He disclosed that his volume of tobacco production grew from 5,000 to 8,000 tonnes last year, adding that BATN had helped in reducing poverty and crime rate in the country.

“Most young persons who should have taken into crimes have embraced opportunities provided by BATN. My father, Olomitutu Ajibode, my younger brother, Taiwo, and I are from Igboho and we have made a lot form this farming. My father and Taiwo couldn’t have made less than half a million apiece because they started late, and each of them also won one pumping machine,” he said gleefully.

Another recipient of BATN’s largesse, Mr Lasisi Salami, was full of mirth as he disclosed that planting tobacco had created wealth for him and his family. Said he, “within a few months, I made over N500,000, I have bought cars, own properties from growing tobacco leaves. I also have university graduates whom I sponsored from proceeds made from this farming. As you can see, I also won two pumping machines.”

While highlighting the objectives behind the award, the demand chain General Manager of the company in Nigeria, Mr Hugo Norman, said it started in 2005 primarily to reward performance for excellence in tobacco cultivation and environmental best practices, stressing that the scheme was a demonstration of the company’s belief in fostering harmonious relationship with its business partners.

He described agriculture as an honourable occupation, adding that the company’s partnership with farmers was its “its modest contribution to complement the efforts of the Federal Government in alleviating poverty...” in the country.
The head of leaf, BAT Iseyin Agronomy, Mr Thomas Omofoye, similarly emphasised the importance of the award scheme, saying that it had been reviewed to accommodate some changes in a bid to encourage teamwork among farmers.

He noted that 218 farmers belonging to “exceed” and “succeed” groups, who were selected from different parts of Oyo State, had performed excellently in observing the company’s principles of crop management and environmental best practices, among others.

Some of the inputs distributed at the award ceremony included motorcycles, plastic water tanks, pumping machines and other agricultural inputs.

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