AGRICULTURAL POLICY INSTABILITY IN NIGERIA: THE RICE FARMERS

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AGRICULTURAL POLICY INSTABILITY IN NIGERIA THE
RICE FARMERS EVER ADJUSTING PRODUCTION
PROCESSByUmeh, J.C.Consultancy Marketing
specialist, National Special Programme for Food
Security (NSPFS), Maitama, Abuja,
Nigeria.Ingawa, S.A.National Project
Coordinator, National Special Programme for Food
Security (NSPFS), Abuja, Nigeria.Oyebanji,
O.O.Annex I Leader, National Special Programme
for Food Security (NSPFS), Abuja,
Nigeria.Adesola, O.A.Annes IV Leader, National
Special Programme for Food Security (NSPFS),
Abuja, Nigeria and Director Strategic Grain
Reserve (SGR)
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PRESENTATION LAY OUT

• INTRODUCTION
• The potentials for Rice enterprise in Nigeria
• Favorable ecologies for rice cultivation
• Agricultural policy of Nigeria, problems
  statement, objectives and methodology.
• The data/paucity of rice enterprise data sources
• Results and Discussions
• Conclusions and Recommendations

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THE POTENTIALS FOR RICE ENTERPRISE IN NIGERIA

• 1. GROWING PER CAPITA RICE CONSUMATION IN
  NIGERIA
• 1960 3 kg per capita
• 1980 18 kg per capita
• 1990 22 leg per capital

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2. FAVOURABLE ECOLOGIES FOR RICE CULTIVATION

• Upland irrigated
• Inland valley swamp
• Deep water/floating and tidal mangrove swamp
• 4.6 million hectares for rice production in
  Nigeria
• Only 1.7 million ha only put to rice cultivation

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3. AGRICULTUAL POLICY OF NIGERIA AND PROBLEM
STATEMENT

• Self sufficient in rice production for home and
  export
• Agricultural policy launched in 1989 for self
  sufficiency in rice production in ten years time
• In 1999, 812, 452 MT rice import about 10 years
  after the Nigeria government launching of the
  agricultural police document
• Conflict and contradiction therefore exist in the
  rice industry.

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OBJECTIVES AND METHODOLOGY

1. To use secondary data of over 30 years and
   inferential statistics to analyze the constrained
   growth of rice enterprise in Nigeria.
2. To quantify the impact of inconsistency
   government policy on the growth and development
   of rice enterprise in Nigeria.
3. To make recommendations on some possible way
   forward.

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Table 1 shows the correlation coefficients
of pairs of data from various sources

• Large negative valves are seen calling for
  concern for the quality of data.
• This problem has been with us since the 1980s
  (Idachaba, 1984).

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1. THE DATA/PAUCITY OF RICE ENTERPRISE DATA
FROM FOUR DATA SOURCES

• The project co-ordination unit/ADP
• The Central Bank of Nigeria
• The FAO yearbook
• The three pre-shipment companies Societé General
  de Surveillance, SWEDE control inter TEK and
  COTECNA inspection Ltd Nigeria.

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3. RESULTS AND DISCUSSIONS

• Data for over 34 years were generated and used
  for this work
• Figures 1 and 4 show import rice volume and
  domestic rice yield trends of 34 years, 1970-2004
• Inference. Import volume continued to increase
  while yield continued in a downward trend.
• Correlation coefficient for the variables is
  0.618 significant at 1 level.
• Rice import depresses domestic rice productivity
• Oxfam, British based NGO recently indicated the
  dumping of cheap American rice on less developed
  countries of the world
• US gives 3 billion in subsidies to prop up rice
  crop that costs 1.8 billion to grow
• Two key factors that may aid Nigerian rice
  enterprise apart from problem of dumping of
  foreign rice , are extension and fertilizer
  availability

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FIGURES 2 AND 4 SHOW IMPORT RICE PRICE AND RICE
YIELD. BOTH HAVE DOWNWARD TRENDS

• Imported rice continued to come at cheaper rate
  discouraging domestic rice production
• Correlation coefficient of the two variables is
  o.713, it is positive and significant at 1 level
• Both variables move in the same direction as
  shown in Figure 6.
• Furthermore, the correlation coefficient of
  prices of both domestically produced rice and
  imported rice was computed to be _- 0.563, It is
  negative and significant. For example imported
  rice price (figure 2) continued to decrease after
  the peak about 1976.
• Given the cheap, well packaged foreign rice,
  Nigerian consumer rightly regarded poorly
  packaged, poorly processed local rice an
  expensive commodity.

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Figure 3 shows hectarage trend of domestically
produced rice 1970 2004.

• Trend is increasing from the low level in 1970.
• It shows the good intension of the Nigerian rice
  farmer to respond to the rising preference of
  Nigerian consumer in favor of rice.
• This world have triggered off growth and
  development of rice enterprise in Nigeria leading
  to
• Employment generation
• Boosting of income
• Improvement of life quality
• Food security
• Foreign exchange earning

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• These benefits eluded the Nigerian farmers and
  Nigeria as a whole as a result of
• Oscillating import tariffs and import
  restrictions of foreign rice (1986 1990s rice
  import was illegal 1995 a tariff of 100 was
  placed 1996 tariff of 50 was placed in 2001
  tariff was increased to 85 )
• Poor extension activity
• Scarcity of fertilizer etc

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• Coefficient of variation of rice hectarage in
  Nigeria 1970 2004 was large (79.58) . For
  about 34 years there was violent variation in
  rice hectarage cultivation in Nigeria.
• It shows the continuous rice production
  adjustment process by Nigerian rice farmers as
  government put up various phases of policy
  intervention in the industry.

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• Few more policy implications of the 35 year rice
  enterprise data analysis.
• Nigerian rice farmers demonstration of response
  readiness for the huge tastes and preferences of
  Nigerian consumers for rice
• This is quantified in the large hecatarage of
  cultivable land for rice.
• It is also shown in the huge rice output when
  government policy titled in favor of domestic
  rice production
• Rice production, processing and marketing involve
  long chain of activities.
• Land preparation, broadcasting of seed,
  fertilizer application, weeding etc
• Women and children take part in many of the
  activities and they are the vulnerable group of
  the society in terms of income, food security
  etc.
• Development of rice program in Nigeria may
  therefore go a long way fighting hunger and
  poverty
• Efforts of the Nigerian government to develop
  rice enterprise include
• - NAPPP National Accelerated Food Production
  Programme (NAFPP) 1972. It was to design, test
  and transfer technology package for accelerated
  production of five crops rice, maize, sorghum,
  millet and wheat. The efforts failed due to
  funding and policy reversal.

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• The Presidential Rice Production Programme of
  President Shagari regime of the early 1980s. This
  failed again as a result of military over-throw.
• Next and a more current one is the Presidential
  Initiative on Rice This was launched in June
  2005 in Abuja. For this programme, the New Rice
  for Africa (NERICA) developed by WARDA is to
  propel rice enterprise development in Nigeria
  with the full complement of other inputs
  (Fertilizer, extension etc) to ensure that rice
  plays the expected role in the economic
  development of both Nigeria and the sub-region.
• Properties of NERICA Early maturing high
  yielding disease and pest resistant, acid
  tolerant, etc.

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• Conclusion and Recommendations
• Given the huge tastes and preferences which the
  Nigerian population has shown in favor of rice
  commodity, the continuous rice importation into
  Nigeria could be likened to throwing away a
  golden opportunity to revive the Nigerian
  agriculture through the rice industry.
• All the basic requirements which set an
  enterprise on a path of growth and development
  are complete in the rice industry.

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• There is the huge demand, there is equally good
  internal and external markets and there is also a
  good ecology for the crop. Another favorable
  conditions for rice as a crop that may
  revolutionalize not only the agricultural
  industry but the whole Nigerian economy include
  the long chain of economic activities associated
  with rice production, processing and marketing
  and also be ready employment for the very
  vulnerable segments of the Nigerian population
  women and children.

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• Another favorable conditions for rice as a crop
  that may revolutionalize not only the
  agricultural industry but the whole Nigerian
  economy include the long chain of economic
  activities associated with rice production,
  processing and marketing and also be ready
  employment for the very vulnerable segments of
  the Nigerian population women and children.

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Recommendations

• The following recommendation emerge from the
  analysis carried out in this study.
• The Government should consistently purse the
  policy of self sufficiency in food crop
  production in particular with reference to those
  food commodities which consume considerable
  shares of Nigerian foreign exchange and which
  Nigeria has comparative advantage for their
  production, rice is therefore the crop of choice
  within this context.
• The Presidential Initiative on Rice which uses
  the NERICA should be consistently supported by
  the Government

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• Appropriate tariff regime, rather than an out
  right ban on rice import should be evolved to
  protect the domestic rice enterprise.
• 4. The Federal Government of Nigeria Fertilizer
  Market Stabilization Programme which ensures
  availability of the input to the Nigerian
  farmers should be pursued very diligently.

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• 5. The extension activities of the ADPS which
  guide both the technique and material
  technologies used by the farmers should be
  revived.
• 6. The long chain of activities in the rice
  enterprise though useful as a source of
  employment and income for the vulnerable segment
  of the Nigeria society by may be counter r
  productive as the rice enterprise grows the
  Government should provide money to both the
  Universities and Research Institutes for research
  on some labour sowing device for rice
  processing.

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• LADIES AND GENTLEMEN, GOD HAS GIVEN US A CROP
  (RICE) WITH WHICH TO REVOLUTIONALISE OUR ECONOMY,
  LET US NOT THROW AWAY THIS OPPORTUNITY.
• THANKS FOR YOUR ATTENTION.