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$1.2bn agriculture loan from Brazil to FG

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By Mercy Kelani

Allocation of these funds must be effectively managed for optimal outcomes.

Certain specialists in the field of agriculture have advocated for the proper allocation of Brazil’s substantial $1.2 billion loan with the aim of enhancing Nigeria’s agricultural modernization. On January 18, 2024, in Lagos, the professionals voiced their opinions through individual interviews. Nigeria’s agricultural sector is set to undergo a transformative makeover as the Development Bank of Brazil joins hands with the federal government, signing a monumental $1.2 billion memorandum of understanding (MOU) to initiate modernization efforts.

With a financial assistance, the loan aims to enhance mechanization in agriculture and establish contemporary agro-centers nationwide, by providing a credit facility. The allocation of funds in the agriculture sector must be effectively managed for optimal outcomes, urged Akin Alabi, a renowned expert in agricultural consulting. He emphasized the need for the government to ensure meticulous disbursement of these funds to maximize the desired impact. In regards to enhancing agricultural productivity, Mr. Alabi emphasized the perpetual need for additional funds, whether sourced domestically or from foreign developmental allies. Considering the recent infusion of a $1.2 billion loan from Brazil aimed at modernizing agriculture in Nigeria, it remains uncertain whether this substantial funding will be effectively managed.

Available funds have the potential to improve various aspects of agric.

Are the funds reaching the actual small-scale farmers who form the foundation of the industry? What method will be used to distribute this fund? Will it be in the form of loans or grants to be given to commercial or large-scale farmers? It is crucial to address these inquiries to prevent the funds from being exploited by so-called portfolio or political farmers, and to ensure that every aspect of the agriculture sector benefits from it. According to Mr. Alabi, the available funds have the potential to improve various aspects of agriculture, such as boosting production, refining processing techniques, enhancing extension services, implementing irrigation farming, constructing greenhouses, introducing value chain additions, and minimizing post-harvest losses.

The aim is to achieve a much-needed transformation in the Nigerian agriculture sector, and these are the specific areas where the funds can play a crucial role in ensuring the desired modernization, he stated. In the pursuit of agricultural advancement, Fadlullah Issa, a member of the National Agriculture Extension Research Liaison Services (NAERLS), emphasized the crucial need for the nation to transition from subsistence farming to a more contemporary and streamlined approach. According to Mr. Issa, the latest studies reveal that a significant proportion of Nigerian farmers (ranging from 80 to 90 percent) continue to rely on swords or manual garden tools for their agricultural practices.

It is imperative to incorporate modern agricultural techniques.

Mr. Issa pointed out that despite the assertions of having tractors accessible to local farmers, those residing in rural areas contradict this claim by stating that they merely caught a glimpse of a tractor. He emphasized that in order to propel Nigerian agriculture forward, machinery utilization is of utmost importance. He further commented, For the modernization process, it is imperative to incorporate modern agricultural techniques including the utilization of suitable recommended practices, conducting comprehensive soil tests, and considering the appropriate use of agrochemicals.

As the population continues to expand, the looming threat to food security becomes increasingly apparent. Therefore, in order to effectively capitalize on this loan, it is imperative to allocate it conscientiously and direct it towards the most suitable avenues. Furthermore, he emphasized the crucial significance of ensuring that the intended beneficiaries, the genuine farmers, are the ones benefiting from the funds instead of any other parties. According to Mr. Issa, the disbursement of these funds should strictly avoid benefiting any political farmers.

Related Article: Lack of Irrigation Tools Impacts Farming

Prior to this loan, the Anchor Borrowers Programme (ABP) encountered a significant issue where a considerable portion of the funds ended up in the hands of unintended recipients, leading to widespread concerns about the failure to recuperate the funds. He remarked that for the allocation of funds, there is a requirement for a well-formulated policy framework. Additionally, the enhancement of extension services is crucial to facilitate the sector’s advancement. If education is neglected in the efforts to modernize the agriculture sector, then the focus on modernization becomes questionable. Accordingly, it is imperative to provide training to a larger number of extension agents who can actively drive this pursuit of modernization.


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AN-Toni
Editor
1 month ago

$1.2bn agriculture loan from Brazil to FG.Allocation of these funds must be effectively managed for optimal outcomes. – Express your point of view.

Adeoye Adegoke
Member
1 month ago

The $1.2bn agriculture loan from Brazil to the FG is a significant opportunity for the agricultural sector in Nigeria. It’s crucial that the allocation of these funds is effectively managed to ensure optimal outcomes.
Proper management of these funds can have a transformative impact on the agricultural sector, leading to increased productivity, improved infrastructure, and enhanced access to markets for farmers. It’s important to prioritize investments that promote sustainable agricultural practices, support smallholder farmers, and enhance value chains.
By effectively managing the allocation of these funds, the FG can create an enabling environment for agricultural growth, job creation, and food security. This may involve strategic planning, transparent monitoring mechanisms, and collaboration with relevant stakeholders, including farmers’ associations, research institutions, and private sector partners.
It’s exciting to see the potential that this loan holds for the agricultural sector in Nigeria. With careful management and a focus on inclusive and sustainable development, it can contribute to the overall economic growth and well-being of the country. Let’s hope for positive outcomes and a thriving agricultural sector! 🌾🌱

SarahDiv
Member
1 month ago

The $1.2 billion agriculture loan from Brazil is a promising opportunity for our country’s agricultural transformation. It’s crucial that the funds are allocated efficiently, reaching small-scale farmers and driving modernization across various aspects of the sector. We need to learn from past experiences, avoiding misallocation and ensuring genuine farmers benefit. Machinery utilization and enhanced extension services are vital for a successful and sustainable modernization effort. Overall, it’s a hopeful step, but effective implementation is key to maximizing its impact on our agricultural landscape.

Taiwo
Member
1 month ago

Brazil lends FG $1.2 billion for agricultural. For best results, these funds’ allocation needs to be well managed. This money should be used wisely to support our agricultural industry, which would greatly profit from the amount.

Kazeem1
Member
1 month ago

adequate distribution of Brazil’s large $1.2 billion loan with the goal of advancing Nigeria’s modernization of its agriculture.Once the federal government and the Development Bank of Brazil collaborate, Nigeria’s agriculture industry is expected to experience a radical transformation.The FG can foster an atmosphere that supports agricultural expansion by wisely allocating these monies.