N22bn Annual Fertiliser Subsidy, A Major Drain On Treasury – Sanusi

Governor of the Central Bank of Nigeria (CBN), , Malam Sanusi Lamido Sanusi, says that the N22 billion the Federal Governemnt spends on fertiliser subsidy annually, constituted a major drain on the nation’s treasury.

Sanusi, who disclosed this to newsmen in Abuja, recently during an interactive session with the House of Representatives Committee on Agriculture, added that only 11 per cent of the subsidised fertiliser got to farmers.

He maintained that the government should hand over fertiliser procurement and distribution to the private sector.

“Government should only concern itself with the provision of quality regulatory framework that will promote local manufacturing,’’ he said.

The CBN governor identified poor quality fertiliser, adulteration and absence of a regulatory and quality control system as the bane of the fertiliser regime in the country.

He also called for the deregulation of the agricultural insurance sector industry by amending part three, section 13 of the NAIC Decree 37 of 1993, to allow for private insurance companies to participate in agricultural insurance service delivery.

In this regard, therefore, he canvassed for the overhaul of the Nigeria Agricultural Insurance Corporation (NAIC).

He said that the Nigeria Incentive-Based Risk Sharing for Agriculture Lending (NIRSAL) would work closely with the MDAs to tackle issues related to agricultural inputs.

“NIRSAL will provide technical assistance to help organise farmers into cooperative groups that can act as recipients of working capital for crop production.”

He noted that the agriculture sector was central to the country’s economy, accounting for 40 per cent of GDP and 60 per cent of employment.

“Agriculture is a major source of employment growth, providing 51 per cent of jobs in Nigeria between 2001 to 2007.”

Sanusi maintained that Nigeria as a country, spent only three per cent of its annual budget on agriculture while spending one billion dollars annually on rice importation.

Rep. Mohammed Mongonu (ANPP-Borno), the Chairman of the committee said that the interactive session was aimed at harvesting views that would assist in proffering solutions to the problems confronting the sector.

Mungonu stressed the need for collaboration between the National Assembly and the Executive to improve on the development of the sector.