FG Targets 2 Million Farmers With Fertiliser Support, Guarantee Minimum Price
- The FG has indicated its intention to launch a Guaranteed Minimum Price (GMP) scheme
- The initiative will include the distribution of 10 million bags of fertiliser under the Renewed Hope Smallholder Support
- Agriculture Minister Abubakar Kyari said the programme will protect farmers from exploitative prices
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has launched a Guaranteed Minimum Price (GMP) model for two million smallholder farmers while flagging off the distribution of 10 million bags of fertiliser under the Renewed Hope Smallholder Support and Value Chain Fund (RH-SVCF).
The Minister of Agriculture and Food Security, Abubakar Kyari, unveiled the initiative on Friday in Zaria, Kaduna State, saying it marks a major shift in agricultural support by providing farmers with assistance from planting through harvest and guaranteed market access.
Source: Getty Images
According to a statement issued by the ministry, every beneficiary farmer will be linked to a Farmer Aggregation Company, with Arzikin Noma coordinating implementation in Zaria.
The companies will provide certified seeds, fertiliser, extension services and guaranteed off-take of produce at government-approved minimum prices to protect farmers from distress sales.
Kyari said the programme is designed to strengthen agricultural value chains while ensuring farmers no longer bear production and market risks alone.
He said:
"The biggest shift is not the volume of inputs, but the structure of delivery. From now on, there is an institution beside you when you plant, and an institution beside you when you sell."
The minister said one-third of the programme's beneficiaries are women, adding that timely fertiliser distribution during the planting season will help improve crop yields.
He also said the guaranteed pricing mechanism aligns the interests of farmers and aggregators while investments in local processing will boost food production, livestock feed and national food security.
Nearly 300,000 farmers already onboarded
Kyari commended the Bank of Agriculture and Arzikin Noma for ensuring prompt delivery of farm inputs ahead of the peak planting season.
He noted that Arzikin Noma has expanded its farmer network from fewer than 3,000 to more than 400,000 farmers, with a target of reaching one million by 2030, Punch reports.
Source: Getty Images
The Managing Director and Chief Executive Officer of the Bank of Agriculture, Ayodeji Oludare Sotinrin, said the programme is expected to reach two million smallholder farmers across the country with over 10 million bags of fertiliser.
Sotinrin disclosed that nearly 300,000 farmers have already been onboarded, while more than 1.1 million bags of fertiliser and 16,470 metric tonnes of improved seeds are being distributed through 20 Farmer Aggregation Companies operating in over 20 states with support from 15 accredited input suppliers.
Dangote begins fertiliser project worth $2.5bn
Earlier, Legit.ng reported that the president and Chief Executive of the Dangote Group, Aliko Dangote, has led the groundbreaking of a $2.5 billion fertiliser plant in Gode, Ethiopia.
A statement by the Dangote Group said the project is a partnership between the Dangote Group and Ethiopian Investment Holdings.
The statement also revealed that the fertiliser plant has a production capacity of three million metric tonnes of urea annually and is expected to become one of the world’s largest fertiliser complexes.
Source: Legit.ng
