$1.2bn Green Imperative Project: Sustaining the goals through systemic implementation

Economic matters have remained core subjects of note in Nigeria amidst the winds of evolving phenomenon in recent times. The nexus of this (economic) wing of human life to other aspects of human endeavour is such that holds a strong bearing to the working state of any other area of human life. Most recently, the discourse over the effects of economic strains on the working fabrics of the entire Federation has become a topical issue. Subjects have been categorically put into perspective from different angles on the brewing chains of impacts the deepening profile of the depressed and recessed state of the economy is bearing on the condition of living in the Country. While there are several macroeconomic deficiencies with unhealthy disturbances, the issue of domestic food inflation has been more reverberating at the local level among the masses. Evolving concerns have continued to surface with reactionary social manifestations which are highly distasteful.

While critics who have been hard on the government have continued to take whipping positions, there are some who in their criticisms have continued to expound assertions on how best the Government can make it out of the deepening mire of economic disorder. Various postulations have been advanced and canvassed by concerned economists to direct the Government on the best instruments to practically employ in redeeming the Country’s economy from the worsening woes of recession and depression. One key recurring subject which has attracted popular recommendations as a pillar to rebuilding the Nigerian economy is growing Agriculture. However, it is important to fixate matters on perspective in this regard.

The state of the agricultural sector in Nigeria has been a matter of topical discourse which embodies sources of reservations. The prevailing status of productivity profile in the sector preponderantly saturated by small scale, subsistence, and traditional farming practices have been critically identified as an infantile character which does not speak to the relevance of the height of standing as a strong pillar for economic virility. The concerns which have been raised therefore dovetail towards the perspective that in any case where the sector would be reckoned with as a pillar to diversify the economy for appreciably concrete growth, there must be a refocusing of the working patterns of the sector. Postulations have therefore been resounding on the necessity to redirect the course of agricultural productivity in Nigeria to a mechanized system that gives resemblance to the state of practice that is capable of driving the desired economic growth.  However, while the call has been visited with inappreciable posture, the need to pay more attention to details of the demands are paramount.

One approach by the Federal Government that gives some ray of resonance to this was the disclosure on Wednesday on the moves to galvanise mechanised farming and other aspects of Agriculture with a $1.2 billion loan under the Green Initiative project in order to boost food security, availability, affordability and job creation across various value chains. The Special Senior Adviser to the President on agriculture, Andrew Kwasari, who made this known at a press conference held in Abuja, in his explanation said the Green Imperative is an agricultural bilateral project that has been agreed upon to be delivered in Nigeria, between Nigeria and the government of Brazil. He was quoted saying, “This project has been in the making for some time now; we have reached the point where we are completely ready for its takeoff. The green imperative will address twin issues with agricultural modernization in Nigeria; provide mechanization, and provide agro property and these two work hand in hand through what we call service centers. These service centers will be created in each local government across the country to compliment and support the primary production through mechanization and value addition through agro-properties. These have carefully been designed over the years and we are happy to have update today because we have been waiting for the national assembly to give a go-ahead to activate this loan. The most important thing is that it is private sector driven so all the study centers will be on and operated by private entrepreneurs and they would have the responsibility of servicing the loan. So if we are to summarize the green imperative, it is a project that will engage foreign direct investment of €995 million or $1.2 billion that has been structured financially to allow the government of Nigeria use her bilateral provision and arrive at a financing that will develop three per cent per annum interest rate and also have a long gestation period of about 15 years to repay, and then subsequently structured so that this loan having secured, Nigerian insured it in the insurance market. So we have financing coming from Dutsche Bank, Development Bank of Brazil and then it is reinsured by the Islamic Development Bank, the Islamic Corporation for Insurance of Export Credit. This removes the risk of this loan; we have reinsured this loan in our international insurance market. Subsequently then, the loan would be structured with a monetary policy from Central Bank which has been developed jointly; Central Bank, Ministry of Finance and Ministry of Agriculture to allow the un-lending of this loan to entrepreneurs and these entrepreneurs will be given a loan at domestic level, so what comes to our local entrepreneur is Naira denominated loan with a monthly policy, the draft of which has been finalized by the Central Bank and participating financial institution that we allow our entrepreneurs take up this loan and utilize it and pay back effectively.”

While the move is commendable, the necessity to substantiate it with a working system to yield the desired results is paramount. The experience with several agricultural programmes which over the years have suffered systemic failure is a saddening narrative which is one common character of public policy in Nigeria. It is imperative that the Government develop an overarching system that guards the workability of the scheme under structural patterns for appreciable sustainability to achieve the desired results in the long run. The Green Imperative project aimed at the modernisation and mechanization of agricultural practice in the Country should be held with firm grip to prevent it from sliding into the fate and syndrome of policy somersault which is practical of policy implementation in Nigeria.

The danger of losing sight of the goals of the initiative holds acute danger to further stiffen the Country’s economic profile, given the huge loan involved. It is therefore essential for the Government to develop stronger patterns for the workings of the initiative under a sustainable system that is virile to yield the desired results. This system should be such that will outlive the present Government with flexible charatcers that permit for progressive mechanisms of reforms to further revitalise the working patterns without eroding the goals in sight. It is hence paramount to save the initiative from a defeat of purpose, by shielding it with systemic implementation patterns as the basic strategic architecture towards vitalising and building a virile agricultural sector in the Country.