NO CORPORATE FARMING IN NIGERIA AGAIN?

If the agricultural credit guarantee scheme is anything to go by, it looks like there is not much of corporate agricultural activities presently in Nigeria.

Yet it is a well known fact that corporate agricultural activities are needed to ensure the sector adds more value to output, grows on the back of large scale operations and continues to innovate in response to challenges.

According to the CBN monthly report on the agricultural credit scheme for July, it is obvious that the bulk of the loans guaranteed go to individuals and, from a long distance cooperative societies. Companies are hardly involved.

In terms of number that accessed the scheme in April, individuals made up 84% and by May, it came to 92.1%. In June it was 99.4% and come July, 99.95%.

In all four months only two corporate recipients featured: one each in April and June.

In the case of cooperatives. 619 were involved in April compared to 3269 for individuals yet this dropped drastically to 27 by May and two each in June and July.

In terms of amount guaranteed, 91% went to individuals in April  followed by 80.6% in May before June's 99.5% and July's 99.8%.

Yet the average amounts guaranteed under the scheme were fairly high or high enough to be worth the attention of companies.

In April, 80.8% of the amount guaranteed ranged between N50m and N100m while 13.1% ranged between N10m and N50m.

By May the up to N100m range share dropped to 70.8% then to 67.2% in June before a slight recovery to 69.7% by July.

On the other hand, between N10m and N50m range share rose to 20.6% in May, 26.3% in June then eased to 19.7% by July.

Apparently, ways have to be found to get individuals, cooperatives and even companies from some states in the federation to embrace the scheme more vigorously.

For example, throughout the four months considered for this analysis, no one benefitted from Bauchi, Borno and Yobe states.

In addition, the following states had beneficiaries in only one month: Cross Rivers, Sokoto, Jigawa and Taraba while Lagos and Adamawa States recorded beneficiaries in two months only.

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