Aregbesola tasks CBN over Agric Financing

Governor Rauf Aregbesola of Osun State has urged the Central Bank of Nigeria (CBN) to change its attitude towards the state by treating its application for support programme to assist genuine farmers.

The Governor made the appeal at the third anniversary of the Quick Impact Intervention Programme and turning of sod and laying of foundation for the Osun Soil and Food Laboratory Comalex at Free Trade Zone, Abere, Osogbo

He said: “We have embraced the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), which unfortunately is being unduly delayed.

This unproductive delay has its root in the non-operation of NIRSAL. For our counterpart fund of N300 million in the N600 million QIIP 2, we made available our N9 million NIRSAL Premium for its first year of operation.

“Unfortunately, NIRSAL, which was supposed to be in operation was not and could not avail the premium and the money had to be returned to our treasury without the supporting benefits we intended to get for our farmers and for which the Central Bank of Nigeria (CBN) had earlier assured us.”

Aregbesola therefore called on the CBN to hasten action by ensuring that NIRSAL begins operation before the end of the year, saying an effectively functional programme like NIRSAL will boost and speed up agric-financing by the financial institutions.

According to him, “this programme will encourage financial institutions to support a large number of small and large-scale farm-holders and promote revolvability of loans and build up the necessary wide pool of agric-financing expertise in our economy for consistent and sustainable growth and development of agriculture in our country.

“In addition to the loan scheme, QIIP has been working assiduously to implement a variety of other projects. One of them is the Osun Modern Beekeeping, Queen Honey Bee Rearing Project (O-Honey.) We have established a modern apiary with queen bee rearing capacity and extractor – the first of its kind in Sub-Saharan Africa. It is expected that this will boost production and plant pollination in the state, specifically at Odo-Otin Local Government Area.

“The focus of the project includes training of unemployed youths in modern beekeeping and queen honey bee rearing, production of honey and wax, distribution of starter package to beginner beekeepers, increasing bee pollination for increase in crop yield and export of honey. Compensation has recently been paid to the land donors at Oyan, and work is ongoing to complete the construction of the factory and the installation of the honey processing equipment.

“Let me also add that programmes like O’REAP(Osun Rural Enterprise and Agricultural Programme), O’REAP Youth Academy, the Osun Broilers Out-Growers’ Production (O’BOPS), the Osun Fisheries Out-Growers’

Production (O’FOPS); the Osun Beef Value Chain project (O’BEEF), and the Osun Elementary School Feeding and Health Programme (O’MEALS) have effectively seen to the empowerment of many of our people.”

“Additionally, through the Osun Agricultural Development Corporation

(OSADEC), we have distributed 10 sets of gari processing machines; 10 sets of cassava chips machines; and three sets of yam flour processing machines at subsidized prices to interested Cooperative groups and other members of the public.

“We have done the same with agricultural inputs for our farmers who have benefitted from highly subsidized fertilizer, solid herbicides, liquid insecticides, solid insecticides, fungicides and other agro chemicals.

“The subsidy programme to farmers also includes the distribution of improved rice, cassava, palm oil and cocoa seedlings, among many other viable empowerment programmes time will not allow me to highlight.

“Distinguished audience, the Osun Soil and Food Laboratory we are laying its foundation today is another programme that will move the state further in its quest to become a formidable emporium of food production, food security, and economic growth.

“This momentous initiative is a product of the collaboration between our state and the State of Saxony-Anhalt in Germany. Our German partners designed the complex whose foundation we are laying today.

When completed, this laboratory will be a key resource for increasing the quantity and quality of food production in the state, as well as provide jobs for some of our unemployed scientists and technologists.

“The soil laboratory will help ensure that crops are grown in appropriate soils and where soils are nutritionally deficient the lab will provide recommendations for suitable fertilisation. The food laboratory will determine nutritional content of foods and livestock feed, ensure quality in food products and detect or prevent contamination along the entire value chain.

“Any producer intending to export their products overseas will be able to bring their products to the lab and have them tested and certified in line with international standards and best practices. When the products are properly certified, the risk of rejection at the destination ports will reduce.

“This laboratory will further expand and widen the enabling environment for food production and security that this administration has already taken numerous steps to actualise in the state.

“I wish to assure you all that this project will come to fruition. We are starting it and we will complete it. We are also not tired of doing more for our farmers. We are more energised to see to the progressive empowerment of our active adult citizens.

“If in three and a half years we are able to turn the agricultural sector positively around, empower our people, create decent jobs, and engender increased food production, there can be no doubt that with additional four years we will perform more spectacularly.”