Analysis of 2013 federal budget on agriculture

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Analysis of 2013 federal budget on agriculture

  1. 1. Analysis of 2013 Agricultural Sector Budget By Esther Agbon & Constance Okeke
  2. 2. Background• Agriculture spending is critical to reducing poverty and promoting development in Nigeria• Small holder farmers (2ha) produce over 90% of the Nations food• Agriculture employs about 70% of the population• Successive governments have failed to prioritize agriculture
  3. 3. Background• Agriculture is the largest contributor to GDP – over 40%• Real GDP growth in terms of output is 3.7% as compared to 5.95% in 2011, (NBS,Q2, 2012)
  4. 4. Major Challenges• Low access to extension services, credit and input• Standard is 1:500 extension worker farmer ratio• In Nigeria extension worker to farmer ratio is 1:1,500 households• Low access to land - 38% of farm household own no land, about 25% own 1ha or less
  5. 5. Challenges• Only about 40,000 ha are irrigated which is less than 1% of land actually in use• Crop yields are far below their potentials despite available arable land• In Nigeria a ha yields only 4 tonnes compared to other countries with 13 -14 tonnes/ha of agricultural products• Loss of farm lands, produce, livelihoods due to climate change
  6. 6. Women in Agriculture• Small holder farmers face even greater challenges• Form 60 – 80% of the labour force• Carry out 50% of husbandry and 60% of food processing• They produce both food and cash crops and perform multiple roles on and off farm• Work on their own plots as well as others as unpaid or paid labourers
  7. 7. Government Policies• policies and plans to increase productivity include; Agriculture transformation agenda, CAADP, MDG 1, vision 20:2020• Federal and state level programs on fertilizer research, credit loans etc• Despite these, budgetary allocations and actual spending on agric key services are grossly inadequate to reduce poverty
  8. 8. Focus of analysis• Government spending on key areas such as- Women farmers- Input (seeds, fertilizer, chemicals etc)- Extension services- Credit- Research and development
  9. 9. Funding Trend• Funding for agriculture has been on the downward trend since 2009 Agric funding trend 6.2 3.6 1.9 1.7 1.66 % % % % % 2009 2010 2011 2012 2013
  10. 10. Findings• Total Agric budget 1.7% of 4.920t amounting to N81,410b Total Agric budget Main Ministry Recurrent 15% Other DAs 42% Main Min 58% Capital 85%
  11. 11. General Observations• The budget lines especially for the main ministry are very ambiguous – lacks details• Most of the budget items do not contain intervention locations as with some of the DAs• Climate change gets N60m – lacks proper description Is it for adaptation? Mitigation? or ………….• Repetition of items such as seeds and fertilizer with no description on location, specification, quantity poses challenges for monitoring
  12. 12. Provision for Women• No clear budget line for women farmers except for training of 3000 women in value chain worth N100 million• Amounts to N33,000 per head including other costs• Starter packs for 2500 women worth 87.5 million• Compared to the number of women in the sector the amount and target is insignificant• Contradicts the policy thrust which presume focus on women
  13. 13. Farm Input and Extension Services• Fertilizer, seeds, fungicides repeated severally with different budget costs• extension service gets N12m for capacity building – how many people how many days?• while a feasibility study for a meat processing and packaging gets N200m• Farmer field schools get paltry N53m• The quality of allocations are not people driven
  14. 14. Credit• Provisions for access to credit is funded by the ongoing MDG1 projects- Access to credit - N250,000,000- Access to credit – N900,000,000• Question is who, where and how many people will benefit from this loan?
  15. 15. Research and Development• The agencies and departments in agric ministry are mainly research institutes• Only 42% of the total budget will be shared among them• Main ministry spends N100,000,000 for R&D• Question is why are the research Institutes so poorly funded?• Obvious the institutes will not fare well in 2013
  16. 16. Research and Development Capital vs recurrent3,000,000,0002,500,000,0002,000,000,0001,500,000,000 Recurrent1,000,000,000 Capital Total 500,000,000 0 1. National Centre for 2. Agric Research & 3. National Root Crops 4. Natioanl Institute for 5. Institute of Agriculture Agric Mechanisation - Management Institute - Research Institute - Oil Palm Research Research - Zaria Ilorin Ilorin Umudike (NIFOR) Benin
  17. 17. Bloated/Wasteful Overheads• Office construction for the main ministry was duplicated severally with different costs.• Construction/provision of office building – N1.6m• Fencing and engineering design of Hqtrs –N620m• Remodelling of the same Hqtrs – N100m• Processing zones repeated 6 times @N200m each, lacks description and location
  18. 18. Recommendations• Federal Government and states should progressively fund agric to reach the 10% Maputo agreement• The allocations must be qualitative and people centred• Increase massively, spending on extension services – recruitment & training, credit and inputs• Sincerely prioritize credit and input for women farmers in the budget
  19. 19. Recommendations• Refocus the fertilizer subsidy programme and agric research services to adequately target women considering their role in the sector• Make agric budgets more descriptive and clear to aid monitoring• Ensure participation of farmers, CSO and other stakeholders in annual budget process to aid design of agric programmes and projects
  20. 20. Thank you for Listening

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