Doubts Persist Over Tertiary Institutions' Ability To Utilise FG's Agric Fund

The Federal Government's decision to provide N2bn in financing to each of 40 tertiary institutions to establish commercial farms has been met with skepticism. Stakeholders have expressed doubts over the ability of these institutions to manage the funds effectively and judiciously for the purpose it was meant for. This move is part of efforts to boost food production, create employment, and reduce dependence on government funding by universities and other higher institutions.

Mr. Nze Benjamin, a food security specialist, expressed skepticism regarding past interventions and execution records of government-funded agricultural schemes in Nigeria. He pointed out that tertiary institutions in Nigeria do not have a track record of managing agricultural financing effectively to boost food production in the country. Benjamin queried whether the funds would reach actual farming operations or suffer from bureaucratic mismanagement.

Mrs. Godwin Okezie, a staff of the Federal Ministry of Agriculture and Food Security, noted that while injecting capital into university-led agriculture is a novel push, higher education institutions have historically struggled to balance commercial farming operations with their primary academic mandates. Okezie maintained that tertiary institutions over the years have failed woefully to contribute significantly to food security systems in the country.

The Minister of Education, Dr Tunji Alausa, disclosed that the programme is designed to mobilise more than 500,000 hectares of underutilised land across tertiary institutions for commercial agricultural production, research and enterprise development. Participating universities, polytechnics and colleges of education would be expected to provide approximately 1,000 hectares each, although institutions with smaller landholdings could also qualify based on the viability of their business proposals.

Under the arrangement, each participating institution would establish a limited liability company to partner with the Bank of Agriculture, which would provide between N1bn and N2bn in financing for agricultural production and related inputs. The minister explained that the initiative was aimed at addressing the longstanding underutilisation of agricultural land in tertiary institutions by providing access to financing, machinery, technical expertise and institutional support.

The Managing Director and Chief Executive Officer of the Bank of Agriculture, Ayo Sotinrin, said the bank would provide financing and market linkages to help participating institutions commercialise agricultural research and improve productivity. He added that the initiative would enable tertiary institutions to contribute to food supply beyond their immediate communities while generating revenue from agricultural investments.

Some tertiary institutions have welcomed the initiative, describing it as an opportunity to harness their agricultural research and production capacity. The Vice-Chancellor of Ahmadu Bello University, Zaria, Prof Adamu Ahmed, cited the university's Institute of Agricultural Research, National Agricultural Extension and Research Liaison Services and Faculty of Agriculture as existing structures that could support the programme.

Key points

• The Federal Government has provided N20bn in its capital budget to support 20 tertiary institutions under the agricultural development initiative.
• Participating institutions would have access to 10 tractors each at significantly reduced costs through the government's agricultural mechanisation initiative.
• The programme would extend beyond primary agricultural production to processing and other agro-allied businesses, creating a sustainable value chain around participating institutions.