The Oyo State Government has clarified its decision to withdraw from a maize export arrangement with the Government of Botswana. According to a statement issued by the governor's Special Adviser on Media, Dr. Sulaimon Olanrewaju, the decision was driven by data analysis and the need to protect Oyo State farmers. The government had explored a bilateral deal with Botswana to guarantee off-take and foreign exchange earnings for local farmers.
Comprehensive studies conducted by the Oyo State Agribusiness Development Agency (OYSADA) revealed that the economics of large-scale maize export were not viable. This led to the government's decision to pull back from the deal. The statement stressed that the decision was not a withdrawal from international agricultural engagement, but a strategic pivot to more profitable value chains like cassava.
The Oyo State government has made significant strides in agribusiness under Governor Seyi Makinde's administration. Some of the notable achievements include the ongoing Ijaye Agribusiness Industrial Hub and the establishment of OYSADA. Additionally, the Fasola Agribusiness Industrial Park has been set up and is recognised by the African Development Bank as Nigeria's first Agricultural Transformation Centre.
The government also cited improved rural security through Amotekun, rural road projects, and the Light Up Oyo initiative as measures taken to reduce post-harvest losses. These initiatives aim to create a more conducive environment for farmers and agribusinesses to thrive. By addressing these challenges, the government hopes to increase productivity and competitiveness in the agricultural sector.
Oyo State's early domestication of the African Continental Free Trade Area (AfCFTA) protocol has positioned the state for broader continental trade beyond a single bilateral deal. This move is expected to open up new opportunities for Oyo State farmers and agribusinesses to access new markets and expand their customer base.
The government's decisions reflect a clear approach to build a sustainable agricultural economy anchored on data, competitiveness, and long-term value. By focusing on more profitable value chains and investing in infrastructure and security, the government aims to create a thriving agricultural sector that can contribute to the state's economic growth.
The withdrawal from the Botswana maize export deal is part of the government's efforts to ensure that its agricultural policies are aligned with the needs of local farmers and the state's economic goals. The government remains committed to supporting farmers and agribusinesses in Oyo State and promoting sustainable agricultural practices that can benefit the local economy.
Key points
- Oyo State Government withdraws from maize export deal with Botswana due to unviable economics.
- The government is focusing on more profitable value chains like cassava and has made significant strides in agribusiness under Governor Seyi Makinde's administration.
- Oyo State's early domestication of the AfCFTA protocol has positioned the state for broader continental trade.
