ALFRED. A. ONABANJO DIRECTOR, PLANNING, RESEARCH AND STATISTICS, OGUN STATE MINISTRY OF AGRICULTURE, ABEOKUTA

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1 BY ALFRED. A. ONABANJO DIRECTOR, PLANNING, RESEARCH AND STATISTICS, OGUN STATE MINISTRY OF AGRICULTURE, ABEOKUTA

2 Nigeria is the most populous country in Africa with the population of over 140 million people. The country s domestic economy is dominated by agriculture, while the external sector is dominated by petroleum, which accounts for the bulk of the country s foreign exchange. The food sub-sector of Nigerian agriculture is a major component of trades import and parades an array of staple crops such as cereals, tubers, legumes and vegetables. Of all the staple crops, cereals (particularly rice) have risen to the position of eminence.

3 In the last 3 decades, rice consumption in Nigeria has risen tremendously at about 10 percent per annum, due to changing consumer preferences, occasioned by urbanization, convenience of preparation compared to other traditional cereals, population growth, increased income level and the changing position of rice from being a luxury to a major source of calories for the urban poor. Thus, rice has become a strategic commodity in Nigerian economy. Consequently, the Nigerian government has interfered in the sector over the past few decades. Public policy in this respect has neither been consistent nor appropriate and domestic production has continued to lag behind demand.

4 From the historic perspectives, Nigeria s rice policy can be mentioned with reference to 3 important periods. These are pre-ban, ban and post-ban periods. Some of the policies adopted were within the general framework of trade policy, exchange rate policy, fiscal policy, fertilizer policy and national seed policy and development plan.

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6 AGRICULTURAL POLICY OVERVIEW IN OGUN STATE Since its creation in 1976, Ogun state has had two agricultural sector policy documents. The first is the agricultural policy for Ogun state which was prepared in This policy encompasses the whole of the state s agricultural sector: crops, livestock, fisheries, wildlife, input delivery and land development. The second agricultural sector policy is the cash crop policy for Ogun state which was prepared in 2007 and outlines the policy objectives and strategies for six (6) major crops for which the state is considered to have substantial comparative advantage. These crops are cassava, kola, cocoa, cotton, oil palm and rice.

7 The overall policy objectives of the Agricultural Sector in Ogun State include the enhancement of self-sufficiency in food production, provision of raw materials for agro-based industries, generation of employment opportunities, as well as obtaining desirable levels of exports in order to improve the country s foreign exchange earnings. Under these broad policy objectives, the supervising ministry is charged with the following specific functions. To stimulate increase in the production of food; both plant and animal origin. To ensure adequate production and supply of raw materials to agro-based industries.

8 To generate employment opportunities in agriculture through the development of small, medium and largescale farms and farming. enterprises. To bring about integrated rural development in conjunction with other relevant government agencies in order to improve the quality of life of the rural dwellers. To create an enabling environment for public and private sector investments in agriculture and To protect agricultural land resources in the State from such hazards like erosion, flooding, drought, etc.

9 The document on which the experience is being shared today - the Rice Policy and Investment Strategy for Ogun state, which is currently awaiting the ascent of His Excellency, Otunba Gbenga Daniel, is expected to build on the directions provided by the two preceding policies by providing a clearer focus on how to achieve substantial and sustained increase in rice production and processing in the state over the next decade.

10 Within the past 2 years, rice was identified as one of the six major cash crops in which Ogun state has comparative advantage in production and therefore needed to focus policy attention on. In spite of the preparation and adoption of the said document on cash crop policy, not much significant difference has been noticed in rice production in the state. Current estimates suggest that Ogun state rice output is between 15,000 and 20,000 tons/annum and this is less than 0.5% of national rice output. Area under cultivation is about 12,000 hectares which accounts for a share of 0.7% of national area cultivated to rice.

11 This calls for concern, given the vast amount of resources and opportunities the state possesses for rice production. Ogun state currently abounds with opportunities for the expansion of rice production to grow above 0.7% of national output which it is currently responsible for. These opportunities include: availability of a large ready market for rice paddy, availability of a growing market for OFADA rice, availability of land for lowland rice cultivation, availability of land for expansion of upland rice cultivation, availability of manpower, availability of high yielding rice varieties, availability of sources of finance for investment in rice production and increasing numbers of agricultural service providers. It may also interest you to note that out of the twenty (20) Local Government Areas in the State, ten (10) of them are regarded as rice producing areas.

12 In addition, the establishment of the Ofada/Veetee rice mill in Itori, Ogun State strategically positions the state to be a major player in the rice sector revolution which is needed within the next few years. With a current installed capacity of 75,000 tons/annum of milled, expected to grow to 200,000 tons per annum at full capacity, the establishment of OFADA/VEETEE rice mill, has substantially expanded the market for paddy rice in Nigeria and in Ogun state in particular.

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14 Policy initiated by PrOpCom (Policy Champion) Series of interactive session between the Ogun State Ministry of Agriculture and the Policy Champion Engagement of a Consultant by PrOpCom to develop Rice Policy Document for the State Consultation of Stakeholders by Consultant. These Includes: Rice Processors Rice Traders/Merchants Consumers Rice farmers Seed Companies Agro-chemical Companies Academics Relevant Governments Agencies and Parastatals

15 Draft Report Submitted to Policy Champion Draft Report forwarded to the Ministry of Agriculture for necessary inputs and amendments Reviewed document sent back to the policy Champion Policy Champion facilitated the conduct of Stakeholders interactive meeting with the Consultant to fine tune the draft policy document The harmonized Draft Copy of the document submitted to the Ministry of Agriculture for further processing (Executive Approval)

16 The approach adopted was bottom-top which involved all stakeholders along the rice-value chain The intervention of PrOpCom has really facilitated the development of Rice Policy Document for the State which has also given birth to other policy documents on Agricultural Crop. In addition PrOpCom intervention facilitated the construction of 3- Rice processing plants in three different locations in the state; Iboro, Itori and kobape, while the fourth plant is underway. This effort about increasing rice cultivation in these areas. has brought

17 The adoption of Public Private Partnership to Policy development in Ogun State has really assisted the process of developing the Rice Policy Document. The Stakeholders had a sense of belonging to the document due to the participatory approach adopted. It is highly optimistic that the implementation of the policy shall be smooth.

18 At this juncture, I want to thank you once again for this opportunity given me to share our experiences with you on rice policy making process in Ogun State. It is our hope that we shall be available to share our implementation experiences with you in the nearest future.

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