Nigerian Senate Urges Allocation of 10% Annual Budget Revenue to Agriculture for Food Security
The Nigerian Senate has called on the federal government to allocate a minimum of 10% of the total annual budget revenue to agricultural production. The move aims to address concerns about food security in the country. The call was made during a joint budget defense session of the Ministry of Agriculture and Food Security, where Salihu Mustapha, Chairman of the Senate Committee on Agriculture Production, emphasized the crucial role of the agricultural sector in poverty reduction and its significant contribution to the nation’s GDP.
Key Points:
- Budget Allocation Concerns:
- Salihu Mustapha expressed concerns that budget allocations for agriculture fell short of the 10% commitment made under the Maputo declaration. Despite being the largest contributor to the nation’s GDP from the non-oil sector (over 20%), the allocation to the sector has not met the Maputo commitment.
- Importance of Agricultural Sector:
- Mustapha highlighted the potential of the agricultural sector to lift millions of Nigerians out of poverty and provide essential food security. He urged the federal government to prioritize the sector in national economic policies and future budgets.
- Commitment to Urgent Budget Process:
- The Senate Committee on Agriculture Production committed to treating the budget process with urgency and responsibility. Mustapha commended efforts to revert to a January-to-December budget cycle, noting its benefits for both the public and private sectors.
- Impact of Naira Re-design Policy:
- Agriculture and Food Security Minister, Abubakar Kyari, revealed that the Naira re-design policy by the Central Bank of Nigeria adversely affected farmers. The policy, carried out from December 15, 2022, to early February, led to a cash crunch, forcing farmers to sell produce at low prices, contributing to threats to food security.
- Action Plans for Food Security:
- Minister Kyari outlined action plans for the 2024 fiscal year to address threats to food security. These include securing farmlands, reviewing fertilizer delivery mechanisms, fast-tracking the National Agricultural Development Fund, and implementing joint action plans for irrigation potential.
- Budget Allocation for Agriculture:
- For the 2024 fiscal year, a total of N362.940 billion was earmarked for the agricultural sector, with N124.1 billion allocated to the Ministry. This allocation includes funds for personnel costs, overhead, and capital expenditure.
Conclusion: The Senate’s call for a minimum 10% allocation of annual budget revenue to agriculture reflects a concerted effort to prioritize food security and address challenges faced by the sector. As the government works towards implementing action plans outlined by the Agriculture and Food Security Minister, the allocation and effective utilization of funds will play a crucial role in revitalizing the agricultural sector and ensuring sustained food production for the nation.
