BY NAOMI UZOR

The Bank of Agriculture (BoA), has said that from the perspective of sustainable agricultural growth and development in Nigeria, the most fundamental constraint is the peasant nature of the production system.

Disclosing this at a one-day dialogue session organised by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), tagged “National Dialogue on Agriculture Value Chain: Enhancing Agricultural Export Through Adequate Financing” the South West Zonal Manager, BoA, Mr. Olusegun Asiwaju, said, the most fundamental constraint in agricultural growth and development in Nigeria is the peasant nature of the production system, with its low productivity, poor access to funding which ultimately leads to poor response to technology adoption strategies, and poor returns on investment. According to him, it is recognized that agricultural commercialisation and investment are the key strategies for promoting accelerated modernisation, sustainable growth and development and, hence, poverty reduction in the sector.

However, he said, to attract investment into agriculture, it is imperative that those constraints inhibiting the performance of the sector are first identified with a view to unlocking them and creating a conducive investment climate in the sector.

“Agricultural financing is the sourcing of fund and making it available for agricultural production and uses. It involves the judicious and efficient disbursement of funds so sourced for agricultural and agro-allied productions so that the investor will be able to pay both the interest and the principal as at when due and enough return for his capital.

Agricultural credit is necessary because of the limitations of self finance and uncertainty of the level of farm input and output and time lag between inputs and output” he said.

He noted that Agriculture is a very important sector as it has multiple bottom lines and as a nation, Nigeria has a competitive advantage in Agriculture and that it remains the pivot around which other non oil export products should depend on, hence the policy thrusts of the Government and other stakeholders must give it  adequate attention adding that, economic growth achieved through agricultural development is three times more effective in reducing poverty than that achieved through other means.