Tuesday, January 09, 2018 02.17PM / CapitalMarketForum
THIS IS A REJOINDER TO THE INSIGHTFUL COMMENTARY FROM BODE OJO
hereafter published below….
Like so many of our economic and social problems in
Nigeria, the challenges of nomadic livestock farming in Nigeria among other
things are an infrastructure problem. Fundamentally, all agrarian nations until
they make the necessary investments in power, transportation and water networks
witness these challenges.
lack of power and equally, significant cold chain and water infrastructure
means that we are always moving livestock rather than meat
and we are always moving it in search of water and fodder.
Brazil, as an example has 300 million plus heads of
cattle. If you have travelled around urban and rural Brazil, you do not see
livestock moving, rather what is moving is meat through a cold chain, by rail
and road to major cities, ports and airports to all kitchens, restaurants and
tables around the world.
transformative potential of infrastructural development for Nigeria cannot be
overemphasized. Major infrastructure development projects create hundreds of
thousands of low to mid-skill jobs on a sustained, long-term basis across the
entire project value chain, from design, construction to operation, as well as
maintenance. In 2013, the Africa Development Bank (“AfDB”) estimated that
Nigeria’s GDP could have grown by an additional 2 percentage points (vs. 5.4%
actually recorded) if we had greater infrastructure stock.
access to infrastructure greatly influences the productivity of private
investment and improves a country’s competitiveness. Every $1 investment on
infrastructure has an estimated multiplier effect of 6-8x on economic activity.
Sustained infrastructural investment will be key to realizing Nigeria’s
twin economic objectives of diversification and industrialization.
power and transportation networks currently hamper the agricultural industry by
limiting processing capabilities and the efficient movement of produce from
farms to domestic and export markets. Inadequate transportation networks
especially rail is a significant constraint if mining output is to be moved to
ports for export to other markets.
will be impossible to improve our currently thin industrial and manufacturing
base without reliable and efficient power supply. Power generation, back-up and
other self-generation costs imposes a significant cost burden on business,
accounting for an estimated 15-40% of operating expenses across industries and
a significant portion of capital expenditure for large industrial businesses.
in infrastructure attract further domestic and foreign investments and it is
these investments, which are critical to job creation, perhaps Nigeria’s most
important demography related challenge for a country that will have 500 million
people in 30 years.
infrastructure will also lead to better social outcomes, including education,
health and life expectancy. Strong economic growth in all emerging
markets has always been premised on a consistent and rapid infrastructure
development programme. No country globally has succeeded in developing its economy,
in diversifying its economy and in lifting its people out of poverty without a
substantial programme of rapid and diversified investment in its infrastructure
the recession, one part of Nigeria’s government and economy continued to grow –
Lagos State. Lagos has built a disciplined approach to financing infrastructure
through the capital markets, raising bonds which are applied 100% to
infrastructure. On average75% to physical infrastructure (roads, power, rail
etc) – and 25% to social infrastructure (education, healthcare, stadia and
this to the sovereign, which raises bonds and utilizes a majority to finance
recurrent expenditure and a minority for capital expenditure including
infrastructure. I always remember a speech by late Chief Obafemi Awolowo,
from 1963 I believe, where he remarks that the Western region government’s
greatest achievement was keeping recurrent expenditure in the prior year to
is so much in our history that remains relevant and applicable today and as a
nation, there is an urgent imperative for us to commit to a massive public and
private investment over the next 30 years into building the infrastructure to
support what will be the third most populous nation on earth.
200,000 megawatts of power, up to 10,000 kms of rail, up to 100,000 kms of
roads, up to 5,000kms of gas networks, water, waste management, broadband and
further telecoms infrastructure, educational and healthcare infrastructure,
student housing etc…, need to be developed, financed and built. We must also do
this with a focus on low carbon infrastructure.
wish us all a most exciting journey.
An extract of discourse in Ekitipanupo Forum towards
finding a lasting solution to livestock farming issues and eliminating the
menace of violent herdsmen in Nigeria.
Agricultural and security experts can provide the
necessary solutions to the problems associated with nomadic livestock farming.
1. A technical and investigative study of the
immediate and remote causes of the problems associated with livestock farming
in Nigeria should be carried out by government, particularly that of nomadic
herdsmen. Recommendations should be made on how to mitigate all the failures in
that sector and redevelop the sector. A crime free society is desirable.
2. Currently, farmers are being encouraged by
agricultural experts to cultivate a particular type of plant that is repoignant
to cattle,round the farm. This will keep the animals off.
3. The herdsmen should be encouraged to feed
their livestock with forage crops. Forage crops are crop cultivated for feeding
livestock. Nomadic herdsmen for now,prefer zero cost feeding.
4. Modernisation of livestock farming in
5. Establishment of meat processing factories in
the North and the middle belt. Afterall,we eat imported frozen fish,frozen
turkey and frozen fish in Nigeria. Farmers,state government and Nafdac can work
together and standardise meat processing business. We don't need too many heads
of cattle down south.. What we need is animal protein. The animals are no
pets,why must we flood the south with them.
6. Irrigation practices in the North will
provide lush vegetation for feeding animals up North.
7. The political dimensions of the activities of
herdsmen should be addressed. Apparently, some of them are involved in communal
clashes. Some are land grabbers.
8. Government should address the issue of
proliferation of light and small arms in West Africa..
9. Education,both formal and informal should be
widespread in terms of capacity and quality,nationwide. We need to make our
citizens appreciate the value of life and the essence of living.
10. Elimination of the culture of impunity in
our land. The rule of law must be established in Nigeria.
11. Strict state control laws on illegal
activities of herdsmen and appropriate sanctions should be meted out to those
who violate the laws of the land.
12. Government should disarm all herdsmen and
ensure their biometric registration. The state and federal government can
collaborate on this.
13. Job creation nationwide will reduce all
14. Export of meat products like corned beef
will create an external market.
15. There is possibility of a boycott of meat
products,if the herdsmen remain unlawful.
16. The agricultural sector in the North needs
to be well structured and repositioned for Northern state governments to tax
the players and enhance their IGR.
17. There is need for
rapid intelligence gathering and proactive steps on the part of government and
all intelligence agencies.
Also, we need to employ modern technology in the area
of security management in our clime.
We have said it severally that we need to build strong social institutions and
strong people. It is therefore very necessary that as a nation,we must embark
on a cultural revolution. The time to up our value system is now. For
long we have been with poor values. Our nation is deficient in moral capital.
I strongly believe that with a clear focus,
government can tackle all the problems associated with nomadic livestock
farming in Nigeria. We did not have crisis of this magnitude in the 1960s
Bode Tope Ojo
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