Federal Govt Strengthens Agricultural Devt Through Land-based Investment

The federal government has reiterated its commitments to adopting responsible and inclusive land-based investment principles in the agricultural sector in line with the Renewed Hope Agenda of President Bola Tinubu’s administration to improve the ease of doing business, deliver on food security, and ensure social and environmental sustainability.

The national programme coordinator, State Action on Business Enabling Reforms (SABER) Dr. Ali Mohammed made the remarks on Monday in Abuja at the commencement of a workshop on the Framework for Responsible and Inclusive Land-Intensive Agriculture jointly organised for sub-nationals by the Federal Ministry of Finance and the Nigeria Governors’ Forum (NGF).

The SABER programme is a 3-year (2023-2025) $750m programme for results that seeks to incentivize states to implement critical reforms aimed at improving efficiency in land administration, regulatory framework for private investment in fibre optic deployment and services provided by investment promotion agencies and public private partnership units among others.  

Disbursements are expected to be on-lent to the states upon annual verification by an independent verification agent that a state has successfully implemented the associated reform, according to the communication specialist for SABER programme, Ibrahim Mohammed.

Dr. Mohammed lamented that although food production has increased steadily, attaining food security remains a major challenge, noting that while the government has intervened in terms of making financing and inputs available, more systemic issues around land administration and compliance with best practice standards remain an issue.

“As we seek out increased investment in the Sector, we must ensure that impediments to doing business are removed and that investors adhere to principles and guidelines that safeguard the rights of host communities. They should also employ operating models that have the least impact on livelihood and the environment. It is our belief that the Framework for Responsible and Inclusive Land-Intensive Agriculture (FRILIA) provides the roadmap for attaining these objectives”.

Mohammed disclosed that in order to provide the right enabling environment, the ministry of finance through the World Bank-assisted SABER programme, has engaged governors’ forum to assist in providing a suite of technical assistance services including advisory, guidelines, peer learning sessions and technical workshops.

He highlighted that the financing from the program seeks to reward States with over $4.5 million each for successfully setting up the requisite governance systems, guidelines and piloting investment(s) in line with established Principles. “This reform will also strategically position your States for local and Foreign Investment, hence, creating more jobs and eventually, propel the much desired Economic Growth,” he stated.

Director-general of the NGF, Asishana Bayo Okauru Esq. disclosed that under the SABER programme, NGF is working collaboratively with the finance ministry and the World Bank to deliver advisory and capacity building support to states.

Okauru observed that land-based investment in Nigeria has been marred by various challenges ranging from lack of clarity on governance mechanisms; weak administrative support systems for stakeholders; poor data; little or no recognition for inclusion, gender equality and cultural values; poor engagement with host community; disproportionate compensation and resettlement for persons displaced.

“These have impacted negatively on the cost of doing business, agriculture value chain, livelihood, environment and ultimately, economic development,” Okauru said.

To address these challenges, the DG emphasised that state governments seeking out investment for intensive land-based agriculture, must think through strengthening their governance and administrative systems by ensuring that issues of inclusion, gender equality, fair compensation, environmental as well as social sustainability are prioritised, and that established guidelines thereof are adhered to by all stakeholders.

According to him, the model Executive Order being advocated by NGF sets out in-part the governance and administrative mechanisms, commitment to international and proven principles that guarantee recognition, respect and protection of land and human rights.

“It also outlines commitment to ensuring inclusion and gender equality, environmental and social sustainability, food security, responsible natural resource management amongst others”.

Okauru also thanked the World Bank and the Federal Ministry of Finance for their continued support and collaboration in advancing reforms for sub-national development.