AfCFTA is out to promote commercialization of research outputs on improved varieties, collaborate with Empower Programme to create extension mechanism for training and capacity building for small holders.’ 

SIAKA MOMOH 

The African Continental Free Trade Area (AfCFTA) is out to grow oil palm business in Nigeria, a paper presented by Michael Faniran, Strategy, Planning and Coordination Lead, National Action Committee(NAC) on AfCFTA, has revealed.

Faniran presented the paper at the AfCFTA/POFON Oil Palm Stakeholders’ Meeting held in Benin via Zoom recently.

According to Faniran, the institution is out to enhance access to inputs and right planting materials, improve access to land – subnational to dedicate land for clusters across 24 producing states with ground rent paid to state government by farmers, strengthen the capacity of NIFOR to meet the demand for seedlings, make possible credit extension, revitalize the oil palm development fund ensuring agreed funds from import duties is available to support development of oil palm, and develop framework to collaterize land holdings to facilitate access to finance.

This is not all about the intervention of AfCFTA as listed in Faniran’s paper. It includes establishing an oil palm commission to regulate the subsector, coordinate production and marketing of oil palm, incentivize and catalyze funding for the subsector, develop appropriate insurance cover for oil palm actors, develop a ten-year roadmap targeting at establishing at least 300,000 hectares of Oil Palm plantation yearly in 24 states with comparative advantage, collaborating with Nigerian Export Promotion Council (NEPC) and Ministry of planning to implement oil palm component of zero oil plan, survey and mapping palm produce corridors, existing varieties, farm practices, and processing infrastructure (all scales), support agricultural research institutes (public and private) to develop improved yield – IITA, NIFOR etc.

AfCFTA is also out to promote commercialization of research outputs on improved varieties, collaborate with Empower Programme to create extension mechanism for training and capacity building for small holders, collaborate with Ministry of Agriculture and Nigeria National Accreditation System (NINAS) to facilitate: (a) access to relevant certification e.g Global-GA, (b)creation of modern input clusters for small holder farmers, (c)aggregation, processing and marketing, corridors for palm produce,(d) access to finance to various stage of the value chain including small holders.

How? It is a long interesting list:

• Provide access to funds for expansion into the back-end raw materials required in the industry;

• Improve access to working capital by creating credit facility for investors;

• Simplify loan application processes and increase amount available to investors;

• Create special funds for Women and youth in the sector;

• Leverage NIRSAL’s Financing Frameworks for sustainable finance and investments;

• Engage NIRSAL to discuss the state of play, modality for access to loan, identify bottlenecks;

• Implement innovative index-based insurance;

• Increase investment in agro-processing for value addition;

• Create pathways to enable public investment in production/ development projects;

• Establish nationwide credit-rating system to increase loan access for producers/ assess borrower credibility;

• Compile information on existing finance options for businesses and make them accessible;

• Work with development finance institutions to facilitate access to finance for businesses under AfCFTA;

• Collaborate with credit bureaus to provide training on access to finance – credit ratings, access requirements etc.;

• Facilitate guaranteed access to finance for MSMEs, trade associations and chambers of commerce;

• Create forum for DFIs and private finance institutions for regular updates on financing AfCFTA related business;

• Mobilize special funds / financial incentives for women and youths willing to engage in production/processing;

• Incentivize investments geared towards expansion and accessibility of affordable internet to rural areas;

• Incentivize the private sector to collaborate with R&D institutions;

• Liaise with FMITI and NIPC to create investment information portal for AFCFTA investment related opportunities;

• Liaise with NIPC and DFIs to design investment finance structure and facilities for AfCFTA related investment;

• Collaborate with relevant MDAs and private sectors to design incentive structure for AfCFTA related investments.

To be continued