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EFFECT OF WORLD BANK ASSISTED COMMERCIAL AGRICULTURE DEVELOPMENT PROJECT ON RICE FARMERS’ PRODUCTIVITY AND PROFITABILITY IN BADAGRY LAGOS STATE
ABSTRACT
This research work evaluated the effect of the World Bank Assisted Commercial Agricultural Development Project on rice farmers’ productivity and profitability in Badagry of Lagos state with a view to ascertain the availability of the intervention variables, their effects on farmers’ productivity, profitability and constraint that may be militating against the desired result. In pursuant of these objectives, a sample size of 134 of registered rice farmers was used and survey research method was adopted. Data collected through questionnaire were presented in tables and analyzed. The hypotheses were tested using T-test and the rice farmers’ productivity and profitability during the first three years of the project were compared with the last three years before the inception of the project. The findings revealed among others the availability of the intervention variables and confirms the fact that the World Bank assisted CADP has done well in some areas like the provision of access road, erosion control measures and farmers’ training and supervision by extension officers. This reflects the first objective of the study which is to confirm the availability of the intervention variables. Also, Productivity and profitability increased more during the CADP period than the pre-CADP period. This reflects the second objective which is to determine the effects if any of the World Bank Assisted CADP on rice farmers productivity and profitability in Badagry of Lagos state. However, areas like the provision of revolving loan for farmers, improved variety of rice seedling, modern farming techniques, fertilizers, pesticides and herbicides were abandoned and therefore need improvement.
These are some of the constraints that may be militating against the desired result that were sought to confirm in the third objective. Hypothesis 1 tested shows that the alternate hypothesis which states that Rice farmers in Badagry local government of Lagos state have benefitted immensely from the World Bank Assisted Commercial Agriculture Development Project ,hence, there is positive effect on rice farmers’ productivity and profitability is accepted and the null hypothesis reject .Also, in hypothesis 2 the alternate hypothesis which states that the World Bank Assisted Commercial Agriculture Development Project has made some significant effects on rice farmers’ productivity and profitability in Badagry local government of Lagos state is accepted and the null hypothesis rejected. Based on the findings, the major recommendations are: That trained extension officers should be encouraged to continue with their supervisory roles to the farmers. The modern farming techniques and practices should be taught the farmers to enable them keep abreast with the current practices of increasing output. There should be availability of credit facilities for the farmers to enable them run their business. The provision of infrastructure should be encouraged especially in the area of provision of erosion and irrigation control as this will encourage all year round farming. There should be proper monitoring of this project to ensure compliance and proper implementation of the policies and monies mapped out for the project should be judiciously used and accounted for.
CHAPTER ONE- INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In spite of the ascendancy of oil in Nigeria’s economy, agriculture still plays a vital role in stimulating economic growth and development in the Country. It provides employment to over seventy percent of the labour force (Abayomi, 2006). However, it has been noticed that from the 1970’s till date, agriculture’s contribution to the economy has been on the decline, contributing 34 percent to Nigeria’s GDP in 2006 (CBN, 2007) and 21.97 percent in 2013 (NBS,2014).
Worried by the steady decline in the percentage contribution of agriculture to the GDP, government has continued to embark on series of programmes, strategies and policies to remedy the worsening situation in Nigeria. In 1976 for instance, Operation Feed the Nation (OFN) programme was launched to encourage the people to pay greater attention in mobilizing internal resources for domestic agricultural production. This programme did not make sufficient impact in increasing food production and GDP. It however increased awareness on the need for increased food production (Obadan, 1990). In 1980, the Green Revolution programme (GRP) was launched to replace OFN, with the aim of enhancing food sufficiency in agricultural food production, reducing import food price inflation. This programme again achieved little in terms of its impact on GDP and could not achieve its aims and objectives. With the introduction of structural adjustment programme in 1986, a lot of policy packages and programmes were introduced among which were the World Bank-assisted Agricultural Development Project (ADP), Directorate of Food, Roads and Rural Infrastructures (DFRRI) and National Agricultural Land Development Authority (NALDA). In addition to these programmes other schemes such as River Basin Development Authority were introduced. All these measures aimed at increasing agricultural production had little success in northern Nigeria but failed in southern part of the country (Abayomi, 2006). However, it was during this period of SAP that agricultural production attained the highest growth rate of 5.0 percent (CBN, 2007). Other measures aimed at increasing agricultural output were in terms of credit schemes; there was the establishment of Nigerian Agricultural Cooperative Bank in 1973, establishment of Rural Banking programme in 1977. These entire credit schemes were made to allocate more funds to rural farmers with the intention of increasing food supply. Still on this scheme, Central Bank of Nigeria (CBN) prescribed different lending rates for agricultural sector with lower interest rate enjoyed by farmers. In the year 2004, the president of Nigeria together with some African countries’ leaders launched New Partnership for Africa’s Development (NEPAD), whose objective was to reduce hunger and poverty.
Agriculture was seen as the engine of growth to propel African economies out of hunger and poverty. The main instrument for achieving this was a Comprehensive African Agriculture Development Programme (CAADP).
As part of its efforts to develop agriculture in Nigeria, the ministry of agriculture initiated the Commercial Agriculture Development Project in 2009. Commercial Agriculture Development Project (CADP) is aimed at improving agricultural production in Nigeria by supporting the commercialization of agriculture production, processing and marketing outputs among small and medium-scale commercial farmers and agro-processors(Commercial Agriculture Development News;2012). CADP is supporting the federal government of Nigeria’s strategy options on diversifying into non-oil sources of growth and away from over dependence on oil and gas. To achieve the above objectives, the project is to help to improve access of participating commercial farmers to new technologies, improved infrastructures, finances and output markets, to strengthening agricultural production systems and facilitate access to market for some targeted value chains among small and medium scale commercial farmers in five participating states, Cross River, Enugu, Kaduna, Kano, and Lagos.
These value chains are rice, oil palm, cocoa, fruits trees, poultry production, aquaculture and dairy with maize and rice as staples.
The inclusion of rice and maize as staples may be due to the steady decline in the production in cereals over the years. According to Akanni and Okeowo(2011), despite the numerous policy options and attempts by government in the production sector, there has been steady decline in the output of cereals between 1970 and 2007. Similarly, the land area under cultivation of cereals also declined so tremendously due largely to reduction in the size and technology of the farming population and poor soil fertility levels. The producer price for the cereals had risen sharply particularly within the past twenty years.
According to a former Nigeria’s minister of agriculture, Dr Akinwumi, Ayodeji, Adesina , about N365 billion is spent on rice importation annually. In spite of this, rice producers in the country are still unable to meet local demand, meaning that at least an average of N1 billion worth of rice is demanded daily.
The project has two components: (1) Technology demonstration which provides resources to facilitate adoption of technologies and supports staple crop production systems which will compliment Nigeria’s food security initiative and develop domestic and export markets and (2) Adoption and Support to staple crop production(Commercial Agriculture Development Project, News 2012). This project is with the support of the world bank which has been in the centre of Nigeria’s agricultural development for many years.
Since 1974 the Bank has committed $ 1.2 Billion for agricultural projects (ADPs) to increase farm production and welfare among smallholders in Nigeria. According to OED, out of the five ADPs and a supporting Agricultural Technical Assistance Project (ATP), all implemented between 1979 and 1990, only two had satisfactory outcomes. In general, rain-fed agricultural production was far below projections. Macroeconomic conditions, some national policies, and particular – design and implementation problems prevented a more significant impact. Low- cost irrigated development of lowland areas (Fadama) was, however quite successful. Village water supply components exceeded their targets. The ADPs have evolved to be “Permanent” institutions for rural infrastructural development and agricultural devices even though their role vis –a- vis the regular State department needs to be reviewed.
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