Nigeria to enforce ban on foreigners purchasing Agric commodities at farm gates

The Nigerian Government has started taking action to put into effect a Memo on the Promotion of Agri-Business in Nigeria through Right Farm Gate Pricing and Ban of Foreigners from Purchasing Agricultural Commodities at the Farm Gates which had previously been approved by the Federal Executive Council, (FEC).

The Nigerian Minister of Industry, Trade and Investment, Mr Adeniyi Adebayo, who inaugurated an inter-ministerial standing committee in Abuja, to oversee the implementation of the memo, noted that the move was part of government’s efforts to provide the enabling environment for the commodity subsector to thrive.

The Minister stated that the document had been jointly presented by the Ministry of Industry, Trade and Investment and the Federal Ministry of Agriculture and Rural Development on March 9, 2022 for approval by the Federal Executive Council.

According to him, “the memo is aimed at addressing the challenges impeding the development of the agricultural commodity subsector of the economy, curtailing unfair trade malpractices and exploitation of Nigerian farmers by foreigners and promoting competitive premium pricing as impetus for increased productivity in the commodity subsector amongst others.”

Mr Adebayo lamented over the practice of exploiting farmers by foreigners who travel to Nigeria to buy up agricultural commodities at the farm gates and then pay them less than the market rates.

“This situation has indeed led to the failure of many contractual agreements between farmers and indigenous off-takers. It has also affected the production capacity of our local factories due to the fact that foreigners buy off supplies and deprive the factories of required stocks.”

“The current practice of direct purchases of agricultural commodities at unfair prices by foreigners at our farm-gates poses serious dangers which include: reduction in farmers’ income, declining productivity in the agricultural sector, unemployment and insecurity,” he said.

The Minister said, “a number of activities have been outlined for implementation and the Committee is expected to ensure that they are properly articulated and implemented for the growth and development of our economy.”

He gave the committee the task of developing a suitable implementation strategy and set of rules for carrying out the approved FEC Memo as well as liaise with States, Local Governments and other key stakeholders across the country to enforce the ban and ensure compliance.

Responding, the Chairman of the Committee, Mr Suleman Audu, expressed the readiness and willingness of the committee to provide the required leadership and coordination to ensure efficient implementation of its mandate.

Mr Audu, who appreciated the government for the confidence reposed in them, pledged on behalf of the committee members not to disappoint the government on the very important assignment.

“We will roll our sleeves and shall hold the inaugural meeting immediately after the successful inauguration. We assure your excellency that we shall work as a team. We shall be guided by the terms of reference and the interest of the nation,” he said.