The current food crisis being faced in Nigeria is expected to get worse, except the Federal Government settle the multi-billion debt it owes farm input suppliers across the country.
As a result of the prevailing situation, the suppliers that have been doing business with government over the years have threatened to stop supply of new inputs to the Federal Ministry of Agriculture and Rural Development, unless all their outstanding payments are made. The implication of this for Nigerian farmers is that they may find it very difficult to access agricultural inputs required to carry out their farming activities this cropping season.
The debt, which was accumulated, particularly, under the immediate past administration of former President Goodluck Jonathan, is yet to be paid by President Muhammadu Buhari because of the current financial crunch the nation is presently being confronted with.
Most affected by the non-payment are suppliers engaged by the government in 2014 to supply inputs such as: fertilizer, seedlings, agro chemicals, and others, under the Growth Enhancement Support Scheme (GES).
BusinessDay’s finding indicates that the refusal by government to meet its contractual obligation to these suppliers is threatening the ongoing move to boost food production in the country.
Government is said to, at the moment, battling to pay the input suppliers, most of who are on the brink of bankruptcy as a result of indebtedness to many commercial banks that financed the supply contract.
Sources in the office of the minister of agriculture, Audu Ogbe, who confirmed the indebtedness, said effort of the government to settle the debt was being frustrated by the delay in the passage of the 2016 Appropriation Bill.
From every indication, the ongoing confrontation between the Presidency, and National Assembly over the padding of the recently passed budget proposal might also compound the inability to pay the suppliers.
Commenting on the implication of the development to Nigerian farmers and food situation in the country, in particular, Ali Umar, an agriculturist in Kano, said the situation at hand was capable of worsen the prevailing food crisis in the country.
“From what you can see, accessing input this year is going to be very difficult for most farmers, judging from what we are hearing from people in the Federal and State Ministries of Agriculture.
“We are told that most of the major input distributors in the country have threatened not to deliver input to government warehouses this year because of the non-payment of previous order they delivered,” he said.
