President Muhammadu Buhari has approved the payment of the outstanding N22bn for dealers of agricultural inputs, popularly known as agro-dealers.
This is to ensure
seamless distribution of fertilisers at an approved rate of N5,500 for 50kg
which he has also endorsed.
The
presidency had detailed the policy on agriculture in February
The policy was drawn
after farmers complained that a 50kg bag of fertilizer was selling for N10,000
to N12,000.
Speaking yesterday
National Chairman, Agro-dealers Association of Nigeria, Mr. Kabiru Fara, told
journalists that Buhari approved the payment of the balance of N22bn that was
owed the agro-dealers by the previous government to ease their challenges.
He said, “The
presidential initiative on fertiliser distribution is too important. We are
happy with it because it will help the farmers get inputs at affordable prices
and we are the ones who serve as a link between the farmer and the supplier.
“However, our bankers
and suppliers are not happy in dealing with us for now, because we have their
money hanging, as well as some of our money that are still not paid.
“This liability was not
incurred by the present administration, but we are happy that they have agreed
to pay. We understand that Mr. President has approved expressly that the
liability be paid.
“The total amount is
about N62bn, a first payment of N20bn was made, another payment of N20bn
followed, which was about a year ago, and the balance now is N22bn, which the
President has approved that it be paid to agro-dealers expressly. We are
grateful for that.”
He stated that
agro-dealers would use part of the money to make purchases as well as
distribute the commodity, and urged the Federal Government to ensure the speedy
release of the funds.
Fara added, “We will use
this payment to buy what fertiliser producers produce and distribute it across
the market at N5,500.
“So, releasing our money
will make the presidential initiative on fertiliser distribution easy. But
without that payment, which we don’t know why, it will be difficult for some of
our members to buy and distribute.
“You may have pockets of
agro-dealers who have money to buy, but the product will not come as fast as
needed in order to ensure availability and the prices may not be as affordable
as expected.
“Our recommendation is
that the presidential initiative team should look at the issues of logistics
and factor how fertilisers are to be delivered to centres where they are needed
at N5,000 per bag.
“For they say
agro-dealers’ money should be N500, but when you check the distances to
transport the commodity, N500 won’t be enough in many instances.
“So, we want the
government to look at ways of getting the product to any location in Nigeria at
a fixed price, whether at N5,000 or a little above that so that it can be sold
at the approved price of N5,500 per bag.”
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