Farmers urge the FG for compensation for losses following the naira redesign. The Federal Government has been urged by the All Farmers Assoc...
Farmers urge the FG for compensation for losses following the naira redesign.
The Federal Government has been urged by the All Farmers Association of Nigeria to compensate farmers for losses incurred as a result of the Central Bank of Nigeria's redesign of the naira and the ensuing cash shortage.
The farmers made the appeal while discussing how the policy will affect food production and the agribusiness sector in an interview with the News Agency of Nigeria on Saturday in Lagos.
They claimed that in order to persuade farmers to restart their farms, compensation became necessary.
The compensation, according to the farmers, may take the form of subsidies, inputs, fertilizer, and farm machinery.
They continued by saying that it would allow them to achieve the 2023 food production goal.
According to Dr. Femi Oke, the chairman of AFAN's Lagos and South-West Zone, many of their members were impacted by the policy's implementation, which interfered with farming operations.
Oke claims that the Federal Government's cashless policy and naira redesign strategy in February had a significant negative impact on farmers.
According to what we have observed and heard so far, a significant and high loss was recorded during the time, particularly for our members who are involved in the production of cattle, poultry, and pigs as well as processors.
"If we were to put a number on these losses, they would amount to billions of naira over the course of this time.
"The COVID-19 era, which we saw in 2020, was similar in that the poultry producers were the most impacted. We ask that the COVID-19 never happen again because it was a terrible loss.
We also learned that a lot of farmers struggled to pay their workers, which was a major issue.
The majority of farms are located in rural areas with little to no access to commercial banking, therefore in order to purchase naira from Point-of-Sale operators to pay the farm employees, they had to go a great distance and spend more money, according to him.
Because many farm workers don't have bank accounts, they rely on daily payments, which Oke described as a major concern.
Due to a lack of funds and consumer support, many farmers were also unable to convey their farm products, including peppers, vegetables, and other perishable commodities, to the market.
"The circumstance caused farm produce to be lost in front of the farmers. It was a depressing sight to see.
Nothing is more agonizing, disappointing, and unpleasant, he said, than seeing the fruits of your labor and farm produce wasted.
Oke pleaded with the FG to make up for all of the damages brought on by the poorly timed policy.
We are requesting that the federal government respond by providing us with grants with interest rates as low as 5%.
Giving us grant is one method to address these current food production issues, he continued.
Oke encouraged the CBN to coordinate policy development and information sharing with the Federal Ministry of Agriculture and AFAN.
"We have emphasized countless times that the CBN shouldn't deal with or direct farmers.
On matters impacting farmers, CBN ought to collaborate with the Federal Ministry of Agriculture and the federation of farmers, known as AFAN.
To prevent misinformation and misrepresentation, "CBN should cease from dealing directly with them," he advised.
However, Oke advised farmers to return to their farms and support government initiatives to increase food production and self-sufficiency rather than give up or be disheartened by recent economic developments.
Be assured that the next administration would do a lot for farmers, he continued.
A farmer of livestock and crops who also spoke, Mrs. Adewunmi Malik-Adeola, asked the FG and CBN to work with farmers in the future to avoid the avoidable losses experienced during the implementation of the naira redesign strategy.
Malik-Adeola pointed out that the rural areas, where the majority of farmers live, lacked enough knowledge regarding the policy.
She bemoaned the lack of information on the policy's mechanisms, launch, and execution.
She continued by saying that in order to prevent investment losses that can result in illness or even death, interested parties must be informed on government regulations.
Every time a new policy is implemented, we as stakeholders must be included.
"A lack of knowledge about how farmers and the general public may prepare in advance was one of the reasons the program failed.
"During that time, it actually ruined a lot of our farming operations, particularly the livestock, our birds, and our eggs.
Everyone was shocked since this is something that has never happened in the history of this nation.
"The harm had already been done; the government now had to figure out how to make up for all of our losses.
We need financial help, inputs, and grants, so the government should give funds so we can satisfy demand, she added.
The secretary of AFAN in Lagos, Mrs. Abimbola Francis-Fagoyinbo, called the effects of policy "devastating" for her company.
For my family and I, it was a really serious matter. Since fish cannot survive for long, I lost portion of my catch because there was no business or market during that time.
"I was only able to survive because my children helped me; there was no sale and my money was stranded with clients and in banks.
It was a bad experience for me because I was unable to purchase feed to feed the fish, the transfer did not go through, and everything else was a complete mess. I thus lost a significant portion of my money.
She remarked, "Government needs to help and make up for all of our losses."
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