A Review of the Nigerian Energy Industry

Crude Oil Price Fall: Jonathan canvasses speedy diversification of economy

16 December 2014, Abuja – Following the recent decline in the price of crude oil, President Goodluck Jonathan Tuesday said it has become imperative to rapidly diversify the nation’s economy away from dependency on crude oil, and focus more on agriculture.

He noted that the agriculture sector remains vital for the economy of Nigeria.

Goodluck-JonathanThe president made the remarks at the launch of Youth Empowerment in Agriculture Programme (YEAP) and Fund For Agricultural Finance in Nigeria (FAFIN), held at the Banquet Hall, Presidential villa, Abuja.

FAFIN, according to Jonathan, will deploy $100m towards providing affordable long term financing to support the development of small and medium scale agri-businesses.

He said if the nation produce its own food, “we will save scarce foreign exchange, reduce dependence on food imports, while reviving our rural areas and creating wealth for our farmers.”

Jonathan noted that the decline in the price of crude oil did not take his administration  by surprise, adding that in the past three years it had been engaged on a carefully designed and implemented agricultural transformation agenda.

“Our massive food production efforts, which led to the production of 21 million metric tons of food in the past three years, has created a buffer and mitigated the impact of the devaluation on food prices.

“Our food import bill declined from 1.1 trillion naira in 2009 to 624 billion naira by December of 2013, and continues to decline. Our electronic wallet system, which allows us to reach farmers with subsidized seeds and fertilizers via mobile phones, has become the backbone of a more modern agricultural sector. Over 14 million farmers have received their subsidized farm inputs through the e-wallet system.

“Over 5.6. billion dollars of new private sector investments have also come into the agricultural sector, which clearly shows that local and foreign businesses see Nigeria’s agricultural sector as very viable for investments. Agriculture has become the new wealth sector for Nigeria.

– This Day

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