…surprised at the scale of investment; says nation set to witness agric boom
Olushola Okunlade Writes
President Muhammadu Buhari today commissioned the new 3 million Metric Tonnes capacity per annum state-of-the-art Dangote Fertiliser Urea Plant, with an emphatic assurance that the project would give a huge fillip to Nigeria’s agricultural sector, which revitalisation has been a focal point of his administration’s economic policy.
The new plant, which he commissioned in the presence of some 18 governors, ministers, captains of industries as well as prominent traditional rulers, is located at Ibeju Lekki, Lagos Free Trade Zone within the periphery of the Dangote refinery.
A visibly excited President Buhari said the coming on stream of the plant would create huge opportunities in the areas of employment, trade, warehousing, transport, and logistics. The Plant, according to the President “will greatly create wealth, drastically reduce poverty and secure the future of our nation”.
Left-Right: Director, Dangote Industries Limited, Mariya Aliko Dangote; Deputy Secretary-General, The United Nations, Amina Mohammed; President/CE, Dangote Industries Limited, Aliko Dangote; President Muhammadu Buhari, Lagos State Governor, Babajide Sanwo-Olu, and Group Executive Director, Dangote Industries Limited, Halima Aliko Dangote, during the commissioning of Dangote Fertiliser 3.0 Metric Tonnes Urea Plant, Dangote Industries Free Zone, Ibeju-Lekki, Lagos on Tuesday, March 22, 2022.Left-Right: Deputy Secretary-General, The United Nations, Amina Mohammed; President/CE, Dangote Industries Limited, Aliko Dangote; President Muhammadu Buhari, and Lagos State Governor, Babajide Sanwo-Olu, during the commissioning of Dangote Fertiliser 3.0 Metric Tonnes Urea Plant, Dangote Industries Free Zone, Ibeju-Lekki, Lagos on Tuesday, March 22, 2022.
He said, “In the agricultural sector, another focal point of our economic policy, we expect a boom as fertilizer is now readily available. Many Nigerians who hitherto practiced subsistence farming because of the non-availability of necessary inputs can now take up agriculture as a business. We expect a rise of a new breed of agropreneurs who will add value to farming and make the nation self-sufficient in food production.”
According to him, the federal government is now determined more than ever before to provide enabling environment for private sector investors to thrive, adding that his government would continue to improve on infrastructure, power, security, and enact relevant laws and regulations that would drive investments in the economy.
President Buhari reiterated that part of the government’s effort in this regard was the partnership with the private sector government via a tax credit scheme, in the rehabilitation of roads across Nigeria under Presidential Order No. 7.
“As we all know, good roads contribute to easy movement of goods and services across the nation, thus reducing the cost of doing business and improving productivity. We are also rehabilitating our railway lines and building new ones to lessen the burden on our roads and create more effective multi-modal transportation networks,” he added.
In an earlier welcome address, President of Dangote Group, Aliko Dangote described the new plant as a game-changer, as it has the capacity to make Nigeria become self-sufficient in fertilizer production, with spare capacity to export to other markets in Africa and the rest of the world. He added that already, Dangote fertilizer has reached the markets in the USA, Brazil, and Mexico.
According to him, the Fertiliser plant, which is the largest granulated Urea fertilizer complex in Africa, occupies 500 hectares of land, was built at a cost of $2.5 Billion, and is expected to reduce drastically the level of unemployment and youth restiveness in the country through employment opportunities. To him, the plant is expected to generate new jobs with top-quality fertilizer being available and in sufficient quantities for the farmers.
He stated that agriculture accounts for 20 percent of the nation’s GDP and that the new plant was an ambitious project that would provide both direct and indirect employment, thereby reducing youth restiveness
Dangote Fertiliser, according to him, would ensure the emergence of farmers in the country, providing hundreds of jobs and ushering in a new era of agricultural entrepreneurs, (agroprenuers). “This breed of agroprenuers will take to farming on large scales, providing food and raw materials for our industries,” he added.
Dangote stated that the fertilizer plant is rolling out with innovations that would transform the agricultural sector in the form of extension services for small and medium-scale farmers. It has set up a well-equipped fertilizer soil testing laboratory to enable it to analyze and identify soil deficiency and the appropriate fertilizer blend.
“Studies have shown that applying the right fertilizer to the soil will boost productivity. This service is to cover all the geopolitical zones, and will surely change the agricultural landscape in the country by transforming farming into a lucrative profession.
“Dangote Fertiliser is working with Farmer Associations, Corporate Farmers, NPK Blenders, NGO/development partners and State Governments all over Nigeria, and governments across Africa and beyond who are looking for a sustainable approach to improving soil quality and farm yields,” he explained.
Left-Right: President/CE, Dangote Industries Limited, Aliko Dangote; Speaker, House of Representatives, Rt. Hon. Femi Gbajabiamila; President Muhammadu Buhari; and Lagos State Governor, Babajide Sanwo-Olu, during the commissioning of Dangote Fertiliser 3.0 Metric Tonnes Urea Plant, Dangote Industries Free Zone, Ibeju-Lekki, Lagos on Tuesday, March 22, 2022
Left-Right: President/CE, Dangote Industries Limited, Aliko Dangote; Speaker, House of Representatives, Rt. Hon. Femi Gbajabiamila; President Muhammadu Buhari; Lagos State Governor, Babajide Sanwo-Olu; and President of the Senate, Senator Ahmad Lawan during the commissioning of Dangote Fertiliser 3.0 Metric Tonnes Urea Plant, Dangote Industries Free Zone, Ibeju-Lekki, Lagos on Tuesday, March 22, 2022
Speaking at the occasion, Governor of Central Bank of Nigeria, Godwin Emefiele said Nigeria is indeed indebted to Aliko Dangote for his giant stride to add value to Nigeria’s economy. According to him, “It is great that a Nigerian has taken not just this great initiative of helping to solve our perennial problem of importing petrochemical products including fertilizer but has taken advantage of the emerging huge market opportunity presented by recent global developments.”
Emefiele commended President Buhari for providing all the support needed to put in place economic policies that would reverse the trend of the doldrums, pointing out that the completion of the fertilizer plant is a stellar example of the realization of the vision.
The CBN governor described the fertilizer plant as timely considering the recent developments in the global market, where prices of wheat, fertilizer, and crude oil spiked by over 20 percent, following the start of the Russia – Ukraine war.
“In addition to the lessons we learned from the protectionist actions of countries during the early days of COVID-19, this investment is again a glaring testament to the foresight and tireless efforts of Mr. President in encouraging domestic production of items that can be produced in Nigeria, especially agriculture. This would not only help to enable greater productivity of our agricultural sector but also help in insulating Nigerian farmers from depending on imported fertilizer,” Emefiele stated.
He recalled that prior to 2015 when President Buhari resumed office, Nigeria had a fertilizer shortfall of about 3.5 million tonnes per annum compared to the over 6 million tonnes per annum required in the country.
“Then President Buhari inaugurated the Presidential Fertiliser Initiative and charged them with resolving this problem. With sustained efforts, other indigenous companies like Indorama and Notore with a combined capacity of over 2.5 million tonnes per annum have tried to match the market demand, yet the country still faced a huge shortfall of fertilizer supply. Today, Nigeria is self-sufficient in the production of urea, and we are also the leading producer of urea in the African continent,” he added.
The Minister of Agriculture, Dr. Mahmood Abubakar called on other investors to rise up to the occasion, noting that the Dangote Fertiliser would help to solve the problem of fertilizer shortages in Nigeria. He also assured that the government would enforce standards in the industry to maintain quality.
Lagos state governor, Mr. Babajide Sanwo-Olu commended Alhaji Aliko Dangote for always blazing the trail, noting that the Lagos state government was happy to be hosting many of his businesses. He added that “with the largest fertilizer plant in Africa in Lagos and the largest refinery in the world coming soon, there is nobody that would not be proud of Alhaji Dangote.”
The governor stated that Nigeria would quickly forget its many economic problems if another entrepreneur like Dangote could be replicated in other regions of Nigeria.
Sanwo-Olu also said that private investors could always count on the Lagos State government when it comes to the provision of an enabling environment to make businesses thrive.
In line with its commitment to advance local dairy development in Nigeria, Arla Foods, makers of Dano Milk, has empowered smallholder dairy farmers in Kaduna with training and funding through the Advancing Local Dairy Development in Nigeria (ALDDN) program.
The Advancing Local Dairy Development in Nigeria (ALDDN) is a five-year program being implemented in conjunction with Sahel Consulting and other private sector companies to catalyse a vibrant local dairy sector in an inclusive way that improves the livelihoods, productivity, nutrition, and empowerment of smallholder dairy farmers and the communities in which they live.
Speaking during a ceremony held to distribute the first batch of milk cans to 30 farmers in Gadan Gayan Community in Kaduna State, the Dairy Site Manager, Arla Foods, Ewarts Samuel, noted that the main objectives of the program are to increase demand for locally-sourced milk from smallholder dairy households, empower women, dairy farmers, while also improving smallholder dairy farmers’ productivity.
Left-Right: Managing Director, Kaduna Federation of Milk Producers Cooperative Association (MILCOPAL), Hajia Rukaiyah Gwamna; participating farmer and program beneficiary, Hajia Amina Hashimu and Arla Dairy Site Manager, Ewarts Samuel during the distribution of Milk Cans to local dairy farmers by Arla under the Advancing Local Dairy Development in Nigeria (ALDDN) program held in Kaduna recently.
He disclosed that the program recently purchased 900 milk cans for distribution to smallholder dairy farmers in Nigeria, which is expected to help preserve milk received from the farmers and ensure that high quality and good hygiene are maintained during milking and transportation.
“Arla is currently partnering with the local dairy farmers by offtaking their milk through our plant that is located in Kaduna State, where the milk is processed into yogurt under the MILCOPAL brand. Under the ALDDN program, Arla also facilitates training programs for smallholder dairy farmers and provides funding support for certain key endeavours,” Samuel said.
In his remarks, Project Assistant, Sahel Consulting, Ahmed Mohammed, stated that the partnership with Arla Foods is geared towards transforming Nigeria’s agriculture and nutrition landscape.
“We are excited to be part of this partnership as this would help a great deal in addressing food security, malnutrition, and unemployment which will, in turn, drive economic growth and prosperity for families, communities, and Nigeria in general,” Mohammed said.
Know More About Arla: Arla Foods is a dairy company with around 9700 farmer owners in seven EU countries. Our philosophy of producing natural, healthy, and high-quality dairy products dates back to the 1880s when dairy farmers in Denmark and Sweden joined forces with one common goal: To create and provide the best dairy products.
The Africa Food Prize awards USD 100,000 to individuals and institutions that are pioneering agricultural and food systems transformation in Africa.
The Prize puts a spotlight on uniquely impactful agri-food initiatives and technological innovations that can be replicated across the continent to increase food security, spur economic growth and development, and eliminate hunger and poverty in Africa.
The Africa Food Prize is hosted by AGRA, an African-led and Africa-based institution that puts smallholder farmers at the center of the continent’s growing economy by transforming agriculture from a solitary struggle to survive into farming as a business that thrives. AGRA is headquartered in Kenya and works in 15 African countries.
This year, Dr. Eric Yirenkyi Danquah, a plant geneticist from Ghana, was awarded the prestigious prize during September’s AGRF Summit in Kigali, Rwanda. Dr. Danquah was celebrated for his outstanding expertise and leadership in establishing the West Africa Centre for Crop Improvement (WACCI) and developing it into a world-class center for the education of plant breeders in Africa.
Nestlé will contribute CHF 100,000 to the Africa Food Prize, which will be awarded in 2023. Part of the contribution will go to the main award and part to a special category focusing on innovations that advance regenerative food systems.
Remy Ejel, Chief Executive Officer of Zone Asia, Oceania, and Africa, Nestlé S.A. said, “Transforming agriculture to be more productive and sustainable is key to reducing hunger and improving livelihoods for the long term. We aim to support and amplify efforts that spearhead regenerative agriculture and food systems to enable better productivity, better nutrition, and better incomes for people in Africa.”
Commenting on the partnership, Dr. Agnes Kalibata, President of AGRA said, “We are happy to be partnering with Nestlé to recognize Africa’s best in food systems. The Africa Food Prize is a great opportunity to shine a bright spotlight on Africa’s outstanding minds, giving the rest of us a chance to learn and replicate their good work that is moving us closer to sustainable, inclusive, and resilient food systems and achieving the United Nations Sustainable Development Goals 2 on Zero Hunger.”
Nestlé’s partnership with the Africa Food Prize builds on its years-long work in Africa to improve the continent’s nutrition and agriculture. The company has taken great strides to expand access to affordable nutrition in many communities, for example, by fortifying Maggi bouillon cubes with iron in Central and West Africa. It is also pioneering regenerative dairy farming with the establishment of the first net zero dairy farm in Skimmelkran, South Africa.
In early 2022, Nestlé launched an innovative income accelerator program, aimed at addressing child labor risks and closing the living income gap for cocoa-farming communities in Côte d’Ivoire and Ghana. Recently, Nestlé announced an investment of CHF 1 billion by 2030 under the Nescafé Plan to transition to sustainable coffee farming, including in Côte d’Ivoire.
Entries in the Africa Food Prize are evaluated by a judging committee comprising some of Africa’s greatest food system leaders. Winners are selected based on proven results and scalable efforts.
Submissions for next year’s Africa Food Prize will be open from January 2023 and winners will be announced at the AGRF, Africa Food Systems Forum, in September.
Click here for more information on the Africa Food Prize.
By Scott Coles, Coffee Business Executive Officer for Nestlé Central and West Africa
There is nothing quite like that first cup of coffee in the morning. For me, it’s a moment to gather my thoughts before the day really begins. However, this daily ritual isn’t something we can take for granted.
Climatologists have warned that without action, coffee farmers in Africa will lose their livelihoods. So, if we want to keep enjoying that precious cup, we must ensure our coffee is sustainably sourced.
Scott Coles, Coffee Business Executive Officer for Nestlé Central and West Africa.
Coffee farming in Africa: The continent produces 12% of the world’s coffee, with over ten million farmers across 30 countries. While demand for coffee is forecast to grow significantly, crops have been declining in Côte d’Ivoire – the largest coffee producer in West Africa.
Nestlé has been manufacturing coffee in Côte d’Ivoire for over 60 years, and we have seen first-hand the challenges farmers are facing.
Climate change creates rising temperatures, drought, and flooding which makes coffee more difficult to grow. Under this pressure, farmers have turned to environmentally harmful practices such as deforestation and substituting old coffee trees for crops that are easier to grow.
Amani, a female farmer from Yobouekro, Côte d’Ivoire.
The case for sustainable coffee farming and transition to regenerative agriculture: It’s not too late to reverse this decline. On a recent farm visit to the village of Yobouekro, I saw for myself the impact climate change is having. I met with Amani Ahou, a female coffee farmer who, until recently planned to abandon her plantation as the crop from her aged trees had fallen to depressingly low levels.
Over the last few years, Amani has received training from Nescafé agronomists. She has learned pruning techniques, composting, and the importance of planting shade trees. She is now more upbeat about the prospect of reviving her coffee farm. ‘My plantation has rejuvenated, my old trees are starting to flower again, and are producing good coffee” she said.
It was great to see for myself how improving technical knowledge, and building stronger partnerships between farmers and industry can have a real and lasting impact on farmers like Amani.
Regenerative agricultural techniques like these play a critical role in the future of coffee farming. They will improve soil health, restore water cycles, increase biodiversity, and reduce greenhouse gas emissions. By planting more coffee trees and encouraging greater biodiversity, farmers can create an environment for bees, insects, and birds to thrive on their farms. This will positively impact the ecosystem and reduce the effects of climate change.
The responsibility and cost for transitioning to regenerative agriculture cannot lie solely with the farmers. It’s been 10 years since we launched the Nescafé plan, during this time we have worked closely with farmers to improve agricultural practices, sharing our knowledge and expertise from across the planet. The plan builds farming skills to help farmers produce higher quality beans and achieve higher premiums, so they can support their families and contribute meaningfully to their local communities.
However, we know there is much more to be done, which is why we are going further and last week announced the Nescafé Plan 2030 to accelerate regenerative agriculture, reduce greenhouse gas emissions, and improve coffee farmers’ livelihoods.
Nescafé has committed to investing over 1 billion Swiss francs globally. The aims of the plan are for 100% of our coffee to be sourced responsibly by 2025 and 20% of coffee sourced from regenerative agricultural methods by 2025 and 50% by 2030.
In Côte d’Ivoire, we are committed to supporting farmers that take on the risk and costs associated with transitioning to regenerative agriculture. We will be piloting a financial a scheme that includes conditional cash incentives for adopting regenerative agriculture practices.
We have a long way to go, but if the whole coffee industry in Africa supports this transition to regenerative agriculture, we will ensure no farmer is left behind, so we can continue to uplift lives and livelihoods with every cup we drink.