The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has initiated a scheme to move cattle from the north to markets in the southern part of the country by rail starting from this week.
The scheme which is being operated in partnership with Connect Rail Services, a bulk freight and logistics service provider, will also enable the transportation of tomatoes, vegetables and other perishable food items by rail within the next few months.
Business247 News Online notes that the scheme will also reduce pressure on foreign exchange and the depreciation of the country’s road network due to concentration of haulage activities on the road.
Under the scheme, NIRSAL in line with its mandate to fix agricultural value chains and create links between primary producers and the market aims to leverage private sector financing towards the provision of necessary state of the art equipment, storage and agric produce preservation facilities to ensure safe, efficient movement of agric produce from farms in the north to markets in the south.
The scheme is projected to reduce the cost of transporting agric produce from the north to the south by over 20 per cent, minimizing wastage and spoilage of goods in transit by over 40 per cent in order to preserve value so that farmers get good price for their produce at the destination markets.
It will be recalled that three weeks ago, as part of a test run of the historic initiative, cows were transported from Jebba to Lagos by rail within two days in a journey that takes several days by road. The arrival of the cattle in much better condition than herded cattle generated excitement in Oko-Oba, Lagos.
Speaking on the development, the Managing Director/CEO of NIRSAL, Mr Aliyu Abdulhameed said: “The launch of the Farm to Market scheme is a tribute to the vision of President Muhammadu Buhari who made agriculture a central component of the Federal Government’s economic response to the steep and long standing fall in the global price of oil. NIRSAL’s mandate can best be understood within the context of the policy shift and clear commitment of the Presidency to agriculture.”
Abdulhameed also praised the leadership of Mr Godwin Emefiele, the Governor of the Central Bank and the active support of Chief Audu Ogbeh, the Minister of Agriculture and Rural Development (FMARD).
He stressed that NIRSAL only guarantees serious agric projects which are bankable in terms of proven business viability, of strategic economic relevance to the country and promotes inclusive growth and equitable distribution of value so that farmers and other players get better rewards for their efforts.
“We take our mandate very seriously indeed and NIRSAL does not guarantee financing for unserious or poorly thought out projects. We ensure that every kobo committed to every project we undertake counts for the economy and the people of this country,” he said.
Comments are closed.