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Why FG cut fertiliser price by half for farmers
To deepen food productivity even in the face of recession, President Muhammadu Buhari has approved the payment of the outstanding N22bn meant for dealers of agricultural inputs, popularly known as agro-dealers, in order to ensure the seamless distribution of fertilizers.
The target is to make the input available to farmers at an approved rate of N5,500 for 50kg instead of the current high cost of N10,000 to N12,000.
National Chairman of Agro-dealers Association of Nigeria (AdAN), Mr. Kabiru Fara, recalled in Abuja that Buhari approved the payment of the balance of N22bn out of the N66bn that was owed the agro-dealers by the previous government.
He noted that the move was part of efforts to bring down the price of the commodity and enhance its distribution, the
In his views, “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 affirmed that “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”.