‘Agric finance schemes too complex for Nigerian farmers’

In this interview with FEMI IBIROGBA, Chief Executive Officer / Country Manager of Dizengoff Nigeria, Mr. Antti Ritvonen, it turns out what government, farmers and politicians can do to restore Nigeria in its glory to be a leading producer and exporter of food. Read the excerpts:

Nigeria was a leading food producer before and soon after independence, but now the situation is reversed. How can I fix this?
There is great potential in Nigerian agriculture, but I think we have a lot of work to do. I very much believe that Nigeria can return to its fame as the leading food-producing country in Africa during the period of food production before independence. And I do not understand why this can not happen again. Although there is a lot of work to be done to get there, it is very possible. Thus, in Nigerian agriculture there is a huge potential.

I think that in Nigeria there is one of the largest arable lands in the world, but I do not know what percentage of it is actually used for agriculture. Yield per hectare in Nigeria is very low. And this is due to the use of very old and inefficient farming methods and tools. To increase productivity, we need to use more modern and more efficient farming methods and get rid of old ones. We must start with mechanization, and the education of farmers is very important so that they know how to use more advanced methods. Mechanization is what you need to use in good quality, and agrochemicals must be of high quality, fertilizers and seeds must be of quality, and this will increase the yield.

You participated in mechanization and quality costs, but they are mostly inaccessible to small farmers. What is the way out?
You are right that farm size is a problem in Nigerian agriculture, but the solution is that farmers must create clusters or cooperatives, and they can, as cooperatives, move on to farm mechanization. Another thing is that the number of service providers is increasing. Companies that have tractors, equipment and machinery, where farmers can hire tractors and modern tools, are now plenty. They can work in the fields of farmers. Farmers do not need to invest much in the purchase of tractors or equipment. I could say that these are two solutions to the problems of small farmers in terms of poor access to farming. We at Dizengoff work with these service providers and farmers to create such cooperation so that they can make such investments as cooperatives.

What about fertilizers, seeds and other materials? Are they also expensive for these farmers?
It's about education. I know that usually some farmers always consider the price and always agree on the cheapest inputs. I can tell you that if you buy cheap chemicals or seeds, the differences or effects are huge. Thus, they may actually pay more, because they may have to use more chemicals than usual. As a rule, the best economic solution is to use quality materials for stable production.

The government has always claimed that it wants the economy to diversify through the agro-union industry, but less has been achieved. With your industry experience, how should the government go about this?
I would say that at a general level, not only in agriculture, although the government is taking steps, it is necessary to put more effort into making the country more business-friendly and entrepreneurial. Sometimes the rules and powers are not flexible and understandable. So, there are some actions you can take to make business in Nigeria more friendly.

Again, the government should ensure that quality agricultural resources are used in the country. Counterfeit agricultural resources must be prevented from entering the country. The education of farmers and finance, as I said, is very important. Affordable financing is one of the key points for promoting agriculture. Some government financing schemes already exist, but more needs to be done in this area, and some are too complicated and too difficult for a farmer who does not have lawyers or financial managers working with him who can do all the work for him. Therefore, the government should simplify and simplify financing for farmers.

You talked about the ease of doing business in Nigeria. How would you describe taxation in Nigeria based on your experience?
I do not think that taxation is a big problem, but sometimes reporting can be cumbersome. I mean, my financial team spends a lot of time and resources on reporting this and that, and reporting requests. Sometimes it upsets. Our corporate philosophy is that we must comply with all laws and regulations governing business operations in Nigeria. Therefore, we will do our best to follow all the rules. In some places, simple rules and less government control save company resource losses.

How would you describe the social and economic implications of Dizengoff in Nigeria?
I would like to think that we are contributing by providing the world's leading solutions for Nigerian farmers. And, of course, the most important thing is to find the most suitable solutions for Nigerian farmers. There are also many technological solutions that Nigerian farmers may not be prepared for, but we are trying to find the most suitable and affordable solutions for farmers.

Do you have a research and development unit, and do you carry farmers when developing technology solutions?
Obviously, we are constantly selling our technological solutions, such as greenhouses, irrigation solutions and products based on the experience of farmers. Thus, we are always looking for the best chemicals and the best seeds so that we can truly offer the best solutions for farmers. Dizengoff has turned 60 in Nigeria, and we are part of the CP Group in the UK and with offices in Kenya, Tanzania, Uganda, Zambia, Ghana and Ethiopia, among others.

I say that our clients have group resources. If they need technology or solutions that we do not have in Nigeria, all the resources of the group are at my disposal, and I can use all the experience that we have in the group.

What are you doing on corporate social responsibility in Nigeria?
We cooperate with schools, universities and various agricultural organizations, wherever we see that we can make a difference. We provide training and information on new technologies and better farming practices. And therefore, we feel that this is not just the sale of materials or equipment to farmers, but in fact ensuring that we provide comprehensive training in using and obtaining maximum results from tractors, greenhouses and irrigation technologies. And we will always stay with customers after the sale of products, providing after-sales support.

Young people in Nigeria are somehow not prone to farming, perhaps because of the old and inefficient methods of farming. How can you attract them?
I think that you are right, that the understanding of agriculture by many young people is connected with these old ways of farming, and therefore they need to understand what modern agriculture is. If they understand, I think they will change their thinking and attitude. What I am saying is that agriculture is a good business in Nigeria. Better to talk about agribusiness. If managed well, agribusiness is very stable in Nigeria. And definitely, agriculture has a future in this country. The potential is higher than many people understand in Nigeria.

What is your advice for youth?
They have to do their research and really find out how sustainable agriculture is. We are very pleased to present them to our existing customers who work well in the agribusiness. I have a lot of clients who work very well in agriculture, and they plan to expand. So, young Nigerians need to understand how modern agriculture is.