Thursday, 31 March 2016

Readers' Comments on TSA



Readers' Comments
This column considers reactions of the readers to previous articles important. Such reactions are generally feedbacks to the issues raised in the articles and it is another way of allowing readers to make contributions to the column. This week, I am publishing some of the comments sent by readers of this column for your reading pleasure. My dear readers, you can access my previous articles from my blog; www.breakthroughwithmkothman.blogspot.com
Technological Feats of Agricultural Engineers in Nigeria
Dear M. K. Othman,
Thanks for your interesting articles, I am particularly interested in the articles on agricultural mechanization especially the feats achieved by Agricultural Engineers in Nigeria. The desire for our nation to transform these prototypes machines for the benefits of farmers cannot be overemphasized. However, the question is; how ready is the Federal Ministry of Agriculture to create employment among the youths using various technological innovations? For us, as a nation to achieve agricultural revolution, I wish to suggest the followings:
1.     For the Federal Ministry of Agriculture and Development to function effectively and respond to the demand of the nation, the Hon Minister must reform the ministry to have the following departments: Finance and Investment, Production, Marketing & Research, Corporate Communication/Farmers Information Service, as well as Legal/Land Administration. Anything short of re-positioning the ministry along this line will clearly mean that PMB’s administration is not ready to make farming a business.
2.    PMB-led administration must define who a modern farmer is vis-a-viz, the desire of government to provide employment via agricultural sector. In determining who the farmer is; government can then determine the level of Mechanization that could be adopted to accommodate the youths.
3.    Another factor that must be taken into account is access to land. Government has to put in place a simple way to acquire land for agricultural purposes. Virgin lands have to be cleared and feeder roads constructed for easy access to cleared farm lands
4.    The government must make decision between full Mechanization and current Fertilizer agricultural policy. Shamefully, it was in the twilight of 2013, when United Nations hinted that Africa will suffer hunger and starvation, unless, they embark on full Mechanization, the then ministry  of agriculture, under Dr. Akinwumi Adesina embraced mechanization albeit, in an unwilling manner. It was clear the previous government had no intention of going into mechanized agriculture then but for UN’s intervention.
5.    Above all, Ministry has to resolve the cold war between Agronomists and Agric Engineers. This raging cold war has greatly retarded the growth of agriculture in Nigeria generally. Experts in the sector believe that agronomists have hidden fear that if Agric Engineers are allowed to play their natural role in the ministry, they, the Agronomists, would be relegated to the background. As a result of this fear factor, efforts at full mechanization of agriculture in Nigeria, has always been frustrated by the Agronomists and Agric Economists in the ministry. Further, Agric experts find it difficult to understand what the authorities in the ministry of agriculture mean by DRY FARMING, if it is not a deliberate effort on their part to shield Irrigation Engineers from having a say in the ministry. The fear of agronomists here is, once you call it irrigation farming, it then mean that Irrigation Engineer must be in-charge, this, they don’t want at the expense of the advancement of agriculture in Nigeria.
6.    In the area of granting loan to farmers, government must ensure that only the genius farmers get access to the loan. A situation where Agric loans are given to those entrepreneurs engaged in food processing, should not be encouraged by Chief Audu Ogbeh led Agriculture ministry. For instance, anybody involved in the business of Rice mill cannot in strict term, be called a farmer, because he is involved in food processing. Not agriculture.  He is at best, an entrepreneur. Core agricultural process terminates at a point the farm produce are ready for sale, this is called Farm Gate. After the farm produce are sold, the next category of people involved are either said to be into food or industrial processing, not farmers in the real sense of it.

Now that Chief Audu Ogbeh has spoken forcefully on full mechanization of Agric to provide employment for the teeming unemployed youths in Nigeria; what is urgently needed is a comprehensive blueprint towards this laudable agenda. Speaking in Ilorin, Kwara State on Wednesday, January 13, 2016, on the flag off of the second phase of Agricultural Equipment Hiring Enterprise [AEHE], Ogbeh identified the problem of agriculture in Nigeria as well as government’s planned response to the problem. To his diagnosis, experts in the sector are totally in agreement with it.  However, in formulating the required blueprint, the minister needs not to look far; he only needs to pick-up a book called: Memo To The President, The Challenge of Agricultural Development in Nigeria by Dr. Clement Kanshio Kaase. I hope this contribution will help to assist Nigeria achieve food sufficiency and poverty alleviation, amen
Emeka Oraetoka is, oramekllis@lycos.com

Treasury Single Account: Buhari's Bold Step and the Journey So Far
Dear M. K. Othman
Your article on TSA is an eye opener to what was taking place in MDAs in Nigeria. It is obvious that the primary benefit of a Treasury Single Account is the mechanism it provides for proper monitoring of government receipts and expenditure. In the Nigerian case, it will help to block most if not all the leakages that have been the bane of the growth of the economy. We have a situation where some Ministries, Departments and Agencies manage their finances like independent empire and remit limited revenue to government treasuries. Under a properly run Treasury Single Account, this is not possible as agencies of government are meant to spend in line with duly approved budget provisions. The maintenance of a single account for government will enable the Ministry of Finance monitor fund flow as no agency of government is allowed to maintain any operational bank account outside the oversight of the ministry of finance. As a matter of fact, deposit money banks stand to lose immensely from the implementation of Treasury Single Account.  This is because of the fact that public sector funds constitute a large chunk of commercial banks deposit.  Indeed, it is estimated that commercial banks hold large amount in trillion public sector funds.  The impact of this amount of money leaving the system can be imagined when one considers the fact that each time the monthly federal allocation is released, the banking system is usually awashed with liquidity and as soon as this public sector funds dries up through withdrawal by the states, liquidity tightens again with interbank rates going up.  Of major impact will be the movement of funds of revenue generating parastatals such as the NNPC, out of commercial banks. The implication of the policy Treasury Single Account, Banks will continue to device means of mobilizing funds from the private sector.  We see a return of the era when women are employed by banks specifically for deposit mobilization and tacitly encouraged to use any means necessary to get funds.  We see increase in deposit interest rates as a major means of inducing customers and most importantly we see a drop in lending and in the profitability of banks, at least, in the short to medium term until they fully come to terms with the impact of the policy and begin to properly position themselves for true banking business.  Ultimately, we see the share price of these banks falling as investors attempt to price in the policy impact. However, the implementation of this programme is a critical step towards curbing corruption in public finance. This is a tool to combat corrupt practices, eliminate indiscipline in public finance and ensure adequate fund flow that will be channeled to critical sectors of the economy to catalyze development. With TSA at the corner, Nigerians must learn to make budget and work with budget. Bravo M. K. Othman for this well enlighten information on TSA.
Dr. Muhammad M. Usman, muttaka@yahoo.com

Dear M. K. Othman
This is an excellent information gathering on TSA. More grease to your elbow for taking your time to educate public on TSA.
Mr. Nuhu Ishaya, ishayanuhu2006@yahoo.com


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