NIRSAL Advocates Harmonised System for Agric Commodity Transportation, Storage

By Tony Obiechina, Abuja

In line with its mandate to fix broken agricultural value chains and increase the flow of finance into the sector, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) is championing advocacy for the operationalization of a Secured Agricultural Commodity Transport & Storage Corridor (SATS-C).

In a statement from NIRSAL on Thursday, the initiative is expected to combat post-harvest losses, create jobs and boost the contribution of the Agriculture Sector to Nigeria’s Gross Domestic Product (GDP).

SATS-C is currently a policy document being prepared for executive consideration by the Federal Ministry of Industry, Trade and Investment (FMITI) who are at the stakeholder identification and engagement stage.

The Ministry hosted a breakfast meeting Monday in which it invited, amongst others, four other federal ministries deemed critical to the successful domestication of the SATS-C initiative. 

The ministries include, Agriculture, Finance, Transport and Works. As advocates of an agriculture sector with efficient production, transportation and storage systems, NIRSAL Plc was also represented at the meeting by an executive-level delegation.

During the breakfast meeting, the Minister of Industry, Trade and Investment, Mr. Richard Adeniyi Adebayo  presented the SATS-C initiative to participants, along with the economic sectors that it would impact if adopted and implemented. 

He sued for the continued commitment of the sister ministries with related mandates for the successful implementation of the proposed policy document, especially as they prepare to execute a common Client Service Charter that will enforce adherence to agreed rules and standards in a bid to accelerate the project.

There are existing capacities, policies and structures that are complementary to the operational framework of the SATS-C initiative. The stakeholders intend to factor them in as they work on the details of the policy. 

Some of them include the One-Stop-Shop (OSS) Policy, the Road Crime Control System (RCCS) operated by the Federal Ministry of Transport, and the Agro Ranger Operations under the Nigerian Security and Civil Defence Corps (NSCDC). 

New initiatives that must be taken on board by the team include Social Engineering, to prepare beneficiaries and users for the SATS-C: Executive/Legislative Intervention to empower MDAs to expand their mandates and capacity building for stakeholders.

As a key player in the Federal Government’s macroeconomic plans, FMITI’s work on the SATS-C project is timely. Amongst other things, it will bring a coherent, harmonized tax scheme to bear on Nigeria’s agricultural logistics sub-sector which is currently leaking revenue through multiple taxation, extortion and post-harvest losses.

Speaking to journalists at the end of the meeting, NIRSAL’s Managing Director/CEO, Mr. Aliyu Abdulhameed, said the ministry’s commitment to SATS-C gives him a great sense of hope. 

He believes that a fully operational SATS-C policy could directly lead to a 5% increase in the agriculture sector’s contribution to national GDP by halving annual post-harvest losses of $12 Billion.

Further benefits, he noted, lie in the lowering of food prices, creation of 125,600 direct and indirect jobs, and the heightened possibility of adhering to standards for improved access to export, industrial and consumer markets. 

Abdulhameed hopes that SATS-C would complement and perfect one of NIRSAL’s business models/concepts known as PH-P3 (Primary Production & Harvest, Primary Processing, Primary Transportation and Primary Storage)  which ensures efficient production in the farms and optimum capture of value at harvest by enabling prompt evacuation of produce from farm-gates, and the subsequent haulage of commodities across the country through designated corridors.

SATS-C’s envisaged enabling of seamless movement of produce from production zones, to processing zones to markets, Abdulhameed believes, would invariably upgrade agro-logistic value chains, flush blockages and usher in an era of increased flow of finance and investments into and through agricultural value chains. 

Consequently, NIRSAL is reaching out to enabler institutions, driving necessary dialogues and championing advocacy to support the ministry in the development and implementation of the SATS-C policy in Nigeria.

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