The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) is advocating for the operationalisation of a Secured Agricultural Commodity Transport and Storage Corridor (SATS-C) to combat post- harvest losses.
This is in line with NIRSAL’s mandate to fix broken agricultural value chains and increase the flow of finance into the sector.
The SATS- C is an effective model that delivers a seamless supply-chain mechanism for handling Agro-allied commodities such as inputs, produce and raw materials for primary producers, aggregators, processors and exporters.
The harmonised system 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.
Speaking at the SATS-C Breakfast meeting, on Thursday in Abuja, the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, called for the continued commitment of sister ministries with related mandates for the successful implementation of the proposed policy document.
He said “especially as they prepare to execute a common Client Service Charter that would enforce adherence to agreed rules and standards in a bid to accelerate the project.”
The minister said he was confident that the implementation of the policy would strengthen the agricultural supply chain to drive an agro-industrial renaissance, and facilitating the emergence of a functional supply chain system and commodity exchange.
In his message, the Minister of Agriculture and Rural Development, Alhaji Muhammad Nanono, acknowledged the importance and relevance of the proposed policy pursuit that would impact on agriculture.
Nanono , represented by Dr Saleh Momale, technical adviser to the minister, said that the policy would increase the profitability of farmers and better qualities of agricultural produce and commodities.
Speaking to journalists after the meeting, NIRSAL’s Managing Director/CEO, Mr Aliyu Abdulhameed, said that the FMITI’s commitment to SATS-C gives him a great sense of hope.
He said the belief 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.
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).
He said the PH-P3 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.
Abdulhameed believes that SATS-C’s envisaged enabling of seamless movement of produce from production zones, to processing zones to markets, would invariably upgrade agro-logistic value chains.
For this reason, NIRSAL is reaching out to enabler institutions, driving necessary dialogues and championing advocacy to support the FMITI in the development and implementation of the SATS-C policy in Nigeria.(NAN)