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Test Number : 156-510
Test appellation : Check Point NG with Application Intelligence - Management III
Vendor appellation : CheckPoint
practice test : 165 Dumps Questions

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Check Point NG with Application Intelligence - Management III education

beyond THE AGRICULTURAL cost CHAIN IN NIGERIA | 156-510 Dumps and real test Questions with VCE rehearse Test

by using ALEX OTTi

i used to breathe privileged to provide the dinner speech on the 59th Annual conference of the Nigerian economic Society in Abuja on September 27, 2018. I actually fill taken the liberty to participate excerpts of my presentation. the complete paper is purchasable on my web page,

The challenges of agriculture in Nigeria don't appear to breathe just concerning the problems of the macro and micro economy however also the misdirection of public policy.

All too often, agriculture and farming are used interchangeably leading to a simplistic interpretation of the sphere’s difficulties. This mistake is more than simply an informal misuse of two words or a misapplication of concepts however a huge explanation for policy confusion. while farming is the act of planting seeds and transforming into food and money crops or offering animal protein, agriculture nevertheless is the complete ecosystem of human economic interplay through which meals and farm plants enter prerogative into a production system in trade for monetary price. Agriculture, for this reason, refers to a cost chain that sooner or later effects in the change of money for bear and the following repercussion of this alternate on the a variety of economic agents involved within the creation procedure.

no longer seeing agriculture from a viewpoint of wider economic and political interactions that result in the change of value ends up in faulty public policies that emerge from misdirected or inappropriate trends of notion.


The Nigerian inhabitants is presently becoming at a thunderous three% each year. This skill that the population would double in roughly twenty years from now, leading to a population of about 350million individuals. The magnitude of the inhabitants boom will most likely breathe of much less value than its route and composition. The country’s population expand cost will do it the third most populous nation in the world in a mere two and a half many years. This massive inhabitants must breathe fed; for this reason suppliers of food objects are strategically placed to create product supply chains which fill exponential capabilities for boom.whereas micro agricultural creation has its makes exercise of as a sociable signaling mechanism, its effectiveness as a methodology to raise countrywide meals construction is doubtful. Going ahead, agriculture would require a relatively minuscule group of farmers applying advanced farming ideas and know-how to enrich relent per hectare of arable land. The government’s present viewpoint of throwing greater americans into the province is neither sustainable nor strategically sound; and certainly, it can breathe self-defeating. The more labour it truly is dedicated to fixed farm lands, the dwindle the marginal productiveness per employee and the smaller the incomes per farm arms employed, thereby discouraging additional labour provide. in the fullness of time, they will understand that what is required to ward off a plenary blown meals head is a dedicated group of gigantic scale farmers investing big amounts of money in superior seed kinds and processing technology that raises relent per land cultivated. The native agricultural cost chain needs to breathe stretched to consist of semi processed goods and advanced storage amenities and more suitable preservation concepts to even out the supply uncertainties associated with weather and different unpredictable processing situations. whereas simple commodities haven't finished too neatly in world markets as fees proceed to tumble, declining exotic change fees fill brought about rising international exact for agricultural bear and will relent greater incomes within the years forward. businesses similar to Okomu Oil and Presco (with a sixteen,900 hectare plantation) that bear Oil palm products for the native market (but export about 5% of its output) fill seen revenue tower by using as a lot as 60% from the 2d quarter of 2016. Okomu’s earnings earlier than tax stood at N11.1b as at December 31, 2017 as in opposition t N5.9b in 2016. in a similar way, Presco, more advantageous its earnings after tax from N21.7b in 2016 to N25.4b in 2017.

modern figures flaunt that Nigeria’s agricultural sector over the final 4 years has skilled rising growth however within a declining band. as an instance, the agricultural sector grew by passage of 3% in the first quarter of 2018 but dropped to 1.5% by the 2d quarter of the year. certainly, heading into 2018 the agricultural sector made up over N550 billion of GDP however this has given that fallen to about N355 billion by passage of the first half of 2018.  this is of predominant problem when it is realized that between 2009 and 2017 the executive in the course of the CBN’s commercial Agricultural credit score Scheme (CACS) spent a thumping N551.18 billion (for 547 initiatives) without sustained increase. In 2017 alone, the executive made provisions for N200billion in CACS of which N155billion had already been disbursed via February 2018.  negative agricultural performance relative to giant fiscal outlays yr-on-year reinforces the suggestion in company circles that backed lending to minuscule scale and unstructured agricultural operations is inept, ineffective and grossly wasteful.

The agricultural sector has remained basically subsistence and this has restrained expand alternatives. If Nigeria is to Boost in agriculture and breathe a big influence on the world stage, it must breathe prepared to cultivate higher farm holdings with expanded application of expertise. while micro, small, medium-sized entities (MSMSE’s) will not disappear, it is, despite the fact, famous to canvass the controversy that a more efficient constitution in the agricultural sector would breathe to fill these smaller entities office out croppers to higher groups. The larger farmer would comfortable larger exact through access to better markets, which feeds through the sectoral value chain by having these greater efficient pecuniary agents office off takers to smaller farm producers. The bigger producer can breathe accountable for cost discovery at a more competitive international rate, bewitch pervade of storage costs and supply some variety of crop coverage by means of agreed forward pricing. this is able to certainly do agricultural financing greater captivating to banks and other non-bank financiers, who would cost lower costs for safer agricultural random property. The agricultural ecosystem can breathe bootstrapped against greater effectivity and effectiveness through better operators purchasing up commodities from smaller farming entities. If these higher entities could breathe supported with storage facilities and a apt home commodity market then agriculture as a percentage of GDP could breathe vastly higher than the fresh 22% down from 36% in 2009 and 37% in 2008. Between 2014 and 2017 regular contribution to GDP turned into within the location of 21% with a variance of seven.8%, notably in 2016 the contribution fell to a ten year low of 18.2% despite huge quantities of funds channeled into the province by means of crucial pecuniary institution of Nigeria (CBN) preferred lending schemes.

The current gadget of funding minuscule scale farming via single digit interest rate loans in an atmosphere of double digit inflation (at the second set at eleven.26%) is a transparent illustration of economic subsidy for an recreation wherein the sociable and pecuniary cost, can also breathe significantly high. The undeniable fact that poor farmers are given loans at backed costs means that the govt is subsidizing probably the most inefficient operators within the sector, who in flip, given the indisputable fact that they fill entry to low priced loans proceed to office at subsistence and inefficient ranges of creation with a high drift to default on agreed compensation schedules. bigger farm holders, on the other hand, with more efficient operations are more likely to face the ordeal of wringing out loans from the clamped fists of bankers who are more favourably disposed to possibility- free lending to the federal government at coupon fees of between 12% and 14% each year.

Discrimination towards larger farmers discourages such operators from enlargement and the software of more and more advanced know-how within the farmyard creation technique whereas at the identical time encouraging smallholders to continue to breathe pint-sized and harmful. The plight creates challenges that can breathe averted if govt’s fiscal coverage sees past subsistence farming to a broader agric passage of life that intentionally hyperlinks farmers collectively in a sociable association that makes impeccable and sundry better off.

complications, solutions and potentialities

The native agricultural sector is beset with a myriad of problems; the main ones consist of, but are not restrained to, minuscule and fractionalized land ownership, negative relent per hectare, unpleasant farmer training and working towards, poor seed diversity, poor storage potential, poor transportation infrastructure, increasing rural-city migration, unpleasant access to finance, restrained skills or exercise of emerging expertise, unpleasant advertising and marketing, income and distribution methods and vulnerable value chain construction

 There are certain options to the issues enumerated above however the following are broader options with more radical results:

We trust agriculture as a means of promoting boom and edifice is overrated. certainly, what spurred Europe and the usa out of a Malthusian inhabitants entice was now not always boom in agriculture, however evolution in technology and the rearrangement of agricultural administration and ownership. The policy of encouraging extra individuals into agriculture creates a condition where marginal productivity of labour and land declines

The huge boom in Nigeria’s population prompts greater than passing difficulty about economic and sociable sustainability. Nigeria’s population is estimated to breathe a motley 198 million americans. If Nigeria doesn't ramp up the utility of technology to agricultural creation it will most actually End up a basket case of pecuniary and sociable failure. Rising inhabitants on the back of subsistence agricultural production is a surefire prescription for chaos. whereas they may accept as honest with that it's politically material to pour truck numerous money into pastoral agricultural practices and create a semblance of employment technology, the acerbic reality is that the total agricultural value chain has to breathe overhauled. a few actions deserve to breathe taken automatically:

i)               Farmers should breathe organized into greater construction units and big scale

farmers deserve to breathe supported in buying hefty duty agricultural implements to enrich output per hectare of land. minuscule farm holders should not eradicated (this could volume to economic genocide!) but they might breathe anticipated to enter into a supply chain association with larger farmers who would uphold them with finance, enhanced diversity seedlings and extension assist features

ii)             Agricultural storage has to breathe given greater precedence with govt entering into a non-public public partnership in edifice meals storage silos

iii)            A commodity alternate must breathe created and made to easily expense farm goods ahead. This allows for a extra efficient pricing of agricultural items with the aid of permitting for a extra resilient and legitimate expense discovery mechanism.

iv)            The wide gaps in agricultural construction, processing, distribution and income requisite to breathe crammed. this may only breathe performed if farmers are viewed as handiest a Part of a more difficult procedure of agricultural construction. The narrow standpoint of agriculture as simply farming has confined the sphere’s skill of growing to breathe at a a lot quicker tempo. here is an illustration of this change: Ghana is the biggest exporter of cassava on the planet but Nigeria is the largest producer, a incontrovertible fact that naturally indicates that Nigeria has did not bewitch plenary capabilities of its simple creation by using translating it into exportable products. here's in reality a failure of policy.

v)             If Nigeria requisite to grow its agricultural GDP in a meaningful fashion it ought to adopt a more strategic and lengthy-time epoch fashion to the field. What is required is a structural transformation, which means a root and department reform. this would suggest helping knotty creation chains in the sector in commodities by which the country has some relative (or possibly absolute) competitive skills.

Nigeria has giant potentialities in turning the agricultural sector into the nation’s most famous overseas alternate earner. The problem is a framework that develops the value chain in a fashion that permits the nation promote agricultural bear at a top property and value the realm sees as competitive.


it is my sentiment that if Nigeria’s agricultural cost chain at different degrees fill to breathe made to serve the overriding surest pastime of the nation, the governance ethos of the country must breathe reviewed to do agricultural construction, storage, distribution and alternate greater efficient and advantageous. They requisite to breathe organized to do radical alterations to the passage the country and the agricultural sector is managed. without this, they are able to eventually ascertain that whereas they pettifog about narrow political pursuits, the leisure of the realm will flux on, leaving us to breathe international hewers of wood and drawers of water. obviously, a shiny new world has emerged and is accelerating abruptly. it is the world of synthetic Intelligence (AI), massive data processing, Cyber-connectivity, bright Engineering and Robotics.

This evolution is not about tradable culture however in regards to the utility of advanced intellect to the evolving realities of a changing world. it is a poignant irony that whereas the leisure of the region is safely engaged in these approaches, their country continues to breathe locked in the conundrum of the battle to obtain the most basic of human wants – meals, garb and protect. The agricultural revolution took region in Europe a all bunch of years ago. in the meantime in Nigeria, we're nonetheless discovering the fundamentals. They must reinvent their society with a view to manage their procedures more with no wretchedness to serve their nation and people better.

Defining Agriculture readily and leveraging on its distinctive value chain can most efficient breathe carried out sustainably within the context of a reformed and restructured Nigeria, with an over hauled country wide value system. A rebased cost gear which is underpinned by means of liable and responsive leadership, that locates service to the individuals as the famous purpose of management is what's required at present.

Some individuals, can breathe tempted to belittle the compelling urgency of this quintessential. but, let me say, with each due admire, such individuals are wrong and their position, incurably faulty. The fact is that Nigeria now not has the luxury of time to preserve making blunders. The exploding demographic situation and dynamic complexities of the new world order, do it obligatory for Nigeria to either pick up her acts together or pay a sheer fee.

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