By Nse Anthony-Uko
ABUJA (Sundiata Post) – The Federal Government has valued the total live animal trade between Northern and Southern Nigeria at between N850 billion and N950 billion per annum, as government moves to douse tensions between farmers and herdsmen across the country.
This is as Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) of the Central Bank of Nigeria (CBN) commenced the movement of cattle by rail from Gusau, Zamfara State on Wednesday.
According to latest figures, the total value of the North East-Lagos cattle trade market alone is estimated at N324 billion per annum. This does not include the North-South East cattle trade or the trade in small ruminants (sheep and goats).
To sustain this volume of trade between the North and South of Nigeria, NIRSAL on Wednesday commenced the transportation of cattle from Zamfara State to Lagos by rail with the first 15 wagons of 500 cattle leaving Gusau, Zamfara State for Lagos State.
The historic journey will take 48 hours and will see more cattle being transported from the North to the South under more comfortable conditions; the final stop is at Oko-Oba in Lagos.
This initiative is under the National Farm to Market Scheme to enable a low cost and efficient transport link between agricultural producers and consumers across the country.
The scheme is projected to reduce the cost of transporting cattle from the north to the south by over 20 per cent, minimize injury and death of cattle while in transit and also preserve 100% of their value so that livestock breeders can get good price for their produce at the destination markets.
Under the scheme, NIRSAL, in line with its mandate to de-risk and incentivize investment into verified impactful projects across the agricultural value chain, will provide bank guarantees for the financing of critical requirements involved in the movement of the cattle including logistics and equipment.
Connect Rail Services Ltd, a bulk freight and logistics service provider is the first technical partner on this aspect of the Farm to Market scheme.
NIRSAL is also making efforts to operationalize other elements of the Farm to Market scheme such as the movement of perishable agric produce like tomatoes, dairy products and vegetables in refrigerated containers.
In his comments at the event, the NIRSAL MD, Mr Abdulhameed Aliyu said that “event signals the beginning of the Livestock Transportation Component of NIRSAL Farm to Market Scheme which aims to link Livestock breeders in the north to markets in the south in a safe, cost effective and profitable manner using the rail system.”
According to Abdulhameed: “What we have witnessed today is the culmination of rigorous and consistent effort to demonstrate that agric in Nigeria can be innovative and business oriented. The transportation component launched today is only the first part.”
Continuing, the NIRSAL MD said: “The next phase of NIRSAL’s effort for the commercial development of the livestock value chain will include the creation of business models and specific financing products for the Ranching and Trading components of the value chain. The strategy is to mainstream all the actors into regular and sustainable relationships with structured finance and structured markets. This will include the transportation of carcass and cut beef in refrigerated containers”.
Also speaking at the event, the Managing Director, Connect Rail Services, Mr Edeme Kelikume, said “the potential of rail in boosting exchange between the north and the south is immense. As logistics providers we are excited at the magnitude of this scheme and the massive impact it is going to have on the economy”.
Discussions with respected global names in refrigeration technology on the design of the refrigerated chilled containers are ongoing.