INVESTMENT IN AGRICULTURAL RESEARCH AND IMPACT ON

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INVESTMENT IN

AGRICULTURAL RESEARCH

AND IMPACT ON

FOOD AND NUTRITIONAL

SECURITY IN NIGERIA

Paper Presented at the 2014

National Agricultural Show

Seminar,

13 th Oct., 2014,

Nasarawa State.

By

Prof. B. Y. Abubakar, OFR

Executive Secretary

INTRODUCTION INTRODUCTION

Sustainable agricultural growth requires greater emphasis on productivity growth in view of declining cultivable areas

Application of innovative techniques for agricultural production is a fundamental and crucial step in improving livelihoods in most societies

There is generally a strong correlation between increased agricultural research investment and agricultural productivity.

Our priority - Ensure that research makes the greatest possible contribution to raising human welfare using the limited available resources while attracting more investments

This presentation examines investments in agricultural research and it’s impact on food security in Nigeria.

WHY INVEST IN AGRICULTURAL RESEARCH?

Poor funding of research leads to inability to deliver improved agricultural technologies, achieve increased productivity and other related benefits

There is a high rate of return to society on investments in hg agricultural research.

For example, for every US dollar spent on agricultural research in 2010 in Brazil, US$9.35 accrued to the society

SOURCES OF AGRICULTURAL RESEARCH FUNDING IN NIGERIA

Primary source of funding is the Federal Government

Private sector investments are negligible

Capital Budget releases are usually incomplete (about 50% of approved ) and often out of tune with research work plans

Investment in agricultural research doubled between 2000 & 2008 owing to high personnel cost and increased capital allocation. However, allocations

demonstrated a high level of fluctuation and instability (Figure 1)

12,00

10,00

8,00

6,00

4,00

2,00

0,00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Year

Figure 1: Nominal Capital budgetary allocation to NARIs (2000-2014)

Note: 2009 figure includes ₦ 1B released under CARGS, while 2012, 2013 and 2014 includes R&D allocations of ₦ 2.25B,

₦ 2.71B and 0.70B, under the ATA in Ministry’s budget

… AGRICULTURAL RESEARCH SPENDING TREND IN NIGERIA

Personnel cost takes major share of agricultural research spending in

Nigeria (Figure 2)

Investment in agriculture research and development averaged about 0.5% of AgGDP; below the SSA average of 0.6% and the commitment of 1%

Capital

26%

Overhead

6%

Personnel

68%

Figure 2: Distribution of 2014 budgetary allocations to agricultural research in Nigeria

Source: Abubakar (2014)

… AGRICULTURAL RESEARCH SPENDING TREND IN NIGERIA

The national expenditure in major imports by far outweighs agricultural research investments in

Nigeria. For example, 1 week rice import = 2010 Capital allocation to NARIs ( ₦ 6.9 Billion)

Between 61 and 79% of capital allocations to agricultural research institutes was spent on

infrastructural development, while 21-39% was spent on research activities between 2005 and 2009 (Figure 3)

’08

4

‘05

1

0% 20% 40% 60%

Share of capital (%)

80% 100%

Figure 3: Comparison between Research and Infrastructural allocations by NARIs (2005-2009)

Source: Malomo (2013)

Research

Infrastructure

Nigeria has made significant progress in food security status (Figures 4-6) and that explains why the country achieved MDG 1 about 2 years ahead of the target date

Between 1990 and

2013, Nigeria’s GHI has decreased by about

41%

Prevalence of malnutrition decreased by about 31% between

1990 and 2011

Mortality rate for children under 5 years in

Nigeria decreased by about 39% between

1999 and 2013

30

25

20

15

10

5

0

1985 1990 1995 2000

Year

2005 2010 2015

Figure 4: Trend of Global Hunger Index for Nigeria

… PERFORMANCE OF NIGERIA IN FOOD SECURITY

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

Figure 5: Prevalence of food inadequacy in Nigeria (1990 – 2012)

Prevalence of food inadequacy reduced by about 67% between

1990 and 2010

… PERFORMANCE OF NIGERIA IN FOOD SECURITY

The number of undernourished people decreased by about 55% between 1990 and 2010

25,0

20,0

15,0

10,0

5,0

0,0

Figure 6: Number of undernourished people in Nigeria

Table 1: RELATIONSHIP BETWEEN INVESTMENT IN AGRICULTURAL RESEARCH

AND FOOD SECURITY INDICATORS IN NIGERIA

Class of food security indicator

Food security indicator Correlation

Food availability Average dietary energy supply adequacy HP

Share of dietary energy supply derived from cereals and roots HP

Food accessibility

Food stability

Average supply of protein (gr/cap/day)

Average supply of protein of animal origin

Average value of food production

Depth of food deficit

Prevalence of food inadequacy

Prevalence of undernourishment

Domestic food price volatility index

Cereal import dependency ratio

Per capita food supply variability

HP

HP

LP

HN

HN

HN

HN

LN

MN

Note: HP = High +; LP = Low +; MP = Medium +;

Improved investment in agricultural research will lead to better availability and access to food as well as reducing vulnerability to food insecurity in Nigeria

AGRICULTURAL RESEARCH TECHNOLOGIES AND

IMPACT ON FOOD SECURITY

A study commissioned by ARCN showed that over 170 agricultural technologies were developed by the NARIs from 1997 – 2008

(ARCN, 2010).

Over 50 technologies have been developed by NARIs, universities and other stakeholders under CARGS in the course of implementation of the scheme.

In 2008 – 2009, ARCN also commissioned a series of impact assessment studies of technologies developed by the NARIs to measure benefits to end-users

The studies revealed that agricultural technologies in Nigeria had positive social and economic impacts on adopters and other endusers

… AGRICULTURAL RESEARCH TECHNOLOGIES AND IMPACT

ON FOOD SECURITY

Annual mean monetary gain to society ranged from low for early bearing cocoa variety to high for six rice varieties studied (Table

2).

Adopters of many of the technologies were found to be more food secured than non-adopters.

Both expenditure and income-base poverty gap indices indicated worsening poverty towards non-adopters.

Other social gains abound

Table 2: Monetary gains to society from varietal improvement and adoption in Nigeria

NARI

CRIN

NRCRI*

NCRI**

IAR***

LCRI

NAPRI

Commodity

Cocoa

Cassava

Rice

Maize

Millet

Chicken

Technology

Early bearing variety

(precocity)

TMS 30572

NR 8082

FARO 44, 46 & 52

FARO 48 & 51

FARO 55

SAMAZ-11

LCIC-MV-1

ShikaBrown Layer

Year of

Release

2004

1990

1998

1992

2001

2003

2000

2000

2000

Monetary gain to society

Low

Moderate

High

Moderate

Moderate

High

Note: *Developed by IITA, Ibadan and NRCRI, Umudike; **Developed by IITA, IRRI, ArficaRice and adapted by NCRI;

***Developed by IAR, Zaria and IITA, Ibadan

Source: Phillips et al. (2009, 2010)

WAY FORWARD

Massive and sustained public and private investments in R&D are required in order for agriculture to benefit from developed technologies.

Need to target technologies that enhance improving efficiency of farmers’ use of agricultural inputs.

Need to separate research funds from capital budget to ensure timely releases and increased research outputs.

Need for greater focus on adding value to outputs from primary production through processing .

Improve research-extension linkages towards enhancing the social benefits derivable from agricultural research investments.

CONCLUSION

Improving agricultural research investment would result in better food security status in Nigeria.

Owing to the time lag between investment and research output, there is need for sustainable improved resources mobilization for agricultural research operations in

Nigeria.

Hence, the justification to reform and restructure the research system to be more responsive to the needs of end-users.

Thank You

For

Your Attention

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