Around the world, various strategies are being employed to cushion the effects of the global financial crisis tearing apart the economies of countries. During the second Nigeria – United States parley last week in Lagos, agriculture took the centre stage. This is strategic because of the dwindling oil revenue for Nigeria and also, the impact of agriculture on people’s lives.
GODWIN HARUNAwrites.

Mr. Paul Okpue was upbeat as guests mile around his stand at the foyer of the Civic Centre on Victoria Island, Lagos last week. Okpue, managing director of Panicenduwelli Nigeria Limited, Asaba, Delta State, conspicuously displayed his craft made from bamboo trees at the exhibition stands of the 2nd Nigeria – United States Partnership on Trade, Industry and Commerce (POTICO 11) in Lagos last week. The response of guests at the two-day confab on commerce raised the hopes of the small scale forest processor that he could tap into the Africa Growth and Opportunity Act (AGOA) and explores the export business to grow his firm.

“I am using this company to support the local farmers, who hitherto destroy the bamboo which is considered as nuisance in the area. Now they don’t have to destroy it. They put them together for my company,” Okpue said adding that although the market is huge in the country, he could also explore the export market to show the world that there are products to showcase in the Delta apart from oil.

This is one of the refreshing outcomes of the yearly Nigeria-U.S. seminar facilitated by Rimson Associates with support from the U.S. Embassy in Nigeria, First Bank Plc and the Bank of Industry and some indigenous banks. With the theme, “Boosting the Nigerian Agricultural Sector through Financing, Processing, Capacity Building, Capital Equipment and Market Access, this year’s edition was devoted to agriculture. Besides the forest materials processing firm, other small scale outfits came to the seminar, which was attended by participants from across the country. According to Mr. Ufo Eric-Atuanya of Rimson Associates, the seminar attracted diverse participants because it was designed as a public-private venture to bolster trade between the two countries. The consulting firm has made significant inroads on the growth of emerging industries by procuring and engaging U.S. technical expertise in areas of trade, capacity building and economic development.

In her speech at the opening ceremony, United States Ambassador to Nigeria, Ms. Robin Sanders pledged the support of her country’s agencies working in concert with some Nigerian banks to boost agricultural production in the country. Sanders stressed that in the wake of the global financial crisis, the United States considered it a matter of priority to support agricultural development so as to prevent food crisis in the world.
The ambassador said the participating U.S. agencies are expected to partner with some Nigerian banks to boost agricultural production in the country in such a way that would benefit small scale farmers. She stated that since the hosting of the first edition, which focused on financing opportunities available to small scale Nigerian businesses, the embassy has facilitated various workshops around the country to sensitise Nigerians on how they could tap from the African Growth and Opportunity Act (AGOA).

Sanders promised to continue on that path after this year’s forum because of the importance of agriculture in the development of the country, adding that the commissioning of the AGOA Resource Centre at the Bank of Industry headquarters in Lagos would further facilitate the process. The emphasis, she maintained, would be to strengthen the capacity of the small scale producers in the countryside to do well to preserve the food security of Nigeria.

Later while inspecting some exhibition stands at the seminar, expressed gladness on what she saw. Speaking at the Panicenduwelli stand, she said she was thrilled to discover that such things also come from Delta State apart from oil. She placed order for some bamboo stools for her office.

One of the prime movers of the forum, Ms. Evelyn Oputu, Managing Director of the Bank of Industry (BOI) said the dialogue, which commenced last year was designed to foster rapid economic development of Nigeria. Oputu commended the zeal with which the ambassador has pursued the initiative, which has culminated in the opening of the AGOA Resource Centre in Lagos to provide the needed information for Nigerians desirous of doing business with the U.S.

She stated that the initiative would also help to erase the impression that Nigeria is a country of scammers and it would also assist Nigeria to harness her huge agricultural resources. She said one of the benefits of the dialogue was the opening of the AGOA Resource Centre at a section of the BOI headquarters on the Marina in Lagos. According to her, the centre would be open to all Nigerians who want the resource there to grow their businesses beyond the shores of Nigeria.

“We have found in Ambassador Sanders a worthy partner that is committed to advancing real development in our country and the initiative will also allow Nigerians to focus on non-oil sectors in the development of our economy,” she added.

Also speaking at the forum, a representative of Mr. Bisi Onasayna, Group Managing Director of First Bank Plc, commended the contribution of the U.S. embassy and other agencies towards the agric sector.
He said First Bank Plc is famous for supporting agricultural production in the country and promised to continue such support to reduce the dependence on the oil sector. The U.S. government agencies that participated in the forum include Export Import Bank (Ex-im), Foreign Agricultural Service (FAS) and United States Commercial Service (USCS).

Others are the Overseas Private Investment Corporation (OPIC), United States Trade and Development Agency (USTDA), United States Agency for International Development (USAID) and US/West Africa Trade Hub.

After the plenary, the forum was divided into modules which focused on acquiring and financing technical equipment from the U.S., regulations and requirements for exporting to the U.S., tools for understanding FAS and EXIM financing among others.

Nigerian banks, which supported the forum and are also participating include, Afribank, Diamond Bank, Ecobank, Access Bank, Oceanic Bank, Fidelity Bank, Bank PHB and Zenith Bank. The highlight of this year’s event was the formal opening of the AGOA Resource Centre at the BOI headquarters on Marina, Lagos by the Minister of State for Commerce, Mr. Humphrey Abah.  Oputu said earlier that the centre would be open to all Nigerians wishing to exploit the opportunity provided by AGOA to start export business to the U.S.
When the plenary broke into sessions, the various agencies participating at the seminar held talks with participants, who chose those that would benefit them to attend. In one of them, the US- Food and Drug Administration held a food labeling seminar for participants on topics such as - Principal display and information panels (PDP & IP), appropriate terms to use in naming a product, ingredient statements and country of origin, food additives and ingredients that are GRAS (Generally Recognised As Safe), Juice and beverage products (contents, percentage juice and ingredient declarations).

Also in its presentation, the Ex-Im Bank which was established in 1934, is the official export credit agency of the United States. It is to assist in financing the export of US goods and services to international markets. Ex-Im Bank provides solutions for Short-Term Accounts Receivable Financing and Medium-Term & Long-Term Financing through: Export-Credit Insurance and Commercial Loan Guarantees and Direct Loans. The total Ex-Im Bank exposure in Nigeria is put at $403 million.

The Overseas Private Investment Corporation (OPIC)’s representative, who also made a presentation stated that it was set to mobilise and facilitate the participation of U.S. private capital and skills…” in emerging markets such as Nigeria. He noted that over the agency’s 37-year history, OPIC has supported $180 billion worth of investments, including more than $800 million to U.S. investors in Nigeria in 37 projects.

In a presentation by Jason Nagy, Africa Development Manager of the United States Trade and Development Agency (USTDA), he said sub-Saharan Africa receives about 20 per cent of USTDA’s funding worldwide. According to him, approximately, $10 million per year in grant funding for the region by the development agency while it funds about 25 assistance projects and studies each year in the region. The average grant, he said, is about $400,000 and USTDA has funded projects in 37 countries throughout the region. Other U.S agencies also made presentations at the seminar.