ASSESSMENT OF GROWTH ENHANCEMENT SUPPORT SCHEME (GESS) IN ADAMAWA STATE

 0                                               INTRODUCTION

1.1 Background to the Study

Agriculture in Nigeria is predominantly practiced in the rural areas; hence, there is the need to ensure that farmers in the rural areas get access to farm inputs such as fertilizers, seeds and information to enhance their productivity. In recent years, majority of the governments and donor agencies operating in the region have shown a renewed interest in improving the livelihoods, living conditions and the economic wellbeing of the rural communities (Jama, Stuth, Kaitho, Ali and Kariuki, 2007).The Nigerian agricultural sector over the years has witnessed efforts at transforming its operations. 

The use of Information Communication Technology (ICT) stands out as the most recent strategy deployed to revolutionize agricultural activities. Consequently, the use of mobile phones by Nigeria farmers has emerged as important in agro-inputs distribution in enhancing agricultural productivity. According to Chete and Fasoyiro (2014), Nigeria has a teledensity of 86.25 per cent from over 120 million active telephone lines by June 2013, 97.5 per cent of which are mobile phones. Anecdotal evidence shows that mobile phones are also widely used by smallholder farmers in rural communities. Indeed, cell phone penetration in rural households in Nigeria has significantly narrowed the digital gap with urban areas. 

The Agricultural Transformation Agenda was launched in Nigeria in 2011. It is aimed at a proactive change in the practice of agriculture and its perception in the country in several ways. For the first time in post-civil war, agriculture is being treated as a purely business oriented economic activity rather than a development programme (Osinowo, 2012). In time past, interventions in agriculture had been largely dominated by access to credit, robust extension effort and provision of basic farm inputs, but these have steadily and drastically reduced with the end of World Bank financing of the State Agricultural Development Programmes. It is still believed that agriculture is the live wire of Nigerian economy, contributing between 30-40% to the gross domestic product and providing employment for the vast majority of the populace especially those in the rural area. However, a policy framework for increasing the strength to release its vast potential for employment generation, economic development, food security and poverty alleviation was elusive (Osinowo, 2012). The Agricultural Transformation Agenda (ATA) with its core critical objectives of a value chain approach and its linkages with key changes in food and trade policies appear to be making impact since its inception (Osinowo, 2012). Government is poised at enhancing efficiency through competition and creation of an enabling environment for a private sector-led survival and modernization of Nigeria agriculture. The development of agricultural key value-chains-such as provision and availability of improved inputs, increased productivity and production, creating a well staple crop processing zone, reduce postharvest losses as well as improve linkages with the markets are all centered on increased productivity.

The Growth Enhancement Support Scheme (GESS) is one of the many critical components of the Federal Government Agricultural Transformation Agenda. It was designed for the specific purpose of providing affordable agricultural inputs like fertilizer and hybrid seeds to farmers in order to increase their yield per hectare and make it comparable to world standard. It is an innovative scheme which seeks to remove the difficulties usually associated with the distribution of fertilizer and hybrid seeds in the country. In the past, there were complaints of diversion, exorbitant cost and adulteration of various inputs, which ultimately led to low productivity, increased poverty, unemployment and lack of interest in farming. The scheme’s approach is to target beneficiaries through the use of electronic system and by encouraging the engagement of the private sector in the distribution and delivery of fertilizer and other critical inputs directly to the farmers. With a strong determination to break away from the rot of the past and the ineffective, inefficient and corruption ridden distribution of fertilizer and other government subsidized inputs to farmers, the Federal Ministry of Agriculture and Rural Development (FMARD) was mandated to come up with the mechanism that will be farmers friendly and get fertilizer and other inputs directly to the real farmers. However, the thrust of the scheme is to enhance the capacity of the farmers who could not afford a bag of fertilizer and seedlings. An attempt to overcome these difficulties led to the introduction of the Growth Enhancement Support Scheme (GESS) and the use of Electronic Wallet (e-wallet) Approach. An e- wallet is defined as an efficient and transparent electronic device system that makes use of vouchers for the purchase and distribution of agricultural inputs (Ezeh, 2013; Adesina, 2013)

The e- wallet approach is designed for smallholder farmers. The criteria for farmer’s participation include: farmers being above 18 years old; have participated in a survey authorized by the government to capture farmers personal detailed information; must own a cell phone with a registered SIM card and have at least sixty-naira credit in the cell phone. The fulfillment of these conditions guarantees the issuance of an e- wallet voucher to the farmer. The voucher is used to redeem fertilizers, seeds and other agricultural inputs from agro- dealers at half the cost (Signal, 2014).Adebo (2014) further highlighted that, for an agro input dealer to participate in the programme, he/she must own a cell phone with a registered SIM card, understand the process of using e- wallets, and attend training programmes designed for the project. The agro dealers are required to; conduct honest business and guide against fraud; choose and prepare a location for the business transaction; provide storage facilities and be available at the appropriate time to attend to farmer’s needs. Other prominent personalities in the scheme are the helpline personnel and redemption supervisors. Each State Agricultural Development Project (ADP) supplied the helpline staff, and about 3-5 helpline staffs are assigned to each of the Local Government Area. The helpline staff and supervisors connect to the farmers to attend to their needs. 

The redemption supervisor helps in verifying farmer’s identity as well as a farmer’s code in the text message received by the farmer, and then compares it with the name and code listed in the farmers’ register which the supervisor received from the cellulant. The subsidized farm inputs are delivered directly to farmers through their mobile phones. The project is expected to provide direct linkage between the farmers and the government. This will enable the government to disseminate valuable information to the farmers, thus ensuring farmers' progress (Ezeh, 2013). The system ensures the involvement of the private sector in agricultural input supply (NAN, 2012). According to the Federal Ministry of Agriculture and Rural Development (2011), about 14 million farmers have registered for the scheme throughout the federation. Inputs have been distributed in seasonal production cycles to farmers for their needs and interest, for which the programme has been designed primarily.

1.2 Statement of the Problem

In the past, fertilizer procurement and distribution in the country has been fraught with fraud, discrepancies and inefficiencies. Governments at the Federal and State levels were spending a lot of money on farm inputs which were not reaching the intended beneficiaries (small holder farmers) and thus, had no impact on the national food output. 

The Federal Government was involved in the direct procurement and distribution of fertilizers, and this weakened the ability of private companies to participate in the sector and compete efficiently for market share. As with most subsidy regimes, the sector was grossly under developed and the opportunities for fraud and diversion were rampant.  Adesina (2013) pointed out that the old system used in supplying inputs to the farmers was weak, inefficient and fraudulent, hence a large proportion of the farmers could not benefit from it. He stressed that the inputs meant for the farmers were diverted by the political elite to other countries for personal gains. It was also noted that most of the fertilizers supplied were adulterated, thus damaging the environment.  Ogundari and Ojo (2007) in Adebo (2014) equally observed that despite various efforts geared towards agricultural development, it has been estimated that 65% of Nigerians are living with hunger as food production growth is still as low as 2.5% per annum, while food demand has been growing at the rate of 2.8% per annum.

The need for a holistic transformation of the Nigerian State has necessitated a strategy that gives cognizance to Growth Enhancement Support Scheme (GESS). The scheme was introduced in May 2012, as a pilot project in 36 states and the Federal Capital Territory. Being powered by the e-wallet approach, the scheme aims at achieving the set goals of overcoming the many difficulties confronting the agricultural sector in Nigeria and ensuring availability of fertilizer, seeds and other inputs to farmers as timely as possible. This is with the understanding that the corruption which has been the bane of agricultural development in Nigeria will be better tackled if and when farmers can directly access the farm inputs through their mobile phones. 

Researchers as Adebo (2014) worked on the effectiveness of e-wallet practice in grassroots agricultural services delivery in Nigeria - a case study of Kwara State growth enhancement support scheme. Fadairoet al. (2015) also carried out research on attitude of crop farmers towards e-wallet platform of the growth enhancement support scheme for inputs delivery in Oke-Ogun area of Oyo State. However, none of these studies was conducted to assess growth enhancement support scheme in Adamawa State. In the light of the above, this study sought to provide answers to the following research questions.

1.3 Research Questions 

What are the socio-economiccharacteristics of the participants of GESS ?

What are the farmers’ levels of participation in GESS?

Are there differences infarmers’ levels of access to fertilizer, improved seeds, and herbicides before and after introduction of GESS?

Who are the suppliers of agro- inputs to farmers’ after inauguration of GESS?

What are the farmers’ attitudes to e-wallet components of GESS?

What are the differences in the costs of agro-input to farmers’ before and after introduction of GESS?

What are the farmers’ challenges in accessing agro-input through GESS?

1.4 Objectives of the Study

The broad objective of the study was to assess growth enhancement support scheme in Adamawa State, Nigeria. 

The specific objectives were to:

describe the socio-economic characteristics of the respondents of the study;

determine farmers’ levels of participation in GESS;

compare farmers’ levels of access to fertilizer, improved seeds and herbicides before and after introduction of GESS;

identify suppliers of agro-input to farmers’ after inauguration of GESS;

examine the farmers’ attitude to e-wallet components of GESS;

determine the differences in the cost of agro-input to farmers’ before and after introduction of GESS; and

identify farmers’ challenges in accessing agro-input through GESS.

1.5 Statement of Hypotheses

The following research hypotheses were stated and tested.

H01: Respondents’ socio-economic characteristics have no significant effect on their attitude towards the use of e-wallet for accessing agricultural inputs. 

H02: Respondents’ socio-economic characteristics have no significant effect on their level of participation in Growth Enhancement Support Scheme.

1.6 Significance of the Study

This study will be of great benefit to development partners, like International Fund for Agricultural Development (IFAD), World Bank, Food and Agriculture Organization (FAO) in area of identifying the problems of accessing agro-inputs under the growth enhancement support scheme and therefore, provide support in funding the activities of the scheme to achieve its goals in procurement and distribution of input to farmers in Nigeria.

The outcome of the study will be useful to major stakeholders like fertilizer companies, seed suppliers, transporters, agro-dealers and agro-input value chain in identifying and strengthening areas with low input procurement and distribution in the country and also identify the cost of input before and after implementation of GESS.

The study when completed will be a useful tool for government and policy makers in area of implementing policies in agro-input procurement and distribution that will benefit the resource constraint farmers.The study will be of great benefit to farmers that are the beneficiaries of GESS in area of identifying their challenges with the implementation processes of the scheme and therefore address some of the challenges they faced.

The outcome of this study will also benefit students carrying out similar studies under the platform of GESS.It will serve as a reference material for other researchers in procurement and distribution of agro-input to resource constraint farmers in Nigeria.

1.7 Scope and limitations of the Study

The study covered assessment of growth enhancement support scheme in Adamawa State, Nigeria.

Limitations were language barrier, lack of good road to reach registered farmers’ in some of the rural areas, reluctance of farmers’ to interact freely with the researcher in releasing vital information in GESS and also financial constraint in going round the study areas to collect data for the study.  

1.8 Definition of Terms

Assessment: To evaluate the value, importance, or quality of a programme (streatfield and markless, 2009).

Growth Enhancement Support Scheme (GESS): GESS is a scheme which provides an avenue for direct redemption of hybrid seeds, fertilizer and agro-chemicals to Nigerian farmers, through an e-wallet system (Adesina, 2013) 

E-Wallet: An e- wallet is defined as an efficient and transparent electronic device system that makes use of vouchers for the purchase and distribution of agricultural inputs (Adesina,2013, Ezeh, 2013) 

Agricultural Transformation Agenda (ATA): The ATA programme seeks to grow and develop agriculture as a business and thereby create jobs, assure food security, promote private sector investments for wealth creation and maximize agriculture sector contribution to the country’s economic growth (APRNet, 2013)

Agricultural Productivity: Agricultural productivity can be defined as the index of the ratio of the value of total farm output to the value of total inputs used in the farm production (Olayemi, 1980)

Information Communication Technology (ICT): The ICT can be defined as technologies involved in collecting, processing, storing, retrieving, disseminating and implementing data and information using microelectronics, optics and telecommunications and computers (Greenidge, 2003)

 Global System of Mobile(GSM): Global system for mobile is an open, digital cellular technology used for transmitting mobile voice and data services.

Voucher: Voucher is used to redeem fertilizers, seeds and other agricultural inputs from agro-dealers at half the cost, the other half being borne by the Federal Government and State Government in equal proportions (Adesina, 2013)

Cellulant: Cellulant refers to technology providers (E-Wallet), farmers bio-data is been uploaded in the e-wallet after fully registered in the growth enhancement support scheme for easy identification (Adesina, 2013)

Redemption centre: Redemption centre is a warehouse where an agro-dealer stores its products for sale (Yoko, 2016)

Agro-input: These are resources such as fertilizer, improved seeds and herbicides used by the farmers to improve agricultural production.

Participation: This refers to the active involvement of practicing farmers’ in GESS.

Attitudes: Attitudes are disposition to respond favourably or unfavourably to an object, person, institution or event (Bergevoetetal.2004)

Agro-dealers: This are people involved in the procurement, distribution and delivery of inputs (fertilizer, improved seed and agro-chemicals) to small-scale farmers (Akinwumi, 2012)