Farouk Gumel

Farouk Gumel - Most governments intervene in their agricultural markets although the extent of these interventions depend in large part on the wealth of the country. In the last century or so, the most common of these interventions is the Minimum Support Price (MSP) mechanism. In this paper, I hope to explain in simple terms, what the MSP is and how it works. MSP is the price at which the government commits to purchase crops from the farmers. This acts as a ‘minimum floor price’ farmers will get for their produce thereby shielding them from adverse market conditions because of price drop. Furthermore, in the event of a bumper harvest where there is excess stock, farmers still have a guaranteed buyer as the government, through its agencies, will buy the entire stock offered by the farmers at the MSP. The prices of agricultural commodities often vary due to various factors. If a crop has seen a good harvest season during a particular year, it may see a sharp fall in its prices. This will...

Farouk Gumel - Finally, agriculture is taking its rightful place as the sector that will take Nigerians out of poverty and into an era of inclusive and collective prosperity. Although the sector employs millions of Nigerians and accounts for an estimated 20% of the country’s GDP, many still view supporting agriculture as a charitable act as opposed to a business venture. This is the simple reason why many farmers in this sector are classified as “under employed” due to their mere inability to grow beyond the subsistence level. Nigeria is blessed as we have the potential to excel in all the key sub-sectors of agriculture. We have the land and forests for farming and grazing. We have the water (sea, lakes and rivers) for fishing and aquaculture. We have the capacity and the climate for livestock and poultry production. And of course, we have the manpower to get all this done. Therefore, it is extremely exciting for all of us to see significant investments going into this sector. We are ...

  Farouk Gumel - Oil was discovered in Nigeria in the 1950’s and today, Nigeria is the eleventh-largest oil-producer in the world and Africa’s main oil producer. In 1977, the Nigerian National Petroleum Company (NNPC) was founded to participate and regulate the country’s oil sector. Since then, significant progress has been made in terms of increasing production, revenues, and consumption. We must thank NNPC for Nigeria’s dominance in Africa when it comes to oil production. This dominance however came with its downsides. As a nation, Nigeria became over reliant, or one could even say addicted, to oil revenues. From the 1970’s, we convinced ourselves that Nigeria is rich. And maybe we are. But the reality is poverty has always been around growing side by side with our oil production and the apparent wealth. This is because as oil brings revenues to a nation, it does not create jobs in a nation. According to the International Labour Organisation (ILO), the petroleum industry directl...

  Farouk Gumel -In a continent where some 50% of its population are farmers, Africa still imports billions of dollars of food every year to meet its needs. These imports, which are by choice and not out of necessity, have kept the demand for locally produced food items at extremely low levels. As a result, Africa’s rural farmers, except for those in export focused value chains, were left in a vicious circle of subsistence with little opportunity for growth. The sad fact is these imported food items (including grains) can be grown indigenously. In Africa, agriculture remains the key link that connects the affluent urban centres to the poorer rural areas. What does this mean you ask? Well, Africa’s growing middle class (entrepreneurs or salaried staff) live in its urban centres. They spend a sizable amount of their income on food. But due to Africa’s reliance on food imports, these funds are sent overseas thereby creating jobs abroad. As the urban consumer patronises imported food it...

  Farouk Gumel , Nigeria - In this technology-driven world, we are gradually seeing every aspect of human life being influenced by technology. This has changed the way we see and do things. The agricultural sector is not any different. On a daily basis, we learn of new technologies that support farming, storage, processing, logistics, and sales. This is very exciting for the sector which, at least in Africa, has been very slow to modernize. The question however is how can we transition to ensure we fully harness the benefits of modern agricultural practices while managing its inherent risks? The Technological Advancement in Farming State of the art technology and science-based farming practices undoubtedly bring higher yields, more efficient production, better quality products, and enhanced profitability. In developed and/or sparsely populated nations, farming machinery is preferred as they are more efficient and cheaper. The automation of planting, irrigation, and harvesting has ...

  Nigeria, like many Africa nations, is an agrarian nation. Contrary to the general perception that it is an oil and gas country, the majority of Nigerians in reality earn their living through the agricultural and food value chain. This should not be a surprise. A country with over 200 million people will surely have a large appetite. In this article, we are going to briefly look at how agriculture is one of the biggest reasons why Nigeria is the world’s 27th largest economy, and why investing in this sector will propel Nigeria to greater heights globally. Farouk Gumel, the executive director of TGI, said about Nigerian GDP and How nigeria farming improving day by day. The Truth About Nigerian GDP Nigeria is the largest economy in Africa with the highest population on the continent. It was ranked the 27th largest economy globally and is among the largest producers of oil and gas in the world. The whole world knows Nigeria for its Oil while ignoring its other assets – arable land, w...