Private initiative gives cassava, rice production boost in Oyo, Taraba
By Sade Oguntola - updated: Wednesday 27-08-2008
Mr. Biodun OnalajaTHE call for people in diaspora to support
Nigeria’s economy has received a boost with a
private initiative, Hyst Global business and investment company limited, setting up farms to produce cassava and rice on 20,000 hectares of land in Oyo and Taraba states respectively.
The public-private partnership investment in cassava and rice cultivation and processing, a commitment to facilitate the attainment of national self-sufficiency status in cassava production and ethanol, Mr. Biodun Onalaja, the Chief Executive Officer (Nigeria Operation), Hyst Global business and Investment business said, has received support from Oyo and Taraba State governments and corporations such as the Nigerian National Petroleum Corporation(NNPC).
Speaking on the mechanised cassava farm sited in Igangan, Ibarapa North Local Government, Oyo State, which is a joint venture with NNPC’s renewable energy division to produce ethanol, Mr. Onalaja said, thus far half of the 10,000 hectares had already been planted this season.
He stated that by the time the initial 500 hectares are due for harvesting, based on a contract agreement the company had with the HECAHAL group on Lagos-Ibadan expressway and another company, they would be processed into sucrose. Subsequent harvests would however be turned into ethanol when the required machinery already paid for gets into the country.
The cassava farm on which at least 30 million had already been spent, he assured will pay back what had been invested thus far.
“Basically, we do not envisage any problem getting our investments back. Though most of our equipment for processing are not yet on ground, the government has given us the land since the year 2006 and this is 2008 and we felt if we are not doing anything on the plot of land, the government would think we are not serious.
Apart from that, we decided to start because we wanted to use it to also empower the indigenes, give them scholarships and provide healthcare facilities in the farm settlement as time goes on.”
In addition, Mr. Onalaja, said that the Igangan farm settlement, would involve an integrated farming system, where fishery, piggery and others things would be practised.
“We want to go into such things as fishery and piggery. NNPC is interested in biodiesel, which we can get from palm kernel. So we want to start planting palm kernel too so that we can produce biodiesel. Already, we have started mapping the farm out for this and by the time we are through with UBA and First Bank, our bankers, we will commence planting.
Mr. Onalaja stated that the initiative was had to wait for these banks because one of the conditions to assess the 50 million Euro which the company took as a loan from abroad for the project, was that local banks in Nigeria should provide a guarantee for the loan.
However, this big public-private investment in cassava production has had many challenges too, especially with funding. “When we tried to source for money here in Nigeria, the local banks kept saying that as an agricultural business, they were not ready to assist. So we had to go abroad,” he declared.
Aside praising the efforts of the governments and people of Oyo and Taraba in evening the project takes off by their provision of assistance where needed and a convenient environment to work, Mr. Adelaja said the company now has 20 men in its employment at the cassava farm.
The involvement of NNPC in turning cassava into ethanol, he described as a great one, explaining that the ethanol to be produced is to serve the same purpose as the ethanol other countries such as Brazil and China make from corn and sugar cane.
“We decided on cassava for ethanol because experts advised us that cassava production is very feasible in Nigeria. The Chinese experts coming already have the technology to turn cassava to biofuel. The other products like biogas we can also use as alternative to electricity as well as sell the generated carbon dioxide gas to bottling companies. The other wastes of course goes to feed pigs and serve as fertilizers. This is in line with the concept of mixed farming.”
He assured that with cassava there is really no wastage, adding that the company would also look into the possibility of planting sugar cane in the Northern part of Nigeria for biofuel as well.
The graduate of building technology turned farmer, said that farming is a goldmine worth tapping into, irrespective of the risk many talk about, declaring that the two farms in Oyo and Taraba states had been valued and steps were on to fully insured them.
On the rice project, he said both rice and sorghum had been planted on 200 and 50 hectares of land respectively. While the sorghum was requested for by a company that requires it to brew beer, he said the sorghum is intended to be turned to textile when the company’s Chinese partners arrive in the country.
Though rice planting started last planting season, he said the first harvest was however ploughed back while the machines for its processing is being awaited. The company, he stated, intends processing and bagging its own brand of rice.
Meanwhile, he assured that the rice produced will be sold in Nigeria, saying the country has a ready made market waiting to mop up what is produced. Though some of the problems such as irrigation they initially had are being overcome, he urged the government to help provide better electricity supply and roads.
“Electricity is the main issue. Even if we try to use solar, some of our equipments would still have to be operated by burning diesel, except there is an improvement in electricity supply,” he concluded.
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