The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) of the Central Bank of Nigeria (CBN) has estimated the total value of live animal trade between the northern and southern parts of the country to be at between N850-N950 billion yearly.
According to its latest figures, the total value of the Northeast-Lagos cattle trade market alone is estimated at N324 billion yearly. This does not include the North-South East cattle trade or the trade in small ruminants (sheep and goats).
To sustain this volume of trade, NIRSAL yesterday commenced the operational transporation of cattle from Zamfara State to Lagos by rail with the first 15 wagons of 500 cattle that left Gusau, Zamfara State.
The journey will take 48 hours and will see more cattle being transported from the North to the South under more comfortable conditions, the final stop is at Oko-Oba in Lagos.
This initiative is under the National Farm to Market Scheme to enable a low cost and efficient transport link between agricultural producers and consumers across the country.
The scheme is projected to reduce the cost of transporting cattle from the north to the south by over 20 per cent, minimise injury and cattle death in transit and also preserve 100 per cent of their value so that livestock breeders can get good price for their produce at the destination markets.
Under the scheme, NIRSAL, in line with its mandate to de-risk and incentivise investment into verified impactful projects across the agricultural value chain, will provide bank guarantees for the financing of critical requirements involved in the movement of the cattle including logistics and equipment.
Connect Rail Services Ltd, a bulk freight and logistics service provider, is the first technical partner on this aspect of the scheme.
NIRSAL is also making efforts to operationalise other elements of the scheme such as the movement of perishable agric produce such as tomatoes, dairy products and vegetables in refrigerated containers.
NIRSAL Managing Director, Mr. Abdulhameed Aliyu said the event signaled the beginning of the Livestock Transportation Component of NIRSAL Farm to Market Scheme which aims to link livestock breeders in the north to markets in the south in a safe, cost effective and profitable manner using the rail system.
He said: “What we have witnessed today is the culmination of rigorous and consistent effort to demonstrate that agric in Nigeria can be innovative and business oriented. The transportation component launched today is only the first part.”
