21/03/2013 (AllAfrica.com) - The partnership between the Cross River State government and a Singaporean firm, Wilmar International Limited was inaugurated recently. The firm will invest in oil palm plantations, among them the Calaro Palm Estate; the establishment of training school, refinery and transforming the agricultural sector in the state. Governor Liyel Imoke spoke to some journalists in the state on the importance of the partnership which would make the state a foremost agrarian economy and exporter of palm oil. Excerpts:

What is behind your administration's launching of this ambitious agricultural partnership?

It is because we are hugely aware of the immense importance of agricultural investment especially such as the one our administration is partnering in with a Singaporean agricultural firm, Wilmar International Limited. It is such a massive agricultural project for which the state has given out 50,000 hectares of land in Akamkpa Local Government Area. It will not only transform the economies of the participating communities but will also ultimately enhance production of oil palm in Cross River State, thus making the state the largest producer of oil palm in the country.

How do you see the country's agric sector?

I would say that the agricultural sector in our country has been much maligned over the years; plagued by series of challenges related to enhancing the capacities of farmers and even the critical supply chain agents needed for transportation and distribution.

What is your government doing to change that?

In recognition of the need to refocus the sector in the state and to increase productivity, we shifted our attention to identifying and attracting meaningful and constructive investments to the sector. We in Cross River believe that this approach is critical to the realization of our strategy as a top agrarian economy in the country, as well as ensuring the continued viability and sustainability of both government and private estate in the state. Our intention is to create a cluster for agricultural productivity unmatched by any other state in Nigeria.

How much impact do you think your partnership with this firm will create?

The partnership between the state and the Singaporean firm is the first major result of this strategic realignment of our agricultural industry. It is therefore unique and rooted in our conviction that the most effective direction for development of agriculture in Nigeria and consequent broad-based economic growth and job creation is through active private sector partnership and participation in commercial agriculture.

Why is palm nut, which used to be one of our country's prime products in the 1960s, your major agricultural focus in the state?

In recent years, we are witnesses to the significant increase in the global demand for oil palm. This commodity has a myriad of uses and applications for both domestic and industrial consumption and it accounts for a substantial proportion of the country's agricultural production thus leading the charge in the growth of agricultural development in Nigeria. Nevertheless, Nigeria far from being a major player on the global scale is now a net importer of oil palm. We now struggle to meet our domestic demand. Indonesia and Malaysia which are world largest producers of oil palm today attribute their success to a coherent and consistent policy on agriculture development and more importantly, the ability of successive governments to sustain investment in the sector. That is why it is important that the federal government partners with states in this regard.

Why did your government go for Wilmar?

They are the largest producers and distributors of oil palm products in Asia. Their investment in the state through the acquisition of plantations and green field is a major step to consolidating their presence on the continent of Africa. I should inform you that they are also committed to building a refinery in Cross River State within the short term, as soon as the Calaro plantation starts to yield. They are also entering into a joint venture agreement with PZ Cussons.

Which other ways are you going to exploit their presence to the benefit of small farmers in the state?

In an attempt to exploit their presence in the state and to help farmers foster a long-term relationship with the firm, we have established an outdoor scheme to ensure that the smallholder farmers have a ready market for their produce. This scheme will also guarantee that the economic benefits from this partnership accrue directly to the host communities and individual participants, thus ensuring the long term sustainability of the relationship.

To ensure the success of this partnership, how is the federal government supporting it, especially in area of credit facility?

It is our hope that the Federal Ministry of Agriculture will help facilitate the provision of affordable credit facilities and of course critical production inputs as we partner with Wilmar to ensure the success of this scheme. This is important for many reasons. One of which is the repositioning of agriculture as a viable career choice amongst our rural population and particularly amongst the youth population.

Despite the enormous potentials of the industry to create jobs and generate wealth, most young people and rural dwellers no longer see the economic viability in participating in agricultural activity. To redress this anomaly, there is need to improve access to financial credit and critical input to help expand the production of existing farmers and encourage entry into the industry. In this respect, agriculture will constitute a catalyst for the rapid development of our rural community and indeed the state in general. Let me stress that all of these developments cannot occur in isolation.

This project is quite enormous. What direct benefits would the people enjoy especially in terms of addressing unemployment?

This project when fully operational will create 10,000 jobs that do not exist now. With time, from our calculations, we expect that we could create from this project up to 20,000 jobs. This figure will strike a chord in the Head of Service because the total number of civil servants employed in this state is 20,000. And now, just one company is about to create 20,000 jobs in the state. Let me re-emphasize that we are committed to this partnership for obvious reasons. As part of the partnership, they have already established a training school where Nigerians are now being trained on all aspects of palm oil business. This plantation will be operated and supervised by Nigerians. I have been assured that there would be only two expatriates; the rest of the staff would be Nigerians.

What more do you hope this partnership will achieve?

We expect not just development of the agricultural sector and creation of wealth but we also expect the transfer of technology; new skills in agricultural processing; new opportunities for small businesses to grow.

I must add too, that the launch of this agricultural partnership marks the dawn of a new beginning in the realization of our dream to become and remain the top agrarian economy in Nigeria. Behind the symbolism of this event lies the reality of the enormous positive impact it will have on our whole economy.