Retooling CSR for agricultural development in Nigeria
Agriculture continues to remain a critical issue for Nigeria’s economic growth, poverty reduction and ensuring food security, as over 70 per cent of the rural households depends on it as their principal means of livelihood.
But, given its role not only in Nigeria, but globally, there is need for realignment between agriculture and Corporate Social Responsibility to foster development.
In fact, the recent instability in food prices affected Nigerians negatively. Import restrictions by the government, while prices of food were high and challenges faced over price of crude oil at the international market, forced countries that depend on agricultural imports to change their strategies to meet domestic demand.
Consequently, many Nigerians started investing in agriculture. Several of these large scale investments triggered high rates of agricultural growth in recent times.
Checks showed that, in spite of significant growth in agriculture, the sector continues to face serious challenges, such as declining soil; water and other natural resources; decreasing size of farm holding; input use inefficiency; costly and scarce agriculture labour; drudgery in farming operations; growing risks in farming; information, knowledge and skill gaps; poor access to credit and investments; slow diffusion of relevant technologies.
Also, some of the challenges include, competiveness of quality and prices in export and domestic markets; inadequate focus on processing and value addition; low profitability of agriculture; inadequate rural infrastructure; poor access to resources and services for women in agriculture; weak institutional linkages and convergence; extreme events of climate change among others.
Speaking to Daily Times, an expert in agriculture, Kayode Salako said; “the evolution of relationship between corporate and society has been one of the slow transformation from hard core business to a philanthropic; and from philanthropic to stakeholder participation. However, the data showed that, very meager amount of CSR fund has been spent in the agricultural sector by the companies; though there is a huge potential for investment in the sector.
Agriculture cannot be seen in isolation. CSR may be looked in terms of “Creating shared value” wherein, business can help progress of agriculture and agriculture sector can help business to improve and flourish.”
According to him, “concerns associated with globalization, free trade and foreign direct investment continue to be raised and could threaten investment and economic growth. These concerns often center on the belief that socio-economic and environmental standards are being compromised, or that investment decisions are insensitive to local needs and circumstances.
An adequate approach to CSR can potentially provide business with an opportunity to demonstrate that this does not have to be always the case. Good CSR policies and strategies based on partnerships with host countries and communities; and on implementing the principles of socio-economic, sustainable development, can demonstrate a local commitment of the investor on the other hand.
CSR policies set by international companies drafted from remote corporate headquarters, however well intentioned, but without also fostering partnerships and local involvement in the communities, in which they do business, are likely to fuel feelings of alienation and suspicion.”
Also speaking on the issue, a corporate social responibilty expert, Adewale Okoya said; “CSR is a concept that is working its way into many policy debates and corporate agendas; and it defines an obligation, beyond that required by the law and paired by the commitment of a company to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families as well as that of the local community and society at large.”
According to him, “not all business organizations behave in a socially responsible manner and in a free market view, the main job of the business-oriented company is to create wealth for the shareholders, while the CSR view is that a company should be concerned with social issues as businesses do not have an unquestioned right to operate in the society.
The basic principle on the CSR concept is that business organizations have responsibility to various groups in society (internal and external stakeholders) and not just the owners / shareholders, including responsibility for the natural environment and decisions should be taken in the wider interest and not just the narrow shareholder interest, it is about how a company manages its business process to produce an overall positive impact on the society.”
While speaking on the way forward, he pointed out that; “irrespective of any interventions in agriculture, capacity building component has to be inbuilt into the program design and behavioral change has to be brought out among farmers. Hence, Capacity building of farmers through training, demonstration, exposure visits, technical back stopping/ hand holding is required in a large scale.”
Stories by Godwin Anyebe
