Shonga Farms Holdings: Matters arising

Date: 2015-08-31

farm settlement shonga By Abdulwahaab Oba

"Ise agbe ni 'se Ile wa, eni kosise ama jale; iwe kiko laisi Oko, ati ada, koipe oo, koipe oo".

Literally, this means that agriculture is the most sustainable and reliable work in our land without which the future is not secured.

This wisdom filled saying of our people is more apt now than ever before. It probably informed the Operation Feed the Nation of the first coming of the Obasanjo era. It is the same reason retired and serving officers return to the farm after meritorious services to their father land. If organized on a commercial basis and regarded as a business, agriculture remains not only the bedrock of sustainable development but the foundation of industrial growth.

This possibly informed the administration of former governor now Senate President Bukola Saraki to leverage on the opportunity provided by the displaced Zimbabwean farmers in making Kwara State an agriculture hub of the north central by laying the foundation of Shonga Farms Holdings Ltd (SFH). The 13 white farmers were among victims of the land ceding programme of President Robert Mugabe of Zimbabwe who abandoned their farms practically bare as they were uncertain of their security.

Following due process, Kwara State government acquired 13,000 hectares of land with additional 1,000 hectares as demonstration farm and another 2,000 hectares in Fiagi for community development after compensation was agreed and paid to the local land owners.

Each of the 13 farmers was allocated 1,000 hectares (on leasehold interest for 25 years) under distinct and separate companies duly registered in Nigeria. The Kwara State Government granted the sum of 250 thousand US Dollars to each farmer as loan as a result of their deprived and desperate situation when they arrived Nigeria. This money was applied for opening up of barren lands, cultivation, working capital, acquisition of plants and machinery, private residence and warehouse among others. This grant was converted to equity of 25% shareholding after the registration of Shonga Farms Holding.

The five banks (Guaranty Trust Bank (GTB), First City Monument Bank (FCMB) legacy Fin Bank, Unity Bank, Keystone Bank (Legacy Bank PHB) and Access Bank through Legacy Intercontinental Bank) which partnered in the packaging of the funding of the farms hold 75% (at 15% each) shares of Shonga Farms Holdings, SFH. Shonga Farms Holdings (as owned by KWSG and the five Banks), subsequently acquired 60 per cent of the shares of these individual farmers' as institutional investors. Therefore, as against unsubstantiated insinuation of private ownership, NO PRIVATE INDIVIDUAL HOLDS A SINGLE SHARE in the Shonga Farms Holdings. Any genuinely skeptical individual can verify this from the Corporate Affairs Commission.

In the event of exit by any of the farmers, the percentage of shares held by Kwara State Government in such farm automatically reverts to the Government which can keep it or sell to other interested farmers.

At present, SFH is structured along three major syndicates, which are Poultry Syndicate, Dairy Syndicate and Mixed Crop Syndicate. The Poultry Syndicate has a total capacity to raise 160,000 birds on weekly basis. It has a fully automated modern abattoir with installed capacity of 10,000 birds per day but currently dresses 5,000 birds daily. The entire farm production is fully integrated both back and forward. The farmers produce feeds for the birds on the farm, grow both the soya beans and maize required for the production of the feeds and procure from the local farmers in the event of any short fall. With this, the farm has enhanced quality of lives and contributed to the reduction of poverty in the community as this means an indirect empowerment programme for the people.

One major contribution of the farm to the local economy is the purchase of a minimum of 520 million tons of grains from the local market and provision of direct employment for between 1,800 to 2,500 populations of the villagers at the peak of farming season at Shonga. The local farmers equally benefit from the methods of modern farming, especially in cassava planting. The cassava hectarage among the local farmers have remarkably increased due to the assurance of readymade market for them.

The Shonga Farms Holdings has been used by the Federal Government as demonstration farm not only to grow high quality cassava stems but as a training ground for local farmers for high quality cassava production. The success of the group has attracted multinational companies to source their cassava requirement from Kwara State, while some of them are even making direct investment on cassava within the state.

It is on record that Shonga Farms is the first Nigerian company to have successfully exported high quality Cassava chips to China and Israel. Nigeria Starch Mill in Anambra State and Thia Farm and subsidiary of Nigeria Flour Mills are at present sourcing their Cassava needs from Shonga.

If we must achieve economic survival and growth for our dear state, everyone must rise above primordial sentiment and support genuine efforts to move Kwara State to a cruising level of economic independence.

Oba, Chief Press Secretary to the Kwara State Governor, writes from Ilorin.

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