The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has developed an innovative transportation model that will tackle the bottlenecks in the haulage system for agricultural products.
The model is currently undergoing a comprehensive and rigorous process of internal testing before its formal deployment.
The transportation model, to be known as the Secured Agricultural Commodity Route, is a targeted, multi-pronged system anchored on a dedicated national transportation network.
A statement from NIRSAL on Sunday said the objective of the new transportation model was to achieve a significant reduction in the prices of agricultural commodities by curbing the astronomical post-harvest losses usually experienced by farmers.
The statement said the route would cut across states such as Katsina, Jigawa, Kano, Kaduna, Niger, Kwara, Oyo, Osun, Ogun and Lagos; and would be expected to take three months to implement, starting from August 2018.
The transportation model, the statement added, would be built around four complementary components.
They are agro-runner, secured commodity aggregation zones, specialised haulage services, and dedicated commodity route.
To improve the chances of success, NIRSAL in the statement said the model would also rely both on the functionality rate of these components as well as the synergy between the relevant stakeholders to move commodities efficiently from production areas to commodity and consumer markets.
Also, central to the model is the partnership of critical actors and target beneficiaries such as transport unions, agro-products dealers, produce aggregators, retailers, smallholder farmers, logistic service providers, states and local governments.
“NIRSAL will act as the fulcrum around which stakeholders will come together to fine-tune and adopt the SACR model towards achieving the goal of facilitating agribusiness and positively impacting rural economies across Nigeria,” it added.