PART II: CASSAVA; From Policy to Prosperity: Establishing the Kogi State Cassava Development and Marketing Board
By Henry Oseka Orire Esq.
Second in a Series
Having established in the previous series (i.e. “Subsistence to Strategic Wealth: Why Cassava Can Transform Kogi State’s Economy”), that cassava possesses the potential to transform Kogi State’s economy, the next question is no longer whether the State should invest in the crop, but how such an investment should be structured to achieve long-term economic sustainability.
History demonstrates that agricultural revolutions are rarely driven by production alone. They are driven by institutions.
From Malaysia’s palm oil industry to Ghana’s cocoa sector, governments that have successfully transformed agricultural commodities into engines of economic growth have done so by creating institutions capable of coordinating production, assuring quality, stabilising markets, encouraging investment and expanding exports.
Kogi State should adopt the same philosophy.
Rather than becoming another participant in commercial farming, Government should position itself as the architect of an agricultural ecosystem in which farmers, processors, investors, exporters, financial institutions and research organisations work within a coordinated framework.
At the centre of that framework should be the establishment of the “Kogi State Cassava Development and Marketing Board” (KSCDMB) through legislation enacted by the Kogi State House of Assembly.
A Modern Commodity Institution—Not a Return to the Past
The idea of a commodity board should not be misunderstood as a return to the rigid government-controlled marketing systems of previous decades.
Modern commodity boards are facilitators rather than monopolies.
The proposed Board should not compel farmers to sell only to the Government, nor should it seek to dominate the cassava trade, instead, it should perform six strategic functions suggested below:
provide market stability;
coordinate aggregation;
enforce quality standards;
facilitate value addition;
promote exports; and
attract private investment.
The government’s role should be to make markets work more efficiently—not to replace them.
The Institutional Structure
The Board should be established as an autonomous statutory agency with professional management and strong private-sector participation.
The Executive/Administrative structure that should oversee the day-to-day running and execution of the Boards policies include the following:
Director-General;
Director of Operations
Technical Director
Secretary
Its governing board should include the Director-General and representatives from:
the Ministry of Agriculture;
the Ministry of Commerce and Industry;
the Ministry of Finance;
Ministry of Justice
farmer cooperatives;
cassava processors;
export promotion agencies;
financial institutions;
agricultural research institutions; and
organised private sector organisations.
This composition would ensure that policy decisions reflect commercial realities rather than political considerations.
Furthermore, it is recommended that operational independence should be guaranteed by law, while annual performance audits and legislative oversight ensure transparency and accountability.
Building a Sustainable Funding Model
One problem that may be uppermost in the minds of policy-makers and the government is that such an institution would require absolute government financing.
That need not be the case.
Government’s primary financial responsibility should be to provide initial capital for establishing the institution, developing aggregation centres, constructing warehouses, installing quality testing facilities, creating digital market infrastructure, while supporting the Board with subvention till it matures.
Thereafter, the Board should progressively finance the bulk of its operations through multiple revenue streams, including:
modest service charges on aggregation;
warehouse storage fees;
quality certification services;
export facilitation charges;
commodity trading commissions;
development finance support;
concessional agricultural financing; and
returns from strategic investments in processing infrastructure.
This diversified financing model would reduce dependence on annual budgetary allocations while encouraging commercial discipline.
A Guaranteed Minimum Price Without Distorting the Market
One of the greatest challenges confronting cassava farmers is price volatility.
During harvest periods, market prices often collapse because thousands of farmers attempt to sell simultaneously.
The consequence is predictable.
Farmers who have invested months of labour frequently dispose of their produce at prices that barely cover production costs.
The proposed Board should introduce a Guaranteed Minimum Farm-Gate Price.
This system should not fix market prices. Rather, it should establish a price floor below which participating farmers would not be required to sell.
When private buyers offer prices above the guaranteed minimum, farmers should be free to sell to them.
Where market prices fall below the guaranteed threshold, the Board would be required to purchase eligible produce through accredited aggregation centres.
Such an arrangement protects farmers from exploitative pricing while allowing market forces to reward producers whenever demand strengthens.
Because the Board would process, warehouse or channel purchased cassava into industrial value chains, government intervention would constitute an investment rather than a subsidy.
Establishing Cassava Aggregation Centres Across Kogi State
Transportation remains one of the hidden costs reducing farmers’ profitability.
Many rural producers spend substantial portions of their earnings moving fresh cassava to markets.
The solution lies in decentralised aggregation.
The State should establish strategically located aggregation centres across major cassava-producing zones and Districts.
Each centre should perform several functions simultaneously:
purchase cassava from farmers;
grade produce according to quality;
conduct moisture and quality assessments;
facilitate digital payments;
arrange transportation to processors;
maintain inventory records; and
provide extension support.
These centres would significantly reduce post-harvest losses while ensuring farmers get fair returns for their farm produce.
Digital Procurement and Direct Farmer Payments
Every registered farmer should possess a digital identity linked to the Board’s procurement platform.
Upon delivery of cassava, produce should be weighed electronically, quality assessed and recorded instantly.
Payment should be made directly into the farmer’s bank account or approved digital payment platform within a clearly defined period.
This approach offers several advantages:
It reduces opportunities for corruption.
It eliminates unnecessary middlemen.
It builds farmers’ confidence.
It also generates valuable production data capable of informing future agricultural planning.
Integrating Kogi into Nigeria’s Commodity Exchange Ecosystem
Price transparency is essential for commercial agriculture.
The Board should therefore facilitate the trading of standardised cassava products through recognised commodity trading platforms operating in Nigeria.
Linking Kogi’s aggregation system with transparent commodity trading mechanisms would:
improve price discovery;
increase investor confidence;
reduce information asymmetry;
attract institutional buyers;
encourage contract farming; and
strengthen export competitiveness.
Farmers would no longer rely solely on local market rumours to determine product value.
Instead, prices would increasingly reflect actual supply and demand.
Protecting Farmers Through Contract Farming
Large processors require predictable supplies.
Farmers require guaranteed buyers.
Contract farming offers a practical solution.
The Board should facilitate legally enforceable agreements between processors and farmer cooperatives.
Under such arrangements:
processors commit to purchasing agreed quantities;
farmers commit to supplying specified volumes;
quality standards are clearly defined;
pricing formulas are transparent; and
disputes are resolved through predetermined mechanisms.
Encouraging Cooperatives Instead of Fragmentation
Thousands of smallholder farmers negotiating individually will always remain disadvantaged.
The Board should therefore encourage the formation and strengthening of cassava cooperatives.
Through cooperatives, farmers can:
purchase inputs collectively;
negotiate better prices;
access mechanisation services;
obtain agricultural credit;
receive technical training;
participate in export supply chains; and
share transportation costs.
International experience consistently demonstrates that organised producers secure greater commercial benefits than isolated individuals.
Creating Investor Confidence
Perhaps the greatest contribution of the proposed Board will not be the cassava it purchases. It will be the confidence it creates.
Investors establish factories where raw materials are reliable.
Banks lend where markets are predictable.
Exporters enter long-term contracts where quality standards and commodity availability are consistent.
Farmers expand production where buyers are assured.
The Board therefore becomes more than a purchasing institution. It becomes the foundation upon which an entire cassava industrial economy can be built.
Government as Market Enabler, Not Market Competitor
The success of this initiative will ultimately depend upon one guiding principle.
Government must resist the temptation to become the largest trader in cassava.
Its comparative advantage lies elsewhere Government should:
Build infrastructure;
Provide policy certainty;
Enforce standards;
Facilitate financing;
Coordinate stakeholders;
Promote exports; and
Encourage private investment.
Where the government creates an efficient marketplace, private enterprise will supply the innovation, capital and entrepreneurship necessary for sustained growth. That partnership, not government domination, has been the defining feature of successful agricultural transformations across the world.
The Foundation for Industrialisation
The establishment of the Kogi State Cassava Development and Marketing Board would represent far more than the creation of another government agency.
Properly designed and professionally managed, it would become the institutional backbone of a new agricultural economy—one capable of stabilising farmer incomes, attracting billions of naira in private investment, stimulating industrial processing, increasing exports and expanding the State’s internally generated revenue.
In the final analysis, cassava should no longer be viewed merely as a crop harvested from the soil.
It should be recognised as the raw material from which Kogi State can cultivate industries, create wealth and build a more prosperous future for generations to come.
©Henry Oseka Orire is a Lawyer, Public Commentator and Political Analyst.
