CBN to Resuscitate Moribund Industries in Kano State

By Murtala Adewale

Kano — Pursuant to Federal Government's economic diversification policy, the Central Bank of Nigeria (CBN) has hinted of plans to investment over ₦382billion to resuscitate moribund industries in Kano.

When fully actualised, the CBN intervention would not only bring back to life the past glory of Kano as a commercial and industrial hub of Northern Nigeria, but also generate mass employment opportunity for the teeming youths in the state.

CBN Governor Dr. Godwin Emefiele, who disclosed this while commissioning the Northern Nigerian Flour Mills newly install Sorghum plant in Kano on

Tuesday,noted that the move was in demonstration of government's efforts to fast track economic growth.

Emefiele, who was represented by the Deputy Governor, (Corporate Services), CBN, Sulaimon Barau, regretted that Nigeria loses billions of Naira to foreign imported products annually despite the abundant deposit and competitive advantage. Worst still, Emefiele noted that the disturbing trend continued to deplete the country's foreign reserves and devaluation of the currency.

Militating against the development, Emefiele revealed that CBN outlawed the importation of 41 items to boost local content, and introduced the Anchored Borrowers Programme, to assist farmers.

The CBN boss, who expressed the CBN's support for the new sorghum plant, expressed confidence that the mill will generate job opportunities, and boost the nation's economy.

The Chairman, Flour Mill Nigeria, John G. Coumantaros, said the newly launch sorghum plant, which is designed to produce 30,000 metric tonnes daily will create hundreds of direct and indirect jobs.

He revealed that Northern Nigerian Flour Mills (NNFM), a subsidiary of Flour Mills Nigeria, will before the end of 2017, embark on 100 per cent extraction local crops milling including Maize, Sorghum, and Wheat.

"It is imperative to embark on local content process to complement government's effort to check large dependence on foreign products. This move will further empower farmers, and create direct job opportunities for the teeming youths in Kano.

"Besides that, we assisting farmers through our out grower scheme to produce more. The programme is being carefully executed through agricultural institutions like The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), and International Institute of Tropical Agriculture (IITA), to produce quality seeds for the farmers. And Flour Mills Nigeria in recent times supplied over 4,000 tonnes of grains to IDPs in the North East, to assist the people." John said.

NNFM was incorporated as a private limited company in 1971, as pioneer milling of wheat and associated grains in Nigeria.

The company suspended production in 2015, mainly due to acute shortage of foreign exchange to import wheat. The reopening mainly for sorghum extraction milling would replace large dependence on wheat flour and value chain products.

Source: AllAfrica

Nigeria Moves to Stop Asians From Having Direct Dealings With Farmers

Photo: Mujahid Safodien/IRIN

The Nigeria-Vietnam Chamber of Commerce and Industry, NVCCI, on Tuesday said that a mechanism that would stop Asian nationals from having direct access to Nigerian farmlands would soon be inaugurated.

Oye Akinsemoyin, the NVCCI President, told the News Agency of Nigeria in Lagos that the direct dealings Indian and Chinese nationals now had with Nigerian farmers needed to be regulated.

"It is increasingly becoming worrisome the way and manner we allow our Nigerian farmers to deal directly with Indians and Chinese nationals, in their farmlands.

"We do also know that these Asian nationals do not allow Nigerians to deal directly with or buy from their farmers or companies, without approval from their government-recognised organisations.

"The NVCCI has, therefore, come up with an idea to set up an online real-time trade and investment platform, to stop this trend," he said.

Mr. Akinsemoyin said that his organisation would soon inaugurate an online real-time trade market platform that would showcase Nigerian and Vietnamese exports, as well as their export companies.

The NVCCI President said that with the portal system, it would become easier for both countries and other Asian countries to subscribe and do their transactions.

Mr. Akinsemoyin said that the portal system would adequately regulate the influx of Asians into Nigerian farmlands, as well as enhance their bilateral relations with Nigeria.

"Once this portal system commences operation, we can then regulate foreigners, especially the Indians and the Chinese, who are currently dealing directly with our farmers on their farmlands.

"We really need to guard against the undue exploitation of our resources by these Asian countries," he said.

The president said that the portal would be open to subscription from individuals and companies in Nigeria, Vietnam and other countries in both regions.

Mr. Akinsemoyin said that the NVCCI would, at the forthcoming Trade and Investment Forum scheduled to hold from Aug. 5 to Aug. 13, in Vietnam, inaugurate a campaign for the online real-time trade market.

He said that his organisation would present a prototype of the portal at the Forum entitled "Online Real-time Market: Game-Changer in Africa and Asia Trade and Investment Relations," in Vietnam.

The bilateral trade relations between Nigeria and India stood at N12billion in 2016, while that with China is at over N101billion. (NAN)

Source: Premium Times

How sustainable funding can unlock agric potential

Since the collapse of global oil prices at the international market which plunged the Nigerian economy into a 25 year low in 2016, there has been renewed focus on the agricultural sector as the country attempts to diversify its economy away from oil.

The shift was necessitated by the growing statistics of youth unemployment and the vast agricultural potentials that can drive a more sustainable economic development in Africa’s most populous nation.

With the current economic downturn the country is grappling with, there is consensus across board that there is no better time to leverage the potential of the agricultural sector than now, not just to pull out of recession, but also to diversify the economy and place it on the path of sustainable growth and development.

The ban on importation of goods which can be produced locally is a step the present administration has taken to key start the process of revamping the Nigerian agro-economy.

Audu Ogbeh, Minister of Agriculture and Rural Development while speaking at the inauguration of the technical working group of the country’s Agricultural Roadmap last year, emphasized that the decline in global oil prices had made it imperative for the country to diversify the economy, with agriculture as a major anchor. “We have to diversify and that diversification holds a lot of promise through agriculture,” Ogbeh said.

One of the factors bedeviling the industry is the lack of access to finance, a major impediment that prevents farmers from investing in basic inputs, such as quality seeds, fertilizers and small-scale irrigation facilities needed to raise productivity and generate sustainable income.

As a result, yields have failed to increase significantly, leading to pervasive hunger and poverty. Similarly, with little or no commercial financing and other incentives available to entrepreneurs seeking to build businesses that could boost food production, agricultural production has continued to remain at a subsistence level.

“Regarding agriculture, the opportunity is immense,” said Demola Sogunle, chief executive, Stanbic IBTC Bank PLC.

“Though much is required, and a collective inertia still remains, there are increasing signs of how agricultural transformation can change the country’s fortunes. The current economic situation, especially with strong government backing, makes agriculture an attractive prospect for the country,” Sogunle said.

Hitherto, successive governments and the Central Bank of Nigeria ( CBN ) have introduced financing initiatives to encourage commercial banks to finance agriculture at lower digit interest rate.

Some of such initiatives include the Nigeria Incentive-Based Risk Sharing Model for Agricultural Financing (NIRSAL), an initiative that provides finance for agro businesses at lower interest rate.

Another one is the Commercial Agriculture Credit Scheme (CACS), a CBN initiative that provides single digit financing through commercial banks at nine percent annually for commercial farmers. The Real Sector Support Fund (RSSF), also a CBN initiative which provides single digit financing to the real sector, including the agric sector, for periods of up to 15 years at an interest rate of nine percent per annum.

The Anchor Borrowers Programme, another CBN initiative, also provides financing at an interest rate of nine percent per annum. The scheme was recently established to specifically cater to smallholder farmers via an ‘anchor’ platform, through the provision of key inputs and creating markets and off-takers agreement for smallholder farmers registered under the platform.

The above initiatives are also supported by efforts from international multilateral agencies like the International Institute of Tropical Agriculture (IITA), German Technical Cooperation (GIZ), African Development Bank (AfDB) amongst others that have developed various initiatives towards providing technical support for primary production and other critical aspects of the agribusiness value chain.

It was largely in search of ideas and strategies to unlock the sector and stimulate growth of local production that lots of forums focused on agriculture have become commonplace. The ultimate goal is to unlock the country’s economic potential. Most of these forums usually reach the consensus that the requirements of Nigeria’s economic renaissance include the adoption of innovative strategies, appropriate policy directions and meticulous implementation.

Deploying the clout and resources of government to bear on such initiatives and projects must be prioritized while forging collaborations with the private sector to drive growth of the sector.

In addition, agribusiness should be broad-based, including mentoring the youth to see the attractive prospects in practicing agriculture. Agriculture should be practiced as a serious business, and have organize-private sector participation across the various value chains, which will enhance the drive towards restoring Nigeria’s place as a leading agricultural economy.

“The quest to unlock Nigeria’s agricultural sector, given its massive transformative potential, continues to gain interest and momentum from within Nigeria and abroad,” said Sogunle, who was earlier quoted.

He noted that developments in the agricultural sector can increase the volume and value of exports from Nigeria to other parts of the world especially if we focus on value-added and semi-processed product instead of raw produce.

To move forward, experts in the sector say Nigeria must look inward for local financing solutions. Several commercial banks are gradually becoming quite active in the agribusiness space, providing both financing and other support to the industry. For instance, a few years ago, Stanbic IBTC Bank PLC collaborated with Tata Africa Services and John Deere Financial, a division of United States-based John Deere, through which the bank is providing a range of financial services to customers of John Deere.

The Bank has also recently commenced some collaborative efforts with NIRSAL by providing finance towards supporting critical areas of the agri-business value chain.

With better governance and stable policies in place, Nigeria will reap the economic benefits of having a greater proportion of the population in the economically active sector. The large share of agriculture in Nigeria’s GDP, according to experts, suggests that a strong growth in agriculture is necessary to trigger overall economic revival and growth.

Source: Business Day

Farmer Makes Case For Dry Season Farming

Omu-Aran (Kwara) –   Dry season farming is capable of addressing the nation’s poverty and food insufficiency challenges, Mr Joseph Aboyeji, a commercial farmer in Kwara, said on Wednesday.

Aboyeji, who is also the Director of Open Haven Farms, based in Omu-Aran, Irepodun Local Government Area of Kwara, made the remark in a chat with the News Agency of Nigeria (NAN).

“Dry season farming, if well planned and implemented, will promote an all year round farming and it is capable of addressing the nation’s poverty and food insufficiency challenges,” he said.

“With highly subsidised farm inputs as seedlings and fertiliser, the Growth Enhancement Scheme (GES), remain a good platform for farmers to engage in all year round farming for the benefit of all.

“I think it is time the Federal Government gives a priority attention to the need to increase its budget provision for agriculture, especially dry season farming for the 2017 planting season.

“There are lots of expectations from all tiers of government to turn around the socio-economic fortune of the country by utilising our God-given land and natural resources for our own benefit.

“With an increase in production of crops as rice, wheat, sorghum and vegetables, this will go a long way to complement the wet season harvest, aimed at ensuring availability of food at all times,’’ Aboyeji said.

The commercial farmer, however, called on Nigerians, especially farmers, to give adequate priority to dry season farming in order to reduce the negative impact of the nation’s economic challenges.

According to him, such practice will promote all year round farming, fight poverty and food insufficiency related challenges.

He said the Federal Government’s GES was a veritable platform to achieve success as regards dry season farming implementation.

The commercial farmer said with GES, the desired increase in food production and income, would be achieved, as beneficiaries under the scheme, had unhindered access to highly subsidised farm inputs.

Aboyeji said the recent decline in the global prices of crude oil was enough reason for the authority to give the sector the necessary attention to bail the country out of food insufficiency.

He, however, stressed the need for the Federal Government to exhibit strong political will and accord top priority to promoting dry season farming in its programmes and policies.

Aboyeji said that the potential dry season farmers required adequate fund to achieve all-year round farming.

The commercial farmer said late and inadequate downpour being experienced in some parts of the country, had posed serious challenges to farmers in meeting up with their food production targets.

He said that dry season farming was capital intensive, hence the need for government to provide adequate budgetary allocation for the sector in order to achieve its objectives.

Source: Sundiata

NIRSAL to guarantee N1.6bn financing for mechanized farming in Katsina state

The Nigeria Incentive Based Risk Sharing for Agricultural Lending (NIRSAL) has announced a partnership with Katsina State Government to expand agricultural mechanization financing program and boost food production in the country.

Under the terms of the partnership, NIRSAL is to provide 75 percent bank guarantee for N1.6billion to be provided by Access Bank for the purchase of 225 tractors for lease to farmers at affordable rates.

The mechanization project is expected to increase the tractor density in Katsina state by 1,000 addition tractors in the nearest future.

The target is to boost mechanized farming, lower per hectare cost of land preparation and increase food production as well as incomes for smallholder and medium to large scale agricultural farmers in the state.

NIRSAL, an innovative mechanism of the federal government is targeted at de-risking lending to the agricultural sector, is designed to provide the singular transformational and one bullet solution to break the seeming jinx in Nigeria’s agricultural lending and development.

It is an initiative of the Central Bank of Nigeria (CBN), the Bankers Committee and the Federal Ministry of Agriculture and functions to essentially administer a Risk Sharing Fund designed to identify, redefine, measure, re-price and evolve strategies to de-risk and catalyze lending to the Nigerian agriculture value chain.

It was subsequently incorporated as a Public Limited Liability Company (PLC) and licensed as a Non-Bank Financial Institution (NBFI) with the primary mandate of facilitating the flow of credit to agribusiness value chain players and collaborating with stakeholders to fix broken agricultural value chains in Nigeria.

Its goal really is to trigger an agricultural industrialization process through increased production and processing of the greater part of what is produced to boost economic earnings across the value chain.

NIRSAL said the pact with Katsina state is therefore a continuation of its mandate to boost agricultural production, stimulate inclusive growth and stimulate job creation in the sector.

Other key signatories to the partnership include Mahindra Tractor Manufacturing Company, an international farm equipment manufacture from India; Tractors Owners and Operators Association of Nigeria (TOOAN; Springfield Agro, a trail blazer in the field of agro input distribution; and Access Bank a leading commercial bank in Nigeria.

At the launch, the Managing Director of NIRSAL, Aliyu Abbati Abdulhameed said the project is another proof of the deployment of NIRSAL’s strategic mechanization finance framework which is designed to facilitate financing for the purchase of expensive farming equipment for lease to farmers at affordable rates so as to deepen commercial agriculture.

According to him, the project is in line with the Buhari government’s policy focus to put agriculture in the driving seat of the Nigerian economy”

He commended the Katsina State Government for providing the policy support, TOAN for organizing themselves as a professional body and Access Bank for their willingness to provide the financing.

He reiterated NIRSAL’s commitment to deliver its mandate by boosting agricultural productivity and helping government achieve its objective of self-sufficiency in food production, job creation and economic diversification by increasing commercial bank lending to the sector.

Aminu Masari, Katsina State governor who also spoke at the event said the mechanization scheme is part of the state’s policy to boost agricultural mechanization.

“This project represents a key milestone in our government’s plan to increase mechanized farming in Katsina by at least 50%. Our goal is for a start to provide at least one tractor for each of the 361 wards in the state. We are starting with 225 for now, but this will be scaled up pretty soon,” Masari who was represented by the Deputy Governor, Mannir Yakubu said.

He commended NIRSAL for its strategic financing role for the take-off of the project and reducing the burden on the state’s finances. He also expressed appreciation to all key stakeholders for being part of the scheme.

Other key dignitaries at the event included Elesa Bitrus, National President of TOAN, Ashok Thakur, Vice President and Head of Operations – Africa Business, Mahindra and the Managing Director Springfield Agro Limited, Tarun Das.

Source: Business Day

World Bank Fadama III Constructs Earth Dam for Yobe

By Njadvara Musa

Damaturu — The Fadama III, and Additional Funding ll projects in Yobe State are being financed by the World Bank under the North-East Food Security and Livelihoods Programme (NFSLP), to boost irrigation farming, and fishing in the Yobe-Kumadugu River Basin, Project Coordinator, Musa Garba has stated.

Garba disclosed this on Tuesday, while briefing journalists on the irrigation and fishing potential for 37 households and herdsmen at Gada earth dam.

He said the Yobe State Government has constructed a mini earth dam and feeder roads in Nangere, and Potiskum local government areas, to boost irrigation farming.

He added that the feeder roads will facilitate the massive transportation of farm produce from rural to urban centres of the state.

Musa explained that the earth dam was constructed to harvest rain waters flowing downstream of the community for irrigation farming and fishing in the area.

His words: "This project is served with the construction of a water gate to regulate the flow of water to the farmlands and orchards. The water flow gate is opened when farmers want to irrigate their farms, and closed them to retain the waters and prevent flooding."

He said that 21 households under the irrigation programme were supported with water pumps, seeds, sprayers, fertiliser and herbicides.

"The project has also supported 16 households on livestock farming with each household provided with a set of four female goats and a male goat, or three sheep and two rams, while three households have been provided with canoes for fishing," he said.

He added that the World Bank programme is aimed at providing the people with sustainable means of livelihood, and urged the beneficiaries to take advantage of the River Basin farming and fishing potential.

Source: The Guardian

Why Nigeria can’t achieve food security yet – Action Aid

ActionAid Country Director, Ojobo Atuluku

Unless the Federal Government solves the insecurity challenges in the country, it may not achieve its food security target by 2025.The ActionAid Country Director, Ojobo Atuluku gave the warning yesterday, in Abuja at an event organised by the Small Scale Women Farmers Organisation in Nigeria (SWOFON).

She lamented that insecurity has created a problem in food production in different parts of the country.According to her, there is the need for a sustainable solution to the communal crises between the herdsmen ad farmers.

She said no government efforts would yield positive result, unless workable policies are made to tackle the insecurity challenges.She said: “Insecurity has affected food security in not only the northeast, but also among farmers and herdsmen across the country.

Atuluku commended the Federal Government for repositioning the agriculture sector, adding that beyond conflicts and communal clashes, it should also address the impact of climate change in the sector.

She urged government to resolve these conflicts to avoid a gradual drift towards food shortage.The country director identified the lack of access to farmland, credit and market as some of the major setbacks facing the women farmers

While commending the Federal Government efforts at reviewing the Malabo declaration, she called for a major policy in access to land and government’s investment in small-scale women farmers.

SWOFON President, Mary Afan said the organisation has been engaging government officials and other stakeholders to support women farmers in the rural communities.

She narrated how four women were killed in their farms due to insecurity, which had forced them to engage local security guards to secure them in rotations while in their farms. She urged government to facilitate easy access to fertilisers and other inputs as part of its intervention in the sector.

Source: Guardian

NAFDAC Et Al Can Halt Embarrassment To Nigeria By Doing The Right Thing

By Olutayo Irantiola

After the country was embarrassed by the foods and drugs agencies of other countries, the National Agency for Foods and Drugs Administration and Control (NAFDAC) addressed the media some weeks ago that Nigerians should stop embarrassing the country while trying to export farm produce and processed food. This is rather reactive rather than proactive and this has raised a lot of questions among Nigerians.

In a place like Lagos, different radio stations grant interview to organizers of various seminars wherein they claim to teach people on how to export different food items to other countries. Does this mean that any NAFDAC officer has never heard about these programmes for once or the Public Relations unit of the agency does not monitor the media Pan-Nigeria?

I do not doubt the availability of standard and international laboratories of NAFDAC but I doubt the effectiveness of these laboratories. Even locally, especially herbal drugs that have passed through this said laboratories, cannot be totally sacrosanct.

Also, there are lots of bottled water that have been certified by the organization and do not fit for human consumption.

In my search for information about how farm produce are certified before bring exported, I found out that there is no standard way of testing. The requirements of the products differ and the specifications of each country differ. I would like to know if NAFDAC has a catalogue of the specification of all the destinations where these products are exported to across the world.

Equally, the NAFDAC approval that is granted to edibles like Knorr, a food seasoning and products of the Nigerian Bottling Company, is not accepted overseas. As such, the international accreditation done locally does not guarantee the external certification by other agencies. People would not take the claims of NAFDAC seriously because of these experiences.

How free is any transaction with a government official in Nigeria? This is a very cogent question that needs to be answered by those working in government ministries and agencies.

The Federal Road Safety Corps (FRSC) reiterates that driving license is N6,500 but I am yet to see people who did it at that rate and have good stories to tell at the end of the day.

The cheapest I have heard from people is N15,000 without receipt. The culture of kickback, kick-forward and kick-in-between while trying to get the produce certified in the civil service way would either kill the entrepreneur or make him lose business.

Before the era of the late Professor Dora Akunyili, NAFDAC was a toothless bull dog in Nigeria. During the days of the Midas’ touch of Professor Akunyili; those who manufactured drugs sat up and Nigeria was better for it.

NAFDAC was everywhere from the dailies to the electronic media. They were either confiscating and destroying drugs or sensitizing Nigerians about a particular product that should not be consumed. We have returned to the dark days when Nigerians were guinea pigs used to test fake and unhealthy products.

The Ministry of Agriculture cannot also be exempted from all the issues. Many farm settlements have died either a natural or artificial death because the extension workers are not supportive enough; many improved seedlings have been ceded to the family of the extension workers.

In fact, the fertilizers shown to be purchased by the state government on television have been given to their associates who have the wherewithal to manage their farms.

Also, there is no education about the use of pesticides. Farmers do not know how to apply pesticides; farmers intuitively apply these chemicals. As such, by the time the crops are harvested, they are unfit for human consumption and exportation.

There are professionals in the area of Agricultural Engineering. These are the crop of people that should help with advanced farm tools and implements that would change the crude ways of preserving farm produces and other commodities that need be exported.

If truly, the process used in producing dried fish and meat is not healthy, then the onus lies on them to manufacture equipment that will help us to be healthy as Nigerians. Moreover, these are even ways of improving on our traditional ways of life.

The Nigerian Export Promotion Council (NEPC) needs to double up in her efforts to ensure that Nigerian remains a country that can export farm produce and other processed foods to other countries. The agency can help in working closely with other multi-lateral institutions to developing home-grown solutions before making it available for export.

The Nigerian project is in progress and there is a lot of synergy that is needed across agencies, ministries and the private sector. We need to develop a structure wherein all loopholes are blocked.

There should be laboratories at all the Ministries that have to deal with human lives.

Either in Nigeria or other countries, human lives are the fulcrum of development. We cannot continue to trivialize good health for profiteering sake. We all need to work together to make our country great while we are not limited in the volume of export to other nations of the world.

Olutayo Irantiola is a PR Specialist, Atọ́kùn, Yorùbá Lákọ̀tun, Book Reviewer, Creative Writer, Cultural Advocate, Poet and Citizen Journalist

Source: Businesspost

Women Farmers Predict Bumper Harvest In 2017

The Small Scale Women Farmers Organisation in Nigeria (SWOFON), has predicted bumper harvest across the country this farming season due to the improved security situation nationwide.

National President of the Organisation, Mrs Mary Afan, said this in Abuja recently, on the sidelines of a meeting involving small holder women farmers.
The meeting was to assess the participation and contribution of small holder women farmers to Value Chain Development Programmes in four states.
Afan said that the assessment would go a long way toward increasing farming, reducing production cost and boosting production.

“Why we are actually experiencing high cost of foodstuffs is because of insecurity.
” I have a record of about four of my women that were killed in the farm by unknown men when they were farming with their children.
” Some women will have to hire boys to come and be guarding them while they work on the farms and they do it turn by turn.
“If they guard my own today and I farm today, tomorrow they will go to another person’s farm and you have to pay them.
“Then if you have to pay to buy security for you to be able to produce, how much will come and sell the crop so, it is a very serious issue.
“This farming season, by the grace of God, we are going to have more yields because the issue of insecurity has reduced.”

On access to fertiliser for women farmers, Afan commended the Plateau State Government for creating an environment that would enable small scale farmers in the state to access the chemical.
She, therefore, called for a reduction in the price of government approved price of fertilizer for women to encourage them.

“We buy fertiliser at the same government price that the men buy.
“So I am soliciting that if they are giving the men at government price for 50 per cent, the women should pay 40 or 35 per cent because the women don’t have the capacity to pay for the fertilizer like the men.

“And most of the time, when these government fertilisers come, they are jacked by some people who sell them in the open market.
“This makes it difficult for farmers to access it.”
She said that SWOFON had built the capacity and skills of a significant number of rural women farmers to improve agricultural productivity.

The Tide reports that SWOFON is a network of small holder women farmers established with the assistance of Action Aid Nigeria and funded by Trust Africa.

Credit: The Tide News

Osinbajo Inaugurates $1.5Bn Fertilizer Plant in Rivers

Acting President, Prof. Yemi Osinbajo today in Port Harcourt inaugurated a giant world-class fertilizer plant, built by Indorama Eleme Fertilizer and Chemicals Limited at the cost of $1.5 billion.

The acting President used the opportunity to remind all Nigerians that time has come for them to grow whatever they eat and produce whatever they consume.

“What Indorama is accomplishing today is very much in line with President Buhari’s vision for a country that produces what it consumes and grows what it eats. If you had to sum up our vision for the Nigerian economy in a few words, these would suffice. Grow what we eat, produce what we consume,” he said.

 

Prof Osinbajo commended Indorama for keying into the Presidential Fertilizer initiative which President Buhari launched last year to make fertilizers cheaper nationwide.

“At the end of last year, the President launched a Presidential Fertilizer Initiative, to ensure the availability of cheaper fertilizer to our farmers, to support what we’re doing in agriculture, in the production of rice and wheat and other staples.

“That Fertilizer Initiative, now well underway, has created significant economic opportunities for companies like Indorama Eleme Fertilizer & Chemicals Limited.

“I have been informed that Indorama will this year alone supply about 360,000 Metric Tons of Urea to Fertilizer blenders, which, in turn, will produce NPK fertilizer for the benefit of farmers across the country.

“This is the kind of economic progress we’re after, in which every unlocked opportunity proceeds to unlock several others, across multiple sectors of the economy.”

The acting President said that the Buhari administration will continue to support Indorama Eleme Petrochemicals Limited, which was privatised in 2006 by the Federal Government.

According to him, the company has turned out to be a huge success story. “I am glad that we’re here today to see one of the success stories of the Federal Government’s privatisation programme,” he said.

“We will continue to support Indorama Eleme Petrochemicals Limited’s expansion ambitions. Our commitment to the privatisation programme is equally assured, and we will continue to do everything to support investors to maximise the potential of their assets,” he said.

Earlier in his address, the Chairman of Indorama Corporation, Mr Sri Prakash Lohia said that the plant which has capacity to produce 1.5 million metric tons of fertilizer per annum is the largest single-train Urea plant in the world.

The Acting President also presented a Certificate of Discharge to the Chairman of Indorama Group, Mr Lohia and the Managing Director, Mr Manish Mundra for successfully accomplishing the post purchase agreement entered into with the Bureau of Public Enterprises on behalf of the Federal Government of Nigeria.

“Following the 2006 handover, the BPE carried out routine monitoring on the enterprise to ensure that the core investor adhered to and implemented the post-acquisition plan it had laid out for the company.”

“Today is the culmination of that process of monitoring and oversight by the BPE. I am delighted that it is taking place on an inspiring and hopeful note, and that we are all here today celebrating a thriving and promising company. We should not take this state of affairs for granted,” he said.

The Plant has a production capacity of 4000 metric tons (MT) of nitrogenous fertilizers per day or 1.5 MT per annum. The world-scale plant has been built with an investment of USD 1.5 billion, a huge Foreign Direct Investment, funded by the International Finance Corporation (IFC) and a Consortium of 15 European and African banks and Financial Institutions.

Governor Nyesom Wike of Rivers State, in his speech said that for Indorama to invest a whopping $1.5 billion in the state, it shows that the state is safe for investors and their investments. He called on other investors to emulate the footsteps of Indorama.

The fertilizer plant is well supported by Port Terminal at the nearby Onne Port Complex, and a Gas Pipeline of 83.5KM for gas supply.

The plant will bring about a green revolution in the agriculture sector not only in Nigeria but also in other parts of Africa and world at large.

Besides, making the fertilizer products to be available at affordable cost, the plant will boost crop yield to farmers and greatly help in minimizing the food grain deficit in Nigeria.

The plant has also generated lots of job opportunities contributing to the economic prosperity of Nigeria.

The construction of the plant commenced in April 2013 and completed in December 2015. The commissioning activities were concluded in March 2016 and the commercial production started in June 2016.

Credit: NigeriaBulletin

Nigeria rice production looking stronger in 2017, Ministry say

Nigeria is expecting to be self sufficient in rice production by November and prices are also expected to fall, the Minister of Agriculture and Rural Development said.

The Industry Reports also shows the fluctuation of the local commodity production to be between 2,400 to 3,600 in the past five years. The import rates have also increased to 5,850 from 4,800 during the same period of time.

Meanwhile the country is also experiencing a rise in consumption rate of the same commodity. The consumption rate has risen to 7 million Metric Tons according to government statistics with only 2.7 million metric tons produced by Nigerian farmers.

In 2016, Nigeria projected to reach 2.7 million metric tons in 2017 if government policy of restricting importation was strictly adhered to.

According to the Nigeria rice production statistics, the imports have started to make up 50% of the local consumption rates.

Source: Africanews

Farmers, CBN Differ Over Agricultural Policies, Programmes

By Yusha'u A. Ibrahim

Kano — Farmers from the north-western states have called on the Federal Government to review some of its agricultural policies and programmes with a view to encouraging commercial agriculture.

The farmers spoke yesterday at the just concluded Northwest farmers' forum and exhibition organised by the Daily Trust newspapers in collaboration with Kano State Ministry of Agriculture, held in Kano.

The Chairman of Sweet Potato Farmers Association, Kano State chapter, Alhaji Abdullahi Bebeji, called on the Central Bank of Nigeria (CBN) to review the guidelines for accessing loans under the Anchor Borrowers' Scheme with a view to attracting more farmers to the scheme.

Bebeji blamed the CBN for denying many farmers opportunity to benefit from the scheme, saying "we were asked to open accounts at the Bank of Agriculture (BOA) and we have submitted our names to the bank but up till this moment, we have not heard from the CBN."

Dr Sa'idu Abubakar said CBN should compel commercial banks in the country to invest in the agricultural sector, which employed over 70 per cent of Nigeria's workforce.

"The apex bank should sanction any commercial bank that refuses to invest in the sector," he advised.

Another farmer, Alhaji Tukur Nasarawa expressed disappointment with the scheme, noting that it was unfortunate that huge funds set aside for the scheme were still lying un-accessed in some commercial banks.

He said, "Financing is the major problem of agriculture in Nigeria. I am advising CBN to come up with an interest-free loan facility that will tally with the teachings of our religion so that many farmers can benefit."

On his part, former Chairman of the All Farmers Association of Nigeria (AFAN), Alhaji Sabo Nanono, placed most of the blames for the backwardness in agriculture on the Federal Government.

He said, "We do not have national pricing policy in Nigeria and this is one of our major problems as far as agriculture is concerned and it is only the Federal Government that can address it. The government must also address the monopoly in the business of fertilizer in this country if at all we want to make any progress in the sector.

"Next to the monopoly in fertilizer business, is the cost of production. Nigeria has the highest cost of production in agriculture in the world. Other problems affecting agriculture is transportation and processing."

Hajiya Salamatu Abdulkadir called on the CBN to ensure inclusion of women farmers in its agricultural programmes, saying "women farmers are not given equal opportunities in most government's agricultural programmes."

Responding to the issues raised by the farmers, the Director, Development Finance Department of the CBN, Dr M. A. Olaitan represented by Muhammad Ali Baba, blamed farmers for defaulting to offset the loan given to them under the Anchor Borrowers' scheme.

He cited example with the 4,405 Sokoto farmers who benefitted from the scheme but failed to pay back even though it had added value to their production.

He said: "The farmers sold wheat worth over N285 million after harvesting period but I can tell you up till this moment, we have not recovered up to N50 million out of the money we disbursed to them."

On commercial banks, the director said CBN could not force any bank to invest in agriculture unwillingly, noting that "according to the arrangement, the CBN will provide 50 per cent, farmers 5 per cent and investors 45 per cent and the banks are expected to provide 7 per cent of the profit they have generated.

"So, tell me which bank can invest in this business while the farmers are not paying back loan? Until the business is economically viable, no commercial bank can invest in the sector," he said.

Also, a CBN official in-charge of the Anchor Borrowers' scheme in Kano, Alhaji Musa Umar Yar'Adua, said out of the N1 billion disbursed to 5,540 farmers under the scheme in the state, CBN has not recovered up to N3 million at present.

"Farmers did not show interest in the scheme until towards the end of the rainy season. It took me five months to convince them to accept the scheme. So, by the time the loan got to them the season was almost over," he said.

Credit: Daily Trust