CBN appoints new ​head for ​Agric lending unit

The ​g​overnor of the Central Bank of Nigeria, Godwin Emefiele, on Wednesday approved the appointment of substantive Managing Director and Executive Director (Technical) for the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.

The new appointees are Aliyu Abdulhameed and Babajide Arowosafe respectively.

Mr. Abdulhameed holds a Bachelor of Science degree in Agricultural Economics and Rural Sociology from Ahmadu Bello University, Zaria and a Masters Degree in Public Administration with specialization in Public Policy.

The new Managing Director, who has over 22 years experience in Corporate Agribusiness as well as in the field of Agricultural Finance and Risk management, also holds an Executive Masters Certificate in Project Management from the Project Management College (UK).

He is currently an Executive Team Member of NIRSAL PLC, an initiative of the CBN, the Bankers Committee and the Federal Ministry of Agriculture & Rural Development.

“These appointments underscore the CBN’s determination to re-focus NIRSAL and help de-risk agricultural lending in Nigeria,” Mr. Emefiele said. “The Bank is confident that this will help in moving the country towards food sufficiency, job creation, and inclusive growth.”

On his part, Mr. Arowosafe holds a first degree in Agriculture and a Masters in Agricultural Policy and Administration. He has wide-ranging experience in agriculture and micro-enterprises having worked in these fields for both the World Bank and the United Nations.

He was the Commissioner for Agriculture & Natural Resources in Ekiti State.

In addition to its many other functions, NIRSAL has the responsibility to administer a risk sharing fund designed to identify, redefine, measure, re-price and evolve strategies to de-risk and catalyse lending to the Nigerian agriculture value chain.

Incorporated as a public limited liability company and licensed as a non-bank financial institution, NIRSAL has 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.

The company promotes economic development by acting as a catalyst for credit flows to agricultural value chains by systematically addressing key failures in agribusiness supply chains.

Since its inception in 2012, about 454 projects valued ₦61.161 billion have been guaranteed by NIRSAL, while about ₦753.36 million was paid as interest rebate to borrowers who repaid promptly to encourage good repayment behaviour

By the end of Year 2014, NIRSAL trained 27,142 farmers across the country.

Source: Premium Times

‘1,600 Nigerian Farmers Benefit From IITA/SARDD-SC Wheat Project

No fewer than 1,600 Nigerian farmers drawn from Kano and Borno states have benefitted from the IITA/Support to Agricultural Research for Development of Strategic Crops (SARD-SC) wheat initiative programme.

They were among farmers drawn from 11 countries throughout sub-Saharan Africa.

The IITA/SARD-SC Project coordinator, Dr Chrys Akem, said in a statement in Ibadan yesterday, that within two years of the inception of the SARD-SC project, the wheat component had mobilised a fast-tracked seed multiplication programme and distributed 58 tons of improved seed that have been grown over 500 hectares of wheat areas in six innovation platform sites across two states in Nigeria (Kano and Borno).

According to him, the SARD-SC wheat project   provided two tons of improved seeds of Norman and Attila-Gan-Attila wheat varieties to the Mauritanian team as part of contributions to the preparation the Regional DRFCA staff were making for planting these and other improved varieties in the nearest future.

Source: Leadership

Banks refocusing to support agric value chain

NIGERIA’S agriculture has continued to play a strategic role in its economic growth, thereby justifying calls for in- creased focus in the sector to meet the diversification imperatives of the economy from over reliance on crude oil.

But despite its critical role, the nation’s agricultural sector development has been constrained by the lack of support and access to credit for predominantly small- holder farmers as efforts by successive governments to address the problem have been largely unsuccessful with commercial banks in the country perceiving agricultural finance to be high-risk venture.

Only recently, the Central Bank of Nigeria (CBN) and the Bankers’ Committee agreed to increase lending to the agricultural sector to N300 billion in 2016.

This formed part of the communiqué issued at the end of a two-day seventh Bankers’ Committee retreat titled, “Creating an Enabling Environment for SME Growth.”

CBN Governor, Mr. Godwin Emefiele, while briefing the media at the event, said banks generally agreed to increase lend- ing to the agricultural sector as the committee felt there was need to de-risk the agricultural value chain.

He, however said efforts by the Bankers’ Committee had helped to incentivise lending to the agricultural sector, while pointing out that lending to the sector increased from as low as one per cent in 2010/2011, to four per cent in 2014/2015.

It was perhaps against this backdrop that commercial banks are now seeking new opportunities to invest in the secor, given the radical transformation witnessed in the sector so far.

They believe it will attract Foreign Direct Investment, reduce poverty, reduce the country’s level of unemployment and reduce government reliance on crude oil. It will also help to strengthen the naira against dollar to enhance favourable Balance of Payment, while the railway lines could also be revamped to ease movement of agricultural produce and people alike.

Meanwhile, First Bank of Nigeria Limited, a subsidiary of FBN Holdings Plc has said it would remain committed to the development of the wellbeing of Nigerians through its support for the development of the agricultural value chain in the nation and beyond.

It said its support for the agricultural value chain and by extension food, will enable individual and communal self- reliance, self-contentment and self-sufficiency, which will translate to national growth. This is why the bank is taking ownership of the food space to fully pro- mote businesses that will build the sector and in the long run preserve Nigeria’s teeming population, build revenue for development purposes and create employment opportunities. The effort will also serve to stem corruption and other forms of indiscipline, which threaten economic stability.

The bank recently supported the business, art and entertainment of food across all segments of the economy. At present, the bank is supporting Small and Medium Enterprises (SMEs) through financing options and advisory services to leverage opportunities in the business of food and create jobs in the food industry that catalyse economic growth.

Against this background, First Bank said it is partnering Eventful, a renowned event management company hosted “Fiesta of Flavours”, a world-class food and beverage fair. The three-day food and beverage fair will provide an avenue for attendees to fully experience the entertainment, art and business of food. It also showcased the best in local and international cuisines, cutting edge food technology and cooking techniques, as well as the best beverages, wines and spirits the world has to offer. The event provided management and training seminars, competitions, food demonstrations and performances as well as a live band. Through this, the bank has set the pace for the sustainable development of Nigeria’s economy.

First Bank’s Group Head, Marketing and Corporate Communications, Folake Ani-Mumuney, said that agriculture was the main stay of the Nigerian economy before the oil boom and that there was the need to return to the basics of Nigeria’s industrialisation to stimulate the much needed economic growth at this time.

“The bank’s venture into the food space takes us back to the basis of our economic development as a nation. First Bank is set to support agriculture across the entire value chain to promote economic growth and sustainability, especially in the face of dwindling oil revenue,” she stated.

Source: Sunnewsonline

Banks To Take Certificates As Collateral From Start-ups

As part of measures to get funding across to start ups in the country and make th N220 billion Micro Small and Medium Enterprises Development Fund (MSMEDF) more accessible, banks can now take educational qualification certificates as collateral.

This was included in the revised guideline for the disbursement of the N220 billion MSMEDF released by the Central Bank of Nigeria (CBN) on Monday night.

The CBN governor, Godwin Emefiele had recently revealed that only about 30 per cent of the fund which was launched in 2013 has so far been disbursed. Emefiele speaking at the Bankers Committee Annual Retreat in lagos had stressed the need to make funding available to young graduates by easing requirements.

The revised guideline realised by the apex bank states that for loans granted to start up businesses by deposit money banks and development finance institutions will have as collateral “educational certificates such as SSCE, National Diploma (ND), National Certificate of Education (NCE), National Business and Technical Examination Board (NABTEB), Higher National Diploma (HND), University degree (NYSC Certificate where applicable) and a guarantor. “

The guideline also states that for the start-ups to access the MSMEDF they must present their Bank Verification Number (BVN) while “Venture Capital Firms (VCFs) that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at two per cent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee.”

The N220 billion MSMEDF was initiated by the CBN in order to address the financing gap in the MSME sector, with 60 per cent of cent of cent of fund targeted at women entrepreneurs. MSMEs can access the fund with an interest as low as nine per cert.

Source: Leadership Newspaper

Agriculture: Africa’s once-in-a-lifetime opportunity

Across many emerging economies, rapid industrialisation and urbanisation is placing strains on the world’s food resources. For example, as the Chinese diet changes towards including more meat and moves towards parity (in calorific and compositional terms) with diets of developed countries, an area the size of the UK will need to be farmed, just to cope with the demand.

Developed markets are unlikely to provide the solution. There are no significant under-farmed areas to develop in these markets. Yields have been maximised, improvements will be marginal or, at the minimum, will take decades to make a material difference.

This presents a once-in-a-lifetime opportunity for Africa, where, as a recent PwC reportoutlines, the collapse in oil prices, a US$35bn continent-wide, structural food deficit and huge potential to lift output and productivity, have forced food security and agricultural development to the top of the political and economic agenda.

Richard Ferguson, agricultural adviser to PwC and author of the report, said:

“The world needs more food. China’s growing protein needs alone will require an area the size of the UK to grow the grains to support that consumption. And as more industrialising countries lose the ability to feed themselves, the world is going to look increasingly to Africa to be the solution.

Joel Segal, chairman of PwC’s Africa Business Group, added:

“Food security’s significance as a key geostrategic theme was confirmed in 2007-2008 when it emerged at the top of the international political agenda. Although food price inflation has receded in recent years, the underlying supply challenges remain demanding. And, across Africa, growingconsumer demand, population growth and urbanisation will place significant strains on food resources. Now is the time for African governments to embrace this opportunity to drive food security and development goals in tandem.”

Richard Ferguson is PwC’s agribusiness advisor and Joel Segal is the chairman of PwC’s Africa Business Group. This article was originally published on PwC’s ‘Africa Upfront’blog.

Source: www.howwemadeitinafrica.com

Unripe pawpaw heals ulcers – Nutritionist

Pawpaw

Mrs. Aisha Abdullahi a Nutritionist with a private hospital, Asokoro Abuja, said on Wednesday that consuming unripe pawpaw aids in the healing of external and internal ulcers.

Abudulahi said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

According to her, unripe pawpaw contains high percentage of papain, which makes it a wonderful food that helps the digestive system function better.

She said explained that unripe pawpaw has numerous benefits due to its high contents in vitamins A, B and C, fibre and protein, among others.

The expert that consuming unripe pawpaw on an empty stomach helps in the digestion of protein, reduces inflammation, improves immune system as well as helps expel bacteria and viruses.

She further noted that unripe pawpaw was an anti-inflammatory supplement which helps in reducing inflammation, including osteoarthritis and asthma, among others.

Other benefits of unripe pawpaw include its richness in antioxidants which helps in the prevention of cholesterol oxidation.

“It also reduces the risk of heart attacks and strokes and also binds toxins that cause cancer in the colon.

“Consuming the fruit also helps with digestive problems such as bleeding piles, chronic diarrheoa as well as constipation.

“ Pawpaw consumed in juice form helps reduce inflammation in the lungs especially to those who smoke and those that are exposed to secondhand smoke.

“It is also a remedy for cough, worms, bladder problems, jaundice, gastric fermentation and gastritis.

“The unripe pawpaw in juice form also helps regulate the menstrual cycle especially for those with irregular menstrual cycle,’’ she stated.

Abdullahi further said that boiled unripe pawpaw fruits help in the improvement of potency especially in men.

She also stated that pawpaw leaves was a remedy for people suffering from epilepsy, stomach ache and severe constipation.

She, however, stated that pawpaw has been scientifically proven as a cure for many chronic diseases such as pile, among others.

The nutritionist also stated that pawpaw leaves helps in the treatment of convulsion, malaria, diabetes, stomach ulcer and piles.

Abdullahi enjoined patients suffering from conditions such as diabetes, stomach ulcer as well as gastric ulcer to include pawpaw in their daily foods.

The expert also warned that consuming unripe pawpaw juice may cause allergic reactions to pregnant women, adding that it may induce abortion.

Source: The Nation

Avian Influenza: Poultry Farmers In Plateau, Bauchi Cry Out

Poultry farmers in Plateau and Bauchi states have petitioned President Muhammadu Buhari and the Minister of Agriculture, Chief Audu Ogbe, over the inability of the Federal Ministry of Agriculture to pay them compensation following the destruction of their poultry farms by the ministry as a result of Avian Influenza otherwise known as bird flu.

They are calling on the federal government to as a matter urgency come to their aid by compensating them to enable them continue with their lives.

In the petition which was signed by Godfrey Opara, on behalf of the affected farmers and made available to journalists in Jos, yesterday, they explained that the Federal Ministry of Agriculture had in January this year agreed to compensate poultry farmers whose birds were destroyed following the ministry’s directive having confirmed the infection of Avian influenza on their birds by the National Veterinary Research Institute NVRI, Vom, Jos.

Opara further narrated that the agreement entered between the Federal Ministry in conjunction with World Bank and Poultry farmers was that whoever farm was discovered to be infected by Avian influenza the Ministry would pay N1450 per egg laying bird.

Source: Leadership

Zenith Energy to create ‘massive employment’ for Nigerian youths

Zenith Energy Enzymes, an organic fertilizer production company, says it would create jobs for thousands of Nigeria youths interested in agriculture. In a statement released in Abuja, Zenith Energy announced the return to farming initiative, aimed at empowering youths through agricultural value chain. The initiative, which was setup in order to return the youths to farming in line with the various government programs and policies, will take off in Abuja on Thursday December 17 at Nicon Luxury Hotel. According to the company, the project is designed to create an ecosystem of integrated farming among youths to engage in farming seriously as a proper business. 

It is also to increase domestic food production and reduce importation of food thereby reducing foreign exchange expenditure, while creating massive employment for Nigerian youths. It also plans reduce hunger, poverty and climate change by using Agric-Zyme organic products which the company says increases yield and protect environment and boost overall economy. In realising its goals, Zenith Energy is collaborating with the ministries of agriculture, youth and sports, women affairs, state governments as well as senate and house committee on agriculture. 

Participants are to register for the project with one carton of any Agric-Zyme product, with each Participant enrolling 20 other participants who are also to register in like manner. Once the participant and his 20 members complete registration, the participant receives a take off fund of N120,000 from Zenith Energy to open account with the Ecobank Plc, after which a N500,000 loan would be granted for agri-business. Zenith Energy said it will also arrange buy back with off takers for some participants who farm the following: Poultry, Fish, Rice, Ginger and Cocoa, subject to agreed terms and conditions. 

The event will be attended by leading figures in the agricultural sector, government officials and farmers from far and near. Zenith energy boasts of a state of the art production facility in Port Harcourt which serves the farming community in Nigeria and West African states of ECOWAS.

Read more at: https://www.thecable.ng/zenith-energy-to-create-massive-employment-for-nigerian-youths

Nigerian banks target N300 billion for SMEs, agric sector

The Bankers Committee said it has set a target of N300 billion to boost lending to Small and Medium Scale Enterprises (SMEs) and the agriculture sector in 2016.

The Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, said this while briefing journalists on the communiqué released after the 7th Annual Bankers Committee Retreat held in Lagos from December 10 to 11.

The theme of the conference was “‘Creating an Enabling Environment for SME Growth’.

Mr. Emefiele said that the facilities would not only be for SMEs, but also to large scale farming companies.

On the agriculture, he said its value chain needed to be de-risked to allow banks grant facilities to farmers to stimulate growth in the economy.

Mr. Emefiele said that the bankers agreed that de-risking those value chains in the agriculture would encourage large scale farming and boost productivity in the sector.

According to him, achieving this will increase lending to the sector, while the monetary and fiscal authorities must work together to improve local production.

He said that increased local agriculture products like rice, tomatoes, wheat, fish, sugar, among others, would reduce the demand for foreign exchange.

The bank chief said this would help to boost country’s foreign exchange reserves and by extension strengthen the naira.

The central boss said that banks believed that there was need to improve the level of infrastructure.

He said that the retreat, which allowed stakeholders to share ideas, also afforded them the opportunities to review the performances of the outgoing year of 2015 and set agenda for banking industry in 2016.

The CBN boss said that the retreat also gave the opportunity to exchange ideas with invited ministers about their agenda and plans.

He said that the banking industry would continue to support government’s effort to diversify the economy because of the ongoing challenges facing the global market.

“I must say that the Nigeria is not an exception given that today we are affected adversely by the drop in crude oil prices which in itself has adverse impact on nation’s revenue.

“We had extensive discussions on some of the previous outcomes of the bankers committee which have helped to increase lending to the manufacturing sector, facilitated finance to the power and aviation sectors.

“It has also helped to sensitise lending to the agriculture sector where we have seen lending increasing from as low as one per cent in 2010/ 2011 to as high four per cent in 2014/2015,” Mr. Emefiele said.

Those in attendance at the conference included the Governor of Lagos State, Akinwunmi Ambode, the Minister of Agriculture and Rural Development, Audu Ogbeh, the Minister of Power, Works and Housing, Raji Fashola, and the Minister of Transport, Rotimi Amaechi.

Also in attendance were the Minister of Solid Minerals, Kayode Fayemi; the Minister of Finance, Kemi Adeosun, and chief executives of banks, Development Finance Institutions (DFIs), SME operators and those in agriculture and power sectors.

(NAN)

Lagos mobilises grassroots to boost agricultural productivity

The Lagos State Government is currently mobilizing the grassroots to boost agricultural productivity in the state.

The government summoned a meeting of all Heads of Departments, HODs of the 20 Local Governments and 37 Local Council Development Areas, LCDAs of the state to brainstorm on how to boost agricultural productivity at the grassroots in view of dwindling prices of petroleum in the international market.

At the interactive meeting held at the State Government Secretariat, Alausa in Ikeja, Lagos, Southwest Nigeria on Thursday, Commissioner for Local Government and Community Affairs, Muslim Folami said the recent dwindling in the prices of petroleum products had left various governments in the country with no other choice than develop the agricultural sector of the country.

He said in order to achieve this, the promotion of agriculture in the various local governments became imperative since 70 percent of agricultural production activities took place at the community level.

“Also, the value activities in rural, sub-urban and urban local governments that account for about 30 percent of agricultural activities in the state cannot be overlooked. Observation gathered from the recent interaction with the HODs has shown that over 80 percent of them are community development bias, thus affecting agricultural programme development and execution.

“This forum will chat ways on how to take care of identified need gap for quality agricultural deliveries services at the LGs/LCDAs level. The various heads of departments are to be guided from time to time on various empowerment and employment opportunities that abound in the sector by the ministry,” he said.

According to him, the meeting was necessary considering the fact that one of the surest ways for the people to benefit sustainably from the dividend of democracy was through quality agricultural delivery services by all tiers of government, which in the short, medium and long terms would generate employment opportunities, ensure food security and increase income for the citizens.

Folami added that the meeting was also aimed at putting in real terms how to strategise in contributing optimally to the overall goals of the state government through development and implementation of sustainable community agriculture programmes and initiatives that would trigger community development.

The Director, Community Agriculture Department, Habeeb Giwa said government needed the support of the grassroots in order to boost food production, saying that at the end of the meeting, strategies of implementing the agenda of boosting food production in order to improve the lives and livelihood of the people at the grassroots, would be arrived at.

He said the role of the department was to facilitate grassroots development through strengthening of community agriculture in the state; facilitating the development of agriculture/food security master plan for LGs/LCDAs and oversees its implementation, among others.

Source : Premium Times

CBN to Unveil Scheme to Support One Million Young Graduates in 2016

The Central Bank of Nigeria (CBN) has said it is contemplating to unveil a programme through which it would support young graduates that are operators of micro, small and medium scale enterprises (MSMEs) at concessionary pricing in 2016.

This is just as the Minister of Finance, Mrs. Kemi Adeosun, said the federal government would soon go to the debt market to raise fund in order to finance its capital expenditure.

Also, Governor of Lagos State, Mr. Akinwunmi Ambode, said the state would soon create an Employment Trust Fund, through which its youths and entrepreneurs, particularly in the social enterprise sector, would be supported with start-up funds.

He said the government would commit N25 billion in the next three years to the fund, at three per cent interest rate.
CBN Governor, Mr. Godwin Ifeanyi Emefiele, who disclosed in a speech he presented in Lagos, at the opening ceremony of the seventh annual Bankers’ Committee retreat titled: ‘Creating an Enabling Environment for SMEs,’ yesterday, said the initiative would target one million young graduates that are entrepreneurs. 

The CBN governor who said the modality for the programme would be unveiled in the next few weeks, stressed the need to tackle youth unemployment.

According to Emefiele, the country needed to get more people engaged positive.
He also called for the support of commercial banks, other financial institutions in order to make the programme successful.
He also clarified that the programme would be completely different from the N220 billion MSMEs development fund that had been launched by the central bank.

The CBN governor explained: “I am saying if you (the banks) refuse to support, your money that we would have released through the cash reserve requirements (CRR), we will take money and lend it through any channel that will give these young graduates jobs. We all need to think together and agree because there is no need to release the money to you (the banks) and all you do with the money is buy treasury bills. That cannot continue! We need to agitate our minds; we need to think about the best ways to diversify this economy away from oil.

“We need to get more and more people to be employed and we would need the support of the banks to begin to see how we can lower our risk acceptance criteria to give support to our young graduates. These are young people, let us not assume that they will take a loan and not pay. We need to develop a scheme that will work where they take a loan and they pay.”

He pointed out that the drop in commodity prices was a major thing that had affected the Nigerian economy, with a significant drop in revenue and serious pressure on the nation’s external reserves. What that does, according to Emefiele, was that as a nation, all stakeholders need come together “and see what we can do to shield ourselves.

“So, we need to do whatever we can to protect the economy,” he added.
The Ministers of Power, Housing and Works; Finance, Planning, Solid Minerals, Agriculture would all be at the meeting to discuss with the bankers on how to lift the economy.

The CBN governor said the nation had entered a phase where it must prioritise MSMEs to growth the economy.
Furthermore, Emefiele said: “I must say that the Nigerian banking sector has not played active part in supporting the SMEs, but this is not without reasons. We had issues in the past where people take loans and don’t pay. SMEs are seen as drivers of growth in any economy.

Nigeria has 37 million MSMEs. The CBN has a N220 billion MSMEs facility. We have used various approaches to stimulate the lending of SMEs through that fund and I must confess that we are not doing enough on that because only less than half of that fund has been disbursed today. There is a reason for that.”

Continuing, Adeosun, who noted that the country’s debt-to-GDP ratio was still low, which gives its some space to run a deficit budget, pointed out that there was need for “some fiscal house-keeping” in the country.

“We need to borrow in order to stimulate the economy. But the significant challenge will have to do with recurrent expenditure. If you look at recurrent it is still high. So, if we continue in that trajectory every penny we borrow will go to recurrent. So a lot of initiatives are all about how we would contain recurrent.

“So, we know where we are going and it is very important to inform you that we are going to borrow and you (the bank CEOs) are the people we are going to get money from. So, I need to let you know that we would be raising money, but we want to make sure that such borrowings go into capital expenditure that would stimulate the economy.

“Never mind, I do believe that Nigeria can overcome its challenges. I am not here to paint a rosy picture, but I believe it is going to be tough and we need to take tough decisions. But I also believe we have the resilience and space to do that,” the finance minister explained.

Speaking further, Governor Ambode, urged the banks to do much more than they are currently doing in terms of giving special attention to the capital requirement of SMEs.

“The Lagos State government is mindful of these challenges and we are taking steps to support young entrepreneurs to create wealth and generate employment. We would soon complete the legislative process of inaugurating our Employment Trust Fund. This is going to be more like an intervention fund for which we believe the interest we are going to charge will not be more than three per cent.

“This is to checkmate the negative effect of the growing youth population in Lagos. We have over 21 million people in Lagos and the population is still rising and two-third of the people that live in Lagos are below the age of 35. The economic indicators for a monolithic economy such as ours appear unpredictable. For us as a government, we see it as a defining moment for diversification and innovation,” the governor added. 

Credit: Thisday Newspaper