The Nation Newspaper

Author: The Nation

  • Nigeria spends N11. 35tr on refinery rehabilitation, N13.7tr on subsidy

    Nigeria spends N11. 35tr on refinery rehabilitation, N13.7tr on subsidy

    • Govt still owing NNPCL N2.8tr

    A report of the Ad-hoc Committee on the State of Refineries in the Country set up by the House of Representatives has revealed that the nation spent about N11. 35 trillion on the rehabilitation of the three refineries from 2010 till date.

    The Nigeria Extractive Industries Transparency Initiative (NEITI) also yesterday insisted that the country spent N13.697 trillion on Premium Motor Spirit (PMS) subsidy between 2005 and 2021.

    Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, yesterday said the federal government owes the company N2.8 trillion in subsidy payment deficit.

    Kyari, who spoke with reporters at the Presidential Villa, Abuja, after a meeting with President Bola Tinubu, said the heavy subsidy burden has starved NNPCL of funds for its core businesses.

    The House of Representatives’ report indicated that the nation spent over N4.8 trillion in running the refineries between 2010 to 2020.

    The House differed consideration of the report to Thursday, June 1, 2023 to allow the committee make more far reaching recommendations which the House will adopt.

    Deputy Speaker, Ahmed Idris Wase who presided over consideration of reports said even though the findings of the committee was far, the recommendations contained in it did not capture the essence for which it was set up.

    Wase said the Committee was take a day to take another look at its findings and make far reaching recommendations that will help the new government in fashioning out ways of addressing the challenge identified.

    The report said that the nation’s three refineries became unproductive from year 2010.

    It also said “that from year 2010 to 2019, the nation’s refineries were performing sub-optimally with an annual combined capacity of less than 30 per cent. In the year 2019, the NNPC obtained an executive approval and shutdown the refineries for comprehensive rehabilitation to restore the plants to a maximum of 90 per cent nameplate company utilization”.

    The total losses from the non-functional refineries since year 2010 is put at N366.52 billion.

    The total cost of operations and running the refineries from 2010 to 2020 is put at N4.8 trillion. The Port Harcourt Refinery Company (PHRC) carried out rehabilitation projects over a period of seven years ranging from 2013 to 2019 valued at about N12.16 billion. The Warri Refinery and Petrochemical Company (WRPC) carried out rehabilitation projects over a period of six years ranging from 2014 to 2019 valued at about N28.22 billion. The Kaduna Refinery and Petrochemical Company (KRPC) also carried out rehabilitation works over the period under review valued at about N2.27 billion.

    According to the report, the total cost of rehabilitation for the three refineries based on the submissions of the NNPC from year 2013 to 2019 is put at N42.65 billion.

    The Committee recommended continuous legislative oversight of the ongoing rehabilitation works at the Port Harcourt and Warri refineries to ensure that the desired results is achieved.

    It also recommend that the NNPC should ensure the immediate award of contract for the rehabilitation of the Kaduna Refinery and also take full advantage of the Petroleum Industry Act to fast track the rehabilitation of the refineries and ensure that the refineries are restored to a maximum 90% nameplate utilization.

    NEITI yesterday commended President Bola Tinubu for taking the bold political step to phase out the subsidy regime.

    A press statement which Deputy Director/Head Communications & Stakeholders Management, Mrs. Obiageli Onuorah issued in Abuja said, “From the NEITI reports, between 2005 to 2021, the country spent $74.3862 billion which translates to N13.697 trillion”.

    She said the NEITI report breakdown of these figures showed that in 2005, the government paid $2.6Billion (N351Billion) as subsidy. In 2006 & 2007, it paid $1.99Billion & $2.176Billion (N257Billion & N272Billion) respectively.

    Commending Tinubu, NEITI said, it has “welcomed with high expectations the political will, courage and sincerity of purpose demonstrated by President Bola Ahmed Tinubu to remove fuel subsidy right from his inaugural speech.

    “A statement from NEITI House, Abuja described the move as a positive statement by the administration to decisively implement the findings and recommendations contained in the NEITI reports.

    “This bold step is required to block leakages, grow revenues and advance the ongoing reforms in the oil, gas and mining industries.”

    NEITI recalled  that its recommendations for the removal of fuel subsidies have remained a persistent request since 2006 given the agency’s concerns about the huge financial burden that the subsidy regime imposed on the growth of the Nigerian economy over the years.

    The report further pointed out that subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52billion (N2.11Trillion).

    NEITI noted that a sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.336billion (N654Billion) in 2012. The decline in subsidy expenditure continued in 2016 and 2017 to as low as $473million (N154billion) in 2017.

    According to the statement, the reduction was short-lived as the payments skyrocketed to over $3.88billion (N1.190trillion) in 2018 and 2021 to $3.575Billion (N1.43trillion).

     By these figures, the organization said, Nigeria expended an average of 805.7billion Naira annually, 67.1billion monthly or N2.2billion daily.

    The NEITI data, in addition, showed that the amount expended on subsidies from 2005 to 2021 is equivalent to the entire budget for health, education, agriculture and defence in the last 5 years. The sum also equals the capital expenditure for 10 years between 2011-2020. Subsidy payment reached its peak in 2011 ($ 13.52 Billion or N2.11 Trillion). NEITI explained that it was during this time (2011) that fuel subsidies dwarfed allocations to all critical areas of the economy.

    NEITI ‘s persistent calls for the removal of petroleum subsidies were informed by the fact that the ways and means of funding the expenditure over these years relied more on federation accounts funds, the federal government and sometimes from external borrowing with negative consequences on government overall revenue profiles.

    NEITI was also concerned that the consequences of funding subsidies have resulted in poor development of the downstream sector, declining GDP growth, rise in product theft, pipeline vandalism, environmental pollution and undue pressure on foreign exchange. Other challenges imposed on the economy were naira depreciation, low employment generation, the declining balance of payments and worsening national debt.

    In a policy advisory released by the NEITI House in late 2022 to drive home the urgency to remove subsidy and re-submitted earlier in the year 2023, NEITI recommended eight steps to manage subsidy removal when and if the decision is made. These include the urgency to strengthen the implementation of the Petroleum Industry Act (PIA) as a whole and not in parts. NEITI also underlined the importance of unveiling the implementation of people-oriented welfare programs to provide relief for the poor and vulnerable; advised on priority attention to be paid to the rehabilitation of the nation’s four refineries currently ongoing while encouraging private investments in establishing new refineries. Other policy considerations are that government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the oil and gas sector and conduct appropriate stakeholders’ consultations, engagements and enlightenment.

    While the details of the implementation of the policy are being awaited, NEITI is set to commission a special research on the actual consumption of PMS in Nigeria. The study is to establish precisely what the nation is consuming. NEITI’s view remains that the data on the country’s actual consumption is unknown resulting in huge revenue losses to the nation through subsidy payments based on estimates.

    NEITI particularly welcomed President Bola Tinubu’s position that the revenues saved from subsidy should be channeled to education, health, roads and other critical infrastructure,

    The policy advisory also conducted a survey of the pump price of petrol across the country outside the major cities of Lagos & Abuja during the era of petroleum subsidy.

    In the North West, North East and North Central states a litre of petrol averages N270.00, N265.80 and N 269.00 respectively. The southern states pay slightly lower with the South-South paying N232.50, South East N235.20k while the South West states pay an average of N250.00. Major marketers and prices at the state capitals stood largely between N169.90 to N190.00.

    NEITI’s study on the petroleum subsidy also established the prices of Petroleum products across Nigeria’s borders and within the West and East African region. In Senegal, a litre of fuel sells for 635.91k, while in Guinea, Sierra-Leone, Togo, Cameroun and the Republic of Benin it costs N609.30k, N506.96K, N 497.78K, N449.24 and N462.23k respectively. It is on record that the supply to some of these Nigerian neighbours is largely the smuggled subsidized petroleum products from Nigeria.

    NEITI’s position which is based on the data in its reports has also been strengthened by similar empirical studies and recommendations by reputable international organisations such as the World Bank and our global body, the Extractive Industries Transparency Initiative (EITI).

    NEITI, therefore, calls on the regulatory institutions to stand firm and tackle artificial scarcity, hoarding and other man-made obstacles being created at the moment to frustrate the implementation of subsidy removal.

    With its removal, subsidy payments for petroleum products with its attendant insecurity in the country, due to smuggling etc will be reduced.

    Kyari said: “Since the provision of the N6 trillion in 2022, and N3.7 trillion in 2023, we have not received any payment whatsoever from the federation.

    “That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC.

    “When we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cash flow and that has become very difficult and affecting our other operations.

    “We’re not able to keep some of this cash to invest in our core businesses and the result is that it can be a huge challenge for the company.

    “We have highlighted this severally to the government that they must compensate NNPC; they must pay back the NNPC for the money that we have spent on the subsidy.

    “Today, the country doesn’t have the money to pay for subsidy. We can’t afford it and they are not able to pay our bill. That comes to how much the federation owes NNPC now.

    “We are waiting for them to settle up to N2.8 trillion of NNPC’s cashflow from the subsidy regime and we can’t continue to build this.

    “Fortunately also, by virtue of the provisions of the law and the Appropriation Act 2023, it is no longer available for that funding and we are very convinced today that the country can no longer fund this subsidy bill and they will not be able to pay NNPC.

    “Therefore, we are happy and pleased to hear Mr. President’s commitment to the elimination of this subsidy because they can’t afford it anymore.”

    With petrol already selling far above the official pump price in parts of the country, Kyari said steps will be taken to ensure customers are not exploited.

    “We will take necessary steps to ensure that we recover our costs from the market and also be mindful of the fact that a situation like this can lead to the exploitation of customers.

    “We’re also working with the regulator, whose head is here with me to see how we can cut any such excessive management of greed.

    “This will be contained by the virtue of provisions of the law, the Authority or the Nigerian Petroleum Midstream and Downstream Regulatory Authority. And then the competition agency – they’ll play their part.

    “We think this is a very commendable step taken by Mr. President to bring it to effect – the provisions of the law.”

    Kyari explained that petrol was to be priced at its commercial value six months after the enactment of the Petroleum Industry Act.

    That meant that by February 17, 2022, there should have been no subsidy on petrol.

    He recalled that the Federal Government extended the terminal date till June this year.

    “But the provision (of subsidy) in 2022 and 2023 (budgets) has not been funded by the government. A greater part of it is supported by the cash flow from NNPC’s other businesses.

    “Therefore, even though there is provision to the end of June, there is no financing even from the start.

    “Therefore, since you can’t pay, you cannot expect NNPC to continue to carry it.

    “This has been the position that the NNPC has taken and what the President simply said is obeying the law and acknowledging the realities that the federation can no longer pay NNPC for the burden of subsidy that we are carrying,” Kyari said.

    He noted that the queues were caused by panic buying.

    The NNPCL GMD said: “Typically, consumers will rush to the fuel station to fill their tanks and that is why you’re seeing these queues.

    “Also, marketers would like to see what exactly this means. ‘How are we going to sell the product if the subsidy on PMS is removed?’

    “The combination of the two is what you are seeing – the obvious dislocation of distribution. And we believe that this will go away very, very quickly as you’re aware also.

    “The PIA made it very clear that the price of petroleum must be at the market value. But, our country decided to provide for subsidy in the 2022 Appropriation Act and also half year in 2023.

    “Therefore, we as a commercial company established under the Petroleum Act, are doing this simply as business, delivering value to a supplier of last resort by the law, but at the cost to the federation. And that cost includes the cost of subsidy,” he said.

    Ahmed said there will be no price cap on petroleum products.

    He said the government would ensure no marketer takes advantage of Nigerians. 

    “With the removal of subsidy as pronounced by Mr President, this has opened the floodgate for any market or company that wants to import PMS. And we are ready to issue licenses for them. At least that will open the competition that will reduce the burden.

    “And let me assure Nigerians that the NMDRA and the Federal Competition and Consumer Protection Commission will make sure that consumers are not taken advantage of. We intend to work together on this.”

    Ahmed, who said the Federal Government will not cap the oil price, called on marketers to open their petrol stations and depots to the public.

    He said they will soon get the government’s directive from the NNPCL.

    “I cannot tell you the exact price because the market is deregulated. Therefore, it is going to be based on delivery.

    “The NNPCL will tell all the companies their transfer price, which will translate into what the pump price will be,” the CEO explained.

    To lighten the burden on NNPCL, being the sole petrol importer, import licenses will be issued to interested persons.

    Ahmed said the criteria for importing fuel will be similar to importing kerosene and diesel.

  • The Tinubu cabinet: Great expectations

    The Tinubu cabinet: Great expectations

    All things being equal, President-elect Bola Tinubu will within 60 days of assuming office on May 29 submit his nominees for cabinet positions to the National Assembly in line with new requirements added to Section 147 of the 1999 constitution by the 9th National Assembly and signed into law by President Muhammadu Buhari.

    This is not expected to pose any problem for the politically savvy Tinubu and his deputy, Kashim Shettima but all eyes would certainly be on the first ministerial nominees of the new government. And this would be against the backdrop of the President-elect’s oft repeated reputation as a talent spotter.

    With the benefit of hindsight, a large chunk of people who made Tinubu’s cabinet as Lagos state governor between 1999 and 2023 have turned out as some of the most talked about Nigerians today in their various fields.

    So, what manner of cabinet members will Asiwaju Tinubu serve Nigerians this time that he has a larger scale to cater for? 

    From all indications, he is a far larger political being today than he was when he was governor but it is also true that, he had before then played on the national stage as a senator in 1992 during the short-lived military experience with diarchy.

    Asiwaju Tinubu clearly has a nationalist mindset which also reflected in his choice of cabinet members in Lagos.

    Before the Tinubu years, the state was fortunate to have had a performer as governor in the person of late Alhaji Lateef Jakande during the brief civilian interregnum within the lengthy years of military rule that extended from 1966 to 1999, but it was not until Tinubu came on board, that Lagos witnessed a rainbow coalition of cabinet members.

    It needs saying that he was not under any compulsion to have a cabinet that reflects the cosmopolitan side of the state but he did exactly that without necessarily trampling on the rights of the original indigenes even though there were pockets of dissenting voices. 

    Many Nigerians who are old enough to recall the situation back then can testify that the Tinubu cabinet was largely filled with professionals who were clearly square pegs in square holes.  People like Dele Alake and Wale Edun, for instance, were ‘whiz kids’ in their respective fields, but the then Governor Tinubu succeeded in luring them into public office and it is a testament to their calling that the duo like many others returned to the fields they were poached from after Tinubu left office eight years after.

    Not surprising, keen watchers of Nigeria politics are already touting some people for  roles in the Tinubu’s federal cabinet. But, a glance into my crystal ball shows that this is just a bit of what to expect from the Jagaban.

    The task ahead:

    Certainly, the task of putting together a federal cabinet cannot be compared to what Tinubu did in Lagos but the clear mindedness that led to putting together a talent-filled cabinet 24 years ago will also be necessary this time on a larger scale.  

    This is more so that there are quite a number of political interests that may have to be catered for, especially as the Presidential election was an hard-fought one that demanded that all hands were on deck because of the calibre of opposition as well as the sentiments that were thrown into the political terrain. 

    But in the midst of these, the buck still  stops on the desk of the main man, in this case, President-elect Tinubu who has to find a way to keep almost every one happy while at the same time giving his support base hope that his Renewed Hope agenda would be powered by a team that will hit the ground running.

     As required by the principle of federal character, all 36 states of the federation will be represented in the Federal Executive Council (FEC), but one of Tinubu’s major headache is likely to be how to keep faith with an action plan that promised to hand cabinet positions to Nigerians below the age of 50 as well as women.

    But even at that, many who have studied Tinubu’s politics since at least 1999 could afford to bet on him having a mix of technocrats who have some achievements to their names and politicians with professional background who are also loyal to the party’s cause.

    And for those who have their sight on some form of government of national unity-whatever that means, any cabinet that is in line with Section 147 of the constitution with all states of the federation properly represented, is as good as any under a presidential system of government.

  • Bola Ahmed Tinubu, Nigeria’s 16th leader

    Bola Ahmed Tinubu, Nigeria’s 16th leader

    “Our mission is to improve our way of life in a manner that nurtures our humanity, encourages compassion toward one another, and duly rewards our collective effort to resolve the social ills that seek to divide us”
    As your President, I shall serve with prejudice toward none but compassion and amity towards all.
    —President Bola Ahmed Tinubu, in his inaugural speech on May 29, 2023.

    I cannot remember the exact date in July 2017 but I remember the time. It was around 3:30am. We had just concluded a marathon review of why Mudashiru Hussain of the All Progressives Congress lost the Osun West Senatorial District election of July 8, 2017, to Ademola Adeleke of the Peoples Democratic Party. After everyone had left, three of us remained in the room, namely, Asiwaju Bola Ahmed Tinubu, Rauf Aregbesola (Osun State Governor at the time), and myself, mauling over the activities of a senior member of the party, who was suspected to have worked against the party in pursuit of his perceived governorship ambition.

    Tinubu already foresaw the possibility of factionalism or defection that might hurt the party’s chances in the governorship election the following year. He wanted Aregbesola to win over the recalcitrant member. “You need everybody”, he told Aregbesola. “And, sometimes, you have to stoop to conquer.” At the end of the day, the said party member actually defected to another party and ran for the governorship in 2018 against the APC candidate. His defection nearly cost the party the governorship election. Needless to say, the ripple effects of the 2017 West Senatorial election and its aftermath underlie the recent misfortunes of the APC in Osun. But that is a subject for another day.

    The philosophy of stooping to conquer is central to Tinubu’s “strategic humility”, which Tunji Bello illustrated in his Asiwaju and strategic humility (The Nation, May 26, 2023). Strategic humility is the strategic deployment of the golden virtue of humility in order to gain competitive advantage over competitors and adversaries.

    It is not only in the political sphere that Tinubu deploys strategic humility. He does so in regular social relations as well. Who does not remember the vitriol unleashed on Tinubu by the late Yinka Odumakin? Rather than respond in kind, Tinubu offered assistance to Odumakin when he needed one. Besides, he provided one of the most memorable eulogies and necessary assistance to Odumakin’s survivors.

    In an earlier column, I illustrated the strategies used by Tinubu to build the coalitions that won him the presidency (see How to become President of Nigeria, The Nation, March 8, 2023). Stooping to conquer, as a subset of strategic humility, was central to those strategies.

    It is heartwarming to note that Tinubu is already transferring these strategies to governance, now that he is President. Of his political opponents, he had this to say during his inaugural speech: “They shall forever be my fellow compatriots. And I will treat them as such”. He even defends their right to go to court against him: “Seeking legal redress is their right and I fully defend their exercise of this right. This is the essence of the rule of law.” We should expect no less from someone who took a sitting President to court and won, while he was the Governor of Lagos State.

    Past vs. Present

    Political opponents used a two-step strategy during the campaign to discourage and disparage Tinubu’s campaign efforts. One was to draw attention to the presumed failures of the Buhari administration. The other was to put the toga of Buhari’s failures on the APC and then associate them with Tinubu since he was the party’s candidate. Even in far away London, during his lecture at Chatham House, Tinubu was asked how he thought he could win an election against the backdrop of his party’s presumed failures. Tinubu’s response was something to the effect that the President then was Muhammadu Buhari but “I am Bola Ahmed Tinubu”.

    With Buhari’s departure yesterday, Tinubu again asserted his self-confidence as his own man. Hear him in his inaugural speech, after outlining key aspects of his agenda: “With full confidence in our ability, I declare that these things are within our proximate reach because my name is Bola Ahmed Tinubu, and I am the President of the Federal Republic of Nigeria”.

    Tinubu has already started to chart his own course. However, much as he would like to respect former President Buhari, it will be necessary to share his findings of the state of the nation in due course. The goal will not be to blame the previous administration like Buhari did of the Peoples Democratic Party administration before him. Rather, the purpose is to lay the groundwork for public understanding of where he, as President, is coming from and to be able to appreciate the rough road he has to travel as well as his achievements down the road.

    Finally, I implore the Tinubu administration to shun the artificial benchmark of 100 days and instead benchmark six months for charting the full course of action for his administration. Within this period, it must be clear to his cabinet, the National Assembly, and the public where he plans to take the nation.

    I wish the President and his wife, Senator Remi Tinubu, as well as Vice President Kashim Shettima and his wife, Mrs. Nana Shettima, a very successful tenure that would bring peace, unity, self-fulfillment, and renewed hope to all Nigerians.

  • Saving West Africa’s cashew

    Saving West Africa’s cashew

    With 60 per cent of global production for many years, West Africa was the major cashew producing region in the world. Recently, Cambodia in South Asia has become a major producer as it supplies Raw Cashew Nuts to Vietnam and other countries. This has raised concerns of the United States’ Department of Agriculture (USDA), African Cashew Alliance (ACA) and other donors. They are working to help Nigeria and the rest of the region’s major producers which the world depends hugely on, DANIEL ESSIET reports.

    The global market for cashew is booming. This has brought tremendous economic benefits to exporting countries. In Nigeria, many farmers and producers have made millions selling cashew to Asia, United Kingdom (UK) and United States.

    President, National Cashew Association of Nigeria (NCAN), Mr. Ojo Ajanaku‘s ambition to be a successful agricultural business entrepreneur has been realised through cashew exports.

    With prices rising in the market, Ajanaku has been smiling to the bank. This has led him to acquire more hectares of land to grab opportunities in the cashew nut business. He has been cultivating more cashew plantations. It has helped him reap rich benefits and script a success story worthy of emulation.

    Ajanaku runs about 100 hectares of cashew plantation in Atte in Akoko Edo Local Government Area of Edo State. He has made money from cashew and invested in his plantation. Like most cashew producers, he is able to get better prices. 

    According to him, the quality of Nigeria’s cashew is one of the best in the world, calling on the government to put in place the  tools for the development of the sector to increase the yearly production and guarantee its availability. His total output and those of others combined have not helped Nigeria hit the targeted 500,000 metric tonnes. 

    According to the Food and Agricultural Organisation (FAO) and others, Nigeria’s cashew production averaged 260,000 tonnes yearly.

    Like Ajanaku, the President, African Cashew Alliance (ACA), Tola Maseru‘s cashew business is doing well. He has been exporting raw cashew nuts in large volumes. Since becoming a member of ACA, he has been focusing on product quality and sustainable development.

    He runs 300 hectares of cashew plantation in Ogun State. He took the strategic decision to ensure long-term success of his exports business.

    The destination for their exports is Vietnam and India. However, although cashew nuts command greater prices on international markets, Faseru, who is the founder of Colossus Investments Limited, a major agricultural company that exports cashew nuts, expressed concerns about low investment in processing, meaning that a larger per cent of the crop is sold abroad in its raw form. He said Nigeria and the rest of Africa were missing opportunities in terms of value addition.

    To this end, he said the sector was in need of incentives to promote private investment in cashew production. In the last 10 years, opportunities have grown for cashew nuts, arising from the high demand in the domestic and overseas markets.The United States is one of the largest importers of cashew nuts.

     According to the Vietnam Cashew Association, the U.S. remains the largest export market of Vietnam’s cashew kernels, with a volume of 149,000 tonnes, worth more than $880,600 million, accounting for nearly 30 per cent of total export turnover.

    Because the cashew nuts are not processed, a lot of Nigerian producers are not playing in the U.S. market, seen as the largest export destination for most cashew nuts processing countries.

    Faseru said the industry would grow if there were policies to encourage investment in agriculture, rural areas and improve the capacity of the processing sector.

    The major production countries of cashew  in West Africa are Côte d’Ivoire, Nigeria and Ghana. In total, the regional cashew production is not up to five million metric tonnes yearly.

    At the moment, South Asia, including India, Vietnam, Indonesia and Cambodia, are leading in cashew production, forecast to grow from three million metric tonnes to 7.6 million metric tonnes in 2025.

     The largest production country in Asia, however, is expected to be Cambodia. By 2025, the country’s output should reach one million tonnes.

    Cambodia exported 801,732 tonnes of cashew nuts to foreign markets, including Vietnam, Thailand, China, India, Japan and the UAE.

    Germany’s Agency for International Development (GIZ) has collaborated on several projects to enhance the competitiveness of the cashew value chain in Nigeria.

    The organisation has been driving the Competitive Cashew Initiative (ComCashew) implemented in many West African countries, which focused on building sustainable cashew value chains by providing support in areas ranging from research, to capacity development and policy advice.

    Since the project’s inception, over 620,000 cashew farmers have undergone training in good agricultural practices. The efficacy of good agricultural practices and adoption of enhanced planting material have resulted in an improved average yield increase of 86 per cent and improved the quality of the product.

    The total yearly income for beneficiaries along the value chain has reached about 320 million Euros in nominal terms.

    Deputy Team Leader, Component Leader Production, Market-Oriented Value chains for Jobs and Growth in ECOWAS Region, GIZ, and Kazeem Adegoke is working with other donors, including United States Department of Agriculture (USDA) West Africa PRO-Cashew Project (PRO-Cashew) to ensure that Nigeria gets a big chunk of the global cashew kernel market projected to reach almost $7 billion by 2025.

    The $47.3 million five-year USDA West Africa PRO-Cashew Project (PRO-Cashew will work to boost the competitiveness of West African producers by improving efficiency and quality in production and trade, and by working to develop more coherent regional trade and investment policies.

    While the Nigeria Export Promotion Council (NEPC) recently said Nigeria exported a whopping 315,677 tonnes of raw cashew worth $252 million last year, which reflected minimal improvement, Adegoke expressed faith in the cashew sector’s potential to grow, generate jobs and improve incomes, but it has fallen short of meeting expectations because of absence of adequate facilities to process and value-add the raw material.

    According to him, export of processed cashew is a significant area that needs more attention.

    He said donors  were interested in supporting interventions such as PRO-Cashew to increase the capacity of Nigeria and the rest of West Africa   to grow, store, process, package, market, distribute and export cashew nuts.

    He is interested in how producers can fast-track plans to build new cashew nut processing facilities, to harness the potential of the cash crop.

    He stressed that well-advised initiatives to promote the cashew sector would bring   growth and ensure food security.

    According to him, Programmes Director, Pro Cashew, West Africa Cashew Project, Olivier Kabre, building West Africa’s capacity to process and package cashews locally would not only increase local incomes, but it will also increase the sector’s resilience to market volatility, improve product traceability.

    Gaining access to Asia, UK and EU markets, Kabre said, would create more jobs and improve livelihoods of farmers and producers in the cashew sector.

     For him, processed products offer high value and thus better profit margins. He said the project is determined to open up opportunities for cashew producers to export more and raise the sub region’s profile in the international market.

    PRO-Cashew has been developing industry associations; providing farmers with quality stock, input, and  holding  capacity building training to improve cashew storage and upgrading processing technology.

    To help address sector policy challenges, the PRO-Cashew Project, among other things, inaugurated four cashew policy studies, supported by Consultative International Cashew Council (CICC) and ACA, in its five intervention countries of Benin, Burkina Faso, Côte d’Ivoire, Ghana and Nigeria.The studies have shown that the sector’s growth potential has been impeded by various obstacles such as inadequate infrastructure, limited access to finance, unreliable industry data, and unfavourable government policies.

    Also, to address these, PRO-Cashew Project, in collaboration with CICC held a Regional Policy Workshop in Lagos, which focused on shaping targeted interventions and policy reforms in  each intervention country.

    The workshop, which gathered policymakers, government officials, farmers, processors, exporters, and other stakeholders, discussed strategies for favourable cashew sector policies.

    Speaking during the workshop, the Chief of Party, Jean Francois Guay, said: “This workshop is crucial for the growth of the cashew sector in West Africa. It enables stakeholders to collaborate, establish an information database, and develop effective policies to tackle sector challenges and foster a conducive environment for its expansion.”

    Guay stressed the need to develop the cashew value chains and strengthen its integration into global markets.

    According to him, the West Africa PRO-Cashew Project, funded by USDA Food for Progress has big potential to generate inclusive rural employment through farming and industrialisation, thereby contributing to poverty reduction.

    Director, Federal Department of Agriculture, Mr. Bernard Chukwuemeka noted that the government has introduced various measures to transform the cashew sector into a more sustainable and commercial one.

    According to him, the government has taken  steps to create an environment for farmers to cultivate high-value crops and one of such exportable crops is cashew nut.

    To cope, he said the government was determined to exchange information on various aspects of the cashew sector with operators in West Africa on regulations to improve production and quality and create a more competitive local cashew for the international market.

    He continued that West African production was also growing faster than that of any other region, generating $1.5 billion in export sales for over 1.1 million farmers.

    His words: “Côte d’Ivoire is the world leader in cashew production, followed by Nigeria, Benin, Burkina Faso and Ghana. Nobody can achieve sustainability alone. We need to collaborate to create a more sustainable supply chain for cashew producers, processors, and other stakeholders to thrive and to ensure a stable supply of this nutritious and economically valuable commodity.”

    Despite cashew gains made by the sector, he indicated that West African producers face several serious challenges.These included reduced yields due to aging cashew tree stocks, farmers’ limited technical and financial capacity to rehabilitate and renovate aging orchards and an undeveloped nursery sector unable to provide timely and consistent high-performance seedlings to offset declines in productivity.

    The Country Representative USDA West Africa Pro-Cashew Project, Olorunfemi Toyin, noted that through various collaborations with the public and private sectors in the region, the PRO-Cashew project has had a significant impact on West African cashew-producing countries since its implementation in 2020.

    He noted: “The project, which is funded by the United State Department of Agriculture and implemented by Cultivating New Frontiers in Agriculture in Nigeria, Ghana, Cote d’Ivoire, Benin Republic, and Burkina Faso has catalysed additional investments in the cashew sector, improved cashew productivity; increased cashew exports, domestic processing and advocacy for policy reforms etc. These outcomes will in no small way contribute to strengthening and improving the competitiveness and sustainability of the West Africa cashew value chain.”

    The Executive Director, CICC, Andre Tandjekpon, has called on stakeholders to support efforts to improve regulations to make the industry stronger.

    He believes that there is a need for efforts aimed at improving seed quality, increasing production as well as significantly increasing the rate of processing in Africa.

  • ‘Tinubu will deliver on his mandate’

    ‘Tinubu will deliver on his mandate’

    Asiwaju Interest Group Nationwide (AIG) has appealed to Nigerians to support the administration of President Bola Tinubu.

    AIG, during a briefing at Tolani House, Oshodi, Lagos, said Tinubu would surpass expectations of Nigerians.

    Convener and National Coordinator, Kalejaiye Banjoko, expressed confidence in the political prowess and experience of Tinubu for a total transformation and renewed hope for the people in the next few years.

    Read Also : Tinubu’s presidency will usher in bumper prosperity – Onyejeocha

    The former chairman of Revenue Board in Oshodi-Isolo Local Government urged Nigerians to be steadfast in their obligation as patriots in ensuring all participates to develop Nigeria.

    “The citizens too must do the right things by protecting national assets, shun violence, and religious as  well as tribal bigotry should be a thing of the past,” he said.

  • ‘Chief of Protocol’s appointment shows Tinubu goes for the best’

    ‘Chief of Protocol’s appointment shows Tinubu goes for the best’

    The appointment of a career diplomat, Victor Adeleke, as State Chief of Protocol (SCOP) is an indication President Bola Tinubu will go for the best hands, a chieftain of All Progressives Congress (APC) in Ogun State, Adekunle Ayoola, said yesterday.

    Ayoola, international trade and security expert based in Poland, said the key Presidency role given to the seasoned diplomat points to the likelihood key positions will be manned by technocrats who will drive the renewed hope agenda.

    He noted Adeleke is an accomplished diplomat and lawyer with 30 years experience serving as ambassador to Ethiopia and permanent representative to African Union.

    Read Also : Alege greets Tinubu, Makinde after inauguration

    Ayoola hailed the patriotism and love for humanity of the Oyo State-born diplomat, adding Nigerians in the diaspora, especially in Poland, where Adeleke worked, would attest to his competence.

    “Adeleke is an asset. He is a man of proven integrity, always willing to lend a hand.

    “He is versatile in issues of governance; he had served well in higher capacities.

    “This cap truly fits him. I commend President Tinubu for always having his eye on the best.

    “I urge him to continue with this tradition and ensure only those who have value to make his cabinet,” he said.

  • Edo APC chieftain greets Nigerians

    Edo APC chieftain greets Nigerians

    A chieftain of the All Progressives Congress, APC, Edo state, Victor Eboigbe, has congratulated Nigerians on the smooth transition of power and swearing-in of Bola Ahmed Tinubu as president of Nigeria.

    He made the statement in Abuja on Monday shortly after the former Lagos state governor was sworn-in as President at the Eagles Square.

    “Let me congratulate Nigerians on the smooth transition of power from immediate past President, Muhammadu Buhari, to our new President, Bola Ahmed Tinubu. It is a great day for democracy,” he said.

    Eboigbe urged Nigerians to look with hope for a brighter future because President Tinubu has the capacity to deliver on the promises he made. He advised however, that Nigerians should support the new President to make the job easier.

    “It’s a new dawn for Nigeria. It’s a time for all Nigerians to look to the future with hope. President Tinubu made promises I am sure he will deliver.

    “I have no doubt about it because he has both the managerial and Administrative experiences to deliver on them. But we all need to support him to make the job easier,” Eboigbe counseled.

  • Food, beverage expo for June 13

    Food, beverage expo for June 13

    Food & Beverage West Africa (FABWA), Nigeria’s largest trade event/exhibition will hold on June 13 at Landmark Centre on Victoria Island, Lagos.

    Managing Director, Jamie Hill, said: “The opportunity to expand from two into four show halls at Landmark demonstrates the potential the F&B industry sees in Nigeria and beyond.

    “People are looking forward to doing business in Nigeria. We are excited many countries – more than 60 – are represented at the show.

    Countries expected are  Dubai, Indonesia, Russia, Pakistan, Sri Lanka, Egypt, Tunisia and India.

    Local businesses taking part include Emel Corporate Solutions, Macadams, BCE, Cosmos and more. The event would also showcase more than 12 of Nigeria’s food and drinks small and medium business enterprises in the biggest SME Zone so far.

  • Cleric uplifts listeners with song on ‘divine speed’

    Cleric uplifts listeners with song on ‘divine speed’

    Lead pastor of Redeemed Christian Church of God (RCCG), The Envoys, Daniel Olawande (PDaniel),   has released Owo Oluwa, A  powerful and spirit-inspired song.

      It is available for streaming and download on major platforms, spreading message of faith, divine speed, and blessings to listeners.

    Owo Oluwa is a testament to Olawande’s profound faith and his ability to convey spiritual truth through music.

    The song emphasises the belief that with the hand of God, individuals can experience a supernatural acceleration, enabling them to overcome obstacles and achieve success.

    The lyrics underscore the concept of divine assistance and divine speed. The music stands as a testament to a commitment to uplift souls and inspire believers to trust in the divine process.

    Read Also : RCCG gives 22 indigenes N1.7m worth of sewing machines

    With the release of Owo Oluwa, Pastor  Olawande has touched hearts and lives of listeners.

    The song is a reminder in times of struggle, divine intervention, and divine speed make the difference.

     PDaniel said he got the song via an encounter with God in 1 Kings 18 : 46, seeing how the hand of God came upon Elijah and carried him, enabling him to run faster than the chariots of Ahab.

    The song will strengthen your faith in God’s ability to do all things.”

  • Senate job: Foundation drums up support for Akpabio

    Senate job: Foundation drums up support for Akpabio

    United Kingdom based Ati Annang Foundation has shown support for Senator Godswill Akpabio for the position of Senate President.

    It described Akpabio “as a hybrid of democrat and believer that the nation and people are congruent,”.

    In statement, yesterday, by its President, Mary Enang and Assistant Secretary, Promise Unwene, the group hailed Akpabio for putting himself forward to lead the Senate.

     The statement reads: “He is pragmatic yet straightforward; a people’s person. Ati Annang UK is optimistic with Godswill Akpabio as president of the 10th Senate, the chambers will make enforceable legislation that will translate into policies to ensure sustainable economic and social growth that have eluded the country…

    “We salute Senator Akpabio as a politician par excellence, a visionary and an uncommon infrastructural and human capacity developer. A man of peace, evidenced by the smoother running of his election campaign. It is our desire and prayer that God will seal and settle this development.

    “We are confident that as Senate president, Akpabio has the intelligence, charisma and poise to lead his colleagues, to make laws that positively impact and provide the enabling environment for the government to deliver on its mandate.

    “The uncommon performances of Akpabio, from local government, state and Federal Government, his legal knowledge and experience  in the Red Chambers and Minority leader in Eighth Senate, all equipped him for the position of Senate president.

    “Senator Akpabio is a beacon of hope to bring about positive legislative changes to propel the younger generation into human resources hub for the benefit of the country.

    “We, in Ati Annang Foundation United Kingdom Chapter pledge our loyalty and support to this son of Annangland and grand patron of Ati Annang Foundation in his quest to serve Nigeria and make Annangland proud.”