Category: Industry

  • 3.67m Nigerians lose jobs in one year,  says NBS

    3.67m Nigerians lose jobs in one year, says NBS

    The harsh economic situation facing the country may have forced about 3.67 million Nigerians into the employment market between October 2015 and last September, the National Bureau of Statistics (NBS) has said.

    According to the Bureau’s analysis of the unemployment in the country, the number of unemployed Nigerians rose from 7.51 million in the beginning of October 2015 to 11.19 million at the end of last September.

    The report for the fourth quarter of last year, which is still being prepared by the NBS, is due for release on March 29.

    The report stated that while the number of those employed rose from 55.21 million in the beginning of the fourth quarter of 2015 to 69.47 million as of the end of last September, the labour force population rose from 75.94 million to 80.66 million.

    A breakdown of the 3.67 million unemployed Nigerians showed that about 522,000 people became jobless within the fourth quarter of 2015; while 1.44 million people joined the labour force in the first quarter of 2016.

    For the second and third quarters of 2016, further analysis of the report showed that about 1.16 million and 550,000 people entered the market.

    The report explained that unemployment rate was highest for persons in the labour force between 15-24 and 25-34.

    For instance, it said the unemployment rate was highest for those within the age group of 15 to 24, rising from 17.8 per cent in the beginning of the fourth quarter of 2015 to 25 per cent as of the end of last September.

    For the 25-34 age group, the unemployment rate, according to the report, increased from 10.8 per cent to 15 per cent as of the end of last September, adding that unemployment and underemployment were higher for women in the third quarter of last year.

    It said while 15.9 per cent of women in the labour force were unemployed as at the end of the third quarter of last year, a further 22.9 per cent of women in the labour force were underemployed during the period.

    On the other hand, the report said 12 per cent of males were unemployed in the third quarter of last year, while a further 16.7 per cent of males in the labour force were underemployed during the same period.

    “Given that the nature of rural jobs is largely menial and unskilled, such as in agriculture, unemployment is more of a concern in urban areas where more skilled labour is required.

    “The unemployment rate in the urban areas was 18.3 per cent compared to 11.8 per cent in the rural areas, as the preference is more for formal white-collar jobs, which are located mostly in urban centres,” the report said.

    On the unemployment rate in the country, Institute of Productivity and Business Innovation Management President, Mr. Remi Dairo, said the harsh operating environment might have been responsible for the development.

    He said: “The huge number of unemployment is a reflection of the economic realities as only few businesses are growing and employing while many others are shedding jobs.

    “The lack of productive skills in both the private and public sectors is one of the major reasons for the country’s underdevelopment and there is need for a comprehensive education policy that would help to address the skill gaps in the country.

    “To close the gaps in skills between the programmes of educational institutions and the requirements in the industry, the government needs to restructure the educational system to meet the present and future needs of the country.”

  • Curbing the menace of imported fake products

    Curbing the menace of imported fake products

    Unwholesome food and products get into the country with ease, provoking the question: what are agencies at the ports doing? It is believed that if the agencies are up and doing, such items would not pass through. Assistant Editor Okwy Iroegbu-Chikezie writes.

    Fake and substandard products keep streaming into the country despite the army of agencies at the ports. Such products include plastic rice from China, Indian gari, jollof rice, varieties of Nigerian local soups and substandard tyres from China. The substandard tyres estimated at over N5billion were found in a warehouse in Lagos. They have since been seized by the Standards Organisation of Nigeria (SON).

    These confiscated products are life- threatening. Observers are calling for the return of critical agencies hitherto removed from the ports in the heat of port reforms to go back to their duty posts to protect the lives of the citizenry.

    Following the outrage in the case of the Indian gari, the National Agency for Food Drug Administration Control (NAFDAC) raided the shop located on Cameron Road, Ikoyi, Lagos. The public wondered how it was allowed to enter the country. But NAFDAC came out strongly, stating that the product does not have their number.

    “The product has no NAFDAC number. It is said to come from Ghana but packaged in the United Kingdom. The management of the supermarket has been invited for further discussion in our Lagos office and investigation continues,” NAFDAC Acting Director-General, Mrs. Yetunde Oni, said in a message.

    Other agencies, such as the SON, have been calling on the government to allow them return to the ports, arguing that it is in the interest of the nation for them to return. They argued that as a result of their critical functions in preventing life-threatening imports, it might not be in the best interest of the nation to be asked to leave the ports with other not so critical agencies.

    In the height of Port Reforms of the previous administration, the government banned over 28 agencies, leaving only six to man the ports and ease the port clearance process. Affected in the shake-up, were SON, Directorate of Naval Intelligence, Nigerian Plant Quarantine Services, Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and other Related Offences Commission (ICPC), National Environmental Standards and Regulations Enforcement Agency and the Federal Environmental Protection Agency.

    In an interview with The Nation, SON Director of Monitoring & Compliance, Mr. Bede Obayi, an engineer, said they have a mandate to ensure that whatever is imported complies with the nation’s standards requirements, stressing that it will be a mistake if their services are dispensed with in the name of port reforms.

    He said: “We look out for accountability and also ensure that we stop false declaration by importers. We are asking for placement of priority in government policies that will ensure that quality and standards take their pride of place. Our mandate is not to ascertain if an importer has paid duties on his imports but to ensure that what he has imported does not impair the lives of the citizenry.”

    Obayi called for efficiency at the ports by canvassing for a window for all regulators at the ports. According to him, the greatest challenge for SON is that of contending with fake bill of lading from importers on daily basis. He recalled how a businessman imported substandard cables which can ignite fire at homes and offices and wrongly labelled them as agriculture equipment. He said it was only when they did a scientific test that they discovered how dangerous the products were.

    Few weeks ago, SON also intercepted 60 containers of fake tryes worth N5 billion imported by two Chinese nationals and their collaborators after they had passed the checks at the port. This grave lapse, observers said, was a consequence of not having the right agencies at the point of entry.

    During a tour led by the SON’s Director-General, Osita Aboloma, to Alakija, about two million imported tyres were seen in a warehouse beside the popular Navy Town in the area.

    According to Aboloma, the Chinese importers, who gave their names as Tanlong Shen and Xu Jing Yao, were bust through inter-agency collaboration and intelligence received from “well-meaning Nigerians” after they had been cleared from the port.

    “We acted on the intelligence we received from well-meaning Nigerians. This was achieved as a result of inter-agency collaboration.You can see volume of tyres brought in and you can imagine the implication for our society if these tyres are let into the market,” he said.

    The SON chief said the sub-standard tyres which were shipped  from China, were post-dated to make them appear road-worthy. He criticised the way the tyres were packaged, noting that it is only SON that knows the implication of the worthiness of the tyres and should have been at the point of entry to disallow it from entering the country in the first place.

    “The fact that up to five of them were being tucked into one, with operators using rods to separate them from one another when they reached Nigeria, the tyres will naturally become substandard. This is because in the course of separating them from the squeeze, the wires and geometrics of the tyres will be affected,” he said.

    He wielded the big stick, assuring though that they might not be at the ports. The arrested persons would be prosecuted under the new SON Act,” he added.

    At a seminar on Port Reforms organised by the Lagos Chamber of Commerce & Industry (LCCI), former NBA president, Dr. Olisa Agbakoba, and discussants criticised the large number of regulatory agencies at the ports, corruption, poor infrastructure and the government’s indecision on implementing robust policies that will drive the sector.

    He called for the harmonisation of all regulatory bodies at the ports, stressing the need for one window to remove bottlenecks in ports operations.

    LCCI Director of Research and Advocacy, Dr. Vincent Nwani, in his paper titled: “Nigeria: Reforming the maritime sector,” said estimates from the Chamber’s research show that trillions of Naira in revenue is lost yearly within the port and business community as a result of inefficiencies and inherent shortcomings of the nation’s maritime ports.

    According to him, unfriendly business environment, such as the situation we have in the ports, continue to undermine the capacity of investors to maximise abundant trade and democratic opportunities in Nigeria.

    He noted that 48-hour target set by the government is still far from being achieved.

    He said: “Speedy processing of import and export documents by relevant agencies are important elements of trade facilitation process. It is also a major variable in the 2016 World Bank ease of Doing Business ranking in which Nigeria ranked very low at 169 out of 185 countries profiled. This has made it very difficult to achieve any of the port reform objectives set by the past political administration.”

    He called for technology and innovative solutions, the establishments of national trade data centre, implementation of a single window platform including the passage of the pending bills at the National Assembly to stimulate the maritime sector.

  • SON gets two months mandate on SMEs certification

    SON gets two months mandate on SMEs certification

    The Federal Government has mandated the Standards Organisation of Nigeria (SON) to galvanise the standardisation of all Small Medium Enterprises (SMEs) in the country.  This will include the process of certifying locally-made products and ensuring they meet established standards and competitive quality for exports by removing hurdles on their resolve to get certification for their products.

    SON’s Director-General, Mr. Osita Aboloma stated this in Lagos at a management retreat with a theme “Repositioning the Standards Organisation of Nigeria for optimal performance in a diversified economy.”

    Aboloma confirmed the receipt of the mandate from the Acting President, Prof Yemi Osinbajo. He said Osinbajo directed that SON should through their mandate ease the hurdles for business. He said SON is poised to bring its competencies and expertise in the implementation of the Nigeria Industrial Revolution Plan (NIRP) with measures to drive the economy. He pledged to reposition SMEs to be in the front burner in efforts to ensure effective implementation of the NIRP.

    The SON chief further said they would reposition standardization and quality assurance activities with a view to creating the enabling environment for investments and production of goods and services in the country to improve the ease of doing business and encourage exports.

    The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah said the current economic downturn necessitates the development of various initiatives by various arms of government, which include the recovery and growth plan by the ministry to resuscitate collapsed industries.

    He said the ministry is also poised to boosting trade, attracting responsible foreign direct investments, to reinvigorate Micro Small Medium Enterprises (MSMEs) and enhance patronage for locally manufactured goods.

    He urged SON to reinvigorate her strategies in the fight against the influx and distribution of substandard products as part of measures to protect the local industries from unfair competition and reposition them for export trade to earn the most desired foreign exchange and check recession.

    Enelamah said: “The global collapse of commodity prices undoubtedly provides a golden opportunity for Nigeria to develop its endowed domestic capacity in terms of production and consumption. The implication of this is the increased demand for your organisation services nationwide. Your participation in the ongoing MSME clinic surely provides you the feel of Nigerians and the work that lies ahead in furtherance of the Ease of Doing Business Initiative.”

  • MAN, RMRDC, others to promote resource-based MSMEs,funding

    MAN, RMRDC, others to promote resource-based MSMEs,funding

    The Manufacturers Association of Nigeria (MAN) has put down adequate resources to ensure the success of its yearly Nigeria Manufacturing Expo.

    The event is targeted at Small Medium Enterprises (SMEs) by equipping them with information on new processes of boosting their output, reducing costs, improving product quality and manufacturing for new markets,  MAN President Dr. Frank Udemba Jacob has said.

    Jacob said the infusion of the Nigeria Raw Materials Expo (NIRAM) into the event would afford exhibitors and visitors an opportunity to see the entire manufacturing value chain, including machinery, equipment, financial services, professional consultancy and information on raw materials.

    He said the expo would be one of the best things for the manufacturing sector as there would be on display the latest models of manufacturing equipment, machine tools, technologies, spare parts and raw materials.

    The event is supported by over 3,000 manufacturing concerns in Nigeria and Clarion Events West Africa, the main conduit for the event.

    Raw Materials Research and Development Council (RMRDC) Director-General, Dr. Hussaini D. Ibrahim, who was represented by the Director, Investment Consultancy Services Department, Dr. Zainab Hammanga, at a forum to unveil the expo, said the event provides a unique platform for the resources and raw materials producers to showcase and network with the members of the Organised Private Sector (OPS).

    He said the expo would also serve to sustain local procurement of available raw materials in line with the mandate of the Council to promote the development and utilisation of Nigeria’s abundant natural resources as industrial inputs for manufacturing.

    He said: “The expo also promotes the diversification of the economy in line with the agenda of the Federal Government by encouraging the growth and development of resource-based micro, small and medium scale manufacturing industries involved in the agricultural and mineral sectors.”

    He said the theme “Attaining sustainable industrial development in Nigeria through efficient utilization of resource endowments’’ is apt for the economy as the expo is targeted at assisting in the sustenance of a resource-based economy.

    Clarion Events Managing Director, Mr. Dele Alimi said the uniqueness of the expo include conferences on access to finance and capacity building where the SMEs with challenge of financing would meet investors and development partners who will support them. He said the expo would enable women entrepreneurs to better understand their challenges, adding that they already have over 100 international and local exhibitors with over 5,000 registered visitors.

    Sterling Bank PLC, Head, SMEs, Mrs. Omolara Akintoye, said given where the economy is it is only fair to support MSMEs, agric start-ups and build capacity for women entrepreneurs.

    She pledged the preparedness of her bank to ensure that SMEs and start-ups have access to equipment by financing the process.

     

  • Operators advise Fed Govt on ease of doing business

    Some capital market operators last week expressed optimism that the Federal Government’s decision to formulate national action plans to remove bottlenecks would ease the process of doing business, if properly articulated and implemented.

    They said well-articulated action plans would positively turn around the nation’s fortunes and revitalise its economy.

    Mr. Sehinde Adenagbe, a stockbroker, said the pronouncement, if well-implemented, would boost investors’ confidence in Nigeria. It would also make the Small and Medium Enterprises (SMEs) competitive in their actions.

    Adenagbe said the government should ensure the establishment of collateral registries and credit bureaux for SMEs in its bid to improve ease of doing business in the country.

    He noted that the government should leverage on the gradual peace in the Niger Delta to boost oil output and revenue.

    Also, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Limited, said early approval of this year’s budget would provide a direction of businesses, adding that it would boost economic activities in the country.

    Omordion said the budget aids investment decision and was used by investors to ascertain any country’s economic direction.

    On the stock market performance, he said the market would witness upward and downward trends, due to cautious trading occasioned by mixed sentiments.

    Omordion said fund managers and market players would engage in profit-taking, following month end activities to balance their trading accounts.

    He noted that another factor that would affect trading would be the market expectations of the nation’s 2016 fourth quarter Gross Domestic Product (GDP) data, and Nestle Nigeria 2016 audited result.

    According to him, investors should combine technical and fundamental analyses for trading decisions to know the support and the resistance levels.

    It was reported that the turnover of 765.66 million shares worth N9.72 billion were traded by investors in 12,468 deals last week.

    This was in contrast with 1.07 billion shares valued at N8.61 exchanged in 14,486 deals in the previous week.

    The Financial Services Industry remained the most active when measured by volume, with 575.29 million shares valued at N3.47 billion, traded in 6,738 deals.

    It has thus contributed 75.14 per cent, and 35.71 per cent to the total equity turnover volume and value respectively.

    The consumer goods sector was followed with 53.812 million shares worth N3.47 billion in 2,572 deals.

    The third place was occupied by conglomerates industry, with a turnover of 48.96 million shares, valued at N229.41 million in 622 deals.

    The Nigerian Stock Exchange (NSE) All-Share Index and market capitalisation for the first time in February, recorded weekly growth appreciating by 0.34 per cent, respectively.

    The index grew by 85.46 points or 0.34 per cent, to close at 25,250.37 from 25,164.91, recorded in the corresponding week.

    Also, the market capitalisation, which opened for the week at N8.709 trillion, inched N30 billion or 0.34 per cent, to close at N8.739 trillion.

  • Firm canvasses technology strategy

    A marketing and communications company, Verdant Zeal, has reiterated the importance of Small Medium Enterprises (SMEs) as key players in not only Nigeria’s economic growth, but Africa’s.

    The firm said governments and other development partners needed to harness the power of technology to make a quantum leap in order to have a fair chance of development on continental scale. The company said it was casting a long range vision for the future by focusing on growing technology among African youths.

    Its Group Director, Synergy, Mr. Dipo Adesida, while briefing reporters in Lagos earlier in the week, disclosed that his firm planned to train youths on how e-commerce and mobile money would help grow the economy as part of the innovation series the firm was promoting.

    Adesida said the initiative was part of the desire to give back to the society as the company celebrates its 10th Anniversary. “We, as Verdant Zeal, will not only  galvanise the youth  and inspire them to think differently, but will ensure a robust engagement so that some of them would have opportunities to live out their dreams,” he assured.

    As part of the innovation series instituted to examine the question of Africa’s development  and hone opportunities for growth, he stated that the firm would also leverage on inherent strengths.

    To achieve this, a lecture/symposium is being organised by the firm, with the Managing Director of Guaranty Trust Bank, Mr. Segun Agbaje and Etisalat’s Chief Executive Officer (CEO) Mr. Matthew Willsher as discussants to encourage the youths.

    He said: “Africa is gradually moving from a resource based economy to knowledge-based, innovation-driven economy. This has helped in impacting our youths as more youths now are exposed to the internet and get to share ideas with both local and foreign friends.”

    The Group Director Marketing & Business Development and Chairperson, 10th Anniversary Planning Committee, Nkiruka Oguadinma, said there would be an art exhibition showcasing their operations in Africa. She said the exhibition would cover artefacts from nine African countries.

    On their expansion drive in Africa, Oguadinma said they were studying the business bend in other African countries.

    According to her, any income from the exhibition will be donated to the Society for the Blind and Sickle Cell society.

  • ‘Wheat production can inject $13.4b into the economy’

    The Federal Government has vowed to end the continuous importation of wheat to boost its local production and encourage farmers.

    The Minister of Agriculture and Rural Development, Audu Ogbeh, who spoke at a conference on Wheat held in Abuja, said the country currently produced high-quality wheat.

    The minister, represented by the Director of Agribusiness and Marketing, Dr. Muyiwa Azeez, said the Flour Milling Association of Nigeria, had submitted a written commitment to the ministry, stating that it would buy all the wheat produced by wheat farmers.

    Kebbi State Governor Abubakar Bagudu said certain agronomic practices, which initially reduced wheat yield per hectare, had been addressed by research institutes across the country. He listed some of the states that had improved their wheat production as Kebbi, Kano, Kaduna, Jigawa, Sokoto, Bauchi, Zamfara, Gombe, Niger and Plateau, among others.

    Bagudu noted that trade wars were major factors behind the inability of Nigeria and Africa to achieve sufficiency in wheat production. He called for proper research to enable policy makers make informed decisions on how to boost wheat production.

    “Last year, only five states recorded significant increase in wheat production, but as a result of mobilisation, about 11 states have improved inputs and increased yields. If we have no research that informs policy makers about the totality of support that is given in countries with whom we are competing and from whom we are importing, we are likely to continue penalising our wheat value chain. African wheat is competitive, but farmers need support,’’ he said.

    Chairman, House of Representatives Committee on Agriculture, Mohammed Monguno, assured farmers that the National Assembly would encourage policies that boost the production of wheat and other agricultural produce in the country.

    African Development Bank (AfDB) President, Dr Akinwunmi Adesina, said wheat production could inject $13.4 billion into the Nigerian economy. He was represented by the Director of Agriculture in the bank, Dr Chiji Ojukwu.

    The AfDB, through its agricultural programmes, he said, was planning to increase the production of wheat from 2.5 tonnes to 7.0 tonnes per hectare.

    He noted that the Support to Agriculture Research for Development of Strategic Crops in Africa (SARD-SC) project, a four-year programme, was funded by the AfDB with $63 million.

    SARD-SC, Africa Wheat Project Co-ordinator, Dr Solomon Assefa, said the project was aimed at promoting food security and nutrition in Africa, enhancing the economic growth of 12 African countries, while contributing to their poverty reduction.

    According to him, wheat consumption in Africa has increased significantly with the cost of importation rising close to $15 billion.

    Assefa, however, said some of the challenges facing wheat production included environmental conditions, technology, policies and marketing.

    He said Nigeria had increased its wheat production from 70,000 tonnes in 2012 to 400,000 tonnes last year.

    However, Wheat Farmers Association of Nigeria President, Mr Salim Mohammed, regretted that farmers had no access to improved seeds and modern farming equipment to boost production.

    He, therefore, called on government at all levels to provide farm inputs that would encourage local production of wheat in the country.

  • ‘Govt reforms to strengthen institutions, business, says Saraki

    ‘Govt reforms to strengthen institutions, business, says Saraki

    The Federal Government is to address concerns over investments inflow and ease of doing business through its new reforms that will see the emergence of strong institutions to implement its agenda, the Senate President, Bukola Saraki has said.

    At a forum in Lagos, he expressed concern about the country’s low ranking on the ease of doing business, saying the government has set up a technical committee to  review institutional, regulatory and associated instruments affecting businesses.

    Represented by the Chairman, Senate Committee on Industry, Sam Egwu, Saraki added that there were many reform bills being worked on to jump-start the economy and strengthen institutions. He said one of the bills has the potential to cut poverty and reduce unemployment by creating a friendly environment for investors and small and medium enterprises (SMEs).

    “The bill is the Public Procurement Act Amendment Bill, which has already been passed by the Senate.

    ‘’Other bills aimed at improving our transport networks and maintenance culture includes the Private Sector Infrastructure Replacement and Protection Bill,” he added.

    He noted that the nation would require a collective approach to solve its insecurity  challenges, saying that the Federal Government, civil society groups, business and organisations shoulc fight insecurity to create an enabling environment where businesses will thrive  to ensure sustainable economic development.

     

  • ‘How biofuel can be major forex earner’

    A biochemist and expert in biofuel technology, Chief Obiora Ogonsiegbe, has canvassed the need to embrace biofuel  to position it as a veritable foreign exchange earner.

    Ogonsiegbe said it was imperative to embrace biofuel because Nigeria could run out of fossil fuels.  He said biofuels are made from plants that could be replanted.

    Biogel, a product of biofuel, according to him, when used for domestic cooking is clean, safe and burns better than kerosene, firewood and charcoal, which are harmful to the body.

    In an interview in Lagos, he advised the government and development banks to support small and medium enterprises (SMEs) engaged in biofuel by supporting them with adequate funds for machinery and materials.

    He said diversification could help Nigeria to come out of the recession.

    Ogonsiegbe noted that biofuel has other advantages, including emission of less pollution, which reduces  respiratory ailments and cancer.

    He said: “Firewood has been dubbed “the killer in the kitchen” as it has been estimated that cooking indoors with firewood and charcoal is equivalent to each child in the household smoking two packs of cigarettes a day.”

    He said less reliance on firewood and charcoal reduces the drudgery of looking for firewood and slows deforestation and erosion, global warming and climate change, which is fast creeping into the country.

    On the economic benefits of biofuel, Ogonsiegbe said if the government or a development bank would partner him, the biofuel project had enormous multiplier effects. “It will produce a lot of the much-needed food and use the associated wastes to produce biofuel with its attendant benefits to the economy. These include job creation, increased food production, increase in rural incomes and a massive contribution to the global efforts to slow the emission of greenhouse gases. It will also reduce Nigeria reliance on imported petroleum products.”

    Statistics by Nebraska Ethanol Board, he said, shows that biofuels reduce green house gases emission by about 60 per cent compared to fossil fuels.

    Nigeria, the world’s largest producer of cassava, he said, could produce all the starch and ethanol she needs for domestic consumption and export, that but unfortunately she doesn’t. Rather she imports them.

    He advised that the country’s huge cash spent on food import  could have been deployed to meeting its enormous developmental needs.

    He said he was canvassing biofuel  to produce biogel from it for domestic cooking because the price of gas and kerosene has been astronomical in recent times and beyond the reach of the average Nigerian.

    On the raw material for biofuel, he said, it is cassava, which will be grown on a captive farm annexed to the project.  He said the Federal Government’s policy on agriculture would not be complete if the processing side is not linked to having a by-product that would be useful for other sectors.

    He advised the government to resist the mistake it made in the oil and gas sector, where the country has no viable petrochemical industry to serve related industries.

    The expert added that cassava by-products are  useful. He said: “All the cassava produced on the captive farm will be used solely for garri production in a near-by garri factory attached to the proposed project. Only the wastes, such as peels, particles of cassava that escaped milling and the starch that sediment in the water when the milled cassava is pressed, that will be used in the production of the ethanol gel.

    According to him in 2009, Nigeria spent N291 billion on fuel subsidy alone. By 2011, it had shot up to N2.7 trillion. He promised the project would be scaled up steadily, if a development partner took interest.

    He said the project is located in three disciplines, namely, biological sciences, engineering and general management, adding that the promoter should be well-grounded in these areas to ensure a successful execution.

  • Fed Govt, governors, firm meet over $4.5b Chinese agric loan

    The Federal Government has met with some governors and a Chinese company, YTO China-Africa Machinery Corporation (CAMACO), to fine-tune the implementation of the $4.5 billion agriculture infrastructure loan agreement with the Peoples Republic of China.

    The Chinese government had, during President Muhammadu Buhari’s visit to China last year, promised to support agriculture in Nigeria with machinery, including tractors and irrigation infrastructure.

    Nigeria Governors’ Forum Chairman Alhaji Abdulaziz Yari of Zamfara State, Alhaji Badaru Abubakar (Jigawa) and Chief David Umahi (Ebonyi) and representative of Governor Abiola Ajimobi of Oyo State attended the meeting.

    The governors harped on the quality of the equipment, adaptability to weather and technical maintenance, among others.

    Umahi warned against low quality equipment and asked for detailed specification of what would be supplied to avoid bringing in machinery that may not be suitable for Nigeria’s hot weather.

    Minister of Agriculture and Rural Development Chief Audu Ogbeh said the government would not accept any low quality equipment, urging the Chinese firm to work out how it would assemble in Nigeria and, eventually, manufacture some of components locally.

    Ogbeh  noted that the government would not take loans without designing the means of repayment.

    “We are negotiating the interest rate, telling them to produce here when our steel mill comes on stream. We are harping on specification. We are also discussing how to pay back the loan, through export of agriculture produce,” Ogbeh said.

    The governors agreed to meet with the technical committee to identify agriculture produce in the states that could be exported to China.