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  • How kidnappers exploit financial system’s loopholes

    How kidnappers exploit financial system’s loopholes

    Many financial institutions have derailed from their primary responsibilities, breached regulatory guidelines and are engaging in anti-economy activities like aiding kidnapping, allowing their platforms to be used for ransom payment, insider abuses and complicit in e-fraud and cybercrimes. ASSISTANT EDITOR, COLLINS NWEZE, reports.

    The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, tipped banks as critical elements in the government’s plan to achieve $1 trillion economy in the next seven years.

    With banks’ N74 trillion gross assets and N36 trillion loans to key segments of the economy, the CBN chief was right on the economic powers inherent in the banking system.

    Unfortunately, the abuse of such powers also comes with negative consequences on national security, businesses and economy.

    Recent happenings and investigations have shown that many banks are complicit in the worsening security situation in the country.

    Investigations showed that many financials have derailed from their primary responsibilities, breached regulatory guidelines and are engaging in anti-economy activities like aiding kidnapping, allowing their platforms to be used for ransom payment, insider abuses and complicit in e-fraud and cybercrimes.

    A report by SB Morgen Intelligence, an Africa-focused geopolitical research, said ransom payments have become the dominant motivation for kidnapping due to Nigeria’s struggling economy, rising inflation and high unemployment rates.

    Between July 2022 and June last year, 3,620 people were abducted in 582 kidnap-related incidents in the country, with a reported ransom demand of at least N5 billion and actual ransom payments of N302 million, a large part of funds were paid to the criminals through the financial system. However, this figure could be higher due to underreporting.

    Illicit accounts

    A former Representative at Interpol in Nigeria and CEO Sheiks and Bishops Limited, Sir Chikwe Udensi, who confirmed the development, said Nigeria loses N350 billion yearly through frauds, cybercrimes and other vices like ransom payment.

    He said there are 133 million bank account holders in the country, out of which five million are fake.

    He said: “Banks are using stolen Identity Cards (IDs) of dead people to open accounts. The active accounts opened with fake IDs are what kidnappers are using to receive ransom  payments  and such funds are hardly traced.

    “Ransoms are paid into accounts of customers of banks and such funds cannot be traced because they were opened with fake or stolen identity cards.”

    President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said some banks’alleged role in money laundering, kidnapping, terrorism financing, illicit drugs transactions are fuelled by their zeal for profit optimisation and competition for market share.

    He said illicit financial inflows through financial institutions is the handiwork of compromised professional enablers.

    He said: “Banks and designated non-financial institutions are categorised as professional enablers in money laundering, terrorism financing and financing of weapons because of their roles in creating these evils within the society.”

    Gwadabe said banks’ thirst for huge deposits from clients have created gaps in undertaking a fit and proffer checks, Know Your Customer (KYC)  and Due Diligence in account opening and customer service delivery.

    He said the increased deployment and use of technology in financial services delivery have made them vulnerable to the skillful high-tech cyber criminals.

    Cases in point

    Friends of former federal lawmaker, Tokunbo Afikuyomi, on January 13, this year, lost millions of naira to fraudsters who hacked his WhatsApp number.

    Having succeeded in taking control of the use of the app, the e-fraudsters, according to Senator Afikuyomi, sent messages to his contacts, soliciting financial help on his behalf.

    Millions of naira was transferred to the account numbers provided by the cybercriminals. When contacted, the bank involved simply said, the transactions were not traceable.

    Last month, a former Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, announced that his friend raised N50 million out of the N60 million demanded by kidnappers of the Alhaji Mansoor Al-Kadriyar daughters. One of the victims, Nabeeha Al-Kadriyar, a 400-level student of Biological Science, Ahmadu Bello University (ABU), Zaria, was killed by the bandits before the ransom was paid.

    Another account said over N13.6 billion was paid to non-state actors as ransom between June 2011 and July 11, 2022.

    He said said every member-nation of Interpol has access to 19 databases used to fight international crimes.

     “Kidnapping is a major challenge in Nigeria. Technology is so advanced that even when the mobile phone is switched off, signals can still be detected. This can help in tackling the menace,” he said.

    Udensi explained such things happen because of insider abuses and neglect on the part of the financial institutions.

    For instance, at least 110 top bank executives and junior staff members have been sacked for fraud- “Reports of Fraud and Forgeries in Nigerian Banks’’ released by the Financial Institutions Training Centre (FITC) between the second quarter of 2021 and that of last year.

    The report said of the N81.69 billion involved in fraud cases,  N18.01 billion was lost due to insider-related fraud.

    Also, the Nigeria Deposit Insurance Corporation (NDIC) report showed that bank customers lost N472 million to Point of Sale (PoS) and mobile fraud in the first quarter of last year. At present, PoS transactions have remained largely untraceable, hence the regularity at which e-fraudsters use the platform to access illicit funds.

    Analysts said there are N1.2 trillion monthly transaction volumes in over 2.5 million PoS terminals deployed nationwide by banks, Fintechs and other financial institutions. This makes it cumbersome for regulators to monitor the platforms inflow and outflow transactions.

    In a state-by-state analysis, kidnappers in Edo are more likely to demand higher ransoms than in other states, but they get little in return, garnering only N5 million compared with the N650 million demanded.

    In contrast, Taraba appears to have paid the most ransom, but the devil is in the details. Of the N130 million kidnappers in the state demanded, just N60 million was paid.

    That showed that kidnappers appear more likely to get better ransoms in the Northcentral than in other regions. Nasarawa is largely responsible for this. In the past year, kidnappers narrowed their targets to high-value individuals such as retired government officials and families of politically exposed persons because it is easier to extract maximum ransom with minimal fuss.

    On the other hand, ransom payments in the Southsouth, at N20 million – the lowest of the six geopolitical zones – may either have to do with better police rescue operations or kidnap victims keeping a tight lip. Bayelsa, for instance, does not have any report of ransom demands or payments in the period under review.

    In its concluding comments, SBM Morgen Intelligence advised: “Efforts to combat kidnapping must be comprehensive, addressing the root causes and consequences alike. Strengthening law enforcement, improving socio-economic conditions, and fostering education are essential to eradicating the economic incentives for kidnappers.

     “International cooperation, intelligence-sharing, and stringent legal frameworks can also help to curb cross-border kidnapping networks. Kidnapping is a serious crime that has a significant economic impact. The cost of ransom payments, lost wages, and security measures to prevent kidnapping can be staggering. In addition, the psychological and emotional toll on victims and their families can be devastating.

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     “The economics of kidnapping are complex, and there is no easy solution to this problem. However, governments, organisations, and communities can work collaboratively to develop holistic solutions and effective strategies to prevent and combat this crime by understanding its economic costs.”

    Banks’ failed responsibilities

    The Financial Action Task Force (FATF) is an independent inter-governmental body created to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction.

    Nigeria is a signatory of the FATF recommendations, and directive that banks should be prohibited from keeping anonymous accounts or accounts in obviously fictitious names.

    Investigations showed that although CBN policies mandated financial institutions to undertake customer due diligence (CDD) measures when establishing business relations; carrying out occasional transactions, many of the banks are not complying with the directive.

    Part of the FATF recommendations is that banks should identify the customer and verify customer’s identity using reliable, independent source documents, data or information.

    The lenders are also expected to identify the beneficial owner, and taking reasonable measures to verify the identity of the beneficial owner, such that the financial institution is satisfied that it knows who the beneficial owner is.

    Financial institutions are also required by law, to understand the ownership and control structure of the customer, obtain information on the purpose and intended nature of the business relationship and conduct ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship.

    That would ensure that the transactions being conducted are consistent with the institution’s knowledge of the customer, their business and risk profile, including, where necessary, the source of funds.

     “Where the financial institution is unable to comply with the applicable requirements, it should be required not to open the account, commence business relations or perform the transaction; or should be required to terminate the business relationship; and should consider making a suspicious transactions report in relation to the customer,” the FATF stipulated.

    These requirements should apply to new customers, although financial institutions should also apply this recommendation to existing customers on the basis of materiality and risk, and should conduct due diligence on such existing relationships at appropriate times.

    Financial institutions should be required to maintain, for at least five years, necessary records on transactions, domestic and international, to enable them to comply swiftly with information requests from the competent authorities. Such records must be sufficient to permit reconstruction of individual transactions (including the amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of criminal activity.

    Financial institutions should be required to take reasonable measures to determine whether a customer or beneficial owner is a domestic Politically Exposed Person or a person who is or has been entrusted with a prominent function by an international organisation.

     “If a financial institution suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, it should be required, by law, to report promptly its suspicions to the financial intelligence unit (FIU).”

    Countries should ensure that competent authorities have responsibility for expeditiously identifying, tracing and initiating actions to freeze and seize criminal property and property of corresponding value.

    Views from experts

    Former Executive Director, Keystone Bank Limited, Richard Obire, explained that financial institutions in Nigeria are required to report in writing, any transaction, lodgment or transfer of funds in excess of N5 million and N10 million or their equivalent made by an individual and body corporate to the Nigerian Financial Intelligence Unit (NFIU).

    The move is backed by Section 10 (1) of the Money Laundering Prohibition Act.

    He said information provided in suspicious transactions reports/suspicious activity reports is to assist the NFIU in identifying emerging trends and patterns associated with financial crimes, money laundering and other illegal activities thereby providing vital intelligence to law enforcement agencies.

    He said: “Banks are to report suspicious financial transactions and activities to the NFIU, which is to distill intelligence from the data and pass same on to the law enforcement. The law enforcement agents are to  proactively use the data to prevent crimes such as kidnappings for ransoms, terrorist activities, e-frauds, etc.”

    Obire explained that if the three parties are playing their roles well, we should see less of illicit financial flows and the crimes they drive.

     “Oversight authorities and regulators needed to see to it that the three parties are conducting their roles well. Where there are resource gaps, those gaps are filled adequately and expeditiously,” he advised.

    Also, the President, Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, said tracing kidnapping for ransom payment is always difficult for banks, unless during contact with the lenders, it was discovered that the funds were unusual transactions.

     “I advise the regulatory bodies to beam their searchlight on Point of Sale transactions, and make transactions that pass through the payment platform traceable,” he advised.

    Ogubunka said the apex bank can also fight financial crimes with policy as seen in the cash withdrawal restriction policy, which makes it difficult for customers to have access to N1 million.

    He advised that the KYC principles should be followed by banks and erring operators sanctioned.

     “I believe that the managers of the economy should call a meeting to dissect the issue involved and find a lasting solution. People from different segments of the economy should be involved in the summit- security chiefs, tech experts, banks, telcos, among others, should be part of the discourse to find a way out of the quagmire because stakeholders’ inputs will be helpful,” he said.

    Besides, the Nigeria Country Representative, European Organisation for Sustainable Development, Jide Akintunde, said it was unfortunate to think that banks were involved in ransom payment because of the ransom funds, somehow, get into the financial institutions.

     “It is true that the financial system is not clean enough, but I do not think it is the job of the banks to apprehend kidnappers. I also do not think the banks should be made a scape goat for the collapse of security in the country,” he said.

    He said the government also has to start cleaning its tracks, because stolen funds also pass through the financial system, and no bank managing director has ever  been arrested.

    He called for the implementation of the FATF principles to the letter and ensure that the banks are not victimised.

    Akintunde said since a large part of illicit funds are paid in cash, the security intelligence should be able to gather the intelligence.

    Akintunde, however, advised the CBN to tighten its rules to ensure that banks sit up.

     “When banks are not sanctioned, it becomes difficult for them to sit up. The CBN must have its surveillance system tightened and defaulting banks penalised for them to sit up,” he said.

    Cyber-security experts and stakeholders in the financial service sector have, therefore, called for the integration of multiple identity system into a unified system to easily detect and track perpetrators of cybercrime.

    At the Information Security Society of Africa – Nigeria (ISSAN) Cybersecurity Roundtable with the theme: “Re-Thinking Corporate Governance Rules on Money Transfers” in Lagos, its President, David Isiavwe, stated the need for operators, law enforcement agencies and financial sector regulators to ensure they are steps ahead of cybercriminals.

    Isiavwe, who is also the Chief Compliance Officer of Ecobank Nigeria, noted that fintechs have a critical role to play in the future of financial services, noting that the more they innovate, the more they need to automate the attendant controls and ensure that they are strictly monitored.

    The stakeholders  also agreed that there was also the urgent need to create effective blacklists of criminals in the financial sector so that when they commit any infraction, they would be blacklisted.

    CBN Director, Payment System Management, Musa Jimoh, stressed that it is the responsibility of stakeholders to ensure a robust payment ecosystem and a sound regulatory regime as the apex bank cannot do it alone. He emphasised that banks and fintechs should put adequate measures in place to protect their customers, stressing that it was the only way to embrace and trust the payment system.

    “The banks should know the identity of the entity that is conducting transactions. Banks should invest and strengthen their KYC.They should monitor transactions and put adequate measures in place to trigger suspicious transactions.They should continue to educate their customers and create more awareness. It is the obligation of the banks to protect customers who are vulnerable. Banks and Fintech’s should exhibit good market conduct to earn the trust of their customers.” he said.

    On the way out, Gwadabe advised banks to operate within their conventional banking business and built their competencies.

    He called for enhanced corporate governance with specific delineation between, ownership, regulations and operations.

    Additionally, he advocated for more training of staff to put them ahead of the dynamics of money laundering, fraud, kidnapping and illicit drugs deals.

    “I further advised banks to be  compassionate, interrogate their consciousness in carrying out day to day operations.

    There should be increased security surveillance from the Government including adoption of technologies like Geo mapping to trace and track criminal online real time as being practiced in Mexico where they reduced kidnaping to the barest minimum or completely eliminated,” Gwadabe said.

     “Also the use of religious and traditional institutions for sensitisation and rebuilding of minds. There is also the need to radically overhaul our educational curriculum from primary level to higher institutions to treasure  our local contents rather than relying heavily on externalised values,” he stated.

    Conclusively, the FATF advises Nigeria to ensure that designated law enforcement authorities- NFIU, the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices Commission (ICPC) have responsibility for money laundering and terrorist financing investigations within the framework of national AML/CFT policies.

    At least in all cases related to major proceeds-generating offences, these designated law enforcement authorities should develop a pro-active parallel financial investigation when pursuing money laundering, predicate offences and terrorist financing.

    This, it said, should include cases where the associated predicate offence occurs outside their jurisdictions.

     “Nigeria should ensure that competent authorities have responsibility for expeditiously identifying, tracing and initiating actions to freeze and seize criminal property and property of corresponding value,” the FATF said.

  • FIRS’ ambitious plan for 77% IGR increase

    FIRS’ ambitious plan for 77% IGR increase

    • Besides reshaping Nigeria’s fiscal destiny, an audacious 77% IGR surge in IGR will help the nation to break free from dependency on external borrowing and transform the economy

    In a landmark move that promises to reshape Nigeria’s fiscal landscape, the Federal Government has set its sights on a staggering 77 per cent increase in Internally Generated Revenue (IGR). This translates to over N22.3 trillion, a figure that dwarfs the current annual target and represents a bold gamble on transforming the nation’s financial future.

    But beyond the sheer audacity of the target lies a carefully crafted plan, hinged on a customer-centric organisational restructure, technological innovation and a renewed focus on taxpayer experience. At the heart of this ambitious endeavor lies the Federal Inland Revenue Service (FIRS), an agency undergoing a metamorphosis fueled by a vision of revolutionising tax administration in Nigeria. Gone are the days of cumbersome processes and disconnected departments. The new FIRS promises an integrated tax approach, leveraging cutting-edge technology at every step. This paradigm shift signifies a move away from mere adaptation to change, and towards spearheading it, positioning Nigeria as a leader in contemporary tax administration.

    The Executive Chairman of the FIRS, Dr. Zacch Adedeji, believes that “the cornerstone of this transformation is a customer-centric organisational structure.” This means taxpayers are no longer faceless entities navigating a labyrinthine bureaucracy. Ins tead, they are segmented based on their specific needs and thresholds, ensuring they receive customised services and streamlined interactions. Gone are the days of wading through a maze of departments for different tax categories. This simplified and tailored approach promises to not only ease the burden on taxpayers but also significantly enhance compliance. Technology sits at the forefront of this revolution. Digital platforms will be constantly refined, aiming to make filing, payment, reporting and communication seamless. A robust grievance redress mechanism will ensure the concerns of taxpayers are heard and addressed swiftly. Investments in staff capacity building will equip FIRS personnel with the skills needed to navigate the complexities of this new era.

    But ambition alone cannot fuel such a monumental journey. Expanding the tax net is crucial to achieving the audacious target. This will involve data-driven sector analysis, leveraging automation to identify non-compliant individuals and businesses, and bringing them into the fold. Withholding taxes will be used more effectively, and targeted educational programmes will raise awareness about tax obligations across different segments of the population.

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    Of course, no tax regime can thrive without robust compliance measures. The proposed plan encompasses a comprehensive compliance improvement strategy for all taxpayer segments. Data-driven risk-based audit selection will prioritise high-risk cases, and closing out audits within defined timelines will ensure efficiency and transparency. Enforcement activities will be strengthened, and collaboration with strategic stakeholders will be crucial in tackling tax evasion and avoidance. This bold vision, however, is not without its  challenges. Implementing such a comprehensive restructuring is a complex endeavour, and navigating potential resistance to change, both within the FIRS and among taxpayers, will require deft communication and unwavering commitment. Ensuring transparency and accountability throughout the process will be essential to maintain public trust.

    Despite the hurdles, the potential rewards are immense. Achieving the 77 per cent IGR target would provide the government with the resources to tackle critical infrastructure deficits, bolster social safety nets, and invest in human capital development. This, in turn, would fuel economic growth, attract foreign investment, and create jobs, paving the way for a more prosperous and equitable Nigeria. The success of this endeavour hinges on collective effort. Taxpayers must embrace the new system, fulfilling their obligations effectively and honestly. The FIRS must execute the plan with meticulous attention to detail, ensuring efficiency, transparency, and taxpayer-centricity. The government must provide unwavering support and create an enabling environment for this transformation to flourish.

    Nigeria’s 77 per cent IGR target is not merely a fiscal aspiration; it is a national mission. It is a bold declaration of intent to break free from the shackles of dependence on external borrowing and chart a course towards fiscal autonomy and sustained economic development. The road ahead will be arduous, but the potential rewards are worth the effort. This is not just an ambitious plan; it is a clarion call for collective action, a chance to write a new chapter in Nigeria’s economic history, and finally unlock the nation’s immense potential. The success of this audacious leap will not only reshape the fiscal landscape but also redefine the very fabric of the Nigerian dream.

    Strategies for achieving the N19.4 trillion FIRS target

    Amina Ado, Coordinating Director, Special Tax Operations Group painted a vivid picture of the strategies the FIRS will deploy in order to achieve the set target. Fueling this transformation is a multi-pronged strategy designed to not only meet the N19.4 trillion target for 2024 but also lay the groundwork for sustainable IGR growth in the years to come. Recognising the immense potential within key economic segments, the FIRS prioritises building stronger relationships and providing customised services to large taxpayers and sector contributors. Proactive engagement strategies will foster regular communication, ensuring these critical players feel heard and understood. Tailored services will address their unique needs and challenges, streamlining processes and maximizing revenue collection.

    Additionally, the FIRS will enhance its understanding of key sectors and their value chains, allowing for more informed policy decisions and targeted interventions. The days of taxpayers navigating bureaucratic mazes are behind us. The new FIRS is committed to creating a seamle ss and user-friendly experience. Digital platforms will be constantly refined, making filing, payment, reporting, and communication effortless. A robust grievance redress mechanism will ensure taxpayer concerns are swiftly addressed, building trust and confidence in the system. Investing in staff capacity building will equip FIRS personnel with the skills and knowledge needed to provide efficient and professional service. Regular taxpayer satisfaction surveys will identify areas for improvement, further solidifying the FIRS’ commitment to customer-centricity.

    Broadening the tax base is crucial to achieving the ambitious target. Data-driven sector analysis will identify potential non-compliant taxpayers, while technology solutions and automation will streamline the process of bringing them into the fold. Exp anding the use of withholding taxes will tap into previously underutilized revenue streams. Targeted taxpayer education programmes, delivered through various channels, will raise awareness about tax obligations and encourage voluntary compliance across different segments of the population. The FIRS will continue to develop and circulate publications tailored to the specific needs of various taxpayer segments, ensuring everyone has access to clear and accessible information.

    According to Amina Ado, a robust compliance system is the backbone of any successful tax regime. The FIRS, she said, will develop and implement a comprehensive compliance improvement plan for all taxpayer segments, leaving no stone unturned. A data-driven risk-based audit selection system will prioritise high-risk cases, ensuring resources are targeted where they are most needed. Closing out audit cases within defined timelines will boost efficiency and transparency, while improved enforcement activities in line with relevant laws will deter tax evasion and hold non-compliant individuals and businesses accountable. Finally, the FIRS will actively collaborate with strategic stakeholders, including other government agencies, financial institutions, and professional bodies, to create a robust network that strengthens compliance efforts and fosters a culture of tax responsibility.

    Nigeria’s quest for a robust IGR system hasn’t been a linear journey. For decades, reliance on oil revenue dominated, creating a vulnerability exposed by fluctuating global prices and limited diversification. Understanding the historical context of IGR challenges and previous reform attempts is crucial to appreciating the significance of the current 77 per cent target.

    The colonia l era taxation focused on indirect taxes, with limited em     phasis on income and corporate taxes. However, post-independence (1960s-1970s) oil boom propelled national income, leading to reduced focus on IGR. Reliance on oil revenue exceeded 70 per cent of the total budget. The economic crisis of the 1980 oil price slump exposed the dangers of overdependence on oil. IGR efforts intensified, with the introduction of Value Added Tax (VAT) in 1986 and various tax reforms. Between the 1990s-2000s, fluctuating oil prices and economic volatility highlighted the need for further IGR diversification. Reforms included the establishment of the FIRS in 2007 and the launch of the Integrated Tax Platform (ITP) in 2011.

    The 1975 Udoji Commission recommended tax reforms, including increased reliance on direct taxes and improved tax administration. Implementation faced various challenges. The 1999 NEEDS Assessment identified the need for IGR diversification and emphasised tax reforms. Subsequent policies aimed at broadening the tax base and strengthening tax administration. The 2004 Tax Harmonisation Act aimed to streamline and simplify tax laws across different states. Implementation inconsistencies hampered effectiveness while the 2007 Establishment of FIRS centralised tax administration and aimed to improve efficiency and transparency. Early successes have been mixed, with challenges in enforcement and informal sector integration.

    Challenges and persisting gaps

    A significant portion of the economy operates informally, escaping the tax net. In addition, w eak enforcement, corruption and bureaucratic hurdles have been known to impede IGR collection. Cultural attitudes, distrust in government, and complex tax systems also contributed to low compliance rates. Reliance on a few major contributors made the system vulnerable to fluctuations in specific sectors.

    Despite these challenges, the current 77 per cent IGR target  represents a bold step forward. The customer-centric focus, technological innovations, and comprehensive strategies laid out offer a fresh approach to overcoming entrenched obstacles. Dr. Wahab Balogun of Ambosit Capital Managers said “The sheer ambition of the target sends a strong message about the government’s commitment to fiscal independence. The customer-centric approach and focus on technology are positive steps that could significantly improve tax collection efficiency and taxpayer experience. Leveraging technology and data analytics is crucial for modern tax administration. The proposed strategies for expanding the tax net and enhancing compliance, if implemented effectively, could unlock significant revenue potential” he said.

    He added that “the proposed shift away from traditional tax categorisation is a progressive move. Tailoring services to specific taxpayer segments can simplify the process and potentially boost compliance, especially among small and medium businesses.” On a more cautious note, Dr. Balogun noted that “achieving the 77 per cent target will be a herculean task. Implementing such a comprehensive restructuring needs meticulous planning, effective communication, and strong political will. Addressing potential resistance from vested interests within the FIRS and among certain taxpayer segments will be crucial.”

    Mr Gbolade Idakolo, Managing Director/CEO SD&D Capital Management Limited said “the federal government is embarking on a drive to make Nigeria a $1 trillion economy with various policies and measures aimed at expanding the economy.  There has been positive developments in the oil and gas sector both upstream and downstream with Nigeria now witnessing more crude oil sales, the oil refineries are also coming on stream and major efforts are been made to curb corruption affecting tax revenues to government. The setting up of the presidential committee on tax reforms is a testament to the determination of the government to set the sector straight.

    “The focus of this administration is to reduce borrowing and increase revenue to fund its activities and the FIRS being a major driver of government revenues is condemned to perform. The N19.4 trillion target set by the FIRS for this year is achievable if all bureaucratic bottlenecks are removed and the corruption surrounding tax collection is nipped in the bud. The Nigerian economy has the capacity to generate the projected revenue and more if deliberate policies to expand the economy are properly implemented”.

    Overall, experts acknowledge the potential benefits of the 77 percent IGR target and the proposed plan, but also emphasise the significant challenges and risks involved. Success will hinge on meticulous implementation, stakeholder engagement, and unwavering commitment to transparency and accountability.         

  • Petrol under dispensing: A regulatory failure?

    Petrol under dispensing: A regulatory failure?

    Deploying simple tactics of distraction, including illegal adjustments of meters, among others, filling stations across the country have continued to shortchange motorists at the fuel pumps. And as consumers complain, these operators smile to the bank, albeit, from illegal earnings. Sadly, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) appears to have turned a blind eye to this, allowing the extortion to flourish, MUYIWA LUCAS, JOHN OFIEKHUENA and MIKE ODIEGWU report.

    It is an age-long act – an act of shortchanging motorists at the fuel pumps. Petrol attendants, relying on old tactics and, in some cases, in connivance with their station managers, have made victims of motorists who buy fuel from their stations. This has introduced an unsavoury twist to the prevailing high cost of petrol in the country.

    To the inexperienced, the unsolicited friendly jokes and pleasantries put up by most filling station attendants depicts courtesy, but for the initiated, such pleasantries are nothing but  tactics meant to divert the customer’s attention from the fuel dispensing meter, aimed at dispensing less fuel than the unsuspecting customer would pay for.This, in addition to outright adjustment of the meter to dispense less fuel than is displayed on it, is a practice that has been going on for long. 

    Although many may have overlooked this incident in the past, the biting reality of the removal of petrol subsidy on Nigerians have  reawakened their consciousness to this nefarious act.

    “I have had ugly experiences in some of these petrol stations. I stopped buying fuel in some of them.The worst are these filling stations, whose prices are lower. They make up by seriously adjusting their meters to dispense lesser quantity at the same price of the actual quantity it should be,” Chris Adol, a motorist and resident of Port Harcourt, the Rivers State capital, told The Nation.

    According to Adol, most filling stations are deep in the act of selling below the standard gauge, making it almost impossible to pay for 10 litres of petrol and getting same quantity paid for in your tank at petrol stations.

    Although some consumers admitted that the rate of shortchanging has declined with the phasing out of subsidy, there were other respondents, who narrate to The Nation their ordeal at some retail outlets.

    In Abuja, it is a two-sided situation. Customers, including those patronising the Nigerian National Petroleum Company Limited (NNPCL) retail outlets, complained that the filling stations were under dispensing the product to them through adjusted meters.

    While a motorist, who simply identified himself as Sufianu, said most of the filling stations he had visited in the metropolis sell accurate litres, a taxi driver, who gave his name as Mubarak,  narrated an ordeal at different retail outlets in the city. “Most of the petrol stations between Deidei and Airport Road hardly dispense the full quantity,” he said.

    If a motorist at NNPCL, Arab Road, Kubwa, identified as Louis, had his way, perhaps he would have changed the name of NNPCL retail outlets in the axis to “black marketer.” He noted that he has battled with the petrol pump attendants over the under-dispensing of petrol at different times.

    His words: “Soon after the subsidy was removed, I suspected that the  measurement was not full. “Thereafter, I went there with a container to test them and discovered that their pumps were adjusted. After trying them for several times and realised they have adjusted their pumps, I now avoid the filling station, which unfortunately, I should be patronising because of its proximity to my house.”

    Further investigations indicated that petrol attendants are not alone in this shady business. They commit the heinous crime in connivance with their station managers and owners. This, according to investigation, explains why many attendants who have been caught engaging in such sharp practices express no remorse and still manage to retain their jobs.  The situation leaves a victim helpless because their superiors would rather plead with a customer than fire an errant attendant.

    “How would the manager of a filling station punish an errant attendant who knows that even the owner of the filling station has tampered with the reading of the dispensing machines?” asked Sola Oguniyi, the manager of a mega filling station in Ogun State.

    The deeds of errant filling station attendants have left bitter tastes in the mouths of many motorists. While a few muster the courage to challenge such attendants, others simply grumble and carry on without challenging them. But it is believed that the trend has caused unnecessary friction between many private car owners and their drivers, as the former often think that their drivers are the ones trying to play smart, especially prior to the subsidy removal regime.

    A mechanical engineer, Olukayode Sobowale, explained that petrol stations adjust their pumps to reduce their loss. According to him, because petrol is highly inflammable, it vapourises very fast, a loss for the business owner. This, he said, is why sometimes there is always a disagreement between a tanker driver after discharging its content into the storage of a filling station and it is found that what was loaded at the depot that the tanker driver signed for is not the same volume as what he discharges.  

    Sobowale explains: “There are losses to vapour because of the inflammable nature of petrol and someone has to pay for it. Besides, the long the product stays in the storage of a filling station, the more loss it incurs to vapourisation. This accounts for why meters are usually adjusted not to read the exact quantity. In most filling stations the best you can get from them is between 0.65 and 0.85 litres. Also, most filling stations, especially, independent marketers, tend to manipulate their dispensing pumps to discharge air and petrol together. This is done by the in-house engineer to distort the regular workings of the pump so that they can make extra money.

    “The technique is simple: adjust the hook of the pump and slack the spring or lever inside the pump, and educate the attendants on how to handle the pump so that the public will not suspect any foul play. That is the reason behind some stations dedicating some pumps to vehicles and others to jerry cans, because it is easier to detect the anomaly when you buy in a keg.”

    Another engineer, Olufemi Adebola, agreed that manipulating the fuel pump to the advantage of the fuel dealers is very possible.

    Adebola explained: “Yes, it is possible to adjust the meter calibration for a fuel dispenser at a filling station. The principle is quite easy for a technical person. You see, the principle of flow of fuel through the pump has a direct corresponding effect on the turning of the meter. The moving wheels can be re-calibrated without an individual buying fuel noticing it. This can be likened to the old meter used by PHCN where individuals can actually adjust the meter flow relative to the volume of electricity consumed.

    “Another instance where fuel attendants’ cheat individuals is when they operate the distraction tactics.The meter attendant might decide not to rub off the previous sales, especially if he had just made a marginal sale to, say an okada (motor cycle) rider or a 10-litre fuel in a keg. They go ahead to pump the fuel in your car after you have been distracted.”

    Operators react

    However, Sobowale’s submission was refuted by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which defended that its members might no longer have the need to under-dispense petrol because there is no pump price ceiling.

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    The association’s National President, Alhaji Abubakar Maigandi, said since the independent marketers are at the liberty to sell the product at various rates, the marketers would prefer hiking their rates than under-dispensing the product.

    His words: “All I know is that it is very difficult for independent petroleum marketers to under dispense. This is because the price is not restricted. You can see some filling stations are selling at the rate of N620, N640 and above per litre. That difference will not make any marketer to under dispense the product, especially the independent marketers.”

    Similarly, the IPMAN National Secretary Chief John Okeocha, in a chat with The Nation, noted that under – dispensing of PMS attracts a penalty. He called on the NMDPRA to investigate and bring the perpetrators to book. He added that the organisation will always abhor such sharp practices since it is fraudulent and reduces patronage.

    His words: “The issue is that there is a penalty for under-dispensing. NMDPRA has a duty to investigate and know those who are doing foul business and call them to order. “Nobody, no group, no organisation can support irregularities in their transactions.

    “Anybody who is doing under dispensing is going against the law. Two, he is reducing his customership, he is into fraud. Nobody can support this kind of thing. So, the law enforcement agency has the right to discipline anybody who is defrauding the public.”

    Oversight failure

    But consumers are of the opinion that the regulator, the NMDPRA, is slumbering in this aspect. Until the scrapping of the Department of Petroleum Resources (DPR), motorists contended that the sharp practices by filling stations, though existed, but never was it at the present level. “I can remember that DPR used to supervise the activities of these petrol stations.That supervision and monitoring unit of the Department checked these practices. But after the scrapping of DPR, no authority is monitoring and supervising these stations,” Adol regretted.

    Adol’s position that no regulator has the authority to monitor and ensure that filling stations comply to standards and dispense accurate quantity to consumers may not be faulted given that the regulator saddled with this responsibility – the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) – seems to either be overwhelmed with other responsibilities such that it cannot pay attention to this, or that it has  failed in its duties, or has become a lame-duck regulator.

    At a major marketer’s filling station along Ojodu-Berger axis, in Lagos, last December, this reporter, upon noticing that petrol dispensed to him in a jerrycan did not equate the quantity it should be, threatened to report to the regulator. The Nation was, however, taken aback when the petrol attendant said: “Oga, don’t waste your time; you would only have helped lined their private pockets because their money is not more than N1 million when they come here and that is even if they come and it’s people like you that we will still recover the money we give them from.”

    For over a month, efforts to get a response from the NMDPRA has been futile as a code of silence has enveloped the Authority on the enquiries sent by The Nation. In fact, it is now easier for a camel to pass through the eye of a needle than getting clarifications on issues at the NMDPRA since the retirement of its former General Manager, Corporate Communications, Apollo  Kimichi.

    The most senior officer in the corporate communications unit, Seiyefa Osanebi, whom The Nation approached for response since last December, simply said: “The concerned directors were observing their Christmas and Year holiday.” Contacted again last Thursday, Osanebi said: “The directors were yet to provide me the information on the matter.”

    Another motorist, Azomdu Bassey, recalled that the Nigeria Security and Civil Defence Corps (NSCDC) used to monitor petrol stations to ensure their compliance with regulatory standard.

    Bassey said: “At least, when NSCDC discharged that function, it helped consumers to a large extent. But with the scrapping of DPR and the inaction of NSCDC, consumers are at mercy of petroleum dealers.”

    Bassey and Chris urged the Federal Government to establish an independent taskforce to check the sharp practices of petrol stations. “I suggest the establishment of Petrol Stations Monitoring Task Force by the Federal Government to protect consumer interest, especially in view of the high cost of fuel per litre,” Chris said.

    For now, the filling stations and their attendants enjoy a free reign of exploiting the public, who have been left at their mercy.

  • Nollywood: From entertainment to economic powerhouse

    Nollywood: From entertainment to economic powerhouse

    • Nigeria can unlock the full economic potential of its vibrant film industry, contributing to job creation, cultural diplomacy and international trade

    Last week, accolades poured in for the acclaimed Nollywood actress, Funke Akindele, in recognition of her groundbreaking film ‘A Tribe Called Judah.’ Notable figures, including President Bola Tinubu, former Vice President Atiku Abubakar, and Peter Obi, who were presidential candidates in the recent general elections, joined in the chorus of praise. In a rare display of unity, despite being political adversaries, the trio acknowledged their shared pride in the actress’s accomplishments and her pivotal role in elevating Nigerian cinema to unprecedented heights. They emphasised that her success resonates as a collective achievement for the nation, serving as an inspiration for a new generation of filmmakers and storytellers both within the country and beyond.

     President Tinubu, in a statement, specially lauded Akindele for her significant contributions to the industry’s growth. Beyond this, he celebrated the ingenuity, creativity, and immense artistic talents prevalent in Nigeria’s thriving entertainment sector. The President emphasised the excellence of the Nigerian creative industry, acknowledging its pivotal role not only as a platform for artistic expression but also as a source of considerable soft power and a viable export. He also saluted Nigerians for their enduring support and patronage of home-grown creative efforts. “The creative industry is one of the high-employment sectors, providing jobs for our able and talented youths. It is an industry that is crucial to my administration. We will provide the conducive environment for the industry to thrive further,” he added.

     A Tribe Called Judah was the first Nollywood film to surpass N1 billion at the box office. Released in cinemas on December 15, 2023, “A Tribe Called Judah” stands as a remarkable cinematic achievement, produced and directed by Funke Akindele with co-direction by Adeoluwa Owu. FilmHouse Group, announcing this historic milestone, declared it as a significant moment in the Nigerian film industry, showcasing the global appeal and resilience of local productions on the big screen. This trailblazing film not only crossed the N1 billion mark at the box office but also achieved the distinction of being the first Nollywood film to gross over N113 million in its opening weekend. In less than three weeks, it surpassed the admission records of blockbusters like Sugar Rush (229,060) and King of Boys (220,565), both with impressive box office runs.

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    As of January 3, the movie held the top three spots for the highest-grossing Nollywood films, boasting a staggering 854 million. It surpassed Akindele’s own “Battle on Buka Street” with 668 million and “Omo Ghetto: The Saga” with 636 million. During the movie’s premiere, Akindele dedicated it to her late mother, Adebanjo Akindele, emphasising that the film symbolises the struggles faced by single parents and mothers in society. “A Tribe Called Judah” not only shattered box office records but also resonated with audiences, capturing the essence of real-life challenges and triumphs.

     Nigeria’s film industry, popularly known as Nollywood, has emerged as a cultural powerhouse, producing a staggering number of films each year. Widely recognised as the third largest film industry in the world, in terms of the number of films produced, Nollywood gained global prominence in the early 2000s and has since become a major player in the global film market. Nollywood is known for its prolific film production because it produces a large number of films each year, often on relatively low budgets. The industry is characterised by its ability to quickly produce and release movies.

     Nollywood, often constrained by financial limitations, consistently demonstrates resilience and creativity in the face of budget constraints. The industry’s success thrives on filmmakers’ adeptness at crafting compelling narratives with limited resources. Spanning genres such as drama, comedy, romance, action, and supernatural themes, Nollywood productions often delve into social issues and cultural nuances relevant to the Nigerian and broader African context. These films, despite their modest budgets, enjoy widespread distribution across Africa and beyond, resonating with audiences in diverse countries. The popularity of Nollywood extends to the African diaspora, positioning it as a significant cultural export that transcends geographical boundaries. Over the years, Nollywood’s evolution is evident in improved production quality, enriched storytelling, and enhanced technical aspects.

     Gaining international recognition, Nollywood has made its mark in various film festivals worldwide, with some films receiving acclaim for their narrative depth and stellar performances. Internationally recognized filmmakers and actors have further contributed to the industry’s global standing. The embrace of technology and social media has played a pivotal role in expanding Nollywood’s reach, with online streaming platforms emerging as essential channels for distribution. This multifaceted approach underscores Nollywood’s adaptability and commitment to staying relevant in the dynamic landscape of global cinema.

     Beyond its cultural impact, Nollywood possesses untapped economic potential that, if harnessed effectively, could significantly contribute to revitalizing Nigeria’s economy. One of the key ways Nollywood can contribute to economic revitalisation is through employment generation. The industry, with its constant demand for actors, directors, producers, technicians, and support staff, has the potential to create numerous job opportunities. By investing in skill development programmes and infrastructure, Nollywood can further expand its workforce, reducing unemployment rates and boosting household incomes.

     Nollywood also has the ability to attract global attention and draw tourists to Nigeria. Film-induced tourism can create a positive economic impact by attracting visitors interested in experiencing the vibrant culture depicted in Nollywood films. Additionally, the industry serves as a powerful tool for cultural diplomacy, promoting Nigeria’s unique cultural identity on the global stage. Nollywood films have a wide-reaching audience, not only within Africa but also among the African diaspora and global film enthusiasts. Strategic efforts to export Nollywood films can contribute significantly to Nigeria’s foreign exchange earnings. Government support for international film festivals, promotional campaigns, and trade agreements can facilitate the global distribution of Nollywood content.

     Certainly, there is a wealth of opportunities for Nollywood to tap into from larger and more established film industries. The entertainment industry, with Hollywood as its nucleus, stands as a formidable contributor to the U.S. economy. Pre-Covid-19, Hollywood played a pivotal role, accounting for approximately $504 billion, equivalent to at least 3.2 percent of the United States’ goods and services. However, the global pandemic dealt a substantial blow to the world’s leading film industry. Hollywood, renowned not only for its glamour but also for its unparalleled ability to enthral audiences, serves as a realm where creativity knows no bounds. Beyond the glitz and glamour, it is a place where dreams metamorphose into reality, as actors and directors invest their hearts and souls in crafting truly enchanting narratives. Hollywood epitomises the profound impact of storytelling, ranging from poignant dramas to exhilarating blockbusters, showcasing the industry’s resilience and enduring influence.

     The influence of the thriving Hollywood extends far beyond the actual production of films, encompassing a spectrum of related activities like distribution, exhibition, and ancillary markets. Hollywood’s substantial contribution to the Gross Domestic Product (GDP) is intricately linked to its role in job creation, with a diverse array of professions benefiting from its expansive reach. This spans from the creative realms of actors, filmmakers, and production crews to the technical expertise of post-production professionals and the essential roles fulfilled by administrative staff. Moreover, Hollywood’s global sway acts as a magnetic force, drawing tourists to iconic landmarks like the Hollywood Walk of Fame and the renowned Hollywood Sign. The film industry’s cultural resonance plays a pivotal role in enhancing tourism, thereby making significant contributions to the economies of local regions fortunate enough to be touched by Hollywood’s cinematic allure. In essence, Hollywood’s impact on GDP is a multifaceted tapestry that weaves together economic sustenance, employment opportunities and cultural enrichment.

     Hollywood’s cinematic offerings enjoy a vast global viewership, playing a pivotal role in exporting American culture across borders. The success of these films translates into revenue through multiple channels, including international box office sales, licensing agreements, and merchandising endeavours. The export of American culture through Hollywood productions not only contributes to economic gains but also serves as a powerful cultural ambassador on the world stage. In addition to the cultural impact, Hollywood invests significantly in critical infrastructure, such as state-of-the-art studios, production facilities, and cutting-edge technology. This strategic investment not only supports the logistical needs of the film industry but also fosters economic development and encourages innovation within the broader technological landscape.

     Furthermore, Hollywood productions create lucrative opportunities for advertising and merchandising, further amplifying their economic impact. The popularity of films often extends beyond the theatre, paving the way for diverse marketing ventures, from promotional tie-ins to branded merchandise. This symbiotic relationship between Hollywood’s creative output and commercial opportunities results in a continuous boost to economic activity, affirming the industry’s multifaceted role in shaping both culture and commerce.

     The success narrative extends to India as well, where its flourishing film industry, rated second only to Hollywood, contributes significantly to the nation’s prosperity. Bollywood, situated in Mumbai, stands as the largest film industry in India and one of the world’s most prolific. Renowned for its vibrant musicals and captivating storytelling, Bollywood films command a massive global audience. This thriving industry plays a pivotal role in India’s economic landscape, providing employment opportunities for a myriad of individuals, ranging from actors and filmmakers to skilled technicians. Beyond the realms of cinema, Bollywood’s influence resonates deeply, actively shaping India’s cultural identity on a global scale. The magnetic appeal of Bollywood’s narratives not only attracts audiences to theatres but also serves as a cultural ambassador, fostering a deeper understanding and appreciation of Indian traditions and storytelling. Moreover, the cultural impact of Bollywood contributes significantly to India’s tourism sector, as enthusiasts from around the world are drawn to experience the vibrant tapestry of Indian culture showcased in these cinematic masterpieces. In essence, Bollywood’s success becomes a holistic triumph, enriching both the nation’s economy and its cultural footprint on the global stage.

    Despite its phenomenal success, Nigeria’s Nollywood faces challenges such as issues with piracy, inadequate funding, and the need for better infrastructure. Piracy, in particular, has been a major concern, affecting the revenue generated by filmmakers. Investment in filmmaking infrastructure, such as state-of-the-art studios, post-production facilities, and training academies, is crucial for the industry’s growth. A well-developed infrastructure will not only enhance the quality of Nollywood productions but also attract international collaborations and investments. Public-private partnerships can be explored to accelerate the development of necessary facilities. Addressing the issue of piracy is paramount for the economic revitalisation of Nollywood. Strengthening intellectual property laws and enforcing anti-piracy measures will protect the rights of filmmakers and ensure that revenues generated from film productions remain within the industry. This, in turn, will encourage investors and stakeholders to contribute more actively to the sector.

     Embracing technological advancements and leveraging digital platforms can open new avenues for revenue generation. Nollywood can explore partnerships with streaming services, both local and international, to reach a broader audience. This shift to digital distribution can create additional revenue streams, reduce piracy risks, and provide a sustainable model for the industry. Government and private sector support through financial incentives, grants, and tax breaks can stimulate growth within the industry. Encouraging local and international investments in Nollywood projects will enable filmmakers to undertake ambitious and high-quality productions, further enhancing the industry’s competitiveness on the global stage.

     Nollywood, with its rich storytelling tradition and widespread popularity, stands as a powerful asset for Nigeria’s economic revitalisation. By strategically addressing challenges, investing in infrastructure and fostering collaboration between the public and private sectors, Nigeria can unlock the full economic potential of its vibrant film industry, contributing to job creation, cultural diplomacy and international trade.

  • Tackling farm workers’ shortage to boost productivity

    Tackling farm workers’ shortage to boost productivity

    With the average age of farmers ranging from 55 to 59, experts warn that the agric sector faces a critical shortage of farmers that could threaten Nigeria’s food security and also hurt several projects in the pipeline to help raise agricultural productivity. The experts and stakeholders have, however, put forward some strategies to attract and retain workers in the farms. DANIEL ESSIET reports.

    Nigeria’s quest to transform agriculture into a dynamic, high-growth sector capable of speeding up economic recovery, reducing poverty and creating jobs appears to have come under threat. 

      The increasing rate of labour shortages in farms across the country has become a cause for concern for critical industry stakeholders and operators, with many fearing that with the average age of farmers ranging from 55 to 59, for instance, Nigeria’s push to achieve food security and boost agric productivity may be threatened.

    Also, with the high number of indigenous farm workers leaving their jobs early, especially at a time the right number of farm workers is needed in the right places to help the agric industry reach its greatest potential, there are fears that several projects  in the pipeline to help raise agricultural productivity may be stalled. The increase in labour turnover has also raised concerns over its obvious implications for a country  battling food shortage amid a ballooning population.

    The Nation learnt that although no single factor is responsible for labour shortages in farms across the country, one factor that sticks out like a sour thumb is  the effect of the Fulani herdsmen/communal crisis in the farming communities in the North and Middle Belt production belts. The rising banditry in states such as Borno, Zamfara, Benue, Plateau, Kwara, Kogi, Nasarawa, and Yobe has also threatened agricultural production.

    The crux of the matter is that persistent insecurity and continued displacement forced by the afore-mentioned crises have either driven away farmers from the farms or compelled not a few farmers in the affected areas to resort to smaller sizes of farms, thereby exacerbating food insecurity and poverty. For instance, in 2020, the number of vacancies in farms was estimated at 50,000, and this caused crops to go un-harvested and left to rot in fields, disrupting food supply.

    Southwest Chairman, All Farmers Association of Nigeria (AFAN), Otunba Babafemi Oladeji Oke, confirmed the serious challenge the recruitment and retaining hourly and skilled staff members posed for farms and agribusinesses, especially in the agricultural production belts.

    Oke, who runs a large cassava farm in Epe area of Lagos, said, for instance, that finding enough labour had become a top concern, as the rugged field does not attract workers.

    The AFAN boss is one of many business owners in one of the remote parts of Lagos struggling to find farm hands. He noted that it had become extremely challenging to find the right people, pointing out that the agric industry needs a huge workforce to handle the jobs for the busy season. He said as a result of the shortage of farm hands, he and other farm owners were bearing the burden of the rising labour costs of foreigners, as well as their increasing requirements.

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    The Nation learnt that immigrant farm workers who come into Nigeria from neighbouring Republic of Benin and Togo, for instance, are on fixed-term contracts, and every year, they cross the border for the work season and then go back to their home country again after establishing lasting professional relations as well as friendships with agricultural entrepreneurs in Nigeria.

    Oke said the contribution of these immigrant workers to agriculture is, especially important in planting and harvesting of crops.

    Oke, however, said while the immigrant farm workers earn their livelihood only from cultivating and helping farm owners in harvesting, many agricultural activities are seasonal, leading to fluctuations in demand for labour.  He, therefore, recommended that efforts be focused on improving farm workers’ livelihood, farm infrastructure and expansion of access to rural sustainable energy.

    These preconditions, he believes, would help Nigeria produce food efficiently and to compete globally. Oke, who grows cassava in Epe, Lagos, said he found out that the percentage of people who work in the farm has dropped significantly, partly due to low wages. As a result, many people, according to him, don’t want to work on the farms. He said except for the livestock industry, which pays farmers up to N30, 000 monthly, the average salary of farm workers is still meagre.

    Indeed, the most commonly reported reason workers give for leaving the industry, apart from widespread insecurity across the country, is low wages. Even when offered higher wages, some workers said they would prefer to enter a different industry. The poor remuneration is said to have triggered the mass exodus of farm workers that has left the industry in tethers. Across the production communities, farmers have never stopped expressing worries that life on the farms and occupation has become difficult.

    To remain in business, some producers are  hiring foreign workers and providing housing to keep employees. Adjunct Professor, Lead City University, Eric Alao, said there was the need for farmers, agri-businesses and agri-food firms to invest more in recruiting and retaining workers.

    According to Alao, who has worked with many farm workers, working on the farm is not easy and that it has become challenging to retain labour in farms. 

    Alao’s words: “Agricultural work is often physically demanding and can involve long hours of manual labour. Unfavourable working conditions such as exposure to harsh weather further contributes to the challenges and in this era of climate change, where you have high temperature, the sun is very scotching. So, you have limited time to spend in the farm, coupled with low care and the wages.

    “Also, many farm labour positions come with limited benefits such as health care and retirement plan, making them less appealing to workers seeking comprehensive employment packages.”

    Now, as farmers are preparing for the planting season, farm workers are in high demand, also in August when the harvest season comes. The seasonality of rain-fed agriculture leads to labour shortages during the critical periods of the cropping season.

    As Alao, a former General Manager, Obasanjo Farms, remarked: “This can make it challenging for workers to find consistent employment throughout the year.

    “And, you know, once the season is over, it means there’s no work and once there’s no work, there’s no pay. Secondly, farm labour is often associated with low wages, making it less attractive for more workers, especially when compared to opportunities in other industries.”

    Addressing farm labour shortage

    Some of options put forward by experts to address the acute shortage of farm hands and boost productivity in the agric sector include intensive training for workers and, of course, higher wages and better benefits to make agric compete with other industries for workers.

    “Workers may be attracted to other industries that offer more stable employment, better pay and improved working conditions. And, of course, you know everybody will go for that. And that’s why there’s this migration from the local community farm setups to the urban industrial white-collar jobs,” Alao said.

    For Prof. Andi Brisibe of the University of Calabar, the solution revolves around supporting projects that aim to improve the livelihoods, food security and nutrition of smallholder farmers and fisher folk and strengthen their inclusion in the agricultural value chain through improved market linkages and enhanced agricultural productivity.

    These, he said, include input and training to enable farmers to establish alternative and additional livelihoods and sources of income, thereby enhancing their long-term food and nutrition security.

    Other experts and stakeholders, who spoke with The Nation, emphasised the need to groom more youths in innovative agriculture. For instance, a Senior Lecturer in the Department of Agricultural Extension and Rural Development, University of Ibadan, Dr. Kehinde Adesina Thomas, said he is pleased when educated young people show interest in agricultural development.

    Thomas, who has seen traditional farm labourers in the Southwest move on to higher paid jobs in other industries, said most farms in the region are populated by immigrants from Benin and Togo, attributing this to the fact that the indigenes no longer follow their parents to work on farms because the remuneration is poor.

    The university don pointed out that as the planting season commences, some farm workers are demanding N300, 000 yearly, excluding feeding, housing, medicals, and clothing.

    Some of the workers, he noted, even want farm owners to buy brand new motorcycles for them as payment. He said in the Southwest, yearly labourers were paid cash at the end of the year. In some cases, labourers demand a motorcycle in lieu of cash payment.

    Other means of remuneration in the cocoa sector, for instance, include the calculation of their payment as a share of the cocoa farm’s  profit. The labourers receive one-third of the farm’s profit, while balance goes to the farm owner. Thomas added that only a few farmers could cultivate considering the galloping cost of hiring labour.

    He indicated that the region is running out of cocoa farmers as the younger generation no longer want to be in the cocoa planting business. He, however, expressed his commitment to providing opportunities for the youth to ensure they were exposed to agricultural modernisation.

    Co-Chief Executive Officer, Green Development and Agro-allied Services, Kayode Ogundayomi seems to have found a way round the challenge of labour shortage. A successful manager of farm workers, the size and diversity of his crop production operation demands he pays close attention to the labour aspect of the  business.

    Accordingly, Ogundayomi is working towards establishing a workable work enrichment programme, which includes his willingness to pay for employees yearly, even if they don’t need them all year, just to keep good people.This is because he is mindful of the way he needs to manage his employees.

    “The first thing we do when we get new workers is to integrate them into our value system. So, we break down our core values to their level. If they need to be an interpreter, we get an interpreter for them. We will endorse them at our head office.

    “So, we endorse them properly.Then, we subject them to the terms of their contract or engagement. And, again, we can even go to the extent of taking them to the police station to sign against bad behaviour and theft,” Ogundayomi said.

    He said he believes that organisations must treat workers as individuals, make them feel valued and important to the business. “All of the robust welfare systems that we have, including decent working environment for them, also require that if you are married and have a family, we get you an accommodation in town instead of living in the farm. We also look for means of engaging their wives during harvest so they can also generate income for the farm,” he stated.

    Continuing, Ogundayomi said: “We have a growth system that we have established for  the workers. They are not earning the same salary. Your years of experience count, same with your leadership skills. We have a promotional system that we adopt where we promote workers to supervisory level. Because we are engaged in service provision to other farms, most of the workers that we have trained and have demonstrated good leadership skills are sometimes transferred to other farms to undertake contract management assignments on behalf of our organisation.”

    Ogundayomi stressed that the key to keeping farm hands is to treat everyone with respect. He urged his workers to become integral to the continued growth and success of the business

  • Pensioners ‘waiting for palliatives’

    Pensioners ‘waiting for palliatives’

    It is the festive period but pensioners are still waiting for the N25,000 wage award from the government. Omobola Tolu-Kusimo reports

    FOR  the over 200,000 federal pensioners in th ecountry, the festive period is bleak. Reason: They are yet to be paid the fuel subsidy palliative approved by President Bola Tinubu.

      The President had on October 4, 2023 ordered a N25,000 wage award to pensioners to cushion the effect of fuel subsidy removal for them.

    Though the President had also on October 1,2023 Independence Day announced intervention funds of N35,000 as wage award for six months for federal workers, and some workers have started receiving the cash, pensioners are yet to.

    For several weeks, the pensioners have been crying out over their plight.

    Yet, up till date, no pensioner has been paid, provoking speculations that some government officials at the ministry might be plotting to divert the funds meant for the pensioners.

    The pensioners are unhappy with the Minister of Federal Ministry of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu and are set for a showdown with the ministry in January, next year.

    Investigations by the newspaper has showed that the Pension Transitional Arrangement Directorate (PTAD) has on request by the ministry submitted names of  pensioners under the Defined Benefit Scheme (DBS) to the ministry since October.Yet, almost three months after the announcement by the President, no pensioner has been paid.

    The Nation also learnt that the National Pension Commission (PenCom) is unaware of how and when the pensioners will be paid.

    When the newspaper reached out to PTAD and PenCom, both, pension regulators, kept mum.

    The newspaper also reached out to the ministry which debunks speculations that the money has been diverted.

    However, the Special Adviser, Media and Publicity, Mr Rasheed Zubair, said the ministry was still compiling and verifying the pensioners’ list before it could commence payment.

    He said for the avoidance of doubt, a list of 17,077 veterans, and 264,560 pensioners had been submitted to the National Social Safety-Nets Coordinating Office (NASSCO) in the third week of November.

    He, however, added that the process of in-person verification of the list was still ongoing.

    Meanwhile, observers have faulted the ministry on why it has to rely on third party agencies to verify pensioners rather than revert to PenCom and PTAD that have a database of genuine pensioners.

    A source in PTAD said: “We are not responsible for palliative payments to pensioners. All we know is that after the President’s announcement in October, the Ministry of Humanitarian Affairs and Poverty Alleviation reached out to us, asking for a list of payroll of pensioners and we submitted it to them immediately.

    “So, they have the list of pensioners since October. We don’t know why the pensioners have not got the money. Some pensioners have been bothering us about the palliative thinking we are the agency to pay them. But we have been explaining to them that we don’t have anything to do with the payment.

    “NUP have also reached out to us that we should be the one to make the payment since we have their payroll list but we told them that there is no directive to us to do so. The pensioners are worried that it seems some government officials want to steal the money. We hope not because it will be saddening.

    “If the ministry wants PTAD to pay, they should send the fund to us and if they want to pay, they have the details. But it is worrisome that they have not paid while they have paid workers.”

    In PenCom, no one wanted to speak. A top source was asked: “What is going on with the payment of subsidy removal palliative authorised by the president to be paid to pensioners? We are aware that it’s the Ministry of Humanitarian Affairs that is meant to pay, but have they reached out to the commission or carry you along on how they are paying. Did they request for pensioners’ names and account details from the commission?

    The senior official simply responded by saying: “I don’t know.”

    At the Ministry of Humanitarian Affairs, Zubair said: “The attention of the Minister For Humanitarian Affairs and Poverty Alleviation, Dr Betta Edu, has been drawn to a fake news item in the media and public spaces alleging that N25 billion purportedly meant for the retired Military pensioners from the Conditioner Cash Transfer Funds has been given to the Minister of Defence, Muhammed Badaru Abubakar.

    “The public is urged to disregard this report as it is not only fake but a deliberate, malicious and insipid attempt by mischief makers, disgruntled elements and enemies of the Renewed Hope Agenda of the  administration to tarnish the image and integrity of the Minister.

    “For the records, at no time did the Minister for Humanitarian Affairs and Poverty Alleviation give or contemplate giving funds meant for the pensioners of the retired Military personnel of the Nigerian Armed Forces to Ministers or Ministries.

    “For the avoidance of doubt, 17,077 veterans, and 264,560 pensioners’ list were submitted to National Social Safety-Nets Coordinating Office (NASSCO) in the third week of November and the process of in-person verification of the names submitted by the Nigerian Legion and the pensioners group is still ongoing.

    “Similarly, the office responsible for the verification of the register under the Ministry of Humanitarian Affairs and Poverty Alleviation is doing a painstaking job of working with the World Bank.

    “All the captured retired veterans who meet the criteria and pensioners will be paid once the rigorous verification exercise is completed.

    “The public, especially the media, is hereby informed by this release that the ministry has not released or planned to release any money meant for the Renewed Hope Cash Transfer to any individual or group.

    “In line with the directive of President Bola Ahmed Tinubu, funds upon confirmation of the beneficiaries’details, are to be sent directly to them through their bank accounts and is verifiable.

    “The good intention of Mr President to expand the National Social Register and commence payment of the N25,000 for three months to accommodate the veterans of the Nigerian Armed Forces, which is a novel idea and the first of its kind in the history of Nigeria, should be appreciated by Nigerians and not allow themselves to be distracted or misinformed by naysayers,” he added.

    NUP troubled

    The NUP is distressed that pensioners are yet to be paid palliative by the ministry.

    NUP President, Pa Godwin Abumusi said he had not been paid neither did he know any pensioner that had been paid.

    “I don’t know what is happening to our palliative. The government promised to pay a palliative of N25,000 to pensioners but up till date, we have not received any money.

    “I have not gotten it and I do not know any pensioner that has gotten it. We don’t know what is happening. Nobody is talking to us; so, we are confused,’” he added.

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    He stated that the ministry asked them to submit their biodata which they had done. 

    “They later ask us to submit other documents but we told them that the documents pertaining to our pension are in the hands of those who pay our pensions, which are PTAD and PenCom. We told them that instead of asking us to go and collect the data by ourselves, they should order the various agencies to give it to them.

    “We have suggested to the ministry that if the palliative is going to be paid through our pensions’ regulators, then it should be paid by PTAD because they have our database. PTAD is the only agency paying pension and if they have any money to give us, PTAD is best agency to route it through. There is no other way to pay us. The same goes for pensioners under PenCom

    Abumusi further stressed that the ministry is responsible to provide the funds that will be used to pay us. They negotiated it, but it has not been paid.

    The NUP president said they would engage  state and the Federal Governments if they had not paid our palliative. 

    “I have on record that it is only Imo State that is getting rice but I’m not aware that any state government has paid the N25,000 proposed by the Federal Government as the monetary palliative for pensioners. I’m not aware that any state government has commenced payment.

    “If they are not up to any mischief, why would they say data should be submitted by individual pensioners when PTAD exists. But we are watching,”he said.

    He called on President Tinubu to intervene and ensure the ministry carries out the mandate given to them.

    Embattled pensioners

    Chairman, Contributory Pensioners Union of Nigeria (CPUN), Comrade Mathew Shittu, said his members numbering thousands had not received any palliative.

    He hoped that the national cake syndrome, which government officials take pension money for, would not apply to the funds meant for the palliative.

    “I am troubled. If the money is diverted, the agencies responsible for paying will be in trouble. We will not leave any stone unturned in ensuring that they bring back the money and pay us.

    “Our members are suffering going by the tough economy, just like many Nigerians. The fuel subsidy removal has made prices of food in the market to skyrocket. The fuel itself is not affordable for an average pensioner. 

    “I believe that no reasonable person will refuse to pay pensioners and poor people. Nobody can play any game with this palliative because we will take action on why they are not paying pensioners despite paying workers.

    A pensioner under PTAD, Inspector Raphael Ndiema (rtd) said: “I want to know why N25,000 authorised by the president to be paid to Federal Government’s pensioners is yet to be paid while workers are already receiving the N35,000 declared for them. Did we not serve the country?

    Another pensioner under PenCom, Haruna Mohammed asked: “Is there any palliative for Federal Government’s retirees under the Contributory Pension Scheme?

    Akeredolu said: “We have not heard of the plan and payments for palliative for pensioners on the increment for federal civil servants.’’

  • Navigating the road to universal health coverage

    Navigating the road to universal health coverage

    • A key target of the United Nations‘ Sustainable Development Goals (SDGs), universal health coverage (UHC) will make quality health services accessible and affordable for everyone

    The Federal Government has unveiled a promising path towards ensuring that every Nigerian gains access to vital health services without facing financial burdens. With a vision to achieve Universal Health Coverage (UHC) by 2030, the government is set to introduce the Nigeria Health Sector Renewal Investment Initiative. Professor Muhammad Pate, the Coordinating Minister of Health and Social Welfare, shared this optimistic development during a press briefing in Abuja, coinciding with the annual celebration of UHC Day in December. This initiative aims to celebrate strides made towards health for all and underscores the crucial role of robust and resilient health systems in realizing UHC.

     The Minister further revealed that a comprehensive strategy to materialise this ground-breaking initiative will be formally endorsed in Abuja by governments at all levels and their development partners during the upcoming 2023 UHC Day. “The quest to achieve UHC and better health for all Nigerians requires a multi-sectoral and whole-of-government approach. Further to this, the government of Nigeria has articulated NHSRII to advance the nation’s journey towards UHC.”

     The Nigeria Health Sector Renewal Investment Initiative is strategically designed to lead the revitalisation of Nigeria’s health system, forming a crucial component of the government’s comprehensive health agenda. It directly addresses the challenge of suboptimal population health outcomes exacerbated by deeply inequitable access to healthcare. The initiative will harness the power of the Basic Health Care Provision Fund, collaborating with state governments and development partners in an overarching, transformative sector-wide programme aimed at enhancing health outcomes. This encompasses initiatives to bolster human resources for health through extensive training and the establishment of a minimum of 17,000 fully functional primary healthcare centers. “The commitment to expanding BHCPF and increasing the number of PHC aligns with the National Health Act’s objectives. The comprehensive strategy outlined involves assessing existing facilities, improving infrastructure, ensuring a sufficient health workforce, and actively engaging local communities for feedback,” Pate said.

    The current state of health coverage in Nigeria

    Nigeria’s healthcare landscape is characterised by significant disparities, with urban areas enjoying a relatively better access than their rural counterparts. The majority of the population faces financial barriers, limiting their ability to seek medical attention. Existing health insurance schemes, while present, have struggled to provide comprehensive coverage. In recent years, Nigeria has made commendable efforts to advance UHC. Initiatives such as the National Health Insurance Scheme (NHIS) and partnerships with international organisations have aimed to expand access to healthcare services. Improvements in healthcare infrastructure and services are noticeable, but challenges persist.

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     Financial barriers, shortage of healthcare professionals, and limited resources continue to impede progress. The cultural nuances surrounding health-seeking behaviour and a lack of awareness further complicate efforts to achieve UHC. The COVID-19 pandemic has also laid bare the vulnerabilities in Nigeria’s healthcare system. The pandemic has underscored the importance of resilient healthcare systems. Nigeria’s response to the crisis, while commendable in certain aspects, has highlighted gaps in preparedness and response mechanisms. The strain on health infrastructure has prompted a renewed focus on strengthening UHC as a vital component of pandemic preparedness. Innovations in technology offer a promising avenue for advancing UHC in Nigeria. Telemedicine, digital health records, and mobile health applications present opportunities to bridge gaps in healthcare delivery. The government is increasingly recognising the transformative potential of these technologies.

    The transformative potential of UHC

    Nigeria’s health sector faces a myriad of challenges, from limited access to healthcare services to financial barriers that impede the well-being of its citizens. The implementation of universal health coverage (UHC) can serve as a transformative solution to address the pressing health challenges in the country. One of the core tenets of universal health coverage is ensuring that everyone has access to essential healthcare services without facing financial hardship. By removing financial barriers, UHC aims to increase the utilization of preventive, diagnostic, and treatment services, ultimately improving health outcomes across the population.

     Universal health coverage provides a financial safety net for individuals and families. By establishing comprehensive health insurance schemes, the burden of out-of-pocket payments is alleviated, preventing catastrophic health expenditures that often push families into poverty. Financial protection ensures that no one is forced to choose between health and economic stability. A key advantage of UHC is its emphasis on preventive care. With increased access to healthcare services, individuals can engage in regular check-ups and screenings, enabling early detection and intervention for health issues. This shift towards preventive care has the potential to reduce the prevalence of advanced-stage diseases and improve overall population health.

     The implementation of universal health coverage necessitates an investment in healthcare infrastructure. As more people access healthcare services, there is an increased demand for well-equipped facilities and a skilled workforce. This, in turn, creates a positive feedback loop where strengthened infrastructure further enhances the effectiveness of UHC. Universal health coverage goes beyond financial protection; it empowers communities to take charge of their health. By incorporating health education and community engagement initiatives, UHC promotes a culture of wellness and disease prevention. Informed communities are better equipped to make healthy lifestyle choices, reducing the overall burden on the healthcare system.

    The pains and challenges of out-of-pocket payments

    Nigeria’s healthcare system grapples with a persistent challenge that significantly impacts its citizens – the reliance on out-of-pocket payments for medical services. Out-of-pocket payments place a heavy burden on individuals seeking medical care in Nigeria. A recent survey conducted by NOI Polls has brought to light a concerning reality: an overwhelming 80 percent of Nigerians bear the financial burden of healthcare services directly from their pockets, irrespective of the healthcare facility they choose. This survey underscores the pressing need for enhanced health insurance coverage in Nigeria’s healthcare financing landscape. With a considerable percentage of the population living below the poverty line, the financial strain of unexpected health expenses can lead to catastrophic consequences. Families often find themselves forced to make difficult choices between healthcare and other essential needs.

     The reliance on out-of-pocket payments exacerbates the existing issue of limited access to essential healthcare services. Many Nigerians, particularly those in rural areas, face barriers to accessing quality medical care due to financial constraints. This perpetuates a cycle of preventable illnesses and hampers the overall health and well-being of the population. The out-of-pocket payment system has profound implications for public health outcomes. Preventive measures and early interventions are often neglected due to financial considerations, leading to the escalation of health issues that could have been addressed with timely and affordable care. This, in turn, contributes to the overall deterioration of public health indicators.

     Healthcare facilities also bear the brunt of the out-of-pocket payment system. Overwhelmed by the financial constraints of their patient population, many hospitals and clinics struggle to maintain necessary infrastructure, invest in medical technology, and attract skilled healthcare professionals. This strain compromises the quality of care provided. In response to the evident challenges, there is a growing call for systemic change in Nigeria’s healthcare financing. Advocates argue for the implementation of sustainable health insurance models, where citizens can contribute to a shared pool to finance universal healthcare. Such a shift could alleviate the burdens of out-of-pocket payments and enhance access to essential services.

     As Nigeria grapples with the pains of its current healthcare financing system, there is an opportunity to learn from global models that have successfully transitioned away from heavy reliance on out-of-pocket payments. Countries with effective health insurance and financing mechanisms can provide valuable insights for reshaping Nigeria’s healthcare landscape. The challenges presented by Nigeria’s prevailing out-of-pocket payment system are complex and deeply rooted. Effectively addressing these issues demands a comprehensive and cooperative approach involving policymakers, healthcare professionals, and the public.

    Countries leading the way in universal health coverage

    Several countries have made significant strides in ensuring their citizens have access to essential healthcare services without facing financial hardship, with their exemplary efforts providing valuable lessons for nations aspiring to achieve similar milestones. Japan, since 1961, stands out as one of the early adopters of UHC, launching its universal health insurance system 62 years ago. The country’s approach is characterised by mandatory enrollment, with citizens and residents enjoying comprehensive healthcare services. Japan’s emphasis on preventative care and cost containment has contributed to the sustainability of its UHC model.

     Also in the league of early adopters of UHC is Germany whose healthcare system is built on the principle of social solidarity, with citizens contributing to health insurance based on their income. This model ensures that everyone, regardless of economic status, has access to high-quality medical services. The German approach combines public and private elements, offering a versatile framework for UHC. As a welfare state with comprehensive coverage for citizens, Sweden’s commitment to social welfare extends to its healthcare system. The nation provides free access to healthcare services, financed through taxes. Sweden’s emphasis on primary healthcare, preventive measures and equitable distribution of resources has led to positive health outcomes for its citizens.

     Nigeria also has a lot to learn from Canada where healthcare is publicly funded for all. Canada’s single-payer healthcare system is a testament to its commitment to UHC. The government funds healthcare services through taxation, ensuring that every Canadian has access to medical care when needed. The system prioritizes essential services and operates on the principle of universality. In South Korea, it is the amazing story of rapid achievements in universal health coverage, with the country’s journey towards UHC marked by impressive achievements. South Korea transformed its healthcare landscape in a relatively short period, employing a mix of public and private providers. South Korea’s emphasis on health technology and preventive care has contributed to its success in achieving UHC.

     Analysing the experiences of these nations provides valuable insights and common themes that have played a pivotal role in the successful implementation of Universal Health Coverage (UHC). These success stories not only inspire but also serve as a guide for nations aspiring to achieve UHC, offering crucial lessons to forge a healthier, more equitable future for all. These include strong political will, sustainable financing mechanisms, a focus on primary healthcare, and an emphasis on equity and accessibility. Nations like Nigeria aspiring to achieve UHC can draw valuable lessons from the policies and practices of these trailblazing countries. The experiences of Japan, Germany, Sweden, Canada, and South Korea underscore the diverse approaches nations can take to achieve UHC. While there is no one-size-fits-all model, the common thread is the commitment to ensuring that every citizen can access healthcare without facing financial barriers.

     Amid the challenges, there are pockets of success. Examining specific regions or communities that have made strides towards UHC can provide valuable insights. Lessons learned from these success stories can inform broader strategies for nationwide implementation. To address existing challenges, policymakers must consider robust healthcare financing mechanisms, address workforce shortages, and engage communities in healthcare decision-making. Strengthening primary healthcare, enhancing disease prevention, and fostering partnerships between the public and private sectors are crucial components of a comprehensive strategy.

     Drawing lessons from countries that have successfully implemented universal health coverage, such as Japan and the United Kingdom, Nigeria can tailor its approach to align with its unique socio-economic and healthcare landscape. Learning from these models can guide policymakers in developing a robust UHC framework. Universal health coverage stands as a potent solution to Nigeria’s health challenges. By expanding access to essential services, providing financial protection, fostering preventive care, strengthening infrastructure, and empowering communities, UHC has the potential to revolutionise the country’s healthcare system. Drawing inspiration from successful global models and prioritising systemic changes, Nigeria can transition towards a healthcare financing system that guarantees dignity, accessibility, and enhanced health outcomes for all its citizens.

  • Boosting local competitiveness in raw materials, products

    Boosting local competitiveness in raw materials, products

    Sustainable local supply of basic and secondary raw materials and innovations is fundamental to manufacturing sector’s survival. These and other innovative strategies, cutting-edge technologies, and sustainable practices that can contribute to the growth of the manufacturing ecosystem were subjects of discussion at the Nigerian Manufacturing and Equipment Expo (NME) co-located with the Nigerian Raw Materials Expo (NIRAM) in Lagos. Assistant Editor CHIKODI OKEREOCHA reports.

    The acute shortage of raw materials and intermediate input foisted on local manufacturers by the disruption in the global supply chain caused by the Covid-19 pandemic has since forced a rethink in favour of reconfiguring the manufacturing sector’s supply chain.

    Essentially, the supply chain reconfiguration- through backward integration for inputs that can be sourced locally, will enhance local sourcing of raw materials and products development in the Nigerian manufacturing sector.

    But even before the global supply chain glitch, which was unprecedented, and induced by COVID-19, which was first reported in Nigeria in February 2020, local raw materials utilisation in Nigeria’s manufacturing sector was on the downward trend.

    According to manufacturers, the downward trend was traceable to the first half of 2017 when the Central Bank of Nigeria (CBN) started its policy intervention in the official Foreign Exchange (forex) market.

    Manufacturers said the relatively more available forex resulting from the apex bank’s intervention rubbed off negatively on the backward integration agenda, as manufacturing firms preferred to import raw materials as against looking inward.

    Also, poor access to credit and inadequate economic infrastructure for inward development of local input was, and still is, an issue.

    Fast-forward to 2022 and 2023, local raw materials utilisation continued its downward spiral. For instance, it dipped to 52 per cent in the first half of 2022, down from 53 per cent of corresponding half in 2021.

    This indicated one percentage point decline over the period, according to the ‘Executive Summary of H1 2022 Economic Review’ by the Manufacturers Association of Nigeria (MAN). It, however, increased by two percentage points when compared with 50 per cent recorded in the second half of 2021.

    MAN, in the review stated the manufacturing sector was generally faced with limited investment in domestic production of raw materials for utilisation in most of the sub-sectors, which was as a result of limited funding and policy incentives in the country.

    However, manufacturers got a slight breather when local raw materials sourcing increased to 55.3 per cent in the first half of 2023 from 48.0 per cent recorded in the corresponding half of 2022.

    This indicated 7.3 percentage points increase over the period. It also increased by 1.8 percentage points when compared with 53.5 per cent recorded in the second half of 2022, with manufacturers attributing the observed increase in local raw materials utilisation within the sector to the growing challenges associated with sourcing forex.

    “This situation has compelled manufacturers to shift their focus towards obtaining raw materials domestically, despite the substantial cost implications involved,” MAN Director General Segun Ajaiyi-Kadir said.

    For Ajaiyi-Kadir and indeed, other manufacturers who, even before the global supply chain crisis, were agonising over the unavailability of raw materials and delay in receiving imported raw materials, including the high cost of raw materials, the shift in focus towards obtaining raw materials domestically is therefore, desirable.

    The desirability of such change in focus found expression in the seventh edition of the Nigeria Manufacturing Equipment Expo (NME Expo) co-located with the ninth Nigeria Raw Materials Exposition (NIRAM Expo), which held in Lagos, Nigeria, from  November 21 to 23, 2023.

    Tagged: ‘West Africa’s largest manufacturing, equipment and raw materials event,’ the co-located NME/NIRAM Expo 2023 had the theme: “Future Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria.”

    Organised by MAN, in collaboration with Raw Materials Research and Development Council (RMRDC), NME was a response to government’s commitment to industrialisation and economic diversification.

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    It was, for manufacturers, an opportunity to explore new production processes that will increase their production output, including embracing innovative technologies to boost their competitiveness.

    NIRAM, on the other hand, was designed to create a platform for manufacturers to seamlessly source raw materials and also benefit from research and development breakthroughs.

    For the RMRDC, it was the answer to its yearning for a paradigm shift from Nigeria’s over dependence on imported raw materials and products to local raw materials utilisation and backward integration in areas where the country has comparative and competitive advantages.

    If the robustness and reach of the recommendations put forward by various stakeholders in both the public and private sectors are anything to go by, the co-located event may have set the stage for what promises to change the narrative in local sourcing of raw materials and products development in the Nigerian manufacturing sector thereby enhancing the sector’s productivity and global competitiveness.

    For instance, the Minister of Industry, Trade and Investment, Dr. Doris Uzoka Anite, was emphatic that Nigeria must prioritise the development of the local raw materials sector in order to support her manufacturing industry.

    The minister, in her keynote address at the opening ceremony of the expo on Tuesday, stated that by focusing on value addition and local sourcing, Nigeria can reduce her reliance on imported raw materials and improve the overall competitiveness of her products.

    “This-value addition and local sourcing, will also contribute to the growth of Small and Medium-sized Enterprises (SMEs) and empower local entrepreneurs to participate actively in the manufacturing value chain,” Anite said.

    The minister, who was represented by Mrs. Olumuyiwa Ajaiyi-Ade, said in line with the objectives of the President Bola Tinubu’s Renewed Hope Agenda, it was essential that “We intentionally shift our focus towards non-oil manufacturing sectors…

    “Through fostering innovation, championing local content, and strategically investing in critical infrastructure, we have the potential to catalyse the development of a robust and globally competitive manufacturing sector, thereby significantly contributing to our economy.”

    New technologies hold the ace

    Dr. Uzoka Anite did not mince words when she said the future of manufacturing in Nigeria relies on the ability to embrace technological advancements and innovation. She said by adopting cutting-edge technologies, Nigeria can boost the competitiveness of local manufacturers and also position herself as a global manufacturing hub.

    She said the expo’s theme aligned with the nation’s quest for revitalisation of the manufacturing sector, but that manufacturers must leverage emerging trends such as Artificial Intelligence (AI), automation, robotics, and the Internet of Things (IoT) to enhance their manufacturing processes, improve efficiency, and drive productivity. 

    The minister’s words: “The theme emphasises the need for a renewed focus as well as deliberate attention to the development of the non-oil sector through manufacturing processes. As we are all aware, Nigeria has long been dependent on oil as our primary source of revenue, putting marginal attention to sustained manufacturing activities.

    “However, the volatility of the global oil market and the need for diversification have necessitated a shift towards developing our manufacturing industry and tapping into its immense potential. We are convinced that manufacturing has always been a critical driver of any economic development and is crucial for sustainable growth and job creation.

    “It has the potential to transform our nation’s economy, diversify our revenue sources, and reduce our dependence on oil. The current global economic landscape provides us with unique opportunities to showcase Nigeria’s manufacturing potential and attract local and foreign investments to drive this crucial sector forward.”

    Dr. Uzoka Anite reaffirmed the Federal Government’s commitment, through her ministry, to fostering a conducive environment for manufacturers to flourish.

    “Our commitment extends to the implementation of policies and programs that facilitate ease of doing business, improve access to finance for manufacturers, and enhance infrastructure and logistics to bolster the manufacturing sector’s growth,” she said.

    She stated that as part of this commitment, the ministry will strengthen collaboration with MAN to implement sector-specific guidelines. This, according to her, underscores the pivotal role of the manufacturing sector in government’s overarching strategy for sustainable growth.

    “We acknowledge that manufacturing is a cornerstone for job creation, value addition, and a robust workforce. Our policy initiatives centered on creating an enabling environment, incentivising production activities, and promoting the use of made-in-Nigeria products to boost the competitiveness of our manufacturers, the minister stated.

    She pointed out that since her assumption of office, with the approval of the president, a Presidential Council for Industrial Revitalisation has been established, with the Minister of Finance serving as the Chair and herself as the Vice Chair.

    The industry minister added that various workgroups and task forces have been formed to effectively implement the council’s mandate.

    Some of them include subcommittees on consumer credit, commodity exchange, heavy industries, and steel development, as well as trade facilitation and ease of doing business.

    Other subcommittees are licensing and certification of artisans, trade facilitation and realisation, mining and solid minerals, oil and gas, and creative industries.

    MAN President Otunba Francis Meshioye could not agree less that the future of manufacturing in Nigeria is hinged on embracing technology and innovation.

    He noted that the unprecedented rate in which the world is changing in terms of innovative technologies, shifting customer expectations, as well as increasing social awareness of gender equity and restoration of previously marginalised communities has considerable impact on the future of the manufacturing sector hence the choice of the theme for the expo.

    Given these major shifts, Meshioye said: “If manufacturers can efficiently balance a combination of efficient economies of production and supply chains; strong and reputable products; loyal customers; an established logistics network; as well as reliable on-line business elements, they will be well-positioned in the future to compete favourably in the industrial marketplace.” 

    The MAN president expressed optimism that by successfully assimilating advanced technologies into their systems, existing and prospective industrialists can expect to realise even greater revenue and profits from their investments.

    Meshioye said despite concerns that the continent lacks the requirements for global advancements to capitalise on innovative technological initiatives, African countries are uninhibited by infrastructure legacy challenges, thereby providing a higher degree of flexibility than their developed counterparts.

    “Accordingly, Industry 4.0 remains a considerable opportunity for African manufacturers, ultimately giving the continent a cutting edge over the global economy. Beyond manufacturing, all industrial and commercial businesses in the country also suffer from energy inadequacy and inefficiency,” he said.

    Industry 4.0—also called the Fourth Industrial Revolution or 4IR—is the next phase in the digitisation of the manufacturing sector, driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics.

    Generally-speaking, Industry 4.0 describes the growing trend towards automation and data exchange in technology and processes within the manufacturing industry.

    RMRDC: we’ve risen to the task

    Aware that local raw materials utilisation and products development are key to Nigeria’s industrialisation and global competitiveness, the RMRDC said it is leaving nothing to chance in expediting Nigeria’s industrialisation through optimal utilisation of its natural endowments (agro and mineral raw materials) as inputs for manufacturing.

    The Council’s Director-General/CEO, Prof. Hussaini Doko Ibrahim, described its collaboration with MAN as ‘strategic,’ noting that their roles complement each other, and this, according to him, underscored the Council’s partnership with MAN in co-hosting these yearly expositions.

    He said the essence was to maximise the benefits to their common stakeholders, who continually aim to reduce the cost of manufacturing amid the rising cost of raw materials and process equipment.

    The DG, who spoke through RMRDC’s Director Business Innovation Centre, Mr. John Obekpa, specifically said the Council has assiduously worked over the years with stakeholders to increase manufacturers’ access to both basic and secondary raw materials.

    “The primary production of several strategic agricultural raw materials like cotton, sorghum, tomatoes, cocoa, sheet trees, oil palms, soya beans, cane sugar, cashew, fruits and sesame have been boosted by providing specific farmers with improved seeds or seedlings as the case might be,” he said.

    Prof. Ibrahim also said the establishment of over 40 pilot plants at the recently-inaugurated Raw Materials and Development Council’s Technology and Innovation Complex, Obasanjo Space Centre, Airport Road, Abuja, was a testimony to the Council’s unwavering commitment to ensuring competitiveness in raw materials and products development.

    According to him, the pilot plants at the complex signpost the Nigerian “I Can Do spirit’’ as it has emerged as a unique manufacturers’ hub.

    “It beckons venture capitalists to replicate the plants across the country for increased manufacturing activities even as their feasibility/viability and the capability of Nigerian Engineers to design and fabricate manufacturing equipment have been astutely demonstrated by the quality of indigenous engineering prowess brought to bear in putting the Technology and Innovation Complex together,” he said.

    The RMRDC boss further said the Centre has developed technologies that can produce caustic soda, soap noodles, calcium carbonate, lovastatin, herbal medicine, calcined kaolin, chemicals, talc, hydrated lime, essential oil, API from Mushrooms, Artemesia and triple concentrate tomato paste, which are secondary raw materials which are hitherto with limited local inputs and heavily imported.

    The Nation learnt that the technical feasibility/viability of all these have been ascertained and need scaling up for investment. And these innovations and their products were on display at the expo alongside other local raw materials and products, where a detailed exposé of the nation’s raw materials and their potential to grow the manufacturing sector was made.

  • Banks on recapitalisation march again

    Banks on recapitalisation march again

    In a strategic move to fortify the financial sector, the Governor of the Central Bank of Nigeria (CBN), Yemi  Cardoso has articulated a compelling vision: Nigerian banks must recapitalise to align with the demands of a burgeoning economy. This directive signifies a proactive step towards bolstering the banking sector’s resilience, ensuring it becomes a steadfast pillar in supporting the nation’s economic expansion. The call for recapitalisation underscores the imperative of adapting to the evolving economic landscape. As Nigeria inches towards the milestone of a $1 trillion economy, the CBN believes that the financial sector must be fortified to withstand potential shocks and contribute robustly to the nation’s economic growth. Therefore, recapitalisation serves as a strategic tool to enhance the capacity of banks to navigate uncertainties and actively participate in the economic trajectory.

     The CBN, with a firm belief that the current capital base of Nigerian banks is not sufficient to support the desirable level of economic growth, has emphasised that the goal of recapitalisation is not just to ensure the stability of the financial system in the present moment, but also to prepare banks for the future. The CBN believes that a stronger banking sector will be better able to support the growth of the Nigerian economy and create jobs for Nigerians. “it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is not just about the financial system’s stability in the present moment, as we have already established that the current assessment shows stability. However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital,” Cardoso said.

     A well-capitalised banking sector is inherently more resilient. By increasing their capital base, banks fortify themselves against unforeseen challenges, providing a buffer that insulates them from economic volatility. This resilience is pivotal not only for the stability of individual financial institutions but also for safeguarding the broader economic ecosystem. As the backbone of any economy, banks play a pivotal role in facilitating growth. A recapitalised banking sector translates into increased lending capacity, allowing financial institutions to inject more capital into key sectors. This, in turn, fosters entrepreneurship, drives investments, and catalyzes economic expansion—a symbiotic relationship between a robust banking sector and a flourishing economy. In an era of interconnected economies, aligning with global financial standards is imperative. The call for recapitalisation positions Nigerian banks on par with international counterparts, enhancing their competitiveness on the global stage. This alignment not only attracts foreign investments but also reinforces the nation’s economic credibility in the international arena.

     The recurrence of a banking system recapitalisation in Nigeria echoes the events of 2005, where the primary aim was to fortify the banking sector and stimulate economic growth. The results of the exercise were a mixed bag, showcasing both positive outcomes and drawbacks. One notable success was the substantial increase in the capital base of Nigerian banks, rendering them more resilient to financial shocks. This fortified position translated into a decline in loan defaults, fostering an overall healthier banking sector. The augmented capital adequacy and reduced loan defaults, in turn, reinstated investor confidence in the Nigerian banking system for a considerable period. With an expanded capital base, banks ventured into increased lending activities, acting as a catalyst for economic growth and job creation. The triumph of the recapitalisation resonated globally, enhancing the international reputation of the Nigerian banking sector.

     However, the recapitalisation also brought about merger-induced disruptions, triggering a wave of mergers and acquisitions that temporarily disrupted the banking sector. The differential impact on banks underscored the need for a more comprehensive approach, addressing not only capital adequacy but also corporate governance and risk management practices. Subsequent to the recapitalisation, the Central Bank of Nigeria (CBN) took steps to fortify corporate governance structures across the entire banking system. Despite these efforts, the Nigerian banking sector grappled with persistent challenges, including non-performing loans and regulatory issues.

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     Reflecting on the 2005 banking system recapitalisation reveals its significance in fortifying the financial sector and fostering economic growth in Nigeria. While challenges and limitations were evident, the exercise achieved its primary objective of bolstering bank capital, leading to enhanced financial stability and increased investor confidence. This recapitalisation laid a sturdy foundation for a more robust banking system, contributing significantly to Nigeria’s economic progress in the ensuing years. As discussions arise about the potential need for another recapitalisation, avenues to raise new capital become paramount. Banks can explore options such as rights issues, private placements, and retaining earnings. However, economic uncertainties stemming from factors like the COVID-19 pandemic, geopolitical events, domestic insecurity, and regulatory changes pose challenges. Economic downturns increase loan defaults, inflation erodes asset values, and stricter regulations elevate costs for banks. The Nigerian political environment’s volatility, coupled with uncertainties in technology and cybersecurity landscapes, adds complexity to the recapitalisation landscape. Navigating these challenges necessitates a strategic approach, considering the economic recovery, regulatory dynamics, and technological advancements. As banks contemplate avenues to raise capital, the broader economic and political context remains pivotal in determining the success and resilience of the Nigerian banking sector.

     Speaking to the issue of technology specifically and the disruptions new entrants into the banking space will make, Cardoso stated that “technology will continue to play a critical role in delivering financial services and enhancing financial inclusion. However, recent developments in the payment services landscape have raised concerns regarding the use of technology and the existing licensing and regulatory framework. We have observed that some licensees are operating outside the approved activities, breaching the boundaries set for them. Any intentional or unintended non-compliance will be subject to sanctions, as operators have the responsibility to ensure that they are licensed for the activities they undertake,” he said.

    The banking sector in Nigeria faces multifaceted challenges, with competition from various financial entities like fintechs, microfinance institutions, and mobile money operators pressuring traditional banks to reconsider their fees and enhance customer service. As the largest economy in Africa, Nigeria’s continuous growth is anticipated to amplify demand for banking services, providing banks with increased profits for potential recapitalisation. Amid these challenges, the Nigerian government’s supportive stance toward the banking sector is a positive signal, suggesting ongoing assistance for banks engaging in recapitalisation efforts.

     To successfully navigate the recapitalisation landscape, Nigerian banks are leveraging technology to enhance efficiency, expand their customer base, and ultimately boost profits while minimising costs. While the overarching goal of recapitalisation is to fortify banks against shocks and support economic expansion, several hurdles must be surmounted for a seamless process. One significant advantage of recapitalization lies in the realm of enhanced financial stability. A fortified capital base empowers banks to weather financial shocks, reducing the risk of failures and systemic instability. This, in turn, facilitates increased lending to businesses and consumers, fostering economic activity and growth. Investor confidence is a natural byproduct of a well-capitalised banking sector, attracting additional capital and spurring economic development. Recapitalisation can also drive consolidation within the banking sector, with smaller banks merging with larger, more robust institutions.

     The ripple effects of recapitalisation extend to supporting economic growth by providing ample credit to businesses and consumers, fueling investment, innovation, and job creation. Expanding banking reach into underserved areas promotes financial inclusion and equal access to financial services. A well-capitalised banking sector translates to lower borrowing costs for businesses and consumers, further stimulating investment and economic activity. Importantly, a stronger financial system bolsters the economy’s resilience to external shocks, enhancing the country’s attractiveness for foreign investment and fostering global competitiveness.

     While recapitalisation is a pivotal step toward fortifying the financial system, its success in birthing new and larger banks hinges on various factors, including the economic environment, regulatory landscape, and competitive dynamics. Policymakers, by reinforcing banks’ capital bases, not only mitigate risks but also foster a resilient and inclusive financial ecosystem. Ultimately, recapitalization is a strategic maneuver to navigate the complexities of the financial landscape, ensuring the sector remains robust, adaptable, and conducive to sustainable economic growth.

     These potential outcomes of the recapitalisation exercise paint a diverse landscape for the banking sector. The scenario unfolds where smaller, less well-capitalised banks grapple with meeting the heightened capital requirements; their recourse might be merging with larger, more robust banks. This could pave the way for a banking sector consolidation, characterised by fewer but more formidable banks wielding greater market influence. Conversely, if the recapitalisation process opens avenues for new entrants, the industry may witness the emergence of fresh players, injecting heightened competition and innovation into the banking landscape. However, it’s plausible that the recapitalisation may leave the size and structure of the banking sector largely unaltered, with existing banks simply bolstering their capital bases to align with the new mandates.

     The economic backdrop plays a pivotal role in determining the success of new entrants. A robust economy provides a conducive environment for new banks, while a weaker economic setting may pose challenges to their viability. Regulatory policies further shape the landscape; supportive regulations foster an environment conducive to new bank formations, while stringent regulations can impede the entry of new players. The existing level of competition within the banking sector also stands as a determinant. In an already saturated market, new entrants may find it challenging to compete effectively. The recapitalisation of Nigerian banks stands as a transformative event with far-reaching implications for the banking sector and the broader economy. Whether Nigeria eventually witnesses the emergence of new, larger banks hinges on a nuanced interplay of economic conditions, regulatory frameworks, and the competitive dynamics at play.

    Challenges and opportunities

    While the mandate for recapitalisation presents challenges, it also unveils opportunities for innovation and strategic restructuring within the banking sector. Banks will need to explore diverse avenues, from optimising operational efficiency to embracing technological advancements, to meet the new capital requirements. This transformative journey could usher in a new era of agility and competitiveness. The success of the recapitalisation initiative hinges on collaboration between regulatory bodies, financial institutions, and stakeholders. A transparent and consultative process will be essential to navigate the complexities of this transformation. Engaging all stakeholders ensures a collective commitment to the vision of a resilient and dynamic banking sector. CBN’s call for recapitalisation marks a decisive chapter in Nigeria’s financial narrative; it is a visionary stride towards ensuring that the financial sector becomes a driving force in shaping a $1 trillion economy. As banks embark on this transformative journey, the landscape of Nigerian finance stands poised for innovation, resilience, and sustained economic growth. The recalibration of the banking sector is not just a regulatory measure; it is a strategic investment in the nation’s economic future, if well managed.

  • Push for poultry growth in Africa

    Push for poultry growth in Africa

    The poultry industry plays a pivotal role in meeting the rising demand for protein-rich food in Africa. As the continent’s population continues to grow, the need for sustainable poultry farming practices becomes increasingly vital. There have been tremendous efforts to boost production as well as equip farmers with the essential knowledge and skills necessary to thrive in the industry, writes Daniel Essiet

    The global poultry population, according to Mississippi State University Extension Service, is approximately 16.2 billion, of which 71.6 per cent is found in developing countries. In sub-Saharan Africa, the  poultry sector has demonstrated the potential to promote economic growth. However, smallholder poultry farmers encounter several challenges, including rising costs of farm inputs, resulting from competition for key raw materials, inability to control poultry diseases because of increasing vaccine costs and lack of vaccine and disease knowledge and management.limited information regarding both input and output markets. According to the Food and Agriculture Organisation(FAO).

    Despite these advantages, FAO  and other organisations have  provide support to increase production and bridge the gap between the increasing demand and low supply of poultry products, weak management practices and traditional production practices continue to be used. Subsequently, the FAO launched the Africa Sustainable Livestock (ASL) 2050 report to develop opportunities in the livestock sector across the Continent.The ASL initiative, which is funded by the United States Agency for International Development (USAID), looks in detail at 6 African countries – Burkina Faso, Egypt, Ethiopia, Kenya, Nigeria and Uganda. It looks at what actions can be taken to ensure a sustainable development of the sector in the face of the projected rise in population, urbanisation and other factors. Africa’s population is set to rise from 1.2billion  to over 2.5billion in 2050.

    The FAO report said  future growth and transformation of the African livestock sector will be unprecedented, contributing to meet consumer demands for animal products, improved food security and nutrition.  In Egypt, the UN organisation sees the  larger, increasingly affluent and urbanised population consuming  more high-quality foods, and in particular meat, milk and eggs.  According to it, the consumption of poultry and eggs will increase by over 1100% and 480% respectively. Current consumption of poultry,FAO noted  is just 903,000 tonnes but this is set to rise to 3.19million tonnes in 2050. Egg consumption is set to rise from 283,000 tonnes to 786m in 2030 and 1.6m in 2050

    At present,the organisation said  commercial farms and large holdings make up less than 10% of the poultry production sector but this is set to grow. In line with FAO aspirations, the  Egyptian government is supporting livestock intensification as a way to meet growing demand for livestock products.

    FAO said the Egypt’s population will to grow by 65 per cent in the next three  decades and national projections foresee a 642 percent  increase in gross domestic producr(GDP),while h GDP per capita is  expected to rise from USD 4,000 to USD 20,000.

    For Ethiopia, FAO projected that the ys demand for poultry meat and eggs is expected to rise tremendously  and that the growing demand for livestock products will provide incentives for farmers to expand their asset and increase productivity through intensification.

    The  Ethiopian Ministry of Livestock and Fisheries has been implementing a Livestock Master Plan, which targets raising meat and egg production from chickens to 164,000 tonnes and 3.9billion  eggs.

    Another set to increase production is Kenya which its report noted will face an unprecedented growth in demand for food in the next 30-40 years. The growing, increasingly affluent and urbanised Kenyan population,it maintained, will consume more high value food, such as meat, milk and eggs.

    While there are considerable potential job creation opportunities in both the rural and urban sectors, the report indicated that the challenges of disease control, biosecurity and water are expected to remain.

    But for the Nigerian poultry industry ,the FAO noted that about 80 million birds are raised in extensive systems, 60 in semi-intensive and the remaining 40 million in intensive systems.

    According to him, income from livestock presents a significant share of total household income across all production systems, contributing between 23-51 per cent of total household income in extensive, semi-intensive and intensive systems. Also,off-farm labour is also an important source of income and can also include processing or marketing of meat or eggs. However, levels and structure of gross revenues from poultry have been very different across production systems with intensive egg production faring well. Despite this, , there is concern about welfare issues, particularly the low level of productive and use of animal health services.

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    The Director-General, Poultry Association of Nigeria, Dr Onallo Akpa, painted the economic picture of the eggs in Nigeria, which is enormous. He said an egg a day for 50% of the Nigerian population will produce a daily economic value of N1.7 billion.

    For him, Nigeria’s poultry industry, worth $4.2 billion according to FAO, a major protein source for over 200 million people, could be saved if something is done to address farmers complains about  high feed costs and traders lamentation about the cost of the constantly rising ingredients for the feeds.

    Group Managing Director, Amo Farm Sieberer Hatchery Limited, Dr. Ayoola Oduntan,,believes  poultry farming has become a dominating sphere with a global poultry market value of $352.02 billion last year  and estimated to reach $378.84 billion this year , at a compound annual growth rate (CAGR) of 7.6per cent . It is expected to be $429.11 billion by 2028, with an expanded rate in the last 30 years.

    His Amo Farm Sieberer Hatchery Limited based,  in Oyo State, has  been making a remarkable impact in the agricultural value chain. Oduntan was of the opinion, Nigerians can only take advantage of the e market expansion in chicken farming if the operators pursue  modernisation and automation, as well as the genetic creation of birds that allow for higher productivity.

    At  its multi-billion-naira production facilities across Akinyele, Awe, and Ogbomosho Farms, all in Oyo State, Amo Farm Sieberer Hatchery Limited, produces over one million-day-old chicks (comprising of Layer, Broiler, and their own innovation Noiler) a week from its different hatcheries across Nigeria and plans to increase it by 30 percent on a year-on-year basis, to meet the growing demand for animal protein in the country.

    Amo Farm has empowered over 1.3 million rural households with its innovative Noiler bird, with an emphasis on women, and has laid a solid foundation that could be multiplied to spread across the whole of the country, and even the rest of Africa.

    The company’s innovative chick production techniques have given it a competitive edge and proven to be a source that can be trusted. Its commitment to premium quality and the abundance of benefits derivable from Amo chicks have made its chicks the “Wise Farmer’s Choice.”

    Established in 2002, Amo Farm Sieberer Hatchery Limited has a vision of becoming the market leader in the Day-old Chicks market; through exceptional quality products and services that will guarantee profitable poultry farming. This is with a commitment to premium quality while the abundance of benefits derivable from Amo chicks has made its birds the “Wise Farmer’s Choice.”

    At Akinyele, the company has its automated abattoir where chickens are processed, packaged, and branded as ready-to-cook and ready-to-eat natnudO Foods, for sales in the country, while it has, at Awe, parent stock for broilers, and other products, various chicken sites, the hatchery sections with day-old chicks, the egg units, and the artificial insemination unit, one of the innovations of Amo Farm, for female chickens for improved productivity.

    There is also the Amo Byng which is the feed mill arm of the Amo Farm Sieberer Hatchery Limited (AFSH) for the company’s products and also for sales purposes. Also, is the engineering division of the company, Diversay Solutions Limited, where the company has demonstrated its inventiveness in locally fabricated machinery that could reduce the cost of importation of foreign machines and spare parts thereby reducing the cost of production in the poultry value chain.

    To further deepen farmers’ engagement, Amo Farm, through its natnuPreneur scheme, trains and offers technical support as well as access to farmers for quality inputs to raise birds that are off-taken by its natnudO brand. Through this process, over 6,000 poultry farmers have been trained across the country for market access for the brand.

    Given Amo Farm’s immense contribution to the agricultural development of Oyo State, and the country in general, Seyi Makinde, in a recent facility tour of the company, applauded its pragmatic approach to agricultural innovation which aligns with his administration’s move to ensure food security for the people. He said the company’s efforts are a boost to the State economy, and making food available to the people, with emphasis on nutritional protein.

    Makinde affirmed that the empowerment and job creation initiatives of Amo Farm for rural women through chicken poultry are unparalleled as it has helped in improving their living standards and that the government would like to partner with Amo Farm Sieberer Hatchery to further strengthen its drive to make animal protein available, not only in Oyo State but across the country.

    While marking this year’s World Food Day, celebrated annually last month, with the theme “Water is Life, Water is Food,” Dr. Oduntan, said Amo Farm is committed to growing agriculture in Nigeria by providing access to animal protein through its products and that more access to eggs in the rural communities through its Noiler bird will reduce the occurrence of child stunting, malnutrition, and healthiness.

    In line with the objective of the 2023 International Day for Poverty Eradication, also known as End Poverty Day, celebrated annually on October 17th with the theme “Decent Work and Social Protection: Putting Dignity in Practice for All,” Amo Farm has shown its strong commitment in providing rural women with access to decent work and social protection through its Noiler farming programme.

    It plays a vital role in achieving this goal, as it is a low-cost, high-return enterprise that can provide women with a sustainable income, access to protein, and improved livelihoods.