Category: Business

  • Why tobacco farmers oppose WHO convention

    Why tobacco farmers oppose WHO convention

    FRESH fact has emerged as to why the Nigerian Independent Tobacco Association is not favourably disposed towards the proposals by the World Health Organisation’s Framework Convention on Tobacco Control (FCTC).

    According to the association, if the proposal sails through, it may threaten the livelihoods of more than 30 million tobacco growers and farm workers all over the world, Nigeria inclusive.

    Making this case recently was the chairman of the association, Mr. Rasheed Bakare.

    “We are calling on the federal government to oppose proposals by the World Health Organization’s Framework Convention on Tobacco Control (FCTC) that threaten the livelihoods of more than 30 million tobacco growers and farm workers. These proposals will be voted on in less than two weeks at the WHO’s meeting in Seoul, South Korea,“ he stressed.

    He, therefore, appealed to the federal government to join in the fight, against passing the bill. “We appeal to federal government to stand with us, tobacco farmers, against the bill World Health Organisation wants to pass into law soon. Even the time duration allocated for planting of tobacco should be expanded. We want to be allowed to continue the way we used to plant tobacco before, which is from March to August. We seek for opportunity to air our views to highlight on the advantages of growing tobacco. The Framework Convention on Tobacco Control has not heard the voice of growers and has gone off track in pursuing absurd proposals that are contrary to its original mandate.”

  • Expert lauds CBN cashless policy

    Expert lauds CBN cashless policy

    THE cashless policy regime introduced by the Central Bank of Nigeria (CBN) is capable of curtailing fraud and financial-related crimes in the country, Mr. Demola Somarin, a financial expert has said.

    Somarin, who is Managing Partner, Ademola Somarin & Co Chartered Accountants as well as Chairman, Lloyds Property & Investment Co. Limited, said if the policy is well-implemented, the banking and financial-services sector stand to benefit.

    “The cashless policy of the CBN is good. So, we need to support it. It is a good idea so I think everybody should support. We are the largest populated country in Africa and for that reason one would expect that we should be able to lay certain standard, “he stressed.

    According to him, “Banks in Nigeria under the new CBN policy are beginning to level up with their counterparts abroad. Like what is obtainable in the Western world, you experience bank to bank transfer, e-payment and other facilities which have drastically reduced rate robbery.”

    While decrying the growing incidence of fraud in the public and organised private sector, he said full compliance with corporate governance procedures can help to address the solution.

    Citing ICAN as a good example of an institution committed to corporate governance, he said the accounting body places high premium on professionalism, as such, it does not condone any unethical practices on the part of its practitioners that is capable of bringing its hard-earned reputation into disrepute.

    “I believe ICAN is a very reputed body that does not tolerate nonsense and to obtain ICAN certificate, you must prove your best. Any accountant that messed up will be sanctioned. I will recommend that government should allow ICAN body or a committee from the institution based record to constitute the investigatory body to the public funds in some parastatals,” he said.

  • Power sector gets Skye Bank investment boost

    Power sector gets Skye Bank investment boost

    THE nation’s power sector is set to receive a major boost with the funding support for the sector by the Skye Bank Plc.

    A prominent player in project and infrastructural financing over the years, Skye Bank has helped corporate organisations, individuals, local, state and the Federal Government to fund developmental programmes which have direct and beneficial impact on the people. The bank’s intervention cuts across all sectors and there are memorable footprints in this regard.

    In the latest financial support, the bank is bankrolling the Independent Compressed Natural Gas plant project in Rivers State. Skye Bank Plc is the lead financier and banker of the project. In addition to providing funds for the project, the bank also provides advisory services.

    The bank believes that the project is a turning point in the history of Rivers State as Nigerians will have access to low cost, long lasting energy for industrial and residential users, as well as a cleaner and healthier environment.

    According to officials of the bank, it took the decision to partner with the company because of the bright prospects it holds and the multiplier effects it will have on the economy.

    The scope of the venture include deployment of gas processing facility to clean and compress gas, before conveying CNG in specialized trucks to proximate market places and construction of mother and daughter stations at owner’s site and client’s site which is used to transport gas from a gas node to client’s site.

    Thus, the gas produced can also be used to power cars thereby ensuring a greener means of transportation. The project is in conjunction with the international leading Engineering Procurement and Construction (EPC) Company and it is a pioneer project within the region.

    Skye Bank said it believed the project will revolutionise the manufacturing and transportation industries because of its confirmed potentials and benefits to these sectors. The project is also in line with the government’s objective of making available to Nigerians the benefits of sustainable energy which is the only form of energy that is long lasting, nature and environment-friendly as opposed to organic fuels.

    “We understand the challenges of the industry and investment opportunities that exist in it. Our broad transformation strategy supports meaningful partnership with government agencies and institutions to execute their primary mandates,” Head, Corporate and Strategic Planning, Skye Bank, Tajudeen Ahmed said.

    According to him, the aim is to attract foreign investments into the state’s economy. When the project is completed, it is expected to provide gas to power several industries in the state and boost their outputs. This increase in output is expected to lead to greater revenue for the affected companies and in turn enhance their ability to generate employment and increase their capacity.

    Besides, industry analysts said the project will greatly reduce the incidence of gas flaring which is prevalent in the area and help in conserving the nation’s stock of gas which can be harnessed and processed for domestic and industrial uses.

  • Firm to host annual customer forum

    Ammasco International Limited, a major lubricant manufacturer in Nigeria, has concluded plans to hold its annual customer’s forum in Abuja from November 31st to December 1st, 2012.

    The event which holds at the Ibro Hotels, Abuja, according to the management is aimed at updating its customers as well as the public on developments within the sector.

    Tagged “Quality: Our Commitment to Customer” it will also afford the company the opportunity to interact and share experiences on how better their businesses can be conducted.

    Besides, customers and distributors are to be rewarded with various gifts items namely saloon cars, monetary as well as other consolation prizes.

    Briefing journalists at their plant recently on the forthcoming customer forum, Alhaji Ado Muhammed Chairman/CEO of Ammasco International who is also the Vice Chairman of Lubricant Producers Association of Nigeria (LUPAN) emphasised the need for government to help sanitise their industry through the regulatory bodies, Standards Organisation of Nigeria (SON) and Department of Petroleum Resources (DPR) to curb the nefarious activities of unscrupulous elements engaged in producing as well as selling counterfeit, adulterated and fake lubricant oil.

  • Guinness roots for Super Eagles

    FOR bookmakers who never gave the Super Eagles any chance of getting over its run of misfortunes, it is just as well that the Eagles have now gotten their lives back on an even keel with its qualification for the 2013 African Cup of Nations tournament billed for South Africa.

    Perhaps, to show its appreciation for Eagles’ well-earned victory, Guinness Nigeria Plc has unveiled a series of exciting consumer led activities to rally the support of millions of Nigerians for the team as it seeks to emerge victorious at the tournament which begins January 19 next year.

    Tagged: “Fly with the Eagles” campaign, it is a groundswell of support aimed at ensuring victory for the Eagles at the 2013 AFCON outing.

    That much was revealed at the public forum organised by the management of Guinness over the weekend.

    The event, which held at the Eko Hotel & Suites, had the Managing Director Guinness Nigeria P/lc, Mr. Seni Adetu among a number of dignitaries in attendance.

    Justifying the need for the event, Adetu said: “Guinness Nigeria is keeping faith with the Super Eagles as we have always done because we believe the team is not just made up of the eleven players on the pitch but also includes the 170 million people cheering their team on. As a company and a football-loving brand, we are convinced that we have what it takes to succeed at this year’s outing.”

    Before unveiling the logo for the campaign, the Marketing and Innovation Director for Guinness Nigeria Plc, Mr. Austin Ufomba, reeled out a series of activation handles that make up the entire ‘Fly with the Eagles’ campaign – including a National Consumer Promotion, the campaign theme song, Guinness Fan Parks and an exciting engagement platform that will enhance deeper participation of fans and consumers alike.

    He said: “We believe strongly in the Super Eagles and in the passion of the Nigerian supporter. As such, Guinness Foreign Extra Stout will once again demonstrate its belief in the Super Eagles by providing innovative ways for millions of fans in Nigerian to show their undying support for the Super Eagles as they compete at the Nations Cup in South Africa in 2013.”

    The Secretary General of the Nigerian Football Federation, Alhaji Aminu Maigari represented by Mike Umeh applauded Guinness’ efforts in supporting the national team. “The Super Eagles have become a symbol of national pride and anyone that supports the team supports the success of the nation as a whole. We are very happy that Guinness is embarking on this journey with us and indeed they must be applauded for the continuing support and encouragement they have provided for the sport as a whole and especially football.”

  • NOI telecoms snap poll

    IN a recent NOI Poll conducted in October 2012, with the dominant findings being that Nigerians want better service quality and lower price tariffs from network operators, Etisalat emerged as the telecoms network most beloved by its subscribers.

    Etisalat emerged the clear leader with 31% of its subscribers rating it “Very Good”. Following not too closely was Airtel with 19% and Glo 17%. MTN brought up the rear with only 11% respondents rating it Very Good. And on the reverse side of the ratings question, MTN was rated Very Bad by 7% of its subscribers while Etisalat and Airtel were given a rather clean bill with none of their subscribers rating them Very Bad.

    The same response was the result when subscribers were asked if they were getting value from their main network provider. Although 55% on the aggregate expressed satisfaction with their network providers, Etisalat subscribers were happiest with their network – at 76%, followed by Airtel at 62% and Glo at 55%. MTN subscribers expressed the least satisfaction (53%).

    Probed further on what they would regard as real value, subscribers pieced it down to three indicators: Network/Service quality (44%), Bonus Credit Tariff offers (34%), and Cheaper Tariffs (14%). And who had the most preferred tariff? MTN (44%), Etisalat (23%) and Airtel third at 17%. It is interesting to note that subscribers don’t ascribe too much value to promotional offers (3%), internet bundles (2%) or family/friends bundles (3%).

    The poll also revealed that 45% of Nigerians use dual lines while another 19% use three lines in order to circumvent the network failure that usually cripples Nigeria’s networks. It was no surprise therefore that most Nigerians would rather that the mobile Network Operators, MNOs, make concerted efforts to improve their service quality instead of the promo offers they make to their subscribers.

    Of the respondents (26%) using only one line, the poll found out that MTN was the favourite with 89% being subscribers to the network, while Airtel (5%), Glo (4%) and Etisalat (2%), followed at a distance. However with regard to those who use dual lines, the favourite combinations are MTN/Etisalat 34%, MTN/Glo 31% and MTN/Airtel 29%.

    When it came to the issue of main line used by dual line owners, MTN led the pack with 78%, Airtel followed at 9%, while Glo and Etisalat were tied at 6%.

    The results which were based on a nationwide telephone survey of 758 phone owning adults aged 18 and older, also had categories like Perception of Quality of Service (Best and Worst); and what measures to be taken to deter MNOs from rendering poor quality service. To the latter, the majority, 39%, answered that Network providers should be mandated by to improve. Closely following was another 26% of respondents who said NCC should sanction MNOs that fail to improve on their services. 20% however believe the matter will only be resolved with the opening up of the market space to new MNOs.

  • GSM Operators– What next?

    BY now, it should be work-in-progress for strategy review and new idea generation among strategic planning team members of the telecom brands management teams. The National Communication Commission’s (NCC) ban on promotions last week, definitely took the wind out of their sail. The public is still celebrating that NCC ban! They felt deceived, robbed and disrespected by all of those consumer-reward promotions – or so it seemed.

    Last week we took time to look at the moral aspect of the nature and pattern of brand support employed be the managers of telecom brands in this market, with an attempt to establishing the latent implication of those activities that led up to the posture of these brands. At that level of consideration, consumer attitude was the key focus. But the market did not reckon with consumer attitude in reaction to the brands’ behavior because the consumers were left with no option. What seemed market options by reason of the number of (especially) the GSM operators was a collective gang-up to take advantage of the unprotected market.

    They could do all they chose to because the following were manifest:

    (1) Novelty of the technology. The GSM technology came as a miracle to over 75% of present users – above 30years olds. What with all the very bad experience with NITEL of old. So when the new technology came, it met a confused market that is open to any offer, so far as it enables TALK. Some of us bought this seem card that is now free for N10, 000.00

    (2) Inadequate awareness. We have had to push for consumer awareness development on this page and at different forum, for the simple reason that the ideal market situation is dependent upon the existent to which the consumers or market is informed. Let us quickly add at this point that in so many ways that is one of the basic functions of advertising (making-known).

    (3) Near-monopoly situation. In spite of the law that permits free entry and free exit, we all know that in practical terms, the initial investment required for some industry participation can replace freedom with monopoly at the market place. So when those who are financially strong enough to make the required investment break into a given market, they close up the market and redefine its status. So, when those early players came in with their quantum investment, we all consumers in the conquered market became victims. Recall it took the entrance of GLO to save us from per minute billing system? Econet and MTN insisted per second billing was not just possible. Today, the market appreciates GLO for that innovation.

    (4) Consumer-habit. Basically, consumers in our local market are not given to appropriate discernment. Add to that is their hunger for ostentation and excessive aspiration and class consciousness in purchases decision-making. That explains why luxury offers sell more in this market and brand managers find it easier to manage luxury-based offer brands. If only we can begin to be more rational in our buying decisions, we would be better protected from exploitation and abuse.

    In the face of the above-mentioned, subscribers in Nigeria were compromised in so many ways for over ten years. However, the damage went far beyond consumer abuse; the brands are the biggest losers, only that the manifestation of the brands’ losses took a little longer. Like we have always noted in our write-ups, consumer reaction to any given brand’s attitude can only be delayed, but “action and reaction” will always be same and equal. Even in a monopoly, there comes a time when consumers begin to ask questions, change earlier decisions and make more profitable buying decisions.

    Looking back, the GSM technology-based telecom operators were too brutal on subscribers in this market. Worst still were the first two entrants – MTN and the then ECONET. Besides the haste to make profit, MTN and ECONET stretched the advantages inherent in the local market’s “ignorance” to mop-up the market unfairly. A recent consumer perception study (please see below) aimed at gauging the market’s perception of the various telecom brands, shows preference more for the brands that entered the market much later. The preference recognizes the more friendly personality of the later brands. To a large extent, increased competition determined the personality of brands that came into the market at later dates.

    At MC&A DIGEST, however, the bigger losers are the brands. We once warned on the need to review professionalism in brands management for brands’ sake. Pseudo-monopoly in the telecom market compromised the extent of professionalism in brands management. Those engaged to manage these brands were not challenged in any way; all they do is think-up any of those plans that will aid free spending. Brands and corporate campaigns were replaced with sales promotions. Even such promo campaigns were not based on deep strategic planning, and that is why somebody will approve a promo which star prize is an air craft (that was the height), for a penny brand. One would really like to read the rationale for that promo.

    Laziness crept in. the brands were not professionally represented; strategic thinking and planning were sacrificed for mediocrity. Anybody can plan a sales or consumer reward promo campaign, but it takes a grounded professional and a truly creative team to plan a product campaign. Product campaign tasks practitioners in deep thinking, strategic planning, market and consumer insight, consumer traits, habit and expectation analysis and insight on competition. Why would telecom brand managers bother themselves when the consumer has no choice and competition is non-existent? It is sad because I know of some very fine practitioners I have so much respect for that became inactive and compromised by the environment they found themselves.

    Now that the chips are down, it is time for stock-taking, for telecoms brands. So we ask (again): WHO MANAGE YOUR BRAND? Telecoms brands must begin to separate the chaffs from the other ones because it is time for truly professional brand management: tell us your target market the unique personality and offering of your brand, the competitive advantage connected with your brand versus competition, the specific consumer expectations you are satisfying…it is time for true professionalism.

    The following poll study is instructive.

  • Samsung wins  Best Innovations, Eco-Design awards

    Samsung wins Best Innovations, Eco-Design awards

    Samsung Electronics Co. Ltd., a market leader and award-winning innovator in consumer electronics, semiconductors and telecommunications has won 27 prestigious International Consumer Electronics Show (CES) 2013 Innovations Awards.

     CES, the world’s largest consumer technology trade show held by the Consumer Electronics Association® (CEA) every year, has honored Samsung with 117 awards in the past four years.

     Among the 27 CES awards for 2013, Samsung was recognized with two Best of Innovations awards and four Eco-Design honors. Products entered in the CES Innovations program are judged by a preeminent panel of independent industrial designers, engineers, and members of the media to honor outstanding design and engineering in cutting-edge consumer electronics products across 29 categories.

     “Samsung continues to create superior industry-leading products, content and services,” said Y.K. Kim, president and CEO, Samsung Electronics America, Inc. “We are honored that CEA and the industry have recognized this commitment, and we look forward to demonstrating our latest product innovations at the 2013 International CES.”

     Samsung Electronics’ award-winners include products in the TV, home theater system, mobile phone, tablet, home appliance, server, software, and computer component categories. All of Samsung’s award-winning products will be on display during the 2013 International CES, which runs January 8-11, 2013, in Samsung booth #12004 in the Central Hall of the Las Vegas Convention Center.

     Honorees will also be displayed at CES Unveiled: The Official Press Event of the International CES from 4-7 p.m. on Sunday, January 6 in the South Seas Ballroom C at Mandalay Bay.

     The prestigious Innovations Design and Engineering Awards (Sponsored by the CEA,) has been recognizing achievements in product design and engineering since 1976. The CES Innovation entries are judged based on criteria such as engineering qualities, based on technical specs and materials used, Aesthetic and design qualities, using photos provided, The product’s intended use/function and user value, Unique/novel features that consumers would find attractive and how the design and innovation of the product compares to other products in the marketplace. Products chosen as Innovations Honorees reflect innovative design and engineering of the entries. Examples may include the first time various technologies are combined in a single product or dramatic enhancements to previous product designs.

    Samsung received two Best of Innovation Awards for its 85-inch UHD TV and Samsung Smart TV Camera. The Samsung Green DDR3 64GB LRDIMM – a highly advanced memory module designed for server systems used to support the infrastructure of a wide variety of server applications won the Eco-Design awards

    While commenting on the awards in his office, the MD of Samsung Electronics West Africa, Mr. Kim Brovo said the award was well deserved. “Samsung has always reiterated its commitment to innovation, smart technology and eco – friendly solutions. This is why we have been honored year in year out. This year is no different. The recognition helps to fuel our passion to continue with our good work” he added

  • New electricity tariff: NASME, NERC parley holds Monday

    The National Association of Small and Medium Enterprises in Nigeria, NASME, is set to hold an interface and discussion session with the National Electricity Regulatory Commission in Lagos on Monday.

    The parley, it was learnt, is aimed at addressing the issues bordering on the pricing of electricity.

    In the recently released multi-year tariff order (MYTO), it was discovered to be having adverse effect on the operations of small businesses in the country.

    In the proposed dialogue with NERC, NASME is seeking a reclassification of MSMEs in the tariff regime and a reduced fixed charge based on a new classification.

    NASME has, therefore, prepared a detailed proposal on a more desirable tariff structure to be discussed at the event.

    The proposed meeting with NERC, it is believed, will further strengthen relationship between the private sector and government as well as grow the nation’s economy in the creation of more employment and the provision of goods and services very essential to the lives and livelihood of Nigerians in general.

    Following a preliminary survey conducted by NASME after four months of running business under the new tariff, it has been discovered that an average small or medium scale business owner has been forced to deploy scarce business investment revenues to pay huge electricity bills to ensure continuity of businesses.

    Major reasons that make the dialogue between NASME and NERC imperative include the facts revealed by the survey that an average SMEs has been classified in the same rate category as the large corporations, which is compounded by the discovery that the increase in monthly fixed tariff has not translated to an improvement in electricity services in the first four months of the tariff regime.

    According to the president of NASME, Alhaji Garba Ibrahim Gusau, “The implication of the findings of our survey is enormous and it is critical to the economy of the country. It signifies the weakening of the MSME sector, which is already resulting in reduced productivity and growing unemployment. We believe that at a time when the government is seeking to grow the private sector, stimulate investment and increase employment, particularly of the burgeoning youth sector, further burden of huge operational cost is not in the interest of anybody. This is critical because there are well-documented evidences that shows the MSMEs generate the most employment in the country rather than the large corporations. The proposed dialogue is, therefore, designed to create a platform for exchange of information on the new order as well as help NERC to get feedback from the MSME sector on the implementation of the new electricity order so far.”

  • Is Nigeria prepared?

    Is Nigeria prepared?

    Although the Federal Government has assured that the fear over imminent food crisis in 2013 is unfounded, many Nigerians, especially concerned stakeholders, are not persuaded that the means and ways being devised by government at all levels can possibly address the challenge, report Ibrahim Apekhade Yusuf and Bukola Afolabi

    IT the best of times, feeding has always been a problem in Nigeria. The truth is that we Nigerians have suffered a lot of privations more than we are willing to admit to ourselves. But with the recent ravaging floods and the porous security situation in the country which is getting worst by the day, the future is bleak as well as scary.”

    The foregoing anecdote by Mr. Timothy Adewale, a produce merchant from Ondo, speaks volume of what Nigerians should expect next year in anticipation of food shortage.

    Flood casualties

    The ravaging flood took a lot of casualties from small-holding farmers to big businesses across the country.

    As a result of the disaster, most of the farmers fear that they would be able to contribute just little to the food basket of the country, a situation that could lead to food supply crisis.

    Malam Aminu Bako, from Kano, is one of those hard hit by the effect of the flood.

    “I was harvesting on the average over 200 bags of wheat and corn in previous years, but this year I was only able to take five bags after harvesting period,” he lamented.

    Bako added that many of his colleagues could not harvest a third of their usual annual output this year, saying “they have lost all their farm produce to the disaster. Most of the affected farmers in this village have started sending their children to cities like Kano, Abuja, Lagos, Port-Harcourt and Kaduna to search for odd jobs so that they can sustain their families till next year.”

    Like Bako, Malam Ali Suleiman, a large scale cotton farmer in Katsina, is still leaking his wounds.

    He said, “We have started feeling the consequences of the disaster in this village because some people have started begging for food, while others have begun to send their children to cities in search for odd jobs.”

    In Kebbi State, farmers are still counting their losses few months after flood washed away their farmlands. At the peak of this year’s rainy season in August the state witnessed its own share of flood. Many farmlands and residential houses were destroyed in parts of the state.

    “We thank Allah for everything. The major crop we plant here is onion, but because it is a dry season product we plant grains to augment it. This year, apart from the problem of flood, we had acute shortage of fertiliser, which also adversely affects our output.”

    Echoing similar sentiment, Mr. Ade Adefeko, Head Corporate & Government Relations of Olam Nigeria Limited, while weighing the economic cost of the flood on agribusiness, he said, “I can readily say the crop loss was within the margin of about 150, 000 to 20, 000 tonnes with an economic value of over N2.4 billion approximate. Nothing can be done for this season. For next season, the government should provide irrigation for upland planting or bunds for the fields.”

    Adefeko who confided in The Nation that his company also suffered from the flood hinted that over 10, 000 hectares of its rice farmland in Nasarawa was partly affected.

    Probed further, he could not clearly estimate losses, saying, “The Olam has not quantified its losses yet.”

    Austerity takes toll

    It is a public knowledge that food items most especially tomatoes has become a scarce commodity now while the few that are available are sold at exorbitant price by traders.

    Investigation revealed that the scarcity of most staple foods is already taking its toll on the economy.

    Two small seeds of tomato now sell for N100 as against four or five large seeds which were sold for N50 before the scarcity. Items like yam, cucumber, beans and other perishable food stuffs are also scarce in the market as a result of the violence and terrorist attacks in the northern part of the country, a region that is responsible largely for the food items consumed by the southerners.

    According to Abiola Oni, food stuff merchant, this time around farmers are supposed to be working in their farms now but they cannot because flood has taking over there farm and some run away because of the insecurity in the region.

    “Before now everybody produce there foods from there region like those in the south west, they have time when there yam comes out also in the Eastern part of the country but now, everybody are eating Abuja yam. They all depend on the foods that come out from the northern part of the country now,” Oni said.

    Probable cause of food scarcity

    Many people are of the opinion that laziness on the part of southwest people is responsible for the current food crisis being experienced by the region.

    “I think the problem has to do with laziness from us Southwest people. In Yoruba land, we have better and fertile lands than what they have in the north,” said Segun Adeyemi, a graduate of Agricultural Engineering who resides in Lagos.

    He continued, “In those days, in the west, we had Cocoa, Igemo rice, yam. There were many people in the village who were doing farming but now, everybody wants a white collar job. They have all left the village and are now living in Lagos, Ibadan, I mean cities. Everybody wants to come to the city to work. Some even prefer to be bus conductors than staying in the village to farm. In those days, we never depended on yam or tomatoes from the north but now there is problem. We no longer have all those things in the west. We eat what comes from the north. Assuming that the south west people are doing farming on a larger scale, we wouldn’t be feeling the impact of food items not coming from the north as a result of Boko Haram violence in the area. Sad to say, whatever affects the north in terms of food items now affects the south too,” he said.

    He added, “It was the money from farming that was used to build Cocoa House in Ibadan. That was the period farming was flourishing in the west. Look at ofada rice which is being planted in the west. Assuming that we have been able to increase the production of the rice, we would not be relying on imported rice. Now with what is going on, you can imagine what would happen, God forbid, if there is war between the south and the west, we southerners will be at the mercy of northern people. They can stop bringing food to the south which will adversely affect us.”

    “Government also is not helping matters. They only distribute few fertilizers to few farmers. Roads to some of these rural areas are also in bad condition thereby preventing movement of goods. What about mechanized farming? It is no longer practiced. If governments in the west fail to improve the sector, we might soon experience the worst food crisis in the west in the near future. Unfortunately, people are now paying through their nose to eat which should not be the case whereas the money is hard to come by.”

    Toyin Ogundele, a grocery seller, also lamented rise in the cost of produce.

    “I am afraid for this country because now that food has increase at this time, basket of tomatoes that we buy N4,000 naira is now N7, 000 and I know it will still increase.”

    Recent investigation also revealed that the violence has also affected the cattle trade as traders are finding it difficult to transport their animals to the South. In fact the crisis in the North has forced some of the crop farmers and pastoralists to abandon their lands and relocate to the neighboring countries of Niger, Chad and Cameroun.

    A few months back the National Emergency Management Agency said about 65 per cent of northern farmers had migrated to the South because of the insecurity they faced. The agency warned that the country faced a famine by the end of this year because most of the small-scale farmers and big-time farmers in the North were threatened by terrorist attacks.

    Government optimism

    But the government holds a different view. If anything, the Federal Government has assured Nigerians not to panic over the speculations that there may be food crisis or famine following the massive destruction done to farm produce by floods across the country because it has already put in place a Flood Recovery Food Production plan to support farmers in the flood affected areas.

    The Minister of Agriculture and Rural Development, Dr Akinwumi Adeshina made this disclosure during the National Agricultural show held in Nasarawa State last month.

    He said “Let me assure Nigerians we shall not have a food crisis or famine. We will recover from the flood. We have already secured 100 metric tons of seeds of extra-early maturing maize, which matures in 60 days, to plant on 5,500 hectares of farm lands in affected areas. This will allow affected farmers to have a harvest and feed themselves quickly before the next planting season. This will produce 11,000 tons of maize and will be complemented with an additional 500,000 tons to be produced under irrigation in the dry season.”

    Dr Adeshina said “what does this add up to in terms of food production for our country? When we started, we informed the country that we would add 20 million metric tons of food to our domestic food supply by 2015. Today, from our efforts this year alone, from maize, rice, cassava and sorghum we are adding a total of 8.1 million metric tons of food. That is 41% of the total target that we set for 2015.”

    He observed that as part of the flood recovery food production initiative, the Ministry of Agriculture will distribute 1,000 pumps to farmers to use for flood recession food production in the dry season. “The Agricultural Transformation Agenda in Nigeria is well on course. We have been able to attract $ 7.8 billion of private sector investment commitments into the agriculture sector in the past one year. The World Bank is providing $500 million. The Bill and Melinda Gates Foundation have selected Nigeria as a priority country for its investment in agriculture. The International Fund for Agriculture Development has put up $80 million. The USAID has committed $60 million. And the DFID, Ford Foundation and Rockefeller Foundation have committed technical support facilities,” he said.

    John Isemede, Director General, National Association of Chambers of Commerce and Industry, (NACCIMA) is also on the same page with government.

    The threat of famine, he says can be conquered if the right steps are taken. “I travel round the country and I have found out that cultivation is not the problem. The problem is not with the farmers, this you would notice if you also travel round the country. Processing, storage and marketing are the problems. When you consider these one after the other, then you would understand what I am talking about. Starting with processing, the majority of what is produced in the country is lost.”

    He however noted that lack of some basic infrastructure have affected some of the moves being made. “Electricity is not there. Even In the past when we had the railway system, we use to transport cows, livestock and many other things were transported from the North to the South and even people. Things however has changed, not even cows this time, that we have refrigerated containers that is the issue of processing.”

    The flooding, he stressed may be a blessing in disguise. “I am saying that because I know what the minister of agriculture is all about. He is a very experience and very matured somebody, and so also of recent the federal governments have come up with a good support for the state that is affected by this flooding.”

    In search of elusive silos

    It is also instructive to note that the flood and the poor harvest this year have raised questions over the state of storage silos spread across the country.

    It will be recalled that the late President Umaru Musa Yar’adua administration committed a whopping sum of N50 billion in the 2009 budget projections of the Federal Ministry of Agriculture and Water Resources for the construction of grain storage silos across the country.

    By 2010, reports said an additional N96 billion had been released, making a total of N146 billion. At that time it was projected that ongoing silos projects and the construction of new ones in order to bolster food security was meant to raise the national strategic storage capacity to 1 million tonnes.

    The original intention was to have the grain storage silos located in different grains producing states, among them Ekiti, Kebbi, Zamfara, Borno, Imo, FCT and Bayelsa States. They were supposed to have 100,000 metric tonnes capacity. Other silos with the storage capacity of 25,000 metric tonnes were to be constructed in Yobe, Bauchi, Osun, Nasarawa, Taraba, Ogun, Anambra, Kogi, Sokoto, Akwa Ibom, Adamawa, Kano and Katsina States. The silos were meant to store rice, beans, maize, soya beans, millet, wheat, and other food items.

    But the project may have been mired in corruption. For instance, a case involving a silos meant to be built in Akwa Ibom had to be taken to an Abuja High Court over an allegation that the cost of its construction had been inflated by over N500 million.

    Also, in 2010, there were allegations against the Ministry of Agriculture that the sum of N96 billion had been removed from Ecological Funds to fund the silos project, but the grain silos have not been constructed.

    In Bauchi State, there are four grain silos. There is one in Boto, one in Bauchi, one in Azare. A N1.5 billion silos was recently built by the Federal Government at Wailo village in Ganjuwa Local Government Area.

    In Kaduna State, silos built since 2009 have been lying empty. Three years after its commissioning, the one in Angwan Maigizo, Jama’a Local Government Area, Birnin Gwari in Birnin Gwari LGA and that in Saminaka in Lere LGA have been abandoned.

    Further checks revealed that the silos in Makurdi, Benue State, store grains fall below its capacity. The silos in Lafia, Nasarawa State are still under construction. In Ekiti State, the one constructed along the Federal Polytechnic Road, Ado Ekiti has been lying there empty, as no activities are taking place at its site.

    As at press time, the Special Adviser to the Minister of Agriculture and Rural Development, Dr Kayode Oyeleye could not be reached as his phone was switched off.

    In the view of industry analysts, some of the measures being put in place are cosmetic and can hardly solve the problems given the enormity of the situation.

    What they canvass is however a holistic approach which the issues affecting the agric sector, stressing that this will help in no small measure to boost the nation’s food basket.

    Pray, is someone listening?