The Nation Newspaper

Category: Business

  • Group plans cassava processing plants

    To increase the income of farm families, Nigeria Cassava Growers Association (NCGA) is planning processing plants for the 36 states.

    Speaking at the group’s meeting in Lagos, its President, Pastor Segun Adewumi, said the association planned to raise 60 investors in each state to invest in the project.

    Other core investors, he said, would be brought in to boost the capital outlay for the projects.

    By embarking on the processing plants, Adewumi said the group wants to increase the productivity of small scale farmers.

    The target, he said, was to turn the cassava sector into a major player by adopting improved production and organising producers and processors into efficient value-added chains.

    To achieve this, he said the group would build farm clusters around the processing plants.

    Adewumi said cassava farmers produce for an inelastic food market. This, he said, leads to wide swings of prices every other harvest, in the absence of a minimum price guarantee schemes.

    Because of this, he said many farmers have lost a fortune.

    He said the association is ready to work with the government to create reliable demand and help strengthen cassava value-added chains. This will include provision of incentives for cassava producers,fertiliser availability and credit to farmers.

    He said cassava transformation requires committed farmers, oriented towards commercial production to achieve the government objective, adding that the group is cultivation 750,000 hectares to boost national production.

    Cassava-based industrial products,according to him, are just a fraction of the derivatives, and that the growth potential of the industry is huge.

    Specifically, Adewumi said size of garri market is large,apart from export demand.

    He said the association will support the establishment of multiplication centers to facilitate farmers access to improved cassava varieties.

    According to him, the Presidential cassava initiative has raised the profile of cassava and demonstrated its immense potential.

    He said the group has a mission to move cassava from a subsistence crop to a cash spinner and is working with farmers to supply raw materials for high quality cassava flour.

    To achieve this, he said the group is ready to patronise fabricators to build and sell thousands of grating, dewatering, and drying machines.

    Over 500,000 peasant farmers have been registered to benefit from the Cassava Development Fund within the two months of its commencement of operation.

    A total of six million peasant farmers are being targeted to register and benefit from the programme before the end of this year. The new Fund is to be built through levies generated on wheat imports into the country as a key incentive to the Cassava Development Initiative of the current administration. The new policy stipulates that 65 per cent of the total income generated from the newly imposed 15 per cent levy on wheat import into the country will, henceforth, go into the Fund. The Fund, according to the Cassava Development Policy recently unfolded by President Goodluck administration, will be dedicated to the cassava sub-sector’s development in the country.

    The operation of the new 15 per cent levy on wheat imports commenced on June 1. About N600billion was being targeted as the pool fund, from which beneficiaries would benefit.

    In a related development,

    the Southwest Chairman of the Cassava Growers Association, Dr David Ogunsade, has said the crop will soon complement petroleum as a major foreign exchange earner.

    He stated this during an interview in Osogbo.

    He said the Jonathan administration places premium on cassava cultivation, processing and export to increase the revenue of the nation.

    According to him, Nigeria is leading other countries in the production of cassava because its physical environment is very conducive for cassava cultivation.

    “In the past, farmers grew cassava mainly for consumption and other domestic use, ignoring the investment opportunities, which the industry offers.

    “With the government’s intervention through the provision of high-yielding cassava varieties, credit facilities and other farm inputs, farmers are now aware of the enormous potential of cassava,’’ he said.

    Ogunsade observed that the favourable environment for cassava cultivation coupled with the availability of foreign market had encouraged more farmers to invest in the crop.

    He said the development would allow Nigeria to maintain its leading position in the world.

    Ogunsade commended President Goodluck Jonathan for promoting cassava as an alternative means of enriching the nation and improving the living standard of many cassava farmers. He appealed to all stakeholders to play their expected roles so as to achieve the purpose of government’s intervention in the sector.

  • Don advocates responsible investment in agriculture

    The Federal Government has been urged to develop principles for responsible investment in agriculture that respect rights, livelihoods and resources.

    Prof Martins Anetekhai, of the Lagos State University (LASU) said the principles should promote responsible governance of tenure of land, fisheries and forests.

    Speaking with The Nation, Anetekhai said the principles should address all types of investment in agricultural value chains and food systems including small producers, research, extension services and technology transfer. This also include foreign, domestic, public, private small, medium and large-scale investments.

    He said investments are required to support expansion in agricultural output to meet projected demand. These include investment in primary agriculture and services such as storage and processing facilities.

    While emphasizing the need to attract investment in the agriculture sector, with a view toward improving food security, yields, output, and value added, Anetekhai pointed out that poorly conceived or executed investments, , could have unintended negative impacts in terms of , sustainable food production, or environmental protection for Nigerians.

    He urged the government and the private sector to support farmers to increase production and mitigate problems caused by climate change.

  • Making Kogi investors’hub

    Making Kogi investors’hub

    Agriculture is the mainstay of the economy. Majority of the people are farmers. The rich and highly diversified soil conditions with adequate rainfall provide the ample reasons for the growth of many farm produce.

    There are many farm produce from the state, notably coffee, guinea-corn, cocoa, palm oil, cashews, cassava,groundnuts, maize, cassava, yam, rice and melon.These agricultural produce are sources of raw materials for agro-allied industries such as flour mills, fruit juice processing, starch, animal feeds, vegetable oil and soap production among others.

    Kogi has extensive arable land for cultivation. Rice production is encouraged in the flood plains of the rivers, while coffee, cocoa, orange and cashew nuts are produced in ljumuaniKabba/Bunu local government areas.

    Farmers are engaged in share cropping schemes at lyagu, Alade and Adikena. Today, the state is the second largest producer of cassava with a production figure of 2.854 million metric tonnes. With the increased tempo in the production of cassava as a result of state government intervention, it is obvious that production will outstrip consumption, which could lead to a glut. This is so because there are no industrial end-users of cassava products in the state.

    This scenario is a major challenge to the government, industrialists and organised private sector since cassava chips, flakes, high quality flour and starch are raw materials for a number of industries. The cassava industry can also generate employment and incomes for families thereby reducing poverty. Kogi State has ecological advantage in the production of cocoa for export. The state government has raised over 5000 seedlings and provided assorted agro-chemicals for free distribution to farmers.

    A total sum of N20 million has been invested in this programme to date. Along with 13 other states in the country, Kogi has been classified as a major cotton producing state. The state government has placed order for 5,000 metric tonnes of improved long span variety of cotton for distribution to farmers to accelerate production for export.

    In the area of cashew production, the state has established 10hectares plantations for raising seedlings for distribution to farmers. This crop along with sesame is among the nominated crops under Africa Growth and Opportunities Act (AGOA) for development and support.

    To boost oil palm plantation, the government has established a 200 hectares plantation to produce high grade vegetable oil for export. Similarly a total of about 3,500 sprouted oil palm seedlings has been procured and distributed to farmers to reposition the state as a major exporter of palm oil. Palm plantations are being rehabilitated and a standard agricultural mechanical workshop is being constructed.

    The state is endowed with natural facilities for fishing activities. The two largest rivers, Niger and Benue, flow through the state with all their tributaries. The estimated fishermen population in the state is put at about 5,000 with artisanal population of about 20,000.

    An estimated area of over 150,000hectares of flood plains and swamps can be harnessed for aquaculture. The area of needs include, targeted fingerling production to breed improved species and manpower training in fish breeding.

    Also,the state has abundant natural conditions that favour livestock development. The state government has sourced for a loan of N271 million for the reactivation of hatchery and piggery farms to create employment opportunities.

    As a major strategy towards ensuring that indigent farmers, largely based in the rural areas, earn their living through commercial farming, the government is embarking on a farm settlement scheme.

    To this end, the state government has begun the acquisition of farm lands in 21 local government areas. Improved seedlings and farm implements and other necessary machineries aimed at boosting the take-off of the farm settlement project have been acquired. The Kogi government’s commitment to the farm settlement project is total.The forest resource in the state are equally of very high economic value. There is abundant land suitable for forestry development.

    At present, about 381,000 hectares of the total land area is under forest cover. These resources are valuable for construction and furniture industries.Valuable trees found in the state include iroko tree, teak, mahogany, obeche, parkia and castor among others. The state government has established nurseries for the production of about assorted seedlings of these trees. To accelerate the pace of forestry development, the state government has initiated an annual tree planting campaign across the 21 local government areas.

    Kogi is toeing the line of agricultural revolution like her sister state, Kwara. American investors under the Global Greenfield Development Group visited the state to forge partnership with the government in cultivation of rice, cassava and sorghum.

    The American investors paid the Deputy Governor, YomiAwoniyi, a courtesy visit, saying the state is blessed with abundant arable land, rich for commercial cultivation of rice, cassava and sorghum.

    Kogi government in response assured that the present administration would focus on commercial farming in the state.Awoniyi said that necessary infrastructure, such as power, roads, farm implements and assistance needed to encourage farmers would be provided.

    Determined to boost mechanised agriculture and provide food for the people, Kogi State Government has distributed 50 tractors and agro- chemical products to the 21 Local Government Areas of the State.

  • Capital Oil denies involvement in subsidy scam

    Capital Oil denies involvement in subsidy scam

    The management of Capital Oil and Gas Industries Limited has dismissed as spurious the allegations of fraudulent collection of subsidy claims levelled against it by the Presidential Committee on Subsidy, headed by Aigboje Aig-Imoukhuede.

    The Media Relation Officer, Ike O. Chukwu, said the company had watched for a long time the smear campaign carried out against it, which sometimes labelled it as an ‘oil thief,’ but has now chosen to put the record straight.

    He condemned the way the Aig-Imoukhuede committee is executing its mandate, which he noted is raising concerns in the oil industry.

    “We observed that the conduct of the chairman of the committee, Mr. Imoukhuede is suspicious and highly questionable, and has come to a point that the decision to continue to list us as one of the companies whose transactions require clarifications despite the painstaking efforts, has become worrisome.”

    He said the auditors found from information obtained from government agencies, including the Department of Petroleum Resources, Navy, Nigerian Ports Authority and Nigerian Maritime Administration and Safety Agency, that vessels mentioned in the transaction actually arrived in Nigerian waters

    He said: “Access Bank Plc is the major financier of our business. It finances about 70 per cent of our importation. Aig-Imuokhuede is also the Managing Director and major shareholder of Access Bank. He also has vast interest in many companies that have benefitted from the petroleum subsidy scheme, which are among our very strong competitors.”

    Chukwu said that the stark reality is that the longer the oil companies remain without receiving their subsidy refunds, the better for Imokhuede and his Access Bank because they will continue to get more interest accruals on the loan facility.

    He said that the bank checked every stage of the importation process and ensured that the importation was actually carried out. Therefore, the investigation Aig-Imoukhuede is currently carrying out on Capital Oil’s imports is an indirect investigation of his bank.

  • NSITF pays N14.8m compensation to injured workers

    NSITF pays N14.8m compensation to injured workers

    The Managing Director/CEO, Nigeria Social Insurance Trust Fund (NSITF), Alhaji Munir Abubakar yesterday said the agency has paid N14.8million who were involved in accidents, as well as those that died as a result of such accidents.

    Abubakar made the disclosure during an interactive session with industrial unions on the implementation of the Employees Compensation Act (ECA) 2010, held at Nigeria Employers Consultative Association (NECA) house, Lagos

    He said: “The Fund has refunded to employers the sum of N14,217,494.31,while N619,511.35 was paid to the next of kins of deceased employers since it started.”

    Giving the breakdown on the claim, the NSITF’s Director said the medical care support refund to the employers amounted to N14.2million, while death cases involving periodic payments to the next of kin was N619,511.35.

    He said 412 applications for claims have been received to date, and another 4,507 as notice of accidents or deaths.

    Abubakar explained that failure to complete all relevant ECS forms or failure to include required attachments, glaring ignorance of the manner and type of accidents/diseases covered by the act, among others, were some of the challenges affecting delay in claims settlement.

    On the impacts of the implementation of the Employees’ Compensation Act which commenced last year, the NSITF boss, said over 1000 employers registered under the scheme as at August 31st, this year.

  • Court adjourns N110m case against Isyaku Ibrahim

    Court adjourns N110m case against Isyaku Ibrahim

    A N110 million loan recovery case instituted by Unity Bank against Isyaku Ibrahim has been adjourned to November 13, 2012, the High Court of Justice, FCT ruled yesterday.

    Unity Bank dragged Ibrahim to court in 2008 for the recovery of N110million indebtedness for which judgment was obtained in June 10, 2010.

    According to court proceedings, Alhaji Ibrahim failed and neglected to pay the judgment debt, thereby compelling the bank to file an application to sell his house situated at Plot 1757, off, Jimmy Carter Street, Cadastral Zone, Asokoro District,  Abuja.

    The application could not however be heard as Ibrahim asked the Court at various times, to sell his factory at Gwagwalada.

    At one time he told the Court that the factory has been sold, but when the matter came up for further settlement, he claimed that the prospective buyer had not paid.

    In the last Court sitting of September 25, 2012, it was gathered that the customer requested for two weeks adjournment with an undertaking that the judgment sum shall be paid on or before October 12, 2012, failing which the trial Judge should grant the bank’s application.

    Although, it was learnt that the bank opposed the application, the trial Judge adjourned the matter to October, but at the end of the submissions by both parties, the judge once again adjourned the case to November 3, 2012.

  • Telcos fault bank-led mobile money operations

    Telcos fault bank-led mobile money operations

    Telecommunication companies (telcos) have kicked against the bank-led mobile money option adopted by the Central Bank of Nigeria (CBN).

    Globacom’s Director, Telebanking Unit, Tunde Kuponiyi, said the regime of mobile money regulation, is not friendly to telecoms’ firms that provide the mobile payment platform.

    He said though there is a lot that telecoms companies could contribute in a cashless economy, their mandate is not being fully utilised.

    Kuponiyi argued that since the mobile payment business is 90 per cent dependent on the mobile industry, it is unfair that the mobile networks are prevented from advertising their mobile payment products which are the foundation on which the bank products operate.

    “From the customer’s mobile phone, to the mobile payments system and the feedback to the mobile phone, mobile payment transaction utilises mostly mobile resources, makes use of mobile time and supported largely by mobile engineers, but unfortunately, the CBN has restricted telecoms companies from advertising in the mobile payments space,” Kuponiyi said.

    He said telecoms firms should be allowed to speak about the capabilities of their networks, the quality of user experience and the choice of mobile payment services available on their networks, lamenting that the passive role to which the telecos have been compelled to play, has led to the slow growth of the mobile payment sub sector.

    “It is roughly a year since the first mobile money went live and approaching a year since cashless economy came into operation. Meanwhile, none of the individual players can boast of having more than 10,000 active subscribers”, he stated.

    The apex bank chose the bank-led model whereby, a bank deploys mobile payment applications or devices to customers and ensures merchants have the required point-of-sale (PoS) acceptance capability to carry out the transaction.

    Here, mobile network operators’ networks merely serve as vehicle through which transactions take place. This is based on the regulatory framework for mobile payment services issued by the apex bank in 2009, which prevented telcos from operating mobile money except through strategic partnerships with licensed operators.

    CBN Deputy Governor, Operations, Tunde Lemo, said over the next few years, the focus of the regulator will be to strengthen the institutional and regulatory frameworks to achieve improved financial inclusion.

    “The application of mobile technology for financial services especially in rural areas will ensure that a large percentage of the population outside the formal banking system would have access to financial services using one of the three models of card-based, account-based and virtual account,” Lemo said.

    “CBN statistics showed that only 22 million Nigerians own a bank account out of a population of 167 million population. With telecoms subscriber base put at 105 million by the Nigerian Communications Commission (NCC), there are indeed limitless opportunities for the country to achieve financial inclusion by bringing the large numbers of the unbanked to the banking sector through mobile money,” he said.

    Analysts said telcos companies are licensed to offer telecoms services and not banking services. Therefore, the decision was made because the CBN does not regulate telcos and if the telcos are allowed to lead mobile money, two critical segments of Nigeria’s economy will be put in the hands of a few companies, a practice that constitutes great risk for the economy.

    Driven by the development of mobile money systems in emerging markets, experts estimate that $16 billion worth of international money transfers will be received with mobile phones in 2015.

    In Nigeria, the scheme is, however, confronted with many problems but the CBN said the draft National Payments System Bill, which is undergoing legislative passage, is expected to address the legal barriers to electronic payments such as the admissibility of electronic evidence in the law courts.

    Despite the inherent challenges, banks have been launching mobile money products to support their operations. FirstBank of Nigeria launched FirstMonie, its mobile money service positioned to assist the lender’s commitment to financial inclusion.

    “With the launch of this service, the stage is now set for the bank’s customers and anyone in Nigeria with a mobile phone to enjoy financial services, using their mobile phones to send money, pay bills, top up their phone airtime, do shopping, deposit and withdraw cash, without the need to visit a bank branch,” the First Bank Managing Director, Bisi Onasnaya said.

    He said the product is a game changer in Nigeria’s banking sector and will leverage on the bank’s transaction integrity to enhance local money transfer services.

    Stanbic IBTC Bank also, has partnered Star Times, one of the digital terrestrial transmission operators in the country to assist subscribers pay for their subscription fees using mobile money tool provided by the bank.

    Head, e-Business, Stanbic IBTC, Thabo Makoko, said by partnering with the company, the bank is making it easier for subscribers to make their payments electronically. According to him, the lender is committed to ensuring that users of the Mobile Money get the best in terms of service and security of their transactions.

    Analysts said the African mobile money market has the potential to grow to a money-making market, but operators, banks and regulators need to work toward developing an enabling environment for business models that meet service providers’ revenue demands.

    Mobile money allows mobile phones to be used to send and receive money, buy recharge cards, pay subscription fees for DStv, pay electricity bills, use of Point of Sale (PoS) terminals to pay for goods and services among others. The operator-led model, collaboration model and peer-to-peer model which are usually adopted in other countries was jettisoned by the regulator.

  • Jonathan calls for more intra-African trade

    Jonathan calls for more intra-African trade

    President Goodluck Jonathan has called for increased trade and investment among African countries to strengthen relationships and promote the welfare of the citizenry.

    Jonathan, who spoke yesterday when he received the out-going High Commissioner of Botswana to Nigeria, Clifford S. Maribe, said African businessmen must take advantage of the many investment opportunities available in the continent to improve economic and political relations.

    He welcomed the report that the business forum held in Gaborone, Botswana during his visit last month had started yielding results, as exploratory business visits between Nigerian and Botswanan businessmen have started.

    The High Commissioner told Jonathan that the business forum held in Gaborone, Botswana, during the Nigerian leader’s visit last month generated interest among participants.

    He said his tenure in Nigeria led to stronger relations between the two countries, including high-level visits by the leaders of both countries, and expressed appreciation for the cooperation he enjoyed during his stay.

    Also, Jonathan said the warm political relations between the two countries should be strengthened through more high-level visits.

    He congratulated Kenya’s envoy, Mr Sigel for completing the construction of country’s Chancery and staff housing, describing it as a mark of confidence in Nigeria.

    The President said there was need to improve economic relations between Nigeria and Kenya.

    In his remarks, Mr. Sigel said he enjoyed his stay in Nigeria.

  • Consolidated Hallmark pays over N600m claims in Q3

    Consolidated Hallmark pays over N600m claims in Q3

    Consolidated Hallmark Insurance PLC (CHI) paid over N600 million claims at the end of the third quarter, its Managing Director, Eddie Efekoha, has said.

    He disclosed this at the presentation of Group Accident Insurance Cover to members of the National Association of Insurance Correspondents (NAICO) in Lagos. He added that the company is committed to meeting policy holders’ expectations.

    Efekoha said the company takes payment of claims as a priority because the value it places on its clients, adding that the company will always ensure that its underwriting is healthy and professionally handled.

    He stated that insurance is driven by referrals and customers’ recommendation.

    He said: “For us as a company, we recognise that we are in business to pay claims. Therefore, we must operate and ensure we do not fail. When we do that, satisfied clients will recommend themselves and other people to us. So it’s a business that is built on referrals such that existing clients will refer you when you have done well and we will continue to do that in the mist of changing environment.”

    He noted that despite the harsh business environment and challenging regulatory regime, the company has continued to witness upward movement in growth fundamentals.

    He said the firm is happy with where it is, having achieved a very modest growth, stressing that the key driver of its business from the start is its people including the staff and the board.

    He noted that the weight of premium receivables in the industry has been a challenge to operators under a changing regulatory regime.

  • A&G pays N1.2b claims for crashed plane

    Alliance & General Insurance (A&G) Plc paid over N1.2 billion claims to the Nigeria College of Aviation Technology (NCAT), Zaria for its training aircraft that crashed in 2010, its Chief Operating Officer, Dotun Onipede, has said.

    He explained that on May 23, 2010, the plane crashed while being landed by a trainee pilot, saying though there was no causality, the plane a model of TAMPICO TB9, was wrecked with many of its vital parts destroyed, including the propeller, the engine, the sliding gear, the wings.

    Also, Onipede said the firm also spent over N250 million on one of the College’s most prestigious aircraft, 5N-CAG, that crashed some months ago.

    He said the crash was pathetic, but “we should give glory to God that no life was lost in the process, adding that “our company is ready to tackle this issue with the high level of urgency required, being the only training institute for pilots in Nigeria.”

    He said: “Our consistency in the payment of claims has strategically placed us as a well-established and reputable insurance company with high level of integrity, whose word remains her bond.”

    He reaffirmed the company’s commitment to settling claims, adding that the mishap that happened in NCAT would be a thing of the past as the company was on ground to fulfill its commitment.

    “It is in our character to face challenges of this nature as it can be seen in our records in the insurance industry,” he said.

    Onipede stressed that the firm was trying to restructure its business in line with the standards expected of them in the industry in accordance with regulatory provisions.