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Tag: foreign investments

  • Edun: Fed Govt attracting foreign investments

    Edun: Fed Govt attracting foreign investments

    • Minister at Lagos firm’s facility expansion

    The investment of over $20million into PepsiCo’s expanded snacks manufacturing facility –Cheetos in Lagos is evidence that the Federal Government’s bold economic reforms are beginning to  yield results, Finance and Coordinating Minister of the Economy, Wale Edun said yesterday.

     He noted that measures such as the removal of fuel subsidies and the unification of the foreign exchange market, and market-based pricing, though difficult, had restored transparency, improved liquidity, and stabilized Nigeria’s macroeconomic environment.

    Edun spoke  during the  inauguration of the $20 million facility,  a project powered by global food and beverage giant PepsiCo.

    The opening of the facility marked the  launch of Cheetos – one of PepsiCo’s most popular snack brands globally – in the Nigerian market, produced locally in two exciting flavours: Cheese and Coconut.

    The arrival of Cheetos reinforced PepsiCo’s commitment to strengthening its growing snack portfolio in West Africa, particularly in Nigeria, and reinforcing its commitment to localising food production, creating jobs, and building resilient supply chains.

    The new factory, developed in partnership with global smart logistics solutions provider DP World, is a major step towards sustainable industrialisation and regional export competitiveness for Nigeria.

    The partnership marked a significant milestone in fostering Nigeria’s industrial growth, enabling more efficient supply chains, and supporting government’s ambition to build a resilient, $1 trillion economy.

    According to Edun, the Federal Government’s  policies have saved revenues equivalent to five per cent of Gross Domestic Product (GDP), funds that are now being channeled into infrastructure, healthcare, and education.

    “With GDP projected to grow by five per cent, we are seeing real results from our pillars of reform – diversification, industrialisation, and job creation,” the Minister stated, adding: “We are driving to stabilize our economy and unlock sustainable growth.”

    He said: “By sourcing locally and creating jobs, this investment brings to life President Bola Ahmed Tinubu’s vision of a stronger, more inclusive economy.

    “Producing Cheetos not only for Nigeria but for West Africa highlights our nation’s role as a regional hub for manufacturing, supported by ongoing progress in technology and digitalization.”

    According to Edun, over 90 per cent of PepsiCo’s raw materials are sourced locally from local partners, including Northern Nigeria Flour Mills, Grand Cereals, and Babban Gona.

    Describing this strategy as “The road to salvation,” he said it showed that Nigeria is shifting from an import-dependent market to a competitive production hub under the African Continental Free Trade Area (AfCFTA).

    Edun went on:: “That is the road to sustainable industrialisation. When global brands choose to invest locally and source raw materials from Nigerian farmers and suppliers, it builds resilience, creates jobs, and unlocks export opportunities. Nigeria is becoming a competitive production hub, not just a consumption market.”

    He assured PepsiCo, DP World, and their partners of continued government support, noting that “the more profit investors make, the more tax revenues government receives for critical infrastructure and social services — it is a virtuous circle.”

    Lagos State Governor Babajide Sanwo-Olu, represented by the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Bada Ambrose, described the PepsiCo-DP World partnership as transformative for Lagos and indeed, Nigeria.

    He said the impact of the partnership between the two global giants will be far-reaching, as it will stimulate job creation across multiple sectors of the economy while enhancing trade logistics.

    PepsiCo Nigeria’s General Manager, Felix Enwemadu, explained that the company has been part of the Nigerian economy for more than three decades, with its food division stepping up investment since 2018.

    He said the new Oshodi plant would produce three flavors of the iconic Cheetos brand — coconut, sour cream, and cheese — while sourcing 90 per cent of raw materials locally, including corn grits and flour.

    He also highlighted PepsiCo’s social investment initiatives, including a clean water and hygiene program that has reached over 54,000 people in Nigerian communities.

    The Managing Director of FMCL Nigeria, DP World, Ajit Nair, said Nigeria is PepsiCo’s most integrated market, with DP World spanning the full value chain from manufacturing to distribution.

    “This marks the third PepsiCo facility we operate—an achievement that reflects the strength of our partnership, built on trust, performance, and shared purpose. Through AAVA Brands and FMC Nigeria, we are proud to enable PepsiCo’s growth strategy in West Africa.”

    Read Also: Edun, Cardoso meet to strengthen fiscal, monetary policies synergy

    He added that the Lagos plant was designed not just for Nigeria but for West Africa and beyond.

     “This is not just about producing for the local market. It is about positioning Nigeria as a hub for exports under AfCFTA. That is the opportunity we see, and that is the future we are building towards,” Nair said.

    Representatives of DP World described Nigeria as a key market where their operations integrate manufacturing and distribution. They noted that the Oshodi facility was the third project undertaken with PepsiCo in Nigeria, reflecting a strong partnership built on trust and shared values.

    They assured stakeholders that DP World would continue to invest in logistics infrastructure to ensure efficient and sustainable supply chain operations in support of PepsiCo’s expansion in West Africa.

    The event concluded with a factory tour showcasing PepsiCo’s state-of-the-art production lines, followed by a partnership session with key stakeholders.

  • FULL LIST: Oyo, Osun, 24 others with zero foreign investments in one year

    FULL LIST: Oyo, Osun, 24 others with zero foreign investments in one year

    Foreign investors snubbed 26 States as the value of capital importation into Nigeria reached $2.60bn in the second quarter of 2024.

    Capital importation is foreign investments into a nation’s economy and is necessary for economic growth as it enables rapid investment.

    They are made up of three categories — Portfolio Investment, Foreign Direct Investment (FDI), and other investments.

    It can also be explained as bringing in capital from abroad to fuel investment, trade, and manufacturing within a country.

    According to latest capital importation report for the second quarter of 2024 released by the National Bureau of Statistics, there was a robust increase of 152.81 per cent year-on-year compared to $1.03bn in Q2 2023.

    Read Also: Africa military games will boost Abuja’s social, economic activities – Wike

    In the review period, Lagos took the lead, outshining others — including the federal capital territory (FCT) — to top the list of states that attracted the most investments.

    Lagos maintained its position as the leading destination for capital importation, attracting $1.37bn, or 52.52 per cent of total inflows.

    Abuja received $1.24bn, which accounted for 47.48 per cent of the total.

    The 26 States with no foreign investments from Q2 2023 to Q2 2024 are listed below:

    1. Bauchi

    2. Bayelsa

    3. Benue

    4. Borno

    5. Cross River

    6. Delta

    7. Ebonyi

    8. Edo

    9. Enugu

    10. Gombe

    11. Imo

    12. Jigawa

    13. Kaduna

    14. Kano

    15. Katsina

    16. Kebbi

    17. Kogi

    18. Kwara

    19. Nasarawa

    20. Osun

    21. Oyo

    22. Plateau

    23. Sokoto

    24. Taraba

    25. Yobe

    26. Zamfara

  • Foreign investments in ICT exceed $42b

    The Minister of Communications, Dr Adebayo Shittu yesterday said foreign direct investments (FDIs) in the information communication technology (ICT) sector have exceeded $42 billion.

    He restated the commitment of the Federal Government  to ensuring that the ICT sector realised its full potentials as a viable alternative to the diversification of the economy.

    Shittu spoke in Awka, Anambra State capital, during the second Phase Sensitisation Workshop on National ICT roadmap, with The Role of the Private Sector in the Implementation of Nigeria’s ICT Roadmap as theme.

    He said: “The purpose of ICT, apart from providing services and convenience, is to increase the revenue base of all societies.

    “For Nigeria alone, the present foreign direct investment has exceeded $42billion and you know what that means to the economy.

    “The implication is that such huge sum could have been lost without the ICT and if it had not come, you know how many jobs that could have been lost or unavailable, and you know the ripple effect on the larger economy.”

    According to him, Nigeria now boasts of more subscribers than the United Kingdom with over 152 million active telephone lines.

    He also said that 97 million Nigerians were now connected to the internet, which places the country on 170 per cent teledensity.

    The state governor, Willie Obiano described the workshop as timely, affirming his administration’s compliance to ICT in the business of governance.

    Represented by the Secretary to the State Government, Prof. Solo Chukwulobelu, the governor attributed the increase in the state Internally Generated Revenue (IGR) from N475million to N1.7billion to the introduction of ICT to the system.

    He urged the Federal Government to revive the nation’s energy sector as ICT could not thrive well without adequate power supply.

     

  • Minister: Fed Govt targets $22b foreign investments in two years

    •‘Nigeria ranks 152 in human capital index’

    The Federal Government will attract $22 billion private sector investments through the Economic Recovery and Growth Plan (ERGP) “Focused Laboratories” in two years, Budget and National Planning Minister Senator Udoma Udo Udoma said yesterday.

    Nigerians, he said, may have to wait for that period before reaping the fruit of foreign investments.

    The government, through the ERGP, the minister said, planned to create about 15 million jobs by 2020.

    “We intend to achieve this principally through stimulating the private sector.

    “Our aim is to make Nigeria a more investment-friendly place, a more attractive place for people to do business.

    “We have conducted sector specific labs, which we referred to as the ERGP Focus Labs, to bring potential investors and government officials together to seek to remove the bottlenecks and impediments impeding investment projects.

    “We identified over $22 billion of potential investments which could be unlocked, if we can remove some of these impediments,” he said.

    Udoma said in Nigeria, the government was forced to cut down its growth projections for this year from three per cent to 2.1 per cent due to oil production challenges in the second quarter of the year.

    The minister spoke in Bali, Indonesia, at the launch of the Sub Sahara Africa Regional Economic Outlook.

    He said it would take at least two years for the full manifestation of the investment potential of the EPRG of the Federal Government.

    “I think it will take one or two years before they actually come to fruition.

    Read also: IMF to Nigeria: increase non-oil revenue

    “However, government has set up a crack team of four experts who were recruited to work with stakeholders in the private sector on ways to actually have the expected investors come in under the economic plan”, the minister said.

    He said the flooding in some states affected the agriculture sector as did the herdsmen clashes in certain areas.

    On foreign investments, Udoma agreed with the advice of the International Monetary Fund (IMF) that Nigeria must put in place sound macro-economic policy to mitigate risks associated with volatile capital flows.

    Director of the IMF’s African Department Mr Abebe Selassie, while presenting the regional outlook, said Sub-Saharan Africa’s economic recovery was expected to continue growing.

    He said growth was projected to increase from 2.7 per cent in 2017 to 3.1 per cent in 2018 and 3.8 percent in 2019.

    “Growth is set to improve most notably for oil exporters, while non-resource intensive countries continue to grow strongly, with quite a few growing at six per cent or more.”

    “While there has been progress in narrowing fiscal deficits, more focus is needed to raise revenues to support continued development spending and to service debt,” he said.

    According to the 2018 Sub-Sahara Africa Regional Economic Outlook, to grow, the region must create at least 20 million jobs per year to absorb new entrants into the labor market.

    The IMF in the report advised the region to take policy actions to encourage deepening of trade and financial integration, in the context of the African Continental Free Trade.

    It also advised the region to remove market distortions, improve the efficiency of public spending, promoting digital connectivity and a flexible education system and fostering an environment that is conducive to private investment and risk taking.

    The World Bank Group (WBG) also yesterday urged Nigeria to invest massively in human capital development as a matter of priority or risk having a jobless work force in about 20 years.

    Its President, Dr. Jim Yong Kim, who gave the advice at a briefing at the ongoing 2018 Annual Meetings of the IMF/WBG in Bali described Nigeria is one of the most important countries in Africa and in the world, “so we feel that it will be extremely important for Nigeria to really go on a different level all together in terms of their commitment to investing in human capital.

    He said it was important that development actions were guided by data, saying that “Nigeria unfortunately ranks 152 out of 157 countries. He said the World Bank has been quite supportive in providing aid to the country in the health sector, “but we feel that the overall spending in health (about .076 of GDP) is just far too low. The educational outcomes in Nigeria are very, very low,” he added.

    The World Bank chief who was responding to a question on what programme the bank has for Nigeria on human capital development, admitted nonetheless that the bank has its own share of the blames for the woes, not only in Nigeria, but the African sub-continent.

    He said: Many African countries are in the red zone. I think the World Bank has to take some responsibility for having emphasised hard infrastructure – roads, rails, energy, for a very long time,” stating that the bank has begun to reverse that scenario in the last 20 years. But he said for most African countries, the thinking remains that “we’ll invest in hard infrastructure and then when we grow rich, we’ll have enough money to invest in health and education.”

    But that’s the wrong approach, Kim said.

    “We’re now saying that’s the wrong approach, you’ve got to start investing in your people right now.” Pointing out that if this option was ignored, it will spell doom for the affected countries because of the        ” rapid change in technology and the fact that many low-income jobs will be eliminated.”

    He said the bank cannot put a finger on exactly when this prediction will evolve, but said 20years from now look somewhat the time frame.

    ”Nobody is quite sure how long that will take, but a child born today, in 20years almost certainly, many of the low-skill jobs today will be gone. Ant the requirement for this child to be able to learn throughout his, or her entire life is simply going to get higher. The requirement, the needs are going to get higher and higher,” he stated.

    Kim said the World Bank is ready to lend its support to African countries that are ready to take on the gauntlet, saying funding for growing the skills and human capital development, are not only ready, but enlarged.

    As he put it: “This is a very loud and strong message to Africa. Africa needs to invest more in health and education,” saying, “our Fund for the poorest countries is 50 per cent larger than it was three years ago because we have financing, we can provide more support for African countries.”

    For the bank’s input to achieve the intended results, Kim urged the respective governments to take responsibility for the success of the programme.

    He said: “But the message here is that Heads of State and Ministers of finance have to take responsibility,” saying that the  long age practice of waiting for grants before action was taken in developing human capital should be done away with and called on Nigeria to answer this call.

    “So we hope that this is a loud wake-up-call for leaders throughout the Africa continent, and especially in Nigeria,” he stressed.

     

  • Buhari to protect foreign investments

    Buhari to protect foreign investments

    President Muhammadu Buhari, on Saturday night, assured existing and prospective foreign investors that their investments in Nigeria was secured and protected.

    He made the promise while speaking at a bilateral meeting with Japanese Prime Minister Shinzo Abe on the sidelines of the sixth Tokyo International Conference on African Development (TICAD) in Nairobi, Kenya.

    President Buhari outlined steps by his administration to secure the country and ease doing business in Nigeria.

    In a statement by the Senior Special Assistant on Media and Publicity, Garba Shehu, the President told the Japanese leader that with the defeat of the Boko Haram terrorists by the military, the attention of the administration is now focused on stopping the destruction of the country’s economic assets by militants in the Niger Delta region.

    He said the militants must dialogue with the Federal government or be dealt with in the same way as Boko Haram.

    “We are talking to some of their leaders. We will deal with them as we dealt with Boko Haram, if they refused to talk to us.

    “As a government, we know our responsibility, which is to secure the environment. It is clear to us that lenders won’t fund projects in insecure environments.

    “We realise that we have to secure the country before we can efficiently manage it,” he said.

    President Buhari told the Japanese prime minister that security in the Gulf of Guinea, which is greatly affected by piracy and robbery at sea, was a priority for the Nigerian government.

    ‘‘We have provided funds to our Navy to buy new platforms, train and effectively organise the personnel to protect the area. We are looking forward for support from developed nations for satellite surveillance covering the Gulf,’’ the President said.

    Recalling his audience with G7 leaders in Germany, which was attended by the prime minister, President Buhari thanked Japan for responding positively to requests by Nigeria for the rehabilitation of victims of Boko Haram and rebuilding of infrastructure in the Northeast.

    He, however, said there was still more to do on education, health and other infrastructure to ensure quick and voluntary return of displaced persons to their native communities.

  • World Bank, AfDB: African conflicts may cut foreign investments

    World Bank, AfDB: African conflicts may cut foreign investments

    THE spate of bombings in Nigeria and Kenya is sparking concern that investors may begin to shy away from the continent unless the violence eases, the African Development Bank (AfDB) and World Bank have said.

    While Standard Chartered Plc Chief Executive Officer for Africa, Diana Layfield, said the violence won’t halt the bank’s expansion plans, industries, as tourism are already feeling the impact.

    Makhtar Diop, the World Bank’s Vice President for Africa Region, said at the African Development Bank’s yearly meeting in the Rwandan capital, Kigali.

    “Conflicts in Africa are having an impact on investment in some countries, particularly in the tourism sector. These events are slowing down economic growth, with infrastructure being destroyed and people being displaced,” Diop said in an interview during the AfDB meeting, at the weekend.

    Tourist arrivals in Kenya fell by almost a fifth last year as the country was hit by a series of bombings, including an assault by the Somali militant group al-Shabaab on the Westgate Mall in Nairobi that killed at least 67 people. Tourism is Kenya’s second-biggest source of foreign currency.

    About 90 people were killed in bombings in Abuja, on April 14 and May 1 that were claimed by Boko Haram, the Islamist group that kidnapped more than 200 schoolgirls last month. Nairobi, was rocked by two attacks this month in which at least 15 people died.

    While retail investors factor in increased political risks, there seems to be no change in appetite from companies with long-term commitments in industries such as infrastructure, Alastair Herbertson, an investment specialist at Cape Town-based Investec Asset Management, said.

    Standard Chartered is planning to open 13 new branches in Nigeria, Ghana, Kenya and Zambia this year, Layfield said in an interview.

    “Our belief in the medium-term and long-term prospects of those economies isn’t diminished,” she said. “We still remain incredibly focused on growing our presence in both Nigeria and Kenya.”

    Companies looking to make their first commitments in Africa may be particularly sensitive to the violence, said Stuart Culverhouse, chief economist of Exotix Partners LLP in London, said on May 21.

    “For new investors that have never looked at Africa before, this probably just reinforces their prejudices,” Culverhouse said. “I think countries have to work so much harder to keep that international interest alive.”

    Lingering tensions and political instability “could affect investors’ willingness to undertake planned projects” in Africa, the AfDB said in its African Economic Outlook released last week.

    While the security problems in Nigeria and Kenya are still relatively contained, there’s concern they will spread, Andrew Alli, chief executive officer of Africa Finance Corp., said. “It’s extremely worrying, the levels of increasing violence on the continent,” Alli said.

  • ‘Nigeria needs to address structural deficits to increase foreign investments’

    ‘Nigeria needs to address structural deficits to increase foreign investments’

    Managing Director, BGL Group, Mr. Albert Okumagba, was the chairman, Planning Committee of the third annual national workshop of the Chartered Institute of Stockbrokers (CIS). On the sidelines of the national workshop, Okumagba spoke to financial journalists on the investment environment and macroeconomic potential.

    What is your assessment of investor’s confidence in the capital market?
    There is no doubt that investors’ confidence fell considerably during the financial crisis, evinced by a virtual wiping out of the retail segment of the market and explained to a large extent why a handful of institutional investors, mostly foreign dominated the market for a long time. However, confidence has returned to the market as can be seen from the impressive performance of the market in recent years. The sweeping sanitisation of the financial services sector and the improved reporting standards and corporate governance has also helped in this regard.This is evidenced in the increased participation of the domestic investors in the market as foreign portfolio investors reduce their holdings.

    What do you think can be done to further enhance investor confidence?
    I believe that a lot of work is being done in this regard. As stated earlier, the improved transparency in terms of reporting and the stronger regulatory push for proper corporate governance is achieving good results. However, further measures to enhance confidence will be the active display of zero tolerance for market infractions by market operators. In addition, the regulators must ensure speedy delivery of settlement and judgement to investors in cases of disputes with capital market operators.
    Finally, speedy implementation of decisions by regulators and government would also help boost confidence of investors. For example, the quick implementation of the removal of stamp duties and VAT payment on secondary market transactions could attract stronger interest in the market.

    In specific terms, what are the benefits of rebasing the GDP with reference to the Nigerian capital market?
    The rebased figures arguably represent an improvement in the accuracy of the Nigeria national income estimates, and offer the investing community, financial and academic analysts, professionals, and public planners with more accurate data for doing their work. Across social, economic, financial and trade metrics for the Nigerian economy, significant changes are now obvious. Being the largest economy in Africa would without a doubt put Nigeria on the world map as a force to reckon with going forward. Its US$509.97 billion in 2013 is larger than Egypt (US$226.831 billion), Morocco (US$95.981 billion) and South Africa (US$384.31 billion). It is even larger than Malaysia’s US$305.32 billion. The per capita GDP estimates grew to US$2,889.00 from US$1,555.00 pre-rebasing; suggesting that an average Nigeria earns about US$7.9 per day and of course a robust standard of living that could support large savings and consumption. It is believed that, considering the country’s attractive demographic statistics, this development would generate more foreign investments in terms of both Foreign Direct Investment (FDI) and foreign portfolio Investment (FPI).
    Against the background of the recent data by the Nigerian Stock Exchange (NSE) showing decline in foreign portfolio inflow, what do you think can be done to sustain foreign investors’ interest in the market?
    Our financial market is already very attractive to the foreign investors considering the yield that the market offers. Although the equity market is currently experiencing a lull, our stocks are trading at very attractive valuation. However, the structural deficit in terms of lack of infrastructure and some policies to aid production and manufacturing, the country’s risk profile appear to be high in attracting long term capital through direct investment. This also limits the ability to attract patient capital that can play in the capital market for a long time.
    While the government is doing a good job of improving infrastructure deficit in the country, there is need to increase the speed to meet up with investors’ expectation within the shortest possible time.

    As one of the major promoters of stockbrokers’ yearly national workshop, what informed the decision?
    The annual national workshop was borne out of the need to create platform for thought leadership on critical issues in the National economy as it concerns the capital market. It is also an engagement platform for members who are market players, and regulators and the policy makers- the government. It is part of the larger efforts to use the capital market as a catalyst for growth and of course development.
    How would you appraise the workshop in the last three years?
    First and foremost, it is important to note that the resolutions made at the various workshops in the past are subject to a lot of factors that are external to the institute. However, as a professional body in the Nigerian capital market, our conferences and workshops are premised on engagement with the other critical stakeholders especially the public sector and policy makers on major issues that affect primarily the business of the institute in particular the Nigerian economy in general. In this regard, resolutions of our conferences and workshops in the past are usually presented to the government and related stakeholders. In addition, several meeting are held with the relevant authorities to ensure that resolutions passed at the previous workshops are implemented. Notwithstanding, CIS has impacted the economy in a number of ways. It played major role in the passage of Asset Management Corporation of Nigeria (AMCON) Bill and the subsequent establishment of same. Also the amended investment guidelines for Pension Fund Act by the PENCOM are also part of the CIS’s effort.

    This year’s conference is being seen as unique. Can you shed more light on this year’s theme?
    This year’s workshop is unique in the sense that it focuses on trade, investment, power and agriculture sectors. The uniqueness of this year’s workshop is premised on the pivotal role that these sectors would play in economic growth and development of any nation in the near future. Given the coincidence of this with the time when the economy’s GDP rebasing exposed it as the largest in Africa in terms of size, no other time proves to be more pertinent to discuss these critical sectors’ dynamics than now. In line with the theme of the workshop- “Update on the transformation agenda and expectation from the public and private sectors”, the workshop focused on evaluating the progress of the transformation agenda in relation to opportunities and challenges thrown up in the process. It was also to critically provide workable roadmaps for the government on closing the identified gaps and resolving the challenges either through policies, legislations and/or partnership for the benefits of all stakeholders.
    What is stockbrokers doing to deepen the growth of the market?
    As a capital market operator, we are constantly working with the government through our regulators and our trade groups to uplift the market through lower transaction fees, increased transparency through stronger corporate governance, adoption of global standard market structures and improving access to liquidity for market operators. We have contributed immensely towards developing a capital market master plan, working with the capital market committee of the Securities and Exchange Commission (SEC) and have severally engaged the Minister of Finance and Coordinating Minister of the Economy on the role of the capital market in the country’s economic development.

  • Transforming agriculture via foreign investments

    Transforming agriculture via foreign investments

    Available statistics show that private sector investments in Nigeria’s agriculture have increased appreciably.

    In the past two years, the private sector invested about eight billion dollars into agricultural projects.

    Observers attribute the renewed interest to invest in the agricultural sector to the Federal Government’s Agricultural Transformation Agenda (ATA), designed to promote “ agro-business”, while boosting food security and wealth creation in the country.

    Dr Akinwumi Adesina, the Minister for Agriculture and Rural Development, said that an additional four billion dollars was being injected into the sector by companies like Dangote Group, Indorama Chemicals and Notore Chemicals, among others.

    The minister, who spoke at a recent News Agency of Nigeria (NAN) Forum in Abuja, also said that Syngenta, the world’s leading seeds production company, had established a company in Nigeria.

    He quoted Michel Demare, the Chairman of Syngenta, as saying that “the direction Nigeria is going makes me feel that the demand for seeds is going to rise in the country.”

    Adesina noted that the best performing stocks in the Nigerian market today were agriculture-related stocks, adding that they even performed better than the banks’ stocks.

    He also said that banks were currently adapting their profit-driven business to accommodate agricultural projects.

    The minister, while receiving officials of the Overseas Private Investment Corporation (OPIC) who came under the aegis of the U.S. Corporate Council on Africa (CCA) Infrastructure Trade Mission to Nigeria, restated the government’s determination to boost investment in agriculture.

    Adesina said that the “investment drive” was important for the agricultural sector to open up the potential of some crops in some states.

    “We hope to discuss mechanisation systems; how tractors can be leased to farmers, as against each one of them owning one.

    “The Federal Government would also ensure that basic amenities such as roads, water and power around staple crop zones are provided to enable processors to establish their processing plants in areas where food production is high,” he said.

    Besides, the minister said that leading global institutions such as the U.S. Agency for International Development (USAID), the International Fund for Agricultural Development (IFAD), Bill and Melinda Gates Foundation had been investing in the country.

    He said that the World Bank invested 500 million dollars, Bill and Melinda Gates invested five million dollars, and IFAD invested 80 million dollars, while the United Nations Development Programme (UNDP) invested 1.5 million dollars, among others.

    Moreover, a report released by the Federal Ministry of Agriculture and Rural Development said that the U.S-based multinational food security company, Blumberg Grains, planned to invest 250 million dollars in large-scale food storage facilities in the country.

    The minister and Mr Philip Blumberg, the Chairman of Blumberg Grains, reportedly signed the Letter of Intent (LoI) for the establishment of the facilities.

    The report quoted Adesina as saying that the food storage facilities, when completed, would create at least 1,000 jobs and aid efforts to boost food production in the country.

    “We are excited that a company with the reputation and resources of Blumberg Grains chose to establish its West African production operations and processing facilities in Nigeria.

    “This is a mark of confidence in the structural reforms of our agricultural sector.

    “By manufacturing storage warehouses in Nigeria, farmers, agro-processors and the financial services industry will be able to reduce post-harvest losses, while improving market access and incomes across agricultural value chains,” he said.

    Saying that the Federal Government’s goal was to make the country a global powerhouse in food production, Adesina stressed that the facilities would further enhance Nigeria’s regional standing in agriculture.

    He said that the investment would increase exports of “made-in-Nigeria” manufactured products and make the country an agro-business centre for food safety and security.

    The report also quoted Blumberg as saying that Nigeria had a huge potential agricultural market and that the country would provide a significant opportunity for the company to establish its presence in West Africa.

    “Our commitment is also a response to the New Alliance for Food Security and Nutrition (NAFSN) programme of the Group of Eight Industrialised Nations (G-8).

    “The programme aligns members’ support to Nigeria’s agricultural objectives as well as to the country’s own commitment to promote a business-enabling environment for both domestic and international private sectors,” Blumberg said.

    Blumberg Grains is a leading U.S.-based food security company which provides integrated crop and food storage systems, technology and management.

    The company works with private companies and countries to modernise agricultural value chains and increase the quality and marketable output of harvests.

    The Federal Government has also entered into partnership with Brazil on rice, poultry and soya bean production.

    The former Minister of State for Agriculture, Alhaji Bukar Tijani, said that the partnership would encourage the transfer of agricultural technology to Nigeria.

    Tijani spoke when Mr Luiz Fernando Mainarde, the Secretary of Agriculture of the State of Rio Grande do Sul in Brazil, led a delegation to the ministry earlier in the year.

    “The total demand of rice in Nigeria is about five million tonnes per annum and our farmers produce just over two million tonnes per annum.

    “We want to borrow technology and expertise from Brazil to enable us to become a major producer and exporter of rice, poultry and soya bean,” Tijani said.

    At the meeting, Mainarde said that the Brazilian President, Mrs Dilma Rousseff, had instructed the delegation to strengthen the trade relationship existing between Nigeria and Brazil.

    He said that their visit was on the request of Mr Vincent Amerib-Okun, Nigeria’s Ambassador to Brazil, who visited the state four times to facilitate the visit and ensure cooperative agreement for the transfer of technology to Nigeria.

    All in all, stakeholders urge the Federal Government to continue with its drive for foreign direct investments in the agricultural sector.

    This would boost employment and grassroots development in the country, they add.

    Source: NAN

     

  • More foreign investments, lower productivity ranking

    Despite ongoing efforts to diversify the economy and attract investors,  Nigeria is still ranked low in the Global Competitive Index (GCI) 2013 -2014 by the World Economic Forum, reports Okwy Iroegbu-Chikezie.

    Nigeria seems to have become the beautiful bride. At no time in the nation’s history has there been an influx of foreign investors as being presently experienced. However The Nation investigation shows that there are mixed feelings. While some entrepreneurs and experts are asking questions on the sudden influx of investors into the country,others believe it is a good sign for the economy.

    The pessimists argue that though the world is a global village, the government needs to exercise caution on how wide it opens its borders to ‘portfolio’ investors who may be more interested in buying and selling, rather than engaging in enduring investment that will grow the economy.

    The Global Competitive Index (GCI), introduced in 2004, measures how the set of institutions, policies, and other factors determine the level of productivity of a country. The GCI scores are calculated by drawing together the 12 pillars of competitiveness, namely: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods, market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.

    According to the ranking, Nigeria is in the poorest pool of economic development. Nigeria is ranked as a “factor driven” economy with the likes of Liberia, Lao, Mali and Yemen.

    According to the GCI document, the compilers of the index said it was concerned that Nigeria’s economy is struggling to keep up, despite overt advantages over other African countries. For instance, the report noted that Nigeria, due to its population, enjoys a large market size (32ndposition) “which has the potential for significant economies of scale and is an important factor for attracting investors”.

    Some operators believe that the heightened interest by investors in the country may be due to other estraneous reasons other than the need to improve the nation’s development. They said Nigeria’s challenges are linked to weak institutions (ranked at 129th out of 148), corruption, undue influence, weakly protected property rights, insecurity, poor infrastructure (ranked at 135th) and poor primary education (ranked at 146th).

    Chairman, Tesscom West Africa, Mrs. Olufemi Ilori, an entrepreneur and a Pharmacologist, expressed concerns over what she called a deluge of entrepreneurs who troop into the country daily.

    She said: “As a member of the Lagos Chamber of Commerce and Industry, l get invited to quite a number of these trade missions. l can confidently tell you that the only thing l can liken it to is to describe it as a gold rush. Everybody is trying to get something out of our country but having said this; nevertheless there are people who have very serious intention to tap into our emerging market and economy.”

    She said as Nigerians, we need to have a discerning spirit to sift the wheat from the chaff and to ascertain those trade missions that are necessary for our growth and those who are here simply to tap into our resources and rush back to where they came from. What we need as a country is technology transfer suited to our challenges and needs, to enhance our quest for growth in our manufacturing sector. Mrs. Ilori cautioned that we should be wary of people who will come in the guise of investors to take our raw materials out, finish them and export them back to us as a finished product at a premium, saying if we allow this to happen, the nation will have herself to blame.

    In her words: “We all know that we have so much untapped mineral resources aside crude oil. We have agriculture which is a source of sustainable wealth. We have one of the best tea in the world in Mambilla Plateau. We also have in abundance unique minerals, such as kaoline, Gum Arabic. The country is also an acclaimed world producer of cassava and we have not been able to process it to pharmaceutical grade starch.”

    She said the nation should playthe catch-up gain and industrialise, support the small and medium scale industries by giving them soft loans and provide the enabling environment that is competitive, adding that we should discourage any country using us as a dumping ground.

    President Oil & Gas Service Providers Association, Mr Colman Obasi, also advised the government on the sudden interest by investors into the country. He berated the government for not showing enough commitment in developing the petrochemical industries, but is ever willing to entertain any group in the name of foreign investors.

    A consultant in hotels and tourism , Mr. Charles Abel also advised government to do its home work well before opening its borders so wide. According to him, over 25 years ago some indigenous companies were canning tomato puree and fruit juice, he wondered what has happened to those companies as the local market is filled with imported tomato puree and canned juice from Asian countries.

    But Chief Executive Officer of Stan Engineering Limited, Mr. Emmanuel Igwe differed. He rather saw the trade visits as a result of improvement and growth of the economy. He said rather than suspecting the investors, Nigerian business men should take advantage of the new lease of life for the nation as it were and make good use of it.

    According to him, Nigeria is the destination of choice for investors, a growing and emergent economy. Managing Director of Ephtah Industries Limited, Mr Ephraim Olatunde observed that if nothing is good in the economy, no foreign investor would come.

    He suggested that rather than people being pessimistic about the good intentions of prospective investors, small and medium scale entrepreneurs for instance should take advantage of the visits, network and possibly seek technology transfer while up scaling their skills and learning new businesses and technology.

    Olatunde noted: “Mauritius Indian Ocean island’s fame for its white sandy beaches and luxury spas, is shifting an economy traditionally focused on sugar, textiles and tourism towards offshore banking, business outsourcing, luxury real estate and medical tourism.”