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  • JUST IN: GDP grows by 3.46% in Q3 2023

    JUST IN: GDP grows by 3.46% in Q3 2023

    The National Bureau of Statistics (NBS) on Thursday, February 22, said the country’s Gross Domestic Product (GDP) grew by 3.46% in real terms in the fourth quarter of 2023 (Q4 2023).

    According to its document tagged: “Q4 2023 GDP Report,” the growth is lower than the 3.52% recorded in 2023 and higher than the third quarter of growth of 2.54%.

    NBS said: “Nigeria’s Gross Domestic Product (GDP) grew by 3.46% (year on year) in real terms in the fourth quarter of 2023.”

    The report noted that this growth rate is lower than the 3.52% recorded in 2022 and higher than the third quarter of 2023 growth of 2.54%.

    It further said the GDP performance in the fourth quarter of 2023 was driven mainly by the service sector, which recorded a growth of 3.98% and contributed 56.55% to the aggregate GDP.

    The agriculture sector, said NBS, grew by 2.10%, from the growth of 2.05% recorded in the fourth quarter of 2022.

     The Bureau also noted that the growth of the industry sector was 3.86%, an improvement from 0.94% recorded in the fourth quarter of 2022.

    In terms of share of the GDP, NBS said, the industry, and the services sectors contributed more to the aggregate GDP in the fourth quarter of 2023 compared to the fourth quarter of 2022. On an annual basis, GDP grew by 2.74% in 2023 relative to 3.10% in 2022.

    In the quarter under review, NBS noted that aggregate GDP stood at N65,908,258.59 million in nominal terms.

    The Bureau added that this performance is higher when compared to the fourth quarter of 2022, which recorded an aggregate GDP of N56,757,889.95 million, indicating a year-on-year nominal growth of 16.12%.

    The report explained that for better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.

    On the oil sector, “The nation in the fourth quarter of 2023 recorded an average daily oil production of 1.55 million barrels per day (mbpd), higher than the daily average production of 1.34mbpd recorded in the same quarter of 2022 by 0.21mbpd and higher than the third quarter of 2023 production volume of 1.45mbpd by 0.10mbpd.

    NBS also said the real growth of the oil sector was 12.11% (year on year) in Q42023, indicating an increase of 25.50% points relative to the rate recorded in the corresponding quarter of 2022(-13.38%). Growth also increased by 12.96% points when compared to Q3 2023 which was –0.85%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 3.81% in Q4 2023. On an annual basis, the oil sector growth stood at -2.22%in 2023 compared to -19.22% in 2022.

    NBS said the oil sector contributed 4.70% to the total real GDP in Q42023, up from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 4.34% and 5.48% respectively.

    The report added that “The non-oil sector grew by 3.07% in real terms during the reference quarter (Q42023).

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    “This rate was owner by 1.37%points compared to the rate recorded in the same quarter of 2022 and 0.32% points higher than the third quarter of 2023.

    “This sector was driven in the fourth quarter of 2023mainy by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunication); Agriculture (Crop production); Trade; Construction; Manufacturing (Food, Beverage, and Tobacco) and Real Estate, accounting for positive GDP growth.

    “On an annual basis, the non-oil sector growth in 2023 stood at 3.04% relative to 4.84% recorded in 2022.

    “In real terms, the non-oil sector contributed 95.30% to the nation’s GDP in the fourth quarter of 2023, lower than the share recorded in the fourth quarter of 2022which was 95.66% and higher than the third quarter of 2023recorded as 94.52%

  • ‘$1tr GDP goal needs fiscal, monetary policy backing’

    ‘$1tr GDP goal needs fiscal, monetary policy backing’

    The plan by the Federal Government to achieve $1 trillion Gross Domestic Product (GDP) economy in the next seven years will require the collaborative policies from the fiscal and monetary authorities, Co-Managing Partner, Comercio Partners Limited, Stephen Osho.

    Speaking yesterday during the unveiling of the 2024 microeconomic outlook in Lagos, he said recapitalization of the banking sector will help solidify the financial sector and achievement of the GDP goal.

     He said the $1 trillion economy is a goal set by government that requires monetary and fiscal authorities collaboration.

    Also speaking, Co-Managing Partner/Head, Trading, Comercio Partners, Nnamdi Nwizu, said naira stability will support government’s plan to attract more foreign direct investments to the economy.

    He said businesses need forex availability and stable naira to thrive even as lower interest rate  are also key to business success.

    In his presentation, Investment Research Associate, Comercio Partners , Ifeanyi Ubah, said  in a bid to tame the soaring inflationary pressures, the Central Bank of Nigeria (CBN), mirroring global counterparts, embarked on a journey of additional restrictive monetary policies.

     “A formidable 225 basis points increase brought interest rates to a towering 18.75 per cent. However, the impact of these measures is yet to manifest fully, as Nigeria contends with rampant inflation spurred by escalating food import prices, exacerbated by a persistent dollar shortage,” he said.

     “Simultaneously, the CBN, orchestrating its monthly bond auctions, has raised investment rates across various bonds, witnessing rate hikes of 826bps, 110bps, and 300bps for the 364DTM, FGN 5-year, and FGN 10-year bonds since January,” he said.

    On liquidity, he said explained that contrary to CBN’s efforts to curtail money supply, the system liquidity remains robust. Notably, the investor appetite for government bonds has seen a substantial uptick.

    The report explained that in the Nigerian Treasury Bills (NTB) space, total sales have grown by 3.5 per cent Year-on-Year (y/y), reaching N4.9 trillion, with total offerings climbing by 4.5 per cent to N4.16 trillion. The spotlight, however, falls on the remarkable 94 per cent surge in auction demand, a testament to heightened liquidity amidst escalating rates,” he said.

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    According to the report, heading into first half of 2024, investors are poised to scrutinize the CBN’s guidance on the rate trajectory during upcoming auctions. The consistent upward trend in auction stop rates across all tenors is expected to persist, serving as a crucial tool for the central bank to manage the money supply in the face of external reserve constraints. Higher auction rates are anticipated to magnetize liquidity into the market, as local investors seek elevated returns, concurrently prompting an increase in NTB supply.

    On the prevailing USD backlog, coupled with external challenges amidst global economic uncertainties, casts a shadow of uncertainty over Nigeria’s economic horizon.

    The report said: “As the backlog intensifies, there looms a growing risk of heightened pressure on the exchange rate. This ominous scenario is compounded by factors such as dwindling external reserves and capricious fluctuations in crude oil prices.

     “The specter of exchange rate strain introduces an element of volatility and uncertainty into the local bonds market. Local investors, cognizant of the potential impact of currency devaluation on their investments’ real returns, approach the market cautious.

     “Foreign investors, too, may choose to remain on the sidelines, navigating the turbulent waters with prudence. As Nigeria charts its course through these economic headwinds, the path forward remains uncertain. The nation stands at a pivotal juncture, where the interplay of inflationary pressures, tightening measures, liquidity dynamics, and currency challenges will shape its economic destiny in the coming months. Investors, both domestic and foreign, watch intently, braced for the next chapter in Nigeria’s economic odyssey.”

  • Insurers eye N1tr premium to boost GDP

    Insurers eye N1tr premium to boost GDP

    The insurance sector will strive hard to hit the N1 trillion premium this year to align with the vision of President Bola Tinubu’s ambitious target of growing the economy to $1 trillion by 2026 and increasing it to $3 trillion by the end of the decade in 2030.

    The Commissioner for Insurance/Chief Executive Officer, National Insurance Commission (NAICOm), who made the promise in Lagos at the weekend during the launch of a digital solution, AdvantageConnect, by Enterprise Life, an insurance company, said the insurance industry has a role to play in the pursuit of the vision of Mr President.

    He blamed the low penetration of insurance in the country on the lack of awareness about value the insurance industry adds to peoples’ lives, adding that insurance does not bring cost but value to people.

    Speaking to the solution, he said: “This is a truly innovative solution, and it aligns with our vision at the Federal Government to fully digitise insurance in Nigeria. I commend the vision of Enterprise Life for leading in this area. With Advantageconnect, I believe more people will have access to insurance and be brought into the financial net.”

    Also speaking, the Group Chief Executive Officer, Daniel Larbi-Tieku, said insurance penetration in Nigeria is less than one per cent of the population because many people still see insurance as an after-thought or something for the old and pledged to change the paradigm with innovation.

    He said: “Everyone needs an advantage to get ahead in life, and your advantage in life is a function of the partnerships that you embrace. We have positioned ourselves as a reliable partner for all our customers as they live through life’s uncertainties. This partnership is the philosophy behind the products we create.

    “We are constantly innovating to provide solutions to problems that our people face in Nigeria. Financial inclusion is critical to building wealth in any nation. Many Nigerians still do not have access to financial solutions, including insurance. Insurance penetration in Nigeria is less than one per cent of the population because many people still see insurance as an after-thought or something for the old. We are committed to changing that perception by deploying technology to simplify processes and create financial solutions that will facilitate wealth creation and assure peace. Because we do not sell insurance; we offer you an advantage to keep you ahead in life.”

    Speaking about the need for a life planner and the uniqueness of Advantageconnect, Chief Executive Officer of Enterprise Life, Funmi Omo, said: “Life is full of uncertainties that have been aggravated by changing economic realities. We realised that many people see insurance as an afterthought, but we believe everyone should plan their lives to buy assurance amid life’s uncertainties. We have launched this product to connect people to a life planner next door that will be available as a reliable partner. Advantageconnect gives you the advantage”.

    She said a unique feature of the Advantageconnect app is the seamlessness in connecting with a life planner, who will seek to understand the specific needs of the customer and create a tailored life insurance solution for the customer.

    With Advantageconnect, more Nigerians will be able to seamlessly access insurance products, connect with a life planner and plan their lives better.

    Read Also: Service sector lifts Nigeria’s GDP by 2.54 percent in Q3 2023

    According to Omo, the app which is now available on iOS and Google Playstore, is designed as a digital insurance channel, creating a new digital experience around insurance by making the interactions between Customers, Agents, and Enterprise Life quicker, easier, and more convenient.

    “Built on geo-location technology like Uber, prospective and current customers can connect with Enterprise Life agents for services, financial advisory, and purchase of insurance products in a secure manner. The channel includes features that allow customers to purchase instant cover, manage existing policies, manage claims and pay premiums,” the CEO said.

    Chairman, Enterprise Group Plc, Keli Gadzekpo, said the birth of Advantage Connect is to further use technology to deepen insurance penetration and deliver real advantage to every Nigerian.

    He expressed confidence about the possibilities of the solution because it embodies the company’s values at Enterprise – and ‘ultimately gives our customers their Desired Advantage’.

    “It is friendly and reliable. More importantly, it connects our customers to our Life Planners who have been trained to exude the highest sense of professionalism and strive for excellence in their interaction with our customers. You can trust us.

    “Innovation is at the heart of what we do at Enterprise Life, which is why we will continue to raise the standards and create more relevant solutions for our customers. Please make sure to visit one of our demo stands to experience this ground breaking solution.

    “We are technology-driven; it is deployed in all our processes from customer onboarding to customer relationship management. Our commitment is to deepen insurance penetration in Nigeria and make people see the benefits of insurance, particularly life insurance. This is our value proposition,” he said.

  • Family businesses contribute $200b to GDP, say stakeholders

    Family businesses contribute $200b to GDP, say stakeholders

    Stakeholders have reiterated the need for family businesses to transcend generations as they contribute nearly $200 billion to the nation’s Gross Domestic Product (GDP) yearly. 

    They spoke at the First Bank sponsored event, tagged: “My Family My Business,” in Lagos designed to promote business succession and sustainable planning to ensure the preservation of businesses for future generations.

    Special Adviser to President Bola Tinubu on Presidential Enabling Business Environment Council (PEBEC), Dr. Jumoke Oduwole, said many family businesses have succeeded in transcending generations, providing significant amounts of jobs and contributing to continuity in development and underpinning economic growth across advanced economies of the world.

    Oduwole said 23.8 million family businesses in Nigeria account for millions of jobs available in the economy.

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    She said these figures reflect the glaring significance and impact that family businesses have on Nigeria’s economy and the need for everyone to ensure the sustainability of multi-generational businesses.

    The Group Executive, Private Banking and Wealth Management, FirstBank, Idowu Thompson, advised the next generation to get involved in family business to ensure continuity, especially as these businesses contribute largely to the GDP of the nation.

    He said there was a need for the next generation to get experiences outside of the core business of the family, such as structured exposure either through short courses, learning things related to accounting, bookkeeping, the very basics and moral guidance for them to understand the place of money.

    “A lot of the matriarchs and patriarchs of the wealth that we see today had actually spent years saving and also ensuring that they were able to grow the funds or the monies that they built up through the years. It’s not a case of giving a value judgment on lifestyle. It’s a case of saying that there has to be a balanced view to life,” he said.

    The Country Senior Partner, PwC Nigeria, Sam Abu, said private businesses are ruling the world as the top one per cent of households own 43 per cent of global wealth, noting that this is significant for resolving the issues across the world today.

    He said in Nigeria, the top 100 billionaires have a combined wealth of $68 billion, with the top three family businesses having over $20 billion in market capitalisation.

    Abu said only 38 per cent of the next generation is involved in the family business, with 28 per cent of them on the management board, noting that the statistics has to go up as a very critical task of building lasting family business in spite of the significant economic challenges that are experienced in Nigeria.

  • ‘How to achieve N284b mining revenue by 2025’

    ‘How to achieve N284b mining revenue by 2025’

    Addressing Environmental, Social, and Governance (ESG) issues in mining industry’s operations remains crucial to achieving the country’s targets of three per cent mining contribution to Gross Domestic Product (GDP).

    The country’s mining roadmap plans to attain $618 million (or about N284 billion) revenue and three million jobs by 2025.

    The ‘Roadmap for the Growth and Development of the Nigerian Mining Industry’ was launched in 2016 to drive the growth and development of the mining industry and create a globally competitive sector capable of contributing to revenue and GDP, providing jobs and advancing social and human security for Nigerians.

    The roadmap targeted, among others, the achievement of three per cent mining sector’s contribution to GDP by 2015, increased revenue earnings of N284 billion, from N114.8 billion in 2020; and a significant boost in the sector’s employment-generation capacity from 130,000 in 2020 to three million by 2025.

    But, multinational professional services giant, PricewaterhouseCoopers (PwC Nigeria) said analysis of trends in the  sector’s employment generation, revenue contribution, and GDP,  has been slow, and this indicates that there are significant opportunities for improvement if it is to achieve the targets set out in the roadmap.

    PwC, in a report entitled: ‘Nigerian Mining – Progress, But Still a Long Way to go’, said for Nigeria to achieve these ambitious targets, the industry will need to show commitment to addressing ESG issues, in addition to understanding the dangers and opportunities the issues.

    The report, as a result, stated that miners could offer long-term benefits to governments, shareholders, workers, and the communities where they operate.

    According to it, companies that proactively respond to these emerging trends tend to perform better financially.

    “These companies achieved an average total shareholder return of 34 per cent over the previous three years, surpassing the general market index by 10 per cent.

    Read Also: Nigeria loses $1.5b of GDP to malnutrition

    “This demonstrates the positive correlation between strong ESG practices and financial success,” PwC said, citing its previous study which found that mining companies with higher ESG ratings outperformed the overall market during the peak of the COVID-19 crisis.

    PwC, in the report, which was made available to The Nation, recalled that the industry was once a substantial contributor to the growth of the economy, accounting for five per cent of the GDP in the 1960s and 1970s.

    It, however, regretted that with the discovery of crude oil, the industry suffered serious neglect, resulting in a mere 0.17 per cent contribution to the GDP between 2018  and last year.

    The report identified factors responsible for the poor performance of the mining industry over the years to include insecurity, smuggling, state and Federal Government tax alignment, illegal mining, weak value addition, low level of mining mechanisation, and inadequate funding.

    PwC, however, said apart from prioritising ESG issues, there are other key initiatives needed to catalyse the mining sector’s growth and achieve the set targets such as tackling insecurity that has hindered the operations of many mining sites across the country.

    “The repeated banning of mining activities in some states by security operatives and some State Governments in an effort to curb insecurity challenges has also led to an erosion of investor confidence in the sector.

    “Ensuring a secure environment for mining operations remains one of the matters requiring urgent attention of the new Federal and State Government administrations.

    “Insecurity in the mining sector could be curbed using technology and collaboration with security agencies and mining host communities,” the report authored by a team of six experts from PwC Nigeria, led by Partner/Mining Leader, Cyril Azobu, said.

    Also emphasizing the need to halt illegal mining and smuggling, the report quoted the former Minister of State Mines and Steel Development, Uchechukwu Ogah, as saying that Nigeria has in the past six years lost revenue estimated at $5 billion to smuggling of gold, for instance.

    “The spike in gold smuggling in the country has once again highlighted the socioinstitutional and structural problems in our governance system,” the report said.

    Other key initiatives to catalyse the sector’s growth, according to the report, include the need for a harmonised approach to the regulation of mining activities between Federal, State and Local Governments; focus on investor friendly fiscal and regulatory policies in order to attract Foreign Dirmect Investments (FDIs).

    “Competition for FDI is likely to increase as other African countries grow their mining sector. Countries like the Democratic Republic of Congo are endowed with key minerals such as gold and cobalt and have an established attractive mining value chain focused on mineral extraction to direct export.

    “But in Nigeria, mining is largely a greenfield sector and is currently in the process of developing an attractive mining value chain. Nigeria should focus on investor friendly fiscal and regulatory policies in order to attract FDIs ahead of other countries,” PwC said.

    It also harped on the need for Nigeria to develop mineral-specific value addition policies that would encourage downstream processing to increase sustainable economic growth from mining.

    PwC also said there are some emerging threats and potential roadblocks which Nigeria must watch out for, such as quick revenue versus long-term addition, brain drain and human capacity, and increased competition for FDI.

    “Government must put in place strategies to address these if it must reap the benefits of the mining sector,” the report said.

  • Nigeria losing $1.5bn of GDP to malnutrition, says FG

    Nigeria losing $1.5bn of GDP to malnutrition, says FG

    The federal government is worried that Nigeria is losing $1.5 billion of its GDP every year due to the lack of essential nutrients in the diet of the citizens. 

    As a result of this problem, the federal government bothered that malnutrition can severely impact the economy by hindering human capital development and reducing productivity.

    Due to the economic impact of the COVID-19 pandemic, particularly on the poorest and most vulnerable households, it has become even more difficult to afford sufficient and nutritious food.

    To combat malnutrition, the federal government has initiated coordinating efforts through the Federal Ministry of Budget and Economic Planning to respond swiftly with expected positive outcomes.

    The minister for Budget and Economic Planning, Abubakar Bagudu made this disclosure while speaking at the 53rd Annual General Meeting and Scientific Conference of the Nutrition Society of Nigeria (NSN) in Abuja.

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    Bagudu noted that the government is, determined to tackle malnutrition through the inclusion of nutrition in the National Development Plan (NDP 2021-2025) as well as “The Nigeria Agenda 2050”.

    According to him, “it is also a commitment to achieving optimal nutrition status for all Nigerians with particular attention to the vulnerable group as highlighted in the National Multisectoral Plan of Action for Food and Nutrition (NMPFAN 2021-2025).”

    The minister urged experts in nutrition in the country to research and come up with innovations that will boost nutrition. 

    These innovations and researches the he said will contribute towards achieving Sustainable Development Goals, ensure Universal Health Coverage, and bringing about significant positive changes in the nutrition sector in Nigeria. 

    By prioritizing innovation and research, the government wants to find new and improved ways to address nutritional challenges and promote the well-being of the Nigerian population.

    He told members of the Nutrition Society of Nigeria “to prioritize innovation and research in the field of nutrition towards the attainment of Sustainable Development Goals, Universal Health Coverage and transformation of the landscape of nutrition in Nigeria”.

    Bagudu stated that “Nigeria currently requires Nutrition professionals who have extensive knowledge, good communication skills to address nutrition education, emotional intelligence as well and a good understanding of self-motivation and drive to address nutrition dynamics.”

    He told the leadership of NSN  to embrace technology, leverage digital solutions, and invest in research and development to find sustainable and scalable solutions to Nigeria’s nutrition challenges.

    Bagudu said he was confident that “through collective efforts, we can improve nutrition leadership and workforce capacity, paving the way for improved health and development in Nigeria.  

    Members of the Nutrition Society of Nigeria the minister noted “are part of a community that is uniquely positioned to lead the charge in addressing our nation’s nutritional challenges”.

    Bagudu assured members of the NSN that his ministry will “strengthen coordination and provide the required leadership for the nutrition sector”. 

    He said: “To effect meaningful change, we must strengthen not only our understanding of nutrition but also our leadership in this field and the capacity of our workforce. It is a call to action for all of us to rise to the occasion, to assume leadership roles, and to equip ourselves with the knowledge and skills needed to drive real change.”

    In his goodwill message, the Governor of Kwara State, AbdulRahman AbdulRasaq said the Nigerian Governors’ Forum, NGF has identified areas of key commitments for the realization of a healthier citizen and country including increasing budgetary spending on nutrition and Strengthening the nutrition profile.

    He disclosed that the NGF has resolved to resuscitate the state committee for food and nutrition for effective food nutrition across the country in addition to developing sectorial plan actions of food and nutrition in line with the national plan, among others.

    The president of Nutrition Society of Nigeria, Prof Wasiu Afolabi during his address, commended the federal government for granting a Presidential directive for the creation of a Nutrition Department in line with Ministries and Agencies of Government as well as ensuring the nutrition budget and appropriation in 2023.

  • Nigeria’s GDP rises to 2.51% in Q2 2023

    Nigeria’s GDP rises to 2.51% in Q2 2023

    • Edun assures on improved GDP per capita, low inflation

    The National Bureau of Statistics (NBS) has revealed that Nigeria’s Gross Domestic Product (GDP) recorded a growth of 2.51 per cent in real terms in the second quarter (Q2) of 2023.

    In its Nigerian Gross Domestic Product (GDP) Report Q2 2023, released at the weekend, the NBS revealed that the growth contrasted with the 2.31 per cent increase reported in the first quarter (Q1) of this year.

    However, it fell below the 3.54 per cent growth netted in the second quarter of 2022, when the GDP grew by 3.54 per cent.

    The performance of the GDP in the second quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.42 per cent and contributed 58.42 per cent to the aggregate GDP.

    Also, the agriculture sector grew by 1.50 per cent, an improvement from the growth of 1.20 per cent recorded in the second quarter of 2022.

    The report reads that: “in terms of share to the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the second quarter of 2023 compared to the second quarter of 2022.”

    The NBS stated that the growth of the industry sector was -1.94 per cent compared to -2.30 per cent recorded in the second quarter of 2022.

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    In nominal terms, the aggregate GDP stood at N52.10 trillion in Q2 this year (real GDP put at N17.72 trillion), surpassing the N45 trillion recorded in the corresponding period of the second quarter in 2022.

    “In the quarter under review, aggregate GDP stood at N52,103,927.13 million in nominal terms. This performance is higher when compared to the second quarter of 2022 which recorded aggregate GDP of N45, 004,520.89 million, indicating a year-on-year nominal growth of 15.77%. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.”

    Breaking down the GDP into oil and non-oil sectors, the NBS report further showed: “The real growth of the oil sector was –13.43% (year-on-year) in Q2 2023, indicating a decrease of 1.66% points relative to the rate recorded in the corresponding quarter of 2022 (-11.77%).

    “Growth also decreased by 9.22% points when compared to Q1 2023 which was –4.21%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12% in Q2 2023. The Oil sector contributed 5.34% to the total real GDP in Q2 2023, down from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 6.33% and 6.21% respectively.

    “The non-oil sector grew by 3.58% in real terms during the reference quarter (Q2 2023). This rate was lower by 1.19% points compared to the rate recorded in the same quarter of 2022 and 0.81% points higher than the first quarter of 2023.

    “This sector was driven in the second quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Trade; Agriculture (Crop production); Manufacturing (Food, Beverage & Tobacco); Construction; and Real Estate, accounting for positive GDP growth.

    “In real terms, the non-oil sector contributed 94.66% to the nation’s GDP in the second quarter of 2023, higher than the share recorded in the second quarter of 2022 which was 93.67% and higher than the first quarter of 2023 recorded as 93.79%.”

    This is just as the Federal Government has hinted of plans to rein in inflation, increase productivity and boost savings and investments.

    Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun said Nigerians should expect significant improvements in the overall economic performance.

    Edun said ongoing government initiatives would put an end to hyperinflation and a decade-long decline in Gross Domestic Product (GDP) per capita.

    He spoke at the retreat for the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja.

    According to him, the era of GDP per capita falling by 30 per cent over the past 10 years is over with the president’s ‘Renewed Hope Agenda’.

    He also assured that the issue of “hyper-inflation in the nation’s economy would soon be a thing of the past.”

    Nigeria’s inflation rate rose by 129 basis points from 22.79 per cent in June to 24.08 per cent in July, driven by the general increase in prices of basic living costs.

    Edun noted that the government’s agenda would “create jobs, reduce poverty, control micro and macroeconomic policies, attract investors, stabilise the exchange rate and drive the economy to reduce poverty to the lowest level.”

    He noted that although the removal of fuel subsidy has slowed down the economy, interventions have been put in place to cushion the pains of reform and correct subsidy leakages.

    Edun reminded members of the Presidential Committee on Fiscal Policy and Tax Reforms of Tinubu’s 30-day deadline to deliver something tangible on their assignment, urging them to fast-track their assignment as there was no time to waste.

  • Emefiele: Economic diversification option to grow GDP

    The Central Bank of Nigeria will be churning out policies to support its goal to keep the economy going. Its ongoing programmes and sector intervention funding under its Governor, Godwin Emefiele, have helped in diversifying the economy towards growing the country’s Gross Domestic Products (GDP), reports Group Business Editor SIMEON EBULU

    If there is any urgent desire in Nigeria today regarding what steps to take to drive the nation’s economic fortunes and take it to the next level, it is simply to diversify the economy. On this there is unanimity of agreement.

    Diversifying the economy requires that the economic space  be dissected to give room for other commodities other than crude oil, which had been and still  Nigeria’s main revenue driver, to be harnessed to contribute their quota to the country’s overall GDP.

    For too long the country has over relied on proceeds from  oil to do anything and everything. The country had been hooked-on, or rather hoodwinked on relying solely on oil resources as though it has nothing else to fall back on. This has been the lie that had held the nation captive denying it from exploring  other opportunities that abound across the length and breadth of the nation.

     

    No option to diversification

    But gratefully, the end of that era of a mono-economic policy culture, is about coming to an end, through initiatives and pursuits of the Federal Government driven largely by the Central Bank of Nigeria (CBN) and other specialised export oriented agencies.

    The CBN Governor, Godwin Emefiele has been emphatic, saying the country has no choice but to diversify its economic dependence from crude to the non-oil. He has his reasons. He said the volatility of oil  prices in the international market today underscores the harsh reality that the country is left with no choice but to diversify its economy away from oil into agriculture, manufacturing, services and other non-oil sectors.

    Emefiele, told financial correspondents at a forum in Lagos that the dwindling oil revenue provides the nation a painful but indispensable opportunity to look inwards in a bid to trigger economic growth, urging that it was time Nigerians started to appreciate locally manufactured goods that would make local industries thrive and boost the economy.

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    Emefiele zeroed in on the real sector as the engine room of every economy, saying ” it facilitates the production of raw materials. He pointed out that because of the hallowed contribution of agriculture, mining and quarrying activities, including manufacturing and construction to the GDP which he put at about 43.2 per cent in 2014, “the  CBN took the initiative to transcend its core mandate of maintaining monetary and price stability to also cover developmental activities, especially in financial intermediation and resource allocation to those sectors.”

    He said the developmental finance initiative of the CBN has been hinged on the premise of economic growth, adding that concerted efforts were made to deepen credit delivery to the real sector.  “We have the conviction that the sector has sufficient employment capabilities, high growth potentials, likewise its significant contribution to foreign reserves, industrial base expansion and growth potential of the economy,” he stated.

    With the CBN initiative and in sync with other government regulatory agencies, emphasis is now gradually shifting to harnessing other resources in the non-oil segment, in which Nigeria incidentally has abundant comparative advantage to up the ante in its drive towards diversifying the economy. These overlooked segments, including agriculture, arts and crafts, buying and selling, lumbering, manufacturing, palm oil, cocoa, groundnut, tin, hides and skin, textiles, cotton, rubber, gold and many more, have been the main stay of the nation’s economy, pre and post-independence, until the emergence of crude oil. There is nothing abysmal in crude oil being added to the list of Nigeria’s economic growth agents, it is just that rather than engaging oil as an agent of development (the fastest for that matter), it became a distraction and a corrosive agent that eroded all other elements that had generated so much wealth that helped to lay the foundation of modern day Nigeria.

    The country, rather than engage in wholesome harnessing of it’s resources in growing the economy, it seemed as though it found solace in operating a policy of elimination by substitution between oil and other commodities. Nigeria substituted every other growth element with crude oil, albeit to the detriment of the overall growth of the  economy.

    And now the black gold has started to manifest its limitation as the all encompassing growth agent. Global geopolitics, fluctuating price movements, production disruptions and alternate sources of energy, have ‘ganged up’ against Nigeria, or should we say, compelled her to now see the necessity to harness its abundant natural resources to drive its economic fortune and development.

    This turn of event is what provided the leadership of the CBN, to articulate and initiate some of its far-reaching policies, the implementation of which are helping to provide the necessary space for other neglected sectors to thrive and contribute their quota to an economy that had become a mono economy hinged on only one commodity-crude oil.  Now there is talk of an emerging diversified economy in which there are many contributors, both current and potential.

     

    Anchor Borrowers Programme

    From agriculture alone from which the CBN’s Anchor Borrowers Scheme has become a household name, many food and arable crops are beginning to make impacts in their contributions to the nation’s GDP. Across the country, and most especially in Kebbi State, rice farms are now measured in several hundreds of hectres, tomatoes, grains, cassava and maize have joined the queue. The limitation that the lack of funding and expertise imposed on farmers have been eliminated by the CBN under Emefiele’s  leadership.

     

    Intervention funds

    The various intervention funds targeted at the power sector, Small and Medium Enterprises (SMEs), Aviation, the Real Sector, entertainment industry, textiles, among other incentives, are the fuel propelling the productive capabilities of many firms across the production chain today currently adding value to the nation’s overall GDP.

     

    CBN’s economic diversification agenda

    To unlock the potential of the real or manufacturing sector and position it for effective growth, value added productivity and job creation, the apex bank established a N300 billion Real Sector Support Facility (RSSF). The fund is expected to enhance the flow of credit to the private sector and enhance the productive capacity of the economy. The intent of the facility is to support large enterprises for start-ups and expansion financing needs of about N500 million and up to a maximum of N10 billion to qualified firms as the case may be.

    Like the CBN chief said, the real sector is evidently the backbone of most great economies, which explains why the apex bank has been consistent in supporting the sector. Emefiele listed  the real sector targeted  by  the  facility to include manufacturing,  agricultural  value  chain  and  select service sub-sectors, saying the facility is expected to improve access to SMEs to fast-track the development of the manufacturing, agricultural value chain and services sub-sectors of the economy.

    He said it is also meant to increase output, generate employment, diversify the revenue  base, increase foreign exchange earnings and provide input for the industrial sector on a sustainable basis.

    “The fund is to be managed by the Development Finance Department of the CBN which shall be responsible for the day-to-day administration of the facility,” listing the activities to be covered under the facility to include startups and/or expansion projects in manufacturing, agricultural value chain. Emefiele said services and trading shall not be accommodated under this facility,

    The CBN Director, Banking Supervision, Abdullahi Ahmad, in applauding the policy, said:  “It would probably be the first time in the history of this country where manufacturers would be able to take fixed interest rate loans for seven years, which means they would be able to plan. The volatility that they fear for all kinds of risks would be taken out and I think these are very laudable steps in improving and growing the economy.”

    He said the idea is to have job- creating activities in the economy and as well bring interest rates down, saying although agric and manufacturing are the initial sectors considered for immediate attention, later a bank can apply  if there is a job-creating sector that the bank is operating in.

    Also, the Executive Director, Finance, First City Monument Bank, Mrs. Yemisi Edun, said this was a very positive development for the economy and the banks because the anks would be able to access these funds and earn on it, adding that because it would be coming at single digit rate, it would be positive for the economy.

    “For now, it would be channeled to the agricultural sector and manufacturing  for growth and to enhance the creation of jobs. The focus is to ensure that the economy grows  so that we can achieved the stability we need to see a positive trend of growth and that is what we are committed to doing at this time,” she said.

    In the RSSF, the CBN pointed out, will be limited to be Greenfield activities  and expansion (Brownfield) projects in manufacturing, agriculture and other related sectors approved by it, stating however that emphasis would be placed on Greenfield, or nrw projects.

    It prohibited operators involved in trading from accessing the real sector support facility, a move the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, thinks should be reviewed. He said the CBN should devise schemes as well for other sectors like the service, construction, maritime, transportation, healthcare, education, entertainment and tourism.

    “All these sectors also bring value to the economy and generate employment. So, we need to look beyond the agriculture and manufacturing, because other sectors are also adding value and they also need funding.

    “If anything, I think we need to get those who are already in business to be properly on their feet. We need to stabilise them and support them to be more productive, to accelerate the economic recovery process.

    “Many of the firms are under the heavy burden of debt servicing, which is very costly. So, I don’t see anything wrong in easing the pressure for them with this kind of facility. I don’t support the idea of excluding them completely from the facility,” Yusuf said.

  • Maritime ’ll contribute 10% to GDP, says Peterside

    THE Federal Government, yesterday projected a 10 per cent growth in the maritime industry. This was contained in the 2019/2020 maritime forecast unveiled by the Nigerian Maritime Administration and Safety Agency (NIMASA) in Lagos.

    The forecast, the second in the series, tagged: Harnessing the maritime and shipping sector for sustainable growth, is aimed at giving direction to investors and stakeholders in the industry, in planning and investment decisions as part of efforts to attract more foreign direct investment to the economy.

    NIMASA Director-General, Dakuku Peterside, said this year’s forecast will address how emerging trends in the global maritime industry will affect the maritime sector as well as domestic factors that will influence it.

    “The maritime sector has the potential of contributing at least 10 per cent of Nigeria’s Gross Domestic Product (GDP) in no distant future, as Nigeria has the biggest market in Africa, generating between 65 and 67 per cent of cargo throughput in West Africa and 65 per cent of all cargo heading for these regions will most likely end up in the Nigerian market,” he said.

    According to the forecast, the outlook for the economy this year reflects, on the global side, concerns about a substantial global economic growth slowdown, likely higher U.S  interest rates, a stronger dollar and volatile oil prices possibly averaging below $60 per barrel, and domestically, the impact of sentiments surrounding the 2019 general elections and post-electoral transition.

    Peterside identified asset building/acquisition and human capacity development as two factors that would enable Nigerians play a major role in the maritime and shipping sector.

    He said shipping is capital intensive and the Cabotage Vessel Financing Fund (CVFF) will not be adequate to address the huge demand for maritime asset, saying that was what propelled the Agency to seek other ship financing models.

    He said: “We have been engaging with government at the highest level to push for special intervention fund, special interest rate and other incentives that will drive optimal performance in the sector.

    “We shall not relent in our drive to put the right framework together to help beneficiaries and investors have good return on investment. The country is also making huge investments in human capacity development in the sector, which means that more Nigerians will get involved in shipping, especially, in shipping operations,” Peterside said.

    Peterside said government has made consistent effort to drive changes in the maritime and shipping sector through regulatory and infrastructural developments. He added that the main public bodies regulating the maritime and shipping sector had all keyed into the government’s strategies to reform the operating environment and improve on the country’s ease of doing business index, which has the potential of attracting more businesses to the maritime industry.

     

     

  • ‘How Nigeria can increase GDP with cocoa export’

    Globally, it is estimated that over 4.5 million tonnes of cocoa beans are consumed yearly, with prospects of the figure increasing. This has beeen acknowledged by the World Cocoa Foundation. But prices of cocoa have been fluctuating, causing heavy losses to farmers in West Africa. In this interview with Daniel Essiet, the Chief Executive, Cocoa Research Institute of Nigeria (CRIN), Dr. Olayiwola Olubamiwa, he speaks on how Nigeria and other countries can take advantage of the growing demand for cocoa and chocolate products as well as other issues affecting the industry. Excerpts:

    Cocoa has had a record of price inconsistency. Why should we be optimistic about cocoa prices going up and stabilising as a major foreign exchange earner?

    In the year 2016, cocoa prices dropped from $12,000/tonne to $1,400 due to oversupply in the world market. This caused a lot of discouragement to farmers to the extent that production dropped from 250,000 tonnes to 170,000 tonnes from year to year. It resulted in a significant reduction in foreign exchange earnings. With current increase in price of cocoa from $2,500 to $3,500/tonne this year, this is expected to boost production and foreign exchange earnings. Stable International cocoa price enhances stable foreign exchange earnings and ability for proper planning in a stable economy.

    How can Nigeria increase its current high level of cocoa bean output and production? Are there varieties that have enhanced profitability across the agricultural sector?

    We have put in place a number of programmes to maintain high production levels over the coming year, in a bid to reinforce the significant growth and gains. Among the various initiatives on the table is the distribution of seedlings, which are disease resistant and early bearing. The priority at the top of the agenda is incentivising local output of processed cocoa. We have produced Cocoa CRIN Tc1 – Tc8 series. The varieties increase yield/hectare (ha) from 250kg/ha to 2,500kg/hectare. It takes five years for a cocoa plant to mature and bear fruit. But we have achieved   lower gestation period of 24 months instead of 72 months. We are doing everything to help cocoa farmers to improve productivity and rejuvenation of the cocoa trees in order to increase the national cocoa bean production. If the national cocoa bean production can be increased it means that our cocoa farmers’ incomes can also increase. Let me say this also, that we have increased national kola nut production with improved materials that give 2,500nuts per tree yearly compared with yield of 250 nuts /tree/year. We are keen to make cocoa attractive to farmers, and improve livelihoods.

    What can be done to enable Nigeria take advantage of the growing demand for cocoa and chocolate products?

    The industry is reducing in rank in the world market due to poor production practices and non-compliance to importing countries’ specification. There is also the need to address low quality and poor packaging. This should be done by the export promotion council. There is the need to increase grinding and consumption of cocoa by- products in the country. We also need a private sector driven cocoa value chain, a regulatory institution that will address many distortions along the value chain for the benefit of the local industry. There is also the need for education of many investors on the investment opportunities along the value chain for the local industry and to bring more farmers into both cocoa farming and value-added cocoa processing.

    Where are we in terms of national production of cashew, kola, coffee and tea?

    We have mandate for these crops. We produce 250,000 metric tonnes (MT) of cocoa annually. Nigeria is the fourth leading producer of cashew at 220,000 MT annually. We realise $123 million yearly from cashew. In the area of kola nut, we produce 143,829 tonnes which is 52.36 per cent of world production and contribute 68 per cent of gross domestic product (GDP) and 17 per cent of agric sector GDP. We have done 35, 000 MT of coffee .The highest production was 169.000 in 1995. We are driving improvements in production nationwide. To help growers improve yields and bean quality and ensure they have access to domestic and international value-added markets.

    But how is the global cocoa market affecting the local industry?

    Cocoa as a catalyst for a sustainable food system across the globe. Cocoa is called the “food for the gods”. Cocoa products should be made useful in the food system, as in the confectionaries in making of bread, biscuits and other food product. We have Choco-garri, Choco-pap. It can be incorporated into many foods or supplement as additive across the globe. Somehow, the industry oscillate between ‘boom’ and ‘bust’ within a given cycle.

    Why has cocoa’s role in improving livelihood and agriculture in Nigeria not been felt?

    With a stable cocoa price, the farmers’ livelihood can be improved significantly. Furthermore, utilisation of the cocoa by products, waste like mucilage and pod husk can be used to produce wine/juice and soap to improve farmers’ household income. Sustainability of cocoa production will surely improve agriculture in Nigeria by increasing the foreign exchange earnings.

    What are the challenges of cocoa production in Nigeria?

    The poor quality of our cocoa tree stock is a major challenge. Currently, tree stocks have a certain percentage of non-performing acres, due to dead, diseased or non-tended areas. Boosting the quality of tree stock is crucial because land area under cocoa production is small, so maximising output is very important. Low productivity is a consistent problem, particularly when dealing with smallholders.

    Can we produce enough coffee, tea and kola for the international market?

    Yes, we have a relative advantage in kola production above other countries in the world but we have to make it an internationally traded commodity. This will involve appropriate assessment of quality parameters and procedures for grading. Currently it is not a graded commodity like cocoa or coffee or cashew.

    How are Nigerian farmers disadvantaged under the current farming system?

    The challenges facing the country’s cocoa sector are enormous and this is one of the reasons why the country has not recorded much success in her cocoa export at the international market. The working and living conditions of cocoa farmers and their families are poor; this is because   90 to 95 per cent of cocoa production is from smallholders on an average cultivation area of one to three hectares. Farm size is small and there is continuous fragmentation of holdings. Hence they have no advantage of economies of scale arising from large farm sizes. The average yields for cocoa and food crops remain far below the possibilities of recommended cultivation practices. Technology of production is still low and yield per unit area is low. Many cocoa farmers still work with very traditional methods and lack the knowledge and understanding of modern best practices which could lead to significant improvements in the quality of the cocoa they produce and indeed greater yields.  Farmers contend with outdated farming techniques. Limited knowledge of new, more efficient farming techniques also reduces crop yields and incomes. The productivity and the quality of the cocoa depend on improved technology. With the help of better agricultural practices and post-harvest techniques, the quality of cocoa would increase and the yields would be higher. The other challenges are that farmers’ age and farms are old. The elderly generation is still in charge of managing the farms. On the average, the cocoa smallholders are 55years old and most of the tree stock is more than 30 years old which needs new replanting. Replanting efforts have been slow, hence productivity is low. Cocoa production would be more attractive again for future generations and, in the long run, a stable cocoa supply would be ensured. But infrastructural facilities and social amenities are not available in the farming communities to make the youth engage themselves in agriculture/cocoa farming, most youth engage themselves in agriculture/ cocoa farming, and most youth find profitability in Okada / Maruwa.

    What changes will you recommend for the production system?

    There is need for collaborative efforts to improve the cocoa supply chain and the lives of cocoa farmers and communities. This requires building programmes that offer long-term solutions. In order for cocoa farmers to produce a greater quantity of better quality cocoa, it is vital to replace old, low-yield, diseased trees on an ongoing basis. There must be rehabilitation programme for cocoa farmers to enable them replace old trees with younger ones and better and higher yield varieties. Cocoa farmers have to form cooperatives to help them survive the challenges.  Cooperatives for instance can acquire large size farms and enjoy the economies of reducing the cost of pesticide spraying

    Attracting young adults to cocoa farming is vital to ensure a reliable supply of cocoa for future generations. There are business opportunities for small farmers involved in cocoa processing. Small-scale production requires levels of investment in equipment and facilities that are usually affordable; for many processes existing domestic utensils are suitable as a starting point for a small food processing business. I want to see group of farmers acquire Central Fermentary Unit. The Importance of maintaining a consistently high standard of quality of cocoa beans cannot be over emphasised.  Central Fermentary Unit is vital to maintaining and improving standards of quality.  The quality of cocoa beans is deteriorating, caused by inconsistent harvesting, fermenting and drying. Also, there is need to teach farmers how to use the Central Fermentary Unit to produce different products from the beans that will be sold in the market. We want to see farmers utilise mucilage for juice/wine making. They can establish soap/bakery unit to complement income.

    Do you believe we need more investments in research, development and infrastructure in the cocoa industry?

    It is critical to sustaining cocoa production, particularly, addressing the many challenges confronting production. We need a lot of investment at the national level, and a safer, more secure environment for smallholder farmers that supply the bulk of cocoa production. Smallholder farmers that have limited access to resources and organised markets have a wide range of challenges confronting them in the cocoa sector: low yields attributed to pests, aging trees, and diseases that attack the trees; difficulty obtaining farming supplies; unfamiliarity with modern farming techniques; and limited access to credit and insurance; among others. Increased investment and funding of R & D to bring about new technology and innovation to improve the production system of cocoa. Across Nigeria, farmers are getting old, as are their trees, and the next generation sees little reason to stay on the family farm. We need schools in the rural areas to educate the children of the farmers and also electricity to help farmers establishing small processing units. We need to accept that the future food supplies of cocoa depend on smallholder farmers as such they have to be encouraged to increase productivity and efficiency at whatever cost.  We have enabled farmers and their communities to achieve better incomes and living standards, and deliver a sustainable supply of cocoa.

     There is a campaign for genetically modified cocoa. Are you part of the global campaign?

    We are not pursuing GMO cocoa and CRIN is not encouraging farmers on this; there are still debate on acceptability of GMO products overseas.

     What can we do to promote organic cocoa farming in Nigeria?

     Organic farming is not easy. Its hard work, but the benefits for both farmer and consumer are tangible. There are certification procedures for organic cocoa and some overseas buyers are conducting training on this. There are training programmes to ensure farmers earn money for not only recording strong yields but for preserving the local environment. Their holistic approach to farm maintenance includes teaching farmers how to make their own organic compost on the farm using discarded cocoa pods, eliminating the use of man-made chemical pesticides and herbicides which would normally go into the local environment and water supply. It involves educating farmers about the benefits and techniques of organic farming. The importers purchase the cocoa beans directly from farmers at a better price .the benefit in terms of prices and assured market. We are engaged in activities to support cocoa farmers and cocoa farming communities. It is also focused on the development of certification and traceability systems along the sector.”

    How will you describe the impact of the institute on  the current level  of cocoa export?

    The institute’s efforts have had impact on cocoa farming and value addition at various stages. Increasing cocoa production can benefit the country in terms of economic diversification.

    For cocoa production to be sustainable in the long term, we must embrace technology and production. Our efforts are geared towards coming up with hardier, disease-resistant crops and innovative farming techniques. The institute has facilitated numerous conferences and seminars which have assisted in advancing the trade in cocoa and export readiness of the sector.  The institute focuses on innovations along the value chain – production, processing, manufacturing and marketing, We support the development of the niche cocoa industry through seedling innovations along the entire value chain, from production, processing, product development and niche marketing. We are keen to make cocoa attractive to farmers, improve livelihoods, and bring more Nigerians into both cocoa farming and value-added cocoa processing. CRIN continues to produce high yielding pods for distribution to farmers and effort is on to introduce tissue  culture for mass propagation of high yielding varieties for farmers to increase cocoa export to the 70’s  period  level. We have recognised the gap in the country’s cocoa landscape and the significant potential for growers to add value to their high-quality raw material. We are focused on improving the efficiency and quality of the commodity. We have a team with industry knowledge.

    What specific services is CRIN offering farmers?

    We are working to revitalise cocoa production at all levels through various cocoa rehabilitation programmes being implemented by the Federal Government. We have worked in all cocoa producing states on the following specific activities: provision of technical knowledge where necessary. Establishing seed gardens to ensure farmers have easy access to seedlings; the establishments of state seed gardens make cocoa seedlings easily accessible and available to cocoa farmers at a subsidised rate. We supply pods from improved materials for the establishment of the seed gardens, hence, ensuring that cocoa materials supplied to farmers are reliable. We provide extension agents to assist farmers with appropriate ways of rehabilitating their cocoa farms. We provide other inputs such as chemicals to cocoa farmers for the purpose of rehabilitating cocoa farms. Farmers receive training on grafting, cultivation methods, post-harvest and trading. We must promote, advocate and achieve not only increased production but value added solutions and inventive development of industry.

    What about soil testing services for cocoa land?

    The institute provides services in good agricultural practices such as pruning, plantation renewal and cocoa fermentation methods, and good environmental and social practices, with the aim of increasing productivity and yields. We also provide soil testing services. Soil will also be tested for acidity, alkalinity and nutrients to ensure that optimum growing conditions are achieved. Soil nutrients  depletion of cocoa plantations is one of the causes of low cocoa production in Nigeria. We provide soil testing to determine the appropriate type and rate of fertiliser to boost cocoa bean yields.

    Do screen pesticides?

    Approximately 30 to 40 percent of all potential cocoa production is lost to diseases and pests. In localities with exceptional disease and/or pest infestation, losses can exceed 80 per cent. While these losses have an impact throughout the supply chain, it is the cocoa farmer that feels the most immediate and direct impact on family income. Depending on tree variety and region, cocoa farmers can face a variety of fungal diseases and insect pests that attack the leaves, stems, trunks, or pods of their cocoa trees. Farmers have therefore resolved at using pesticide at controlling pests and diseases attacks on their plantations to reduce loss. Many banned, severely restricted or unregistered pesticides are still in many developing countries despite their having been listed as hazardous by the World Health Organisation (WHO). Nevertheless cocoa, like other tropical crops, is often ravaged by insects, diseases and other pests that must be controlled effectively as well as safely. Pesticides can provide useful control solutions, but must be approved for use on the basis of Good Agricultural Practices (GAP) and appropriate application. Unfortunately some farmers are yet to comply with the usage of approved cocoa pesticides while others still use the banned pesticides on their farms. Our mandate cover promoting awareness and level of compliance in the use of approved cocoa pesticides by local farmers in Nigeria. They are banned cocoa pesticides.  Some farmers still use banned chemicals due to their effectiveness in the control of pest and diseases and inexpensive.