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Tag: GOVT

  • Govt to issue N10.69b Green Bond

    Govt to issue N10.69b Green Bond

    The Debt Management Office (DMO) has announced plans to issue N10.69 billion Sovereign Green Bond.

    The debt office said it would sensitise prospective investors in the Bond through a Roadshow in Abuja and Lagos today and tomorrow.

    The debut Green Bond is being issued following Nigeria’s endorsement of the Paris Agreement on Climate Change on September 21, 2016.

    The Paris Agreement aims to strengthen the global response to the threat of Climate Change, since the signing of the Agreement, various countries who are parties to the Agreement have initiated several steps aimed at making the environment better.

    The Green Bond proceeds will be used to finance projects in the 2017 Appropriation Act that have been certified as Green because of their positive effects on the environment. Amongst the projects to be financed with the proceeds of the Green Bond Issuance are the Renewable Energy Micro Utilities and Afforestation Programmes.

    With the Green Bond Issuance, Nigeria will become one of the few countries in the world and indeed the first African country to issue a Green Bond. Moody’s Investors Service has assigned a GB1 (Excellent) Green Bond Assessment to the Issuance.

    The DMO is working with the Federal Ministry of Environment towards the Issuance while Chapel Hill Denham is the Financial Advisers to the Transaction. The Offer will be advertised in various media including newspapers and the DMO’s website to enable the public subscribe for the Bonds.

  • ‘Patronise govt health care facilities’

    ‘Patronise govt health care facilities’

    Wife of the governor of Lagos State, Mrs. Bolanle Ambode, has called on expectant mothers to patronise primary health centres and skilled birth attendants to reduce the incidence of maternal and infant mortality.

    She gave the charge at a town hall meeting on reduction of maternal and child mortality in Epe Local Government organised by the state’s Ministry of Health.

    Mrs. Ambode observed that the refusal by expectant mothers to access obstetric services was a major contributor to the maternal mortality rate in the state.

    She said: ‘’Almost every minute, somewhere in a corner of the world, a woman dies as a result of complications during pregnancy and childbirth. For every woman that dies, about twenty others survive but suffer from serious diseases, disability or physical damage, caused by these complications. The majority of these maternal deaths are avoidable if expectant mothers access quality reproductive health care, including skilled attendance at birth.

    ‘’Non-use of essential obstetric services is a crucial factor that contributes to high maternal mortality. Some women refuse to access care when highly necessary either because of cultural practices or because decision-making is the responsibility of other family members.’’

    She said while the role of Traditional Birth Attendants (TBAs) is acknowledged, it is important they know their limitations and ensure prompt referrals to the Primary Health Care Centres.

    She appealed to all women of child-bearing age, pregnant women, as well as children under five, to avail themselves of the free services during the Child Health Week by visiting the nearest Primary Health facility closets to them.

    The governor’s wife, who urged women to pay attention to their nutrition during pregnancy, enlisted the support of families, religious and community groups to win the battle against the menace.

    Commissioner for Health, Dr. Jide Idris, said it was important for TBAs to be registered with the state government, adding that reports indicated expectant mothers still visited TBAs, who knew not what to do when complications arose.

    The commissioner said the state government had done so much in  primary health-care, as the governor was very passionate about the health of the citizenry.

    He enjoined everyone to come together at the end of the meeting and resolve to do the right thing, beneficial to pregnant mothers and babies after child-birth, stressing that everyone has a role to play in the matter.

    In their goodwill messages, member of the House of Representatives, representing Epe Federal Cconstituency, Tasir Raji and Chairman, Lagos State House of Assembly Committee on Health Segun Olulade, noted that there was a strong link between the health and survival of a mother and that of her new-born.

    Hon Raji said it was imperative for the state government to explore the possibility of registering the TBAs to integrate them into the healthcare delivery system, as this, according to him, would help build capacity to ease burden in the health sector.

    Hon. Olulade said Lagosians must  ensure that no woman in the state loses her life during pregnancy or childbirth.

  • Govt, UNIDO to develop national policy on solid waste management

    he Federal Government in partnership with the United  Nations  Industrial Development Organisation (UNIDO), yesterday  developed draft  national policy document on sustainable solid waste management.

    The policy, which had inputs from stakeholders is expected to ensure sustainable waste reduction at source, encourage recycling in order to promote resource conservation and  protect the environment.

    UNIDO Country Representative, Dr. Jean Bakole, during stakeholders’ validation workshop on solid waste management, in Abuja called for joint efforts to address the menace.

    He described the draft document as a comprehensive and inclusive effort which its success and implementation will be determined by ability of state governments to domesticate the policy.

    According to Bakole, it was developed to recognise private sector participation and to serve as guide on investments in solid waste managements.

    According to a report by the United Nations Environmental Programme  (UNEP), Nigeria ranks third after India and Indonesia in the  bulk  density of residential wastes generated by six major countries.

    “To ensure the success of this policy, there must be political will, adequate data, private sector involvement, encourage research and development, aggressive awareness drive, a realistic action plan and an effective enforcement drive,” Bankole added.

    In his remarks, the Permanent Secretary, Federal Ministry of Environment, Dr. Shehu Ahmed said the stakeholder’s review and validation workshop is expected to validate and finalise the policy document.

    He noted that the policy will serve as a guide in the quest for sustainable solid waste management practices.

    He urged stakeholders present to meaningfully contribute to enrich the document so as to address the issue of sustainable solid waste management in the nation.

    “It is common knowledge that waste disposal rather than waste management is prevalent in Nigeria and this generally involves co-disposal of general and hazardous wastes on land, water bodies, roads and uncontrolled and open burning. These practices portend serious danger to our environment and health and retard our economic development.

    “This Policy should be able to address the above unwholesome practices and also promote: Waste reduction at source, recycle and reuse as the best option for solid waste management in Nigeria to promote resource conservation and environmental protection,” Ahmed added.

  • Govt told to engagement youths

    Govt told to engagement youths

    The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), has urged the three tiers of government  to ensure full engagement of youths in the country.

    In addition, the body stressed that it is only through meaningful involvement and inclusive policies and decision making processes of youths, that solutions to some of the key problems experienced by young people can be resolved.

    ASSBIFI’s President, M Comrade Oyinkansola Olasanoye, in a chat with The Nation said government  should engage the youth because economic engagement has become more challenging, owing to the lack of decent employment opportunities

    He said the respective roles  of young people, policy makers, and the institutions through which they work, should be clearly defined. While young people need to play a central role in addressing issues that affect them, they cannot tackle the multitude of challenges alone, particularly in the economic and employment area.”

    The ASSBIFI chief said with high youth unemployment and underemployment in many parts of the world, young people are finding it increasingly difficult to secure quality jobs that offer benefits and entitlements.

    He said employers have the advantage of being able to offer young workers contracts that provide career security, health-care benefits or pension schemes, knowing that young people with few other prospects are not in a position to bargain and are poorly aligned to organise into collective bargaining units to try and improve their situation.

    “As a consequence, many young people end up in precarious work situations, with a short-term or non-employee contract (or no contract), little or nothing in the way of pension benefits, and no health insurance or unemployment insurance.  This interferes with a young person’s ability to plan for the future and become financially secure.”

    She noted that greater attention should be given to youth engagement at all levels within the development agenda, adding that there has been increased recognition of the value of young people’s participation as it pertains to both youth and wider development, as well as formal acknowledgement of the need to actively address the many challenges facing a growing youth population, including unemployment and underemployment, poverty, inequality, political unrest, and social exclusion.

    The labour leader, however, urged the three tiers of government to initiate policies that would facilitate youth engagement through institutionalised processes, adding that countries experiencing power vacuums are particularly susceptible to the infiltration of violent groups and extremist elements as young people can often be coerced or otherwise forced out of economic necessity, for example, to join groups or organisations that espouse violence

  • ‘How govt plans to get $5.2b World Bank loan’

    ‘How govt plans to get $5.2b World Bank loan’

    The Federal Government  is adopting ‘’home-grown’’ strategy, to seek  $5.2billion loan from the World Bank, the Minister of Power, Works and Housing, Mr Babatubde Fashola, has said.

    He said the loan will be used to improve  electricity generation, distribution and transmission in the country, when finally approved  by the World Bank.

    Speaking at an interactive forum with the media and members of civil society in Lagos recently,  Fashola said the loan will help the economy to recover from its contraction, once it is well utilised.

    Under the terms for seeking the loan,  Fashola said the private sector  arm of  World  Bank would invest $1.3 billion in power projects and electricity distribution companies, while the bank’s political insurer known as the Multilateral Investment Guarantee Agency would provide equity of $1.4 billion for gas and solar power programmes.

    Also, the lender will provide $2.5billion ro improve distribution of power, expand transmission capacity and increase access to electricity in  rural areas.

    According to him, the home-grown strategy requires that government present a paper on the problems, inhibiting the growth of  the sector.

    He said the idea has endeared the Federal Goverrnment to the World Bank, which has promised to support the sector financially, when times come.

    He said the bank was impressed   that the government understands the peculiarities and the magnitutude of the problems facing the industry and the capacity to proffer solution to them, when the matter was tabled before it.

    Fashola said: “The home-grown initiative has paid off, as the World Bank was satisfied with the level  of  understanding of the challenges in the sector by the Nigerian government and has in the process  promised to support the Nigerian  govenment on the issue. The bank  told the government that it knows the problems facing the sector and that it would not be out of place, if the government is left to provide a home-grown soution to the problems. It is on the basis of this that the government hopes to get the needed loans for the sector soon.”

    He said the government  hopes to continue to leverage on its understanding of the probelms in the industry to get the World Bank loan.

    According to the minister, prior to  meeting the World Bank on the issue, he, the State Minister of Power and the Permanent Secretary in the ministry met and asked questions on the probelms inhibiting the growth of the sector and how to solve them.

    “After seeking the inputs of other stakeholders in the value chain, we arrived at the conclusion that the sector has not delivered on its promise, four years after it was privatised. Everbody knows that the power distribution companies (DisCos) are facing problems such as shortage of meters, huge bills, among others. They know that the DisCos do not have enough money to provide meters, transformers and other equipment needed to supply power to the customers. They know that the sector has not delivered on its promise, since privatisation,” he added.

    Fashola said the government, armed with these information presented them to the World Bank.

    He said the issue of understanding the structures of World Bank, is another factor that the government is banking on to get the loan.

    He said, prior to the evolvement of home-grown method, the sector held a wide consultation with stakeholders, including the government.

    He said through the consultation, stakeholders were able to understand the peculiarities and magnititude of the problems in the electricity industry, adding that the development has helped the sector to provide a formidable force to the World Bank on the issue of accessing  the loan.

    ‘’ Our knowledge of the industry is one thing that has endeared us to the World Bank. The bank has promised to assist us financially, after seeing the level of our understanding,’’ Fashola said .

    According to him, the government knows that it is only the private arm of World Bank that can easily provide loan to the power sector and, did not waste time in approaching the section for the $5.2billion loan.

    The minister assured that the government would get the loans for the power sector, as its able to provide strategies that cannot be easily ignored by the bank.

    Fashola said the power generation companies (GenCos) are planning to leverage on solar to improve electricity supply to customers.

  • Sustain tax holiday policy, Labour leader urges govt

    Sustain tax holiday policy, Labour leader urges govt

    The Federal Government has been urged to sustain the tax holiday policy and ensure that its implementation is adequately monitored to forestall corrupt practices.

    Speaking with The Nation, President, National Union of Chemical, Footwear (NUCFRLANMPE), Comrade Olatunji Babatunde, said if carefully guided, tax holiday would attract Foreign Direct Investments (FDI) and domestic investments, which would generate employment.

    He said with tax holiday, the number of companies relocating to neighbouring countries and the closure of companies would be reduced.

    “Companies will no longer relocate to neighbouring countries. There will be employment. Crime rate will be reduced because able-bodied people are gainfully employed.

    “Volumes of trade will appreciate. Massive importation of consumer goods will reduce thereby pave the way for exportation or self-sufficiency and the government will derive more revenue,’’ Babatunde said.

    He, however, said depletion of revenue base was not a sufficient reason to stop tax holiday as such holiday is futuristic in nature.

    “The gains may not be a short term gains, but long term,’’ he said.

    Meanwhile, in line with the tax incentive, the Federal Government announced in September that it would grant a 10-year tax incentive to Dangote Group after the company has agreed to rehabilitate the Apapa-Oworonshoki Expressway.

    The government handed over the design of the 35km Apapa-Oshodi-Oworonshoki Expressway to Dangote Group in furtherance to steps by the government to rehabilitate the road.

    The International Monetary Fund (IMF) recently urged the Federal Government to phase out tax holidays and exemptions as they erode Company Income Tax base.

  • Govt accesses $3b Eurobond

    Govt accesses $3b Eurobond

    The government’s efforts to borrow through Eurobond was oversubscribed by about $11 billion, but only $3 billion was accessed.

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele did not say why the country could only access about one-third of the bond.

    Answering reporters’ questions at the end of the Monetary Policy Committee (MPC) meeting in Abuja yesterday, Emefiele said: “The information that I got was that the bond was oversubscribed to the tune of about $11 billion. However, we could only access $3 billion in two tranches of 15 and 30 years. One is at 6.5%; the other about 7.38%.”

    The implication of the Eurobond over subscription and government’s ability to access $3 billion of the bonds, Ememfiele said, is “that investor confidence in the Nigerian economy continues to be strong based on most of the macroeconomic indices and also supported by the decisions of both the Monetary and Fiscal policies. There is confidence by the investor community about what the government is doing and it delights us that the level of confidence has improved and hence you’ve seen that the activities of the Monetary and Fiscal authorities have resulted in the country exiting recession.”

    The CBN governor advised policy makers not to “rest on our oars; we need to remain focused. For a country that grows its population by an average of 3%, nothing short of going back to the historical levels of the average of 6% would be considered good. We know it’s a long journey from 1.4% to 6% but with tenacity, with lots of work being done with the aggression and focus being shown by the policy makers (monetary, fiscal and trade policy makers) I’m very optimistic that we will get there and in short time.”

    Asked of his view on the spate of borrowings by the government, Emefiele argued that “there is nothing wrong in borrowing but what is very important is how we deploy the funds being borrowed?”

    He was delighted that “the specific reasons for these borrowings are targeted at infrastructural development I am sure that you all know that most of the borrowings right now is targeted at roads, train, construction, airports and various other infrastructural development projects that will spur economic activities in the country and ultimately continue to accelerate the growth trajectory of the country.”

    In the course of the MPC meeting, the Committee called for a quick passage of the 2018 Appropriation Bill by the National Assembly, “so as to keep fiscal policy on track and deliver the urgently needed reliefs in terms of employment and growth of the economy.’

    The MPC retained the interest rate/Monetary Policy Rate (MPR) at 14.0%; the Cash Reserve Ratio (CRR) at 22.5%;  the Liquidity Ratio at 30.0%; and  the Asymmetric corridor at +200 and -500 basis points around the MPR.

    To arrive at these, the CBN governor noted that “forecasts of key macroeconomic variables indicate a positive outlook for the economy up to the first quarter of 2018”.

    This, he said, is predicated on continued implementation of the 2017 budget into early 2018, anticipated improvement in government  revenue from the implementation of the Voluntary Asset and Income Declaration Scheme (VAIDS) as well as favourable crude oil prices.”

    “The development finance initiatives by the CBN in the real sector, particularly in agriculture, are expected to continue to yield positive results in terms of output expansion and job creation” he said.

    Focusing on the downside risks to the outlook, the Committee noted the low fiscal buffers and weak aggregate domestic demand. On the external front, widening global imbalances, and rising geo-political tensions were some of the crucial risks identified.

    On financial stability, the Committee noted the concentration of non-performing loans in a few sectors but observed that the overall condition and outlook for the banking system was stable as deposit money banks’ balance sheets remained strong.

    This assessment Emefiele said “is strengthened by developments in the national accounts and the expectations that the affected sectors are returning to growth. Nonetheless, the Committee urged further strengthening of supervisory oversight and deployment of early warning systems in order to promptly identify vulnerabilities and proactively manage emerging risks in the banking system.”

    The Committee also observed that the government was increasing debt, both domestically and externally, thus crowding out the private sector.

    The Committee noted with satisfaction the second consecutive quarterly growth in real GDP following five quarters of contraction. In addition, Members welcomed the relative stability in the exchange rate, particularly the narrowing premia and the very slow deceleration in consumer price inflation, largely attributable to base effects.

    Overall, members of the MPC noted that “the economy has begun to show strong signs of recovery as public investment has picked up with increased housing construction at the Federal and state levels, as well as shipping activities at the ports.”

    The Committee was, however, of the view that policy makers must not relent in their aggressive policy initiatives aimed at continuing the positive growth trajectory. The Committee was also concerned about potential adverse external developments and the cautious approach to lending and financial intermediation by domestic deposit money banks.

     

  • BVN: Govt accuses CBN, banks of shielding rogues

    BVN: Govt accuses CBN, banks of shielding rogues

    Attorney-General replies to banks ’ objection

    Banks and their supervisor, the Central Bank of Nigeria ( CBN ), have been accused of working to derail the government’s anti-corruption war.

    The Federal Government and the Attorney-General of the Federation (AGF) are querying the double standards allegedly being exhibited by the CBN and the banks in opposing their effort to ensure strict implementation of the Bank Verification Number (BVN) policy.

    The banks initiated the policy through the Bankers Committee to, among others, check financial crimes.

    The Federal Government and the AGF claimed that the banks’ opposition to the suit they filed over the implementation of the BVN policy confirmed their suspicion that the banks were allegedly benefiting illegally from the haphazard implementation of the policy and the bar placed on customers without BVN since the deadline ended about two years ago.

    These are contained in court documents filed by the government and the AGF in response to an objection filed by the commercial banks to a suit they filed seeking, among others, to ensure a total implementation of the BVN policy or the forfeiture of funds in accounts without BVN, in furtherance of the government’s war against corruption.

    The Federal Government and the AGF filed the suit before the Federal High Court, Abuja on September 28, through their lawyer, A. Danjuma Tyoden.

    Defendants in the suit are 19 commercial banks and the CBN.

    The commercial banks are: Access, Citibank, Diamond, Ecobank, Fidelity, First, First City, Guaranty Trust, Heritage, Keystone, Skye, Stanbic IBTC, Standard Chartered, Sterling, Union, Unity, Wema and Zenith.

    On October 17, Justice Nnamdi Dimgba granted some reliefs in an ex-parte motion for interim injunctions filed by the plaintiffs, including ordering the banks to provide information on the accounts without BVN, temporary freezing of the accounts and for the owners to show cause why funds in the accounts should not be forfeited to the government.

    Rather than comply with the court order as it relates to them, the banks filed a notice of objection, querying the competence of the suit, the October 17 orders by the court and the court’s jurisdiction to hear and determine the suit.

    In the joint notice of objection filed by their lawyers – Paul Usoro, Babatunde Fagbohunlu and Adeniyi Adegbonmire (all SANs) – the 1st to 18th defendants asked the court to decline jurisdiction over the suit, dismiss it and vacate the order made on October 17.

    Angered by the position taken by defendants and the CBN’s failure to support the suit, but allegedly stealthily working with the banks, the government and the AGF filed a counter to the banks objection, accusing them of, among others working to frustrate the anti-graft war by shielding rogue customers, who have refused to acquire the BVN because of dirty funds in their accounts.

    In a supporting affidavit deposed to by Usman Dakas, the government and the AGF said: “The applicants (the banks) do not wish to comply with the interim order of this court and disclose the accounts without BVN and their holders in order to frustrate the plaintiffs’ anti-corruption policies that would benefit the entire nation.”

    They stressed in their written address that the banks’ motive for electing to challenge the competence of the suit rather than comply with the order for them to produce information on the accounts without BVN, was ploy to frustrate the government’s anti-corruption war.

    The plaintiffs said: “The applicants have filed this motion to frustrate the plaintiff’s constitutional responsibility to ‘abolish corrupt practices’ and the clear directives and regulations of the CBN on the BVN scheme so that they can continue to keep the funds in the accounts without BVN and be trading with them and declaring fat profits for their various shareholders.

    “Is it not worrisome that while the banks are happy not to allow the customers, whose accounts are not covered by BVN, to operate the said accounts, yet they want the interim order of this court, directing them to disclose these accounts and their holders, dismissed and or struck out?”

    They argued that it is not the duty of banks to complain, because since the BVN policy was directed at the customers and not the banks, only the customers could complain about any order made in respect of their funds trapped in the accounts without BVN.

    On the banks’ request that the court should decline jurisdiction to entertain the suit brought under Section 17(1) of the Advance Fee Fraud Act (AFFA), which could only be prosecuted by the Economic and Financial Crimes Commission (EFCC), the plaintiffs argued that the law did not bar them and other government agencies tasked with the responsibility of fighting corruption from suing under it (the portion of the AFFA).

    They argued that the AFFA, being an Act of the National Assembly, is subject to the Constitution, which implies that the EFCC referred to in Section 17(1) of the Act being an agent of the Federal Government, the Federal Government can decide to exercise the right conferred on the EFCC under the AFFA by itself, because “the sovereign (FG) cannot be authorised by its agent”.

    The plaintiff faulted the banks’ argument that the BVN policy did not fall under the Money Laundering Act (MLA) and argued that BVN policy was in furtherance of due diligence and know your customer provisions of the MLA.

    They urged the court to disregard the banks contention in that regard and argued that should the court hold, as contended by the banks, that the MLA did not provide punishment for non-compliance with the BVN regulations, it would defeat the objective of the law, which is to ensure that the banks are not made safer haven for keeping illicit and laundered funds.

    The plaintiffs wondered why the banks, who admitted that they have the responsibility to enforce the due diligence and know your customer provision of the MLA, are now seeking, by their current motion, to shield their customers and doing their case for them?

    They noted that “it is ironical that they (the banks) are fighting the order of the court asking them to disclose accounts without BVN. Does it lie in their mouth to defend customers, who are in violation of the CBN regulation that constitute part of the due diligence and know your customer requirement of the MLA?

    “Indeed, banks occupy a position of trust and must act in the overriding interest of the public where and when necessary in the fight against crime, expose people with dual personality and must not benefit from wilful complicity, given that the person who steals is just as guilty as the one who keeps the stolen funds.

    The plaintiffs noted that not only did the commercial banks fail to provide information to the accounts without BVN, the CBN appears to be working with them, the CBN Governor having failed to respond to his letters written to him on the issue.

    The lawyer to the plaintiff, Tyoden, said his letters to the CBN Governor, dated June 28 and July19, 2017 were not only ignored, the Chartered Institute of Bankers of Nigeria (CIBN) demanded for CBN’s position on the issue before it could assist.

    The plaintiffs stated: “We submit that the refusal of defendants/applicants (the banks) to furnish the plaintiffs with the facts relating to the accounts in their custody without BVN is because, if produced, the suspicion of the plaintiffs would be provedý.

    “In fact, if the defendants/applicants have nothing to hide, why are they refusing to file the affidavit of disclosure as ordered by this court?

    “The funds in the accounts not covered by BVN is not their (banks’) property, why are they now scared of forfeiture and crying more than the bereaved, when the law allows opportunity to be given to the account holders to show cause after publication, before a final forfeiture order is made?”

    At the last proceedings in the case on November 15, the court varied some of the earlier orders made, following agreement by parties that the orders had created unintended consequences.

    The court, which had stayed further operation of such accounts pending the determination of a case pending before it, said on November 15 that the accounts could be operated once the owner registers for BVN.

    Justice Dimgba announced the modification after parties in the case agreed that as presently couched, the order creates an awkward and unfortunate result, such that even when account owners have got their BVN, they still will not be able to operate the accounts because doing so will be in violation of the order of the court.

    He adjourned to December 11 for the hearing of all pending applications.

  • ‘Govt needs to address harmful regulations to enhance growth’

    ‘Govt needs to address harmful regulations to enhance growth’

    Mr. Antti Ritvonen is the Country Manager, Dizengoff Nigeria, a member of the United Kingdom (UK)-owned Balton CP Group. Dizengoff is one of the leading communication and agriculture companies in Nigeria, providing customers with the best innovative solutions in irrigation, greenhouses, tractor & implements, Agro-consumables, cyber-security, radio–communication, home land security, IT infrastructure and turnkey projects. Ritvonen, in this interview with DANIEL ESSIET, shares his opinion on several issues.

    With the economy technically out of recession, do you still see prospects for growth?

    I will speak from two perspectives. First, the environment is still tough for businesses to operate. I also think we are undergoing some massive growing pains at the moment, too.

    Operators have to work hard to achieve their goals. On the other hand, I see positive signs, especially with greater attention given to agriculture. That means a big opportunity for our agric business division. I think the government will likely get past these growing pains by focusing more on agriculture.

    Last year, regulation, skills, national debt, and taxes topped CEOs’ list of threats to business growth. None of these have been addressed this year. Do you still see over-regulation as a concern?

    At a sector level, there are a lot of regulations that are meant to guarantee food and human safety. This, not withstanding, I think it is wise to examine the possible effects of actions and the negative impact of over regulation on the market and the economy. The government needs to address harmful regulation in order to unleash economic growth.

    I am not saying there should be no regulation; I will appreciate a clearly definable reduction in the regulatory burden for the industry. For instance, agro chemicals are critical to improving food production.  As you know, agrochemicals and other crop protection products play a crucial role in increasing agricultural productivity. To meet the food requirements of the nation, agricultural productivity and its growth need to be further improved. This can be achieved, using agrochemicals to provide pre and post-harvest protection to crops and agricultural output.

    Activists are campaigning against increasing use of agro chemicals and pesticides by farmers because of long-term health and environmental effects. What is your view on this?

    I support regulations on pesticide with an aim to better protect human health and the environment, and to make agriculture more sustainable. There are a lot of fake agro chemicals. I support regulations to stop such manufacturers from operating in other to save human lives and protect the business of farmers.

    I support the government efforts to control the spread of hazardous chemicals, but there are reputable organisations such as ours that are determined to produce and supply quality agrochemicals to farmers, especially safe and effective pesticides. We are capable of advising governments on technical issues relating to manufacture, use and safety issues relating to pesticides.

    How favourable is the tax regime to your industry?

    I  think the government needs to exempt  thee industries from  a lot of taxes  that will affect inputs used in the farm such as seeds, fertilisers, pesticides, tractors etc. as it will contribute to increase in prices of farm output. Farm output prices are controlled by market forces and the farmer has little control. As the input price rises and output price remains stagnant, the farmer will have no option, but to absorb the cost, thus increasing his burden.

    With the economy under stress, farmers and agro businesses will be reeling under tremendous pressure from many ends and the increased burden of taxes will create a crater in their incomes. If somehow, the output prices increase, the nation will suffer as the food prices will go up, thus creating trouble for the common man. The way out will be for the government to exempt the industry from heavy taxation. This will have a positive impact across all agricultural inputs and reduce the encumbrance on farmers.

    What can the government do to enable agriculture play its role in the overall economic development of the country?

    The sector needs an enabling environment where farmers can  access affordable  credit. The absence of production loans is the biggest hurdle.  I believe agriculture is an important part of the economic future of Nigeria. There is enough evidence to show that agriculture can play a role in modernising economy. Much of economic development in Nigeria is going to be based on industrialising agriculture, introducing land reform and developing the manufacturing industry.

    Looking at the growth of Nigeria ’s real GDP per capita over the last 10 years, agriculture contribution to  GDP has been  low. Generally, the process of economic transformation is characterised by a decline in the agricultural GDP share in employment over time, as labour moves to higher productivity sectors.   While agriculture’s share in GDP has been declining in the last 10years, unfortunately also, labour and other resources that can boost industrialisation were absorbed into other more productive sectors. Some of the challenges that the agricultural sector has faced has been land, policy inconsistency. The level of domestic investment is an issue. Foreign Direct Investment (FDI) follows domestic investment; it does not lead domestic investment. The problem with Nigeria’s agriculture is that domestic investment has been too low, it is beginning  to pick and some silver lining coming from the current Foreign Direct Investment.

    I believe that the process of economic transformation is going to be driven by income growth, changes in demand and consumption patterns, technical change and increased productivity.

    What we are doing to support the government is to pursue a strategy focused on increased land productivity, accelerating agricultural growth for job creation with high value activities  across the value chain that  can raise incomes, employment and export opportunities. With the devaluation of the Naira seen by many as an opportunity for exports, cash crops and vegetables now comprise the largest exports in the sector.

    I believe the agric sector, is going to enjoy a period of strong success, but this will depend to a large extent on the implementation of  green alternative policy.

    How concerned are you with the policy, social and business threats to your organisation’s growth prospects?

    Government policies have big role to play in creating an enabling environment for foreign direct investment. Foreign companies are interested in investing under a favourable policy regime and robust business environment has ensured that foreign capital keeps flowing into the country.  I will suggest that the government does more to improve the ease of doing business in the country. Nigeria should be seen and felt as the most attractive emerging market for global businesses.

    FDI is often constrained by unfriendly regulations coupled with a generally unfriendly investment climate.  FDI is critical to enable Nigeria achieve food self-sufficiency.

    We are ready to work with the government to boost productivity by improving farm management practices.  To achieve this goal, we need to work within an environment where policies and regulations foster growth in the agriculture and food sectors, well-functioning markets, and where thriving agribusinesses will be supported to make more food available in rural and urban spaces.  I support regulations that ensure the safety and quality of agricultural goods and services without being costly or burdensome to the extent of discouraging individuals and organisations from investing in the sector.

     What types of technologies are you promoting to attain higher levels of productivity?

    We are doing a lot of things aimed at imparting new technologies or farmers to improve productivity.

    From drip irrigation to agro chemicals, quality inputs, we are promoting technologies and smart solutions for better agriculture. Our drip irrigation solutions are rapidly spreading nationwide.  Farmers  who  have  adopted our  technologies with improved  farming skills saw their production increased in many folds.

    Our experts regularly visit farmers and organise training sessions for them to increase their crop yields while using the appropriate  fertilizers and water optimally. We teach them ways to produce quality vegetables. We have demonstrated diverse technologies to the farmers. They can choose the technology that suits them best and maximise their yield and profits.

    We are providing tailor-made farm solutions to help producers grow vegetables.

    We educate farmers on when to plant, irrigate and harvest; and how to cope with drought; how to choose the crops best for their areas. The major production challenges faced by farmers include low yields, inadequate knowledge of improved varieties, limited skills and knowledge of recommended production technologies.

    When we sell our irrigation tools, we offer training to help benefitting farmers increase farm yields through the use of both improved varieties and accompanying crop management practices.

    Our greenhouse training, for instance, is a practical one.  In combination with discipline and determination, farmers exposed to new agricultural practices from our training can increase output from even one hectare. Our extension agents are trained on technologies to help farmers improve their yields.

    We are determined to empower smallholder farmers with the tools to meet the challenges ahead.

    They are also adopting more efficient water-management technologies, such as advanced drip irrigation.

    What is your approach to youth entrepreneurship?

    The future of Nigeria’s food security must rest with next generation of new young farmers.

    Our mission is to liberate the small scale subsistence farmer by providing a proven approach to become an agroprenuer, with a middle class income on a permanent sustainable basis, as well as bring fresh fruit and vegetables to the surrounding communities at affordable prices.

    We are determined to work with the government to support youths to increase crop yields, on a per hectare basis, by up to 75 times in gross weight harvested.  We want  to eliminate the current scandalous 60 per cent waste of the meagre quantities historically grown in the old fashioned ways, turned rotten by poor packing and long arduous transportation from the rural fields to the urban cities across the country.  We want to help youths produce quality produce at stable affordable prices across Nigeria. With the technologies we have acquired and working  through groups, we see big opportunities opening for young people and  the SMEs  to use technologies to produce food within limited  space to ordinary Nigerians.

    What is your partnership with Best  Foods Fresh  Farms Limited.

    We have  gone into partnership with Apel Capital and Best Foods Fresh Farms Ltd has gone for the establishment of an investment fund for modern greenhouse farming for investors in Lagos. As part of the project, Dizengoff delivers to Best Foods Farms Ltd 10 units of greenhouses to setup a demo/model farm at Igbodu in Epe, where it  already has a farm. Apel Capital will act as trustee for this investment fund. The Fund aims to achieve 35 per cent  return for investors, who are investing into this fund. The minimum investment required is N500,000.

    We are the  technical partner for the project and we will provide technical support on the project from installation, to training, to cultivation etc. We  will also provide trained agronomists to the farm and to greenhouses bought by the investment fund.

    We believe it is not enough to provide products alone, through our combined technical know-how, with do-how and quality inputs, we will perform consistently, day in and day out”. The partnership has different parties Best Foods Fresh Farm Limited – will play the role of the Fund Manager, while Apel Capital & Trust Limited will serve as the Trustee and Dizengoff Nigeria will operate as the Technical Partner in terms of production.

    What would you like people to understand about Dizengoff?

    We want to be reckoned with  as a private organisation that is providing  farmers with improved seeds that will yield more than 200 per cent  in comparison to the farmers’ varieties.

    For instance, we provide a  gravity-fed Family Drip System (FDS)  that can irrigate a crop throughout its entire cycle over a land area of up to 10,000m2. The vegetables cultivated under it with good crop management practices produce over 300 per cent more yields, than the rain-fed vegetables.

    Let me restate that mechanisation of crop production is the only sustainable means of reducing poverty among farmers. We are encouraging both corporate and individual farmers to use tractors; drip irrigation systems and greenhouses for fruits and vegetable production. Sustainable vegetable and crop production had been made easier with the use of modern and affordable farm equipment, kits and improved varieties of seeds. With greenhouse kits, a famer can  produce exotic tomatoes all-year-round even in the bacteria and wilt-infested areas. You can use green house  and plant tomatoes, cucumber, watermelon, potatoes, groundnuts, different vegetables profitably.

    Greenhouse limits the devastating effects of insects pests and diseases that ravage vegetables including tomatoes. With little amount of land space and water, you can  get a yield far higher than your traditional open field product

  • 2018 budget: Govt votes N1b for State House Clinic

    2018 budget: Govt votes N1b for State House Clinic

    •No details of National Assembly’s N125b

    The Executive has proposed to spend N1,030,458,453 on the State House Clinic under the Presidency’s total estimate of N51,445,678,808 in the 2018 Budget proposal.

    The clinic came under focus recently when the President’s wife, Hajia Aisha Buhari, criticised it for being without “ordinary syringe” and unable to treat anyone.

    The breakdown of the State House Medical Centre’s expenditure includes the proposed allocation of N408 million for medical equipment, N146 million for the completion of the dental wing’s extension and N120 million for construction of two blocks of 24 units three bedroom flats.

    The National Assembly is expected to begin the screening of the budget next week. Approval is likely to be end of the year so as to return the country to the January-December budget cycle.

    The details of the National Assembly’s N125 billion estimate remain undisclosed. That has been the case since 1999 in spite of the leadership’s transparency promise.

    Some expenditure to be undertaken at the Presidency include N145 million for food stuff / catering materials supplies, N165 million for maintenance of motor vehicle / transport equipment, N132 million on fuel & lubricants, N67 million for vehicles’ fuel, N45 million for generator fuel, N18 million on gas, N135,668,651 on refreshment & meals while honorarium & sitting allowance is to take N478,313,996.

    Also, ongoing rehabilitation work on the Presidency’s animal enclosure and procurement of its veterinary  lab equipment is to cost N12,489,655, upgrade of the presidential villa ranch and construction of wildlife mini-zoo is proposed at a cost of N28,908,625 while N24 million is for local flowers’ nursery, irrigation and upgrade of a helipad grass field.

    Also, annual routine maintenance of mechanical/electrical installations at the Presidential villa is proposed for N4,860,392,146, outstanding liabilities on routine maintenance and other services for 2016 is allocated N565. 6 million while N83. 7 million is allocated for the purchase of tyres for bullet proof vehicles, trucks, jeeps, ambulance and other utility vehicles.

    The routine maintenance of State House Lagos facilities (Dodan Barracks, VP Residence/Guest Houses at Ikoyi) is to be undertaken at a cost of N145,869,150 under the 2018 national budget.

    Also proposed is over N25.5 billion to be spent on surveillance activities across the country.

    Nigeria will be strengthening its security architecture with some high tech surveillance infrastructure in 2018.

    In the vanguard of this intense surveillance operation is the Directorate of State Security Service (DSS) that plans to purchase a social media minning suite for N2,213,456,360.

    Also in 2018, the DSS has proposed to spend N 1,006,200,000 on surveillance drones with precision camera and IMSI payload capabilities.