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Tag: import

  • Concern over N720.2b yearly rice import

    Concern over N720.2b yearly rice import

    The Federal Government has invested a lot in rice production, yet the nation has not attained self-sufficiency. DANIEL ESSIET writes on what stakeholders say should be done to attain the mark.  

    To Sahabi Muhammed Augie, Chairman of Kebbi State Rice Farmers’ Association, Nigeria has what it takes to become Africa’s next rice granary. Ample, suitable land, water resources and a good climate are needed to expand rice production in the country.

    Augie believes that local farmers in the Northwest state have capacity to take rice production to greater heights in terms of quantity and quality. Rice is grown twice yearly —during the rainy season from January to June and during the dry season, spanning August to December in some parts of the country.

    But the access to improved varieties and capacity building remain a major challenge as many farmers cannot explore new varieties. Only few of them have the technological know-how on the application of improved agronomic management practices and good seed systems for high-quality yield.

    Augie believes that support in mechanisation would be an added advantage to abounding national resources, adding that mechanisation would make up for labour shortage for land preparation, weeding and harvesting.

    Rice is a staple menu in most homes across Nigeria. But imported rice accounts for over 60 per cent of its total consumption.

    It costs the country a whopping $1.8 billion (about N720 billion) to import about 3.2 million metric tons of rice to feed the population yearly. Local production accounts for a small portion of rice production and consumption.

    With the likelihood of the population hitting the 250 million thresholds by 2020 and rice production short of demand, something must be done. But experts say supply growth can no longer match population growth.

    But farmers are worried that concerted efforts are not being made increase rice production.

    According to the Coordinator of Women Rice Cooperative Union in Kogi State, Mrs.  Esther Audu, Nigeria can achieve its rice development vision with focus on the entire value chain, from seedling to production, processing, and marketing.

     

    State of the sector

    Since 1970, increased consumption in rice has created a surge in imports, a development that the forced the Federal Government to ban importation in 1985. The aim was to encourage local production.

    However, 10 years after, the ban was lifted as local supplies failed to meet rising demand.

    Despite last year February’s announcement that local farmers would add about 2.9 million metric tons rice stock from the 2014 season, the country lost N1 billion daily to rice imports, translating to about N360 billion annually.

    According to the Federal Government, the country lost more than N1.3 trillion to import waivers between 2011 and 2014. To address the trend, the Nigerian Customs Service (NCS) has reintroduced the ban on rice imports through the land borders, again to boost local rice production.

    With capacity to produce 3.2 million tons of paddy rice, or 2.0 million tons of milled rice, Nigeria is the highest rice producer in West Africa.

    Although rice grows well in all the six geo-political zones of the country, the demand for polished long grain, stone-free and odourless rice by the urban dwellers has been fuelling the demand for imported rice.

    The yearly demand for rice is put at about five million metric tons (MT) out of which about 3.2 million MT is produced locally. Rice importation accounts for a large chunk of the food import bill, estimated in excess of N1.5 trillion. This is expected to reduce as local farmers expand operations and improve on their farm yields.

    The latest ban has pushed up price with a 50kg bag, which hitherto sold for N10, 000, now selling for as high as N23, 000. Rice, often imported smuggled into the country through illegal routes, has contributed to the pressure on the naira.

    Going by the 2016/17 estimate, rice consumption is about 5.2 million tons, a four per cent decrease from the revised 2015/16 estimate of 5.4 million tons. The reduction has been attributed consumer’s declining purchasing power and rising market prices, triggered by price inflation and currency devaluation.

    Experts are pushing for transformation in rice cultivation to meet future needs and food security.

     

    Challenges

    The adoption of adequate mechanisation in rice cultivation of rice is low.  It was observed at meeting of stakeholders on rice production convened by the United Nations Development Programme (UNDP) in Minna, the Niger State Capital,  that lack of mechanisation undermines production and competitiveness of rice. Held under UNDP’s Agribusiness Supplier Development Programme’s (ASDP’s) Rice Supply Chain, the meeting was organised by the Federal Ministry of Agriculture and Rural Development, UNDP and Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL). Participants at the meeting spoke of the need to test small equipment, such as two-wheel tractors, row seeders, mechanical threshers, small combine harvesters and small mills and where possible, manufacture them locally.

    The engineering Director at the National Center for Agricultural Mechanisation (NCAM), Dr Yinka  Ademiluyi,  said that mechanisation will increase efficiency and that farmers will lose about 40 per cent of the crops with manual harvest.

    “But with a combined harvester, loss will be reduced to as low as 10 per cent. Furthermore, the time it takes to harvest is also reduced considerably”, Ademiluyi said.

    Agriculturists have urged the governments to engae research organisations when importing machinery to ensure that effective and durable implements and the technology adaptable to local operation are procured.

    Many farmers and research institutes have recommended the use of hybrid varieties and training of farmers on rice technologies to boost productivity.

    Nigeria has ability to plant rice thrice a year due to the general availability of water, use of early maturing varieties, direct seeding and synchronous planting.

    Addressing the  forum, Agricultural Production Advisor, International Fund for Agricultural Development (IFAD) Value Chain Development Programme (VCDP) Programme, Dr Unamma Victor Chyka,  representing Country Programme Manager, IFAD Country Office, Dr Atsuko Toda, noted that the  adoption of technologies  should be  more of a bottom-up approach and that there should be village-level demonstration trials to sensistise local farmers.

    According to him, IFAD provided an integrated platform to help farmers by creating, validating, disseminating and adopting new rice technologies.

    Other participants said a lot factors change the pattern of local rice production.  They said that weather-related quality eroded the high quality and integrity of Nigerian rice.

    The forum appraised the effects of government policies and other factors on production and consumption, the cost of fertiliser, energy, water and seedlings to farmers.

    The said the government must support production

    Rice seed expert, Africa Rice, Dr.  Abraham Attah Shaibu,  said the country,  with its vast water bodies for irrigation purposes, could become one of the best rice producer in sub-Saharan Africa.

    Abraham said farmers need to be educated on proper agricultural practices, especially on the need to tackle pests and diseases.

    RIFAN Chairman in Kogi State, Mrs. Peace Emaiku urged the government to empower farmers with capital to build infrastructure such as ponds.

    She said her organisation was mobilising farmers to engage in large-scale production.

     

    Boosting production

    President Muhammadu Buhari has promised that his administration would make Nigeria self-sufficient in rice production within 18 months.

    Speaking at a Ramadan breaking of fast with members of the business community, the President said that 13 states have been identified for the production of the crop.

    He said the Agriculture Minister, Audu Ogbeh, has already been briefed on how best to achieve the target. Buhari decried how the nation’s scarce resources were wasted on the importation of food items by his predecessors.

    In a bid to reduce rice import bills, Ogbeh launched a roadmap to promote rice revitalisation and import substitution programme to expand domestic rice production.

    A lot of farmers and groups have signified interest to support the ministry’s initiative. Their  motivating factors include:  high demands for and better returns from rice; availability of suitable land and better yields; stable prices compared to traditional crops; better shelf life and declining demand for and returns from traditional crops.

     

    Ensuring food supply

    The roadmap, known as “The Green Alternative”, for the promotion of agriculture from 2016-2020, emphasises strategic approach to food security, which aims to ensure the sustainability of food supply, food accessibility and affordable food prices to the public. To ensure adequate rice supply, the government said it is working on silos and buffer stocks of rice to meet the food requirement.

    Besides improving stockpile for strategic management and cost-effectiveness, the government also spoke of a plan to ensure production yield by upgrading existing infrastructure and to improve productivity in the granary and non-granary areas.

    Among the recommendations are: transformation plan for research and development (R&D) on the green revolution innovation in paddy and rice industry.

     

    Improved technologies

    Rice farming requires huge investment on the acquisition and maintenance of tools, equipment, irrigation and drainage systems as well as pest and disease management.

    Ademiluyi acknowledged the role of the development of agricultural technologies for improving the grain industry. He attributed the increase in grain production, to Sawah technology.

    According to him, much progress has been recorded in perfecting the technology and in developing a package of practices, citing many research programmes and projects of NCAM in partnership with other organisations.

     

    IFAD’s role

    IFAD, as a specialised UN agency, designed to eradicate poverty and hunger in developing countries, has been working in remote and rural areas to assist in achieving the Millennium Development Goals (MDGs).

    About 150 rice farmers in Niger State partook in IFAD’s e N50 million worth of inputs to increase their yields. Programme Coordinator,  IFAD’ VCDP in the state, Dr Mathew Ahmed, broke the news at the inauguration of support programme for small holder farmers in Katcha Local Government Area.

    He said: “We have supported 150 rice farmers from six different cooperative groups with a grant of N25 million to match the N25 million they contributed for this programme.

    “Fifty hectares of land will be cultivated by the clusters of farmers, numbering 25 in each group.’’

  • Fuel import: Ex-PPPRA chief seeks fine-tuning of forex management

    A former Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA) Reginald Stanley has urged the federal government to fine tune the foreign exchange (forex) facility provided for fuel importation.

    Stanley spoke at the inauguration of a multi-million naira mega petrol station built by Emadeb Energy Services Limited in Abuja at the weekend.

    He described the federal government’s intervention in the downstream petroleum sector as “as good and enormous.”

    Stanley said: “it is advisable that the government clears our certain administrative bottlenecks in providing forex to marketers.  Those bottlenecks are preventing the liberalization of the sector from taking its full course.

    “When forex approved for marketers are delayed from getting to their banks to enable them open letters of credit for orders placed, the volatility associated with petrol importation will eventually affect the tonnage imported by marketers.

    “The forex challenges are national whether you are manufacturing or importing, but the government has done very well by providing intervention forex for the downstream to make sure that it keeps running.

    “The only little lacuna here is that the forex needs to be made to work. There is a little bit of administrative bottlenecks here and there that need to be untangled; and, as soon as you do that, it will work well. The intervention is great but the application has to be fine-tuned.

    “The way the forex is being given today, there is a timing issue. If you are given forex on a Monday and the price of PMS is $450 per ton but that forex does not get into your account for letter of credits to be opened until Friday, it means there is a time difference of four days and unfortunately there is volatility in the market place because by Friday the price would have moved up to $500 and marketers will bring less quantity. That underpins why a good number of marketers are unable to import petrol.”

    On the Emadeb retail outlet, he said:  “This is not just a filling station but a mega station which is what I have always advocated. This is an integral part of the downstream development in Nigeria. We have had a proliferation of filling stations littered all over the place but abandoned.

    “Mega filling stations are the roadmap to the future. For Emadeb Energy Services Limited, this is a very good move that comes at a very critical time when depots are gone and products are taken to the consumers with efficiency.”

    Managing Director of Emadeb, Mr Adebowale Olujimi, said his firm was building 10 megaoutlets nationwide with the plan to acquire some existing stations within the next 18 to 24 months.

  • Season of import ban threatens non-oil economy

    Season of import ban threatens non-oil economy

    Barely three months after the European Union (EU) extended its ban on dried beans import from Nigeria by three years, the United States (US) suspended Nigeria’s cocoa. The restrictions have dealt severe blows to Nigeria’s push to boost non-oil export and facilitate economic diversification. Experts, however, blame this on the country’s failure to put in place functional laboratories to certify the products before export. Assistant Editor CHIKODI OKEREOCHA reports.

    Nigeria’s push to stimulate non-oil export and facilitate economic diversification has come under serious threat.

    Reason: Lack of functional laboratories for testing and certifying products before export has ushered a season of import ban on Nigeria’s agro-allied products by the United States (US) and the European Union (EU).

    While the authorities and operators in the non-oil export business were still ruing the EU’s extension of the ban on importation of dried beans from Nigeria by three years, the US added to Nigeria’s woes when it recently banned the importation of Nigeria’s cocoa into its market.

    The EU had in June, last year banned the importation of Nigeria’s dried beans because they contained high level of pesticides which are unhealthy. This came after the Republic of Ireland rejected and returned five containers of beans exported from Nigeria to the country. The products were said to have been received with heaps of weevils. Apparently embarrassed by the development, the relevant government agencies said they were working to get the EU lift the ban. But as it turned out, the European body was not impressed by measures taken by Nigeria to resolve the issue.

    Accordingly, the EU extended the ban by another three years, citing the continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria. “The continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria and maximum residue levels of pesticides shows that compliance with food law requirement as regards pesticide residual cannot be achieved in the short term. The duration of the importation prohibition should therefore be extended for an additional period of three years to allow Nigeria implement the appropriate risk-management measure and provide required guarantees,” the EU said.

    For Nigeria struggling to boost non-oil export and diversify her economy severely battered by crashing oil prices, the extension of the ban was a hit below the belt. However, while Nigeria, which lost its Africa’s largest economy position to South Africa, was still rattled by the extension of the ban, the US added to her woes by banning the importation of Nigeria’s cocoa into its market. The US authorities are said to have taken the action because Nigeria’s cocoa did not satisfy the standard required for exportation into the US. Expectedly, this did not go down well with Nigeria.

    Minister of Labour and Employment Senator Chris Ngige, echoed the country’s frustration over the ban. At the recent concluding session of the Labour and Trade Ministerial Roundtable of the Africa Growth and Opportunity Act (AGOA) at the State Department, Washington D.C, US, he said he was saddened by the development. He, therefore, made a case to the US authorities to reconsider the decision to suspend the exportation of the cash crop from Nigeria to the US.

    Ngige also asked for technical assistance for the production of cocoa that would satisfy the standard required for exportation into the US and European markets.

    But it was not so much the US ban on Nigeria’s cocoa that saddened the minister. Rather, it was the international emphasis on Ghana and Côte d’Ivoire in agriculture throughout the talks with delegates from West African countries. This was why at the AGOA roundtable, Ngige wondered if the cocoa being produced in Nigeria was not the same crop that was exported and exploited to develop the defunct Western Region.

    It was also the same cocoa, according to the minister, that was used by the late Chief Michael Okpara to build vast plantations in the Arochukwu axis of the defunct Eastern Nigeria.

    Sources said the minister was worried by the international attention on Ghana and Côte d’Ivoire because Nigeria had, before the ban, set for herself the target to beat both countries in terms of cocoa exports. Even the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at a recent meeting with officials of Cocoa Research Institute of Nigeria (CRIN) in Abuja, gleefully announced that the ministry had already developed new cocoa breeds capable of beating the two nations.

    At the meeting, Ogbeh wondered why Nigeria still lagged behind Ghana and Côte d’Ivoire, despite her enormous potential to grow cocoa in 23 states. He emphasised: “Nigeria needs to surpass Ghana and Ivory Coast. Ivory Coast is targeting two million tons now. Ghana is a bit lower than a million. We are battling at 250, 000 tons and Cocoa can grow in at least 23 states.” He gave CRIN the matching order for an intensive implementation plan to ensure that the government achieved the target.

    Where Nigeria got it wrong

    Experts said a vibrant non-oil sector was fundamental to economic diversification, rapid revenue base expansion, sustainable growth and employment generation. They, however, argued that Nigeria put the wrong foot forward when it moved to leverage on the sector to grow the economy without first putting in place functional laboratories for testing and certifying products before export.

    “The government is not serious,” the Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, fumed, noting for instance, that lack of seriousness by the Federal Produce Inspection Service (FPIS), the agency responsible for checking and certifying agro-allied products leaving the country, was robbing Nigeria of the benefits of a vibrant non-oil export-based economy.

    As Adhuze pointed out, “Quality standards have moved from physical standards to biological standards, but FPIS appears not be up to speed with this reality.” He recalled, for instance, that for about five years, Ghana suffered the same fate as Nigeria’s when over 2, 000 metric tonnes of her cocoa beans were rejected by Japan. Japan’s Chocolate and Cocoa Association of Japan appealed to Ghanaian authorities to take immediate steps to reverse the excessive agro-chemical residues found in cocoa beans exported to the Asian country.

    Adhuze said Ghana, a country famous for its very high quality cocoa beans, rose to the challenge by putting in place appropriate and adequate measures to guarantee the quality of her cocoa products for export. He expressed disappointment that while Ghana’s standards regulatory authorities took steps to reverse the excessive agro-chemical residues found in their cocoa beans, Nigeria was unable to do so. The result, he said, was the harvest of import ban now threatening the non-oil sector, especially in agro-allied products.

    The expert also pointed out that Nigeria’s lack of seriousness is underscored by the fact that despite exporting cocoa for over 100 years, the country has no defined cocoa policy to identify the basic links in the cocoa value chain.

    According to him, there was the need for a policy on cocoa farming with appropriate institutional framework to boost its production through proper identification of all the actors who have stake in the industry, from farmers to processors, marketers and exporters among others.

    Adhuze further said the lack of a clear-cut policy direction was responsible for why a N100 billion Cocoa Sector Development Fund remained a proposal more than two years after the Federal Government announced the initiative aimed at supporting cocoa farmers and processors. He said the government’s inability to walk the talk by translating the proposal into reality constituted a serious setback to Nigeria’s plan to reposition itself to extract immense value from the cocoa industry.

    He also said apart from stalling Nigeria’s hope of reclaiming her position as a global powerhouse in cocoa production and export, the fund’s failure to get off the ground was frustrating efforts at riding on the crest of a vibrant cocoa industry to create jobs.

    In October 2014, the Federal Government through the former Minister of Agriculture and Rural Development, now President, African Development Bank (AfDB), Dr. Akinwunmi Adesina, launched a N100 billion Cocoa Sector Development Fund. He also announced the government’s resolve to establish the Cocoa Development Corporation of Nigeria.

    The minister said the fund was aimed at supporting cocoa farmers by expanding cocoa plantation across the country; supporting the cocoa corporation of Nigeria and cocoa drying and access to micro finance for cocoa production.

    He also said the Cocoa Corporation of Nigeria, which would be private sector driven and public sector financed, would position Nigeria among more robust global economies and improve quality of lives of cocoa processors.

    “The corporation will be independent to grow and win back at least 20 per cent of the global cocoa market by 2020,” Adesina said. However, more than two years down the line, Adhuze lamented that the fund and the corporation remained mere proposals.

    National quality infrastructure to the rescue

    The Standards Organisation of Nigeria (SON) has come out with strategies to stimulate export of agric products by ensuring that they meet international standards and are not rejected by the importing country.

    Its former Acting Director-General, Dr Paul Angya, recently said the agency was developing standards for select priority produce from farm to storage, cutting across soil composition, soil preparation, kind of pesticides to use, seed improvement, harvesting, packaging labelling and storage.

    He said as part of the strategy, SON had developed codes of practice to guide the producers and farmers of the selected products that are of high priority from Nigeria so that Nigeria could deliver safe and affordable agro-allied products to the international community.

    While adding that SON has strengthened capacity for lab testing and certification of agric produce meant for exportation, as it is key that the products do not have issues,  Angya said these products were tested only in the countries of export.

    He said this meant Nigeria does not have control over the results, “because we don’t have much of the facilities for testing in Nigeria. The facilities are what we call quality infrastructure. The testing laboratories are one of the major components of the National Quality Infrastructure (NQI).”

    According to him, there are only two of such laboratories in Nigeria, with SON and National Agency for Food, Drug Administration and Control (NAFDAC) having one each for testing food products. He, however, said SON was developing a large lab complex in Ogba, Lagos, which is over 85 per cent completed.

    He said when completed, Nigeria should be able to test all standards and parametres for food products, so that the facilities would become available and much of the products coming to Nigeria will have access to this testing.

    Association of Systems Management Consultants National President, Mazi Coleman Obasi, expressed optimism that the NQI project being funded by the EU and implemented by the United Nations Industrial Development (UNIDO), with the support of Ministry of Industry, Trade and Investment, would sought out issues around quality that cause the rejection of Nigeria’s export products.

    Obasi, a certified quality management practitioner, said the association was working closely with UNIDO and other relevant government agencies on the NQI project to boost the competitiveness of locally  products at the international market place and ensure the global acceptance of products and services from Nigeria.

  • A handshake and its import

    A handshake and its import

    They looked at each other eyeball-to-eyeball. Their faces wreathed in smiles, they shook hands and exchanged pleasantries. Businessman Ismaila Isa Funtua watched, obviously with some incredulity as ex-Lagos State Governor, the Jagaban of Borgu Asiwaju Bola Ahmed Tinubu and All Progressives Congress (APC) Chairman John Odigie-Oyegun seemed to be telling each other “good to see you again”.

    It was all at the launch of President Muhammadu Buhari’s biography in Abuja yesterday.

    It was, indeed, an “eyeful”, a spectacle packed with so much  –  suspense, shock and anxiety. Why? Just a few days ago, Asiwaju Tinubu wrote a scurrilous statement in which he lashed Odigie-Oyegun and asked him to throw in the towel for his role in the emergence of Mr. Rotimi Akeredolu as the party’s candidate in the November 26 Ondo State governorship election.

    According to Tinubu, Odigie-Oyegun over-ruled a panel set up by the party which recommended the conduct of a fresh primary. This was after aspirants Olusegun Abraham, Olusola Oke and Senator Ajayi Borrofice, petitioned that the delegates’ list was “padded”.

    Since Tinubu excoriated Odigie-Oyegun and demanded his removal for internal democracy to return to the party, the APC chairman has refused to react. Many have been wondering if his silence amounted to guilt or plain conscience trouble. It is neither here nor there.

    This is the first time both men have been seen together in public after the Jagaban accused his former NADECO comrade of seemingly working for forces bent on killing the party.

    How genuine are the smiles? Have smiles ceased to be symbols of joy, pleasure and approval of a situation?

    But then, is it not said that when a seemingly simple matter gets so “treachrous”, the answer is just a smile –  to brighten a gloomy situation.

     

  • ‘Maritime loses 3,000 jobs to import ban’

    About 3,000 workers, have been sacked by shipping firms, terminal operators and logistics companies, the President-General, Maritime Workers Union of Nigeria (MWUN), Tony Emmanuel, has said.

    Emmanuel, in a statement in Lagos, said the sack was a fallout of the ban on importation of some commodities.

    He urged the Federal Government to review certain economic policies, especially those on importation of some items, saying that it was wrong to ban those items without alternatives.

    “As an import-dependent country, Nigeria cannot suddenly ban the importation of principal goods being generally consumed in the country,’’ he said.

    Emmanuel said the policy had sent 20 shipping firms out of the countrybecausev of dwindling balance sheets.

    He appealed to the government to lift the ban on items: such as wheat, vehicle spare parts and machineries, until the nation could  produce them.

    “As a remedy, the union, however, demanded for a review of the ban. Failure to do this, will encourage smuggling, diversion of ships to neighbouring countries, idle ports, retrenchment of workers, unemployment and general loss of revenue to government,” he said.

    He also spoke of revenue loss through under-declaration, attributing this to the sack of some dockworkers – tally clerks and on-board securitymen.

    Emmanuel said the position of the union was that tally clerks and on-board security men be recalled.

    According to him, when the union members were in-charge of tallying cargoes and securing the cargoes on board ships, there were no cases of loss of revenue.

    Apart from revenue leakages,  he said recalling the tally clerks and on-board security men would reduce unemployment.

  • Govt urged to review import policy

    The Federal Government has been urged to review its import and economic policies.

    The call was made yesterday in Lagos by the Maritime Workers Union of Nigeria (MWUN).

    The scored the economic policy of the Federal Government low.

    Its President General Comrade Tony Nted Emmanuel said it was wrong for the government to ban importation of wheat, vehicle spare parts, and industrial machineries without considering availability and affordability.

    He said about 3000 of its members have been laid-off by shipping companies, terminal operators and logistic firms.

    He also claimed that the policy has sent 20 shipping companies out of the country as a result of dwindled balance sheet.

    He said: “As an import-dependent country, Nigeria cannot suddenly ban the importation of principal goods being generally consumed in the country.

    “A situation in which the importation of rice which has become our staple food is banned without ensuring local production is dangerous and does not serve the nation’s interest.”

    As a remedy, the union however demanded for a review of the ban. It specifically appealed to the Federal Government to reverse the ban on items such as wheat, vehicle spare parts, and industrial machineries.

    “Failure to do this will encourage smuggling, diversion of ships to neighbouring countries, idle ports, retrenchment of workers, unemployment and general loss of revenue to government,” he said.

  • IPMAN, NIMEX partner on 100,000mt of fuel import

    Independent Petroleum Marketers Association of Nigeria (IPMAN) is collaborating with NIMEX Petroleum Group to import 100,000 metric tonnes (mt) of petroleum products to boost supplies, The Nation has learnt.

    IPMAN National President, Chief Obasi Lawson said the association has signed an agreement with NIMEX Petroleum Group for the importation of  petrol Diesel and  kerosene to complement the Federal Government’s effort in driving the downstream sub-sector.

    Lawson said the products would be imported by NIMEX while  IPMAN members would distribute them across the country to augment supplies by the Nigerian National petroleum Corporation (NNPC) and other sources.

    He said with the deal, products would be available, especially petrol, adding that at the moment, the NNPC’s supplies to members of the association was insufficient.

    Lawson said: “IPMAN is not unmindful of the positive effect its complementary effort to bring in petroleum products to service the dire needs of our members. The strategic relationship with NIMEX Petroleum Group will also support to improve the supply chain of petroleum products in the country and positively drive the deregulation policy.

    “IPMAN has grown to occupy a pride of place in the downstream sector of the oil and gas Industry. With a membership of well over 10,000 marketers across the country, it controls well over 87 per cent of the petroleum products retail outlets in Nigeria with a reach to every nook and cranny.

    “This commendable spread of IPMAN members’retail outlets across the country requires a steady supply of petroleum products for easy access by Nigerians.

    “The NIMEX Petroleum Group founded by Azmat Mahmoud, an astute German businessman, is a global name in the provision of solid services in the petroleum sector.The company has a global footprint in more than 15 countries in Africa with three decades experience in the provision of services in petroleum-related trading.

    “It is in recognition of this global reach by NIMEX, that IPMAN decided to partner with it in order for it to bring its huge experience to support IPMAN in capacity building. Mr Kanwar Ratra, the President of NIMEX, has assured us of their preparedness to satisfy the yearnings of our members for products.”

    The IPMAN chief praised the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Group Managing Director of NNPC, Dr Maikanti Baru, for their wonderful job in the oil and gas industry reform.

    According to him, Kachikwu and Baru through the NNPC and the Products and Pipeline Marketing Company (PPMC) are responsible for the peace that IPMAN and other Nigerians are enjoying today.

  • ‘Sugar import bill down to $80m’

    The sugar sector’s import bill  fell to $80.2 million by the end of last year as its production capacity appreciated to 15,000 MT, National Sugar Development Council (NSDC) has said.

    It said production capacity of  sugar firms rose from 12,345 metric tons (MT) in 2014 to 15,000 MT last year, just as the value of sugar import fell from a record $632.72 million in 2014 to $552.54 million by the end of last year,

    Experts, however, said production capacity was still very low, casting doubt over the possibility of the nation achieving sugar self-sufficiency by 2018 according to government permutations.

    Data show sugar consumption rose from 1,433, 471 MT in 2014 to 1,499,724 MT last year. The trajectory of sugar consumption suggests a spike since 2012, a situation attributed to growth of retail and chain stores and that of the local food and beverage firms, as well as high demography.

    NSDC Executive Secretary, Dr. Lateef Busari, said the upward swing in injected of operating companies’ investments express possibility in achieving self-sustainability.

    According to him, the refineries, particularly Dangote Sugar Refinery has expanded refurbished its factory operations site at Savannah Sugar Company (SSC) in Numan, Adamawa  State with about 6,000ha of sugarcane plantation.

  • EU extends beans import ban from Nigeria

    EU extends beans import ban from Nigeria

    The European Union (EU) has extended the ban it placed in June last year on the importation of dried beans from Nigeria by three years.

    The Coordinating Director, Nigeria Agricultural Quarantine Service (NAQS), Dr Vincent Isegbe, who spoke yesterday, lamented that the ban extension came when the Federal Government and its relevant agencies were working to ensure that the June deadline to lift the ban was met.

    The EU had banned the produce on the ground that it contained high level of pesticide considered dangerous to human health.

    Isegbe quoted the official journal of the EU of accusing Nigeria of not doing enough to lift the ban during the period of suspension

    “The continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria and maximum residue levels of pesticides shows that compliance with food law requirement as regards pesticide residual cannot be achieved in the short term.

    “The duration of the importation prohibition should therefore be extended for an additional period of three years to allow Nigeria implement the appropriate risk-management measure and provide required guarantees.

  • ‘Nigerians spend N25b daily on food import’

    ‘Nigerians spend N25b daily on food import’

    Nigerians spend about N25 billion daily on foods import, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has said

    NIRSAL  a subsidiary of the Central Bank of Nigeria (CBN), said about $623 million is equally spent yearly on catfish, most of which is smuggled, adding that the country has about 71.2 million cultivable hectares of land, with only about 34.2 million hectares currently under cultivation.

    NIRSAL said with this, it means the agriculture sector of the economy can employ 65 per cent of the population if government decides to go into full-scale agriculture.

    Speaking at the Three-Day Agricultural Value Chain Financing (AgVCF) training Workshop organised for bankers in Kaduna, its Executive Director, Arowosafe Jide, said the training became imperative due to distrust between the farmers and lending banks to finance agric projects.

    He said this was part of the reasons for over dependence on importation of what the country could actually produce if all professionals in the agric value chain can be sensitised and made to play their expected roles, especially now that government is shifting it’s attention from oil and gas to agriculture.

    Jide said, NIRSAL is building the capacity of bankers with a view to keying into the agricultural agenda of the President Mohammadu Bulgari’s administration.

    The report by NIRSAL showed that Nigeria loses about $623 million to dairy importation, $500 million on sugar importation, $4 billion on wheat importation, $2.2billion on cotton importation and $2 billion on rice smuggling annually.

    A participant and Regional Director with United Bank for Africa, Mr Danjuma Salihu, said the bank has been agric-friendly, adding that the lender is aware of the risk inherent in agric lending and how to mitigate them, adding that the training has further boosted the knowledge on loan disbursement to farmers within the  farming calendar.

    A credit analyst with Heritage Bank, Mr. Olukayode Oyebamgbose, said because of the change in government’s direction, many will be going into agric businesses.

    “They make us understand that they have been able to train 40, 000 local farmers, both retail and commercial. As bankers, they brought us here to strengthen our relationship with farmers on Financing Agricultural Value Chain,” he said.

    The participants said now that the government is serious with diversification of the economy, the CBN must ensure that it monitors all the people that eventually got the money to ensure that the money is not diverted to other uses because of the risk involved.