The Nation Newspaper

Tag: import

  • Reduction of fuel import

    Reduction of fuel import

    •This may be the beginning of what to expect after the elections

    With the report that the Petroleum Products Pricing Regulatory Agency (PPPRA) has reduced fuel import by about 50 percent, Nigerians who have been wondering what could have caused the recent fuel scarcity in the country now have a clue. This is even as the Federal Government has offered no explanation for that policy decision. The Peoples Democratic Party (PDP) had claimed the scarcity was the handiwork of the opposition All Progressives Congress (APC) that has prevailed on the marketers to stop selling fuel to the public. It is disgusting that the PDP is politicising such an issue that has caused untold hardship to millions of Nigerians.

    According to reports, the PPPRA has cut import allocation permits to 1.5 million metric tonnes, in the second quarter, from the previous three million metric tonnes for the first quarter. One of the reasons for the drastic reduction of import quotas is because marketers are demanding that the Federal Government should pay their outstanding subsidy claims. The disagreement arising from the outstanding claims was also responsible for the last round of fuel scarcity in the country, a few weeks back. Then, the Minister of Finance, Dr. Ngozi Okonjo-Iweala, claimed to have solved the problem with the issuance of N100 billion sovereign debt note, out of the N185 billion owed the petroleum marketers.

    The current scarcity traced to the same issue of outstanding debt, confirms that the minister has not solved the problem. As the report indicated, many of the marketers are worried that they may not get their money after the elections, and their fears may be well founded. After all, Nigerians are aware that the subsidy regime is steeped in massive corruption, and any sincere audit of the process will reveal the gregarious corruption going on in the name of fuel subsidy. So, the importers should be afraid, considering the underhand deals pervading that sector.

    As we have severally canvassed on the subsidy scam, corruption in the petroleum products marketing sector is one of the major legacies of President Goodluck Jonathan. It is also a great pity that most of the promises of the government on resolving petroleum products crises in the country have not been addressed. The Federal Government had promised three  ‘greenfield refineries’ to replace the aging ones in the country. That promise remains a mirage. Also, the promise to rein in the fraud in the industry has been more of talk, and less action.

    For us, it is a national tragedy that our country is a major importer of finished petroleum products, despite being a top producer of crude oil. The shame of running down our refineries is another major legacy of the PDP. Yet, every year the party has in the past 16 years engaged in one dubious Turn Around Maintenance after another, at humongous costs to the tax payers. Unfortunately, instead of the refineries getting better, their production capacity has continued to plummet, and today our country imports nearly all her finished petroleum products.

    It is almost certain that the little concern the government is showing to Nigerians on the fuel supply situation is because we are in election season. Once the polls are over, the government is likely to come up with measures that will make Nigerians pay more for fuel, claiming that there is no money to sustain the subsidy regime.

    This is why we again urge Nigerians to reject this irrespective of whatever excuse the government might want to use to effect the policy. Nigeria should have no business importing fuel; we have said that time and again. Any deregulation policy which is anchored on fuel importation should not be paid for by Nigerians. Reduction of fuel import by PPPRA is only the beginning of the bitter pills that Nigerians may soon have to swallow.

  • ‘Nigeria’s blue revolution capable of reducing N125b fish import’

    Professor of Fisheries, Martins Antekhai  has said the fisheries sector is heading for a complete turnover with the blue revolution plan as multinational companies respond to  government’s call to join  the campaign to reduce the N125 billion annual fish import bill.

    Antekhai, who is of the Department of Fisheries, Lagos State University,  said  the decision of fisheries multinationals to cut down on imports and embrace aquaculture will play a big role in increasing national fish production, thereby creating  more jobs for Nigerians.

    He said a lot of investors are going to tap into the vast unutilised land and inland water resources to address the shortage of quality fish seeds, adding that it will give a boost to the sector.

    While the approach is going to deliver increased profitability in the long run, the don said reducing importation on the other hand will lead to the development of a virile fish export industry.

    Already, Antekhai added that the level of fish consumption is big enough to support aquaculture.

    In tandem with the Agriculture Transformation Agenda, Triton Aqua Africa Limited commenced its local harvest at Iwo, Osun State.

    Its Director of Production, Mr. Yashpal Jain said the firm is going into local production in a bid to reduce fish imports for which the company has been involved.

    Jain said the pilot phase of the project is located in Iwo, where it already had a poultry project in the past, but added that for the aquaculture scheme, additional 25 acres of land had to be secured.

    The pilot stage at Iwo, Jain explained, is growing the African catfish of the Clarias Gariepinus species in ponds as big as two standard plots of land for one.

    Overall, two large earthen ponds with the dimension of 100m x 80m, six of 100m x 40m and four nursing ponds of 80m x 25m are expected when the pilot fish farm infrastructure is completed.

    For Tilapia, he said though cages in which they are kept are expensive and usually imported, the company would source and fabricate locally such number as would be needed in the course of establishing the farms.

    From the existing ponds, 40 tonnes of catfish is expected at this instance; however, Jain explained that 2.2 cropping can be done in a year and would amount to 88 tonnes of full capacity at this stage.

    Chief Executive Officer, Raju Santani said Triton Group, which came into business in the country in 1995 owns a two-million catfish fingerling capacity hatchery in Ikeja, Lagos State from where it sourced the stock for the Iwo project.

    Santani said about $65million is planned for investment in catfish and tilapia production in the next five years to complement efforts of government to grow the local fisheries sector and create more job opportunities in Nigeria.

    He said the plan is to establish fish farms for both tilapia and catfish in different parts of the country. For this reason, various state governments were approached to partner with the company to grow fish, provide jobs and boost the economy.

    For instance, Oyo, Ogun, Kwara and Ekiti states have been approached with applications, for working relationship that would release water bodies like in the various Water Basins and dams for fisheries activities.

    The Tilapia to be farmed is specially improved breed, the Genetically Improved Farmed Tilapia (GIFT), which he said are getting wider acceptability worldwide.

  • Expert urges govt to stop malt extract import

    The Managing Director, Food Agro & Allied Industries Limited, Mr. Sudhansu Sinha, has urged the Federal Government to stop the importation of malt syrup into the country, adding that the development constituted huge drain on scarce foreign exchange.

    He said farmers from countries, such as China, India and Turkey, where the raw material is imported from, enjoy government subsidies in addition to other waivers that make their products cheaper for importers and consumers.

    Speaking at the weekend, Sinha lamented that food, beverage and drinks manufacturers in the country prefer to buy the raw material from foreign countries at the detriment of the growth of the nation’s economy.

    He advised the government to implement the policy it started in the 1980’s under which it banned the importation of barley and the by-product of malt extract, which led to research by the Raw Material Research and Development Council (RMRDC) that discovered sorghum, a tropical plant found in abundance in the Northeast, especially in Gombe State.

    According to him, the implementation of the policy will not only empower farmers, it will also create employment as there will be capacity utilisation of local industries to grow the economy.

    He noted that the market runs into billions of naira, but adding that the government needs to protect the local industries from the overwhelming influence of foreign interest that insist on buying raw materials from their factories abroad rather than patronising local firms with the requisite technology and competitive production process.

    Sinha said: “The production of sorghum is going down as the farmers are not empowered and there is no subsidy on agriculture unlike the European countries that protect their farmers. The insecurity problem is a major issue as most of our supplies come from the varieties found in the Northeast.”

    Lagos State Coordinator of RMRDC, Mr. Tokunbo Habeeb, said the agency was set up to ensure that industries are fed with raw materials that have local substitutes so that importation of locally available raw materials will be discouraged.

    He decried the huge foreign exchange spent on the importation of malt extract, adding that  food and beverage manufacturing companies should be encouraged to patronise local companies such that apply the highest level of production skill that is globally competitive.

    He said the country will be saving over $25 million annually from malt extract from sorghum. “Patronage of local content is crucial to our economy. What the company produces meets world class standards. Sorghum has a higher shelf life than barley extracts and is more nutritious as it is gluten free, which makes it healthier and more acceptable in the advanced economies,” he said.

    Habeed said the high maltose syrup extract is used in alcoholic and non alcoholic beverage production and is a healthy replacement for sugar and syrups in production of quality beers and malt drinks, soft drinks, milk and malt preparations.

    In the food industry the RMDC boss said it is used in leavening and conditioning of dough, moisture retention and softening of bakery crumb. He urged food and drinks manufacturers to patronize locally made products certified by RMRDC for best quality and competitive production process.

  • ‘Import substitution policy to ward off economic crisis’

    ‘Import substitution policy to ward off economic crisis’

    As the harsh reality of plunging crude oil prices continues to dawn on the Federal Government, the Ministry of Industry, Trade and Investment is determined to champion the import substitution model to tackle the  country economic crisis in the country.

    The Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, who spoke during a visit to Secure ID Limited, Lagos, said Nigeria could no longer continue to be an import-dependent country.

    According to him, the nation  is wasting its foreign reserves on imported products, most of which can be produced locally.

    Dr. Aganga noted that there is need to  urgently steps in the next four years to address more of the challenges hindering economic growth. “If we do not address the import situation in the next three to four years, we will be in a very big trouble in terms of our economic development,” he warned. The minister praised the factory’s efforts at boosting industrialisation, maintaining that the country is wasting its foreign reserves importing products it can produce.

    His words: “The message of this administration is very clear. We can no longer be a country that is import dependent, especially on products we can produce in this country. There are many actors we should have developed as a country, but we relied for decades on exporting raw materials which is oil.  That era is gone and this is why the president launched the Nigeria Industrial Revolution Plan (NIRP) in 2012.”

    The Minister disclosed that under the NIRP, government’s approach is to diversify the nation’s revenue sources to boost economic growth. He said going by the plan, Nigeriaby 2018, will no longer import petroleum products into the country and this will save the nation a minimum of about $10 billion. “We spend about $3 billion importing steel; we spend about $6 billion importing cars and spare parts and also spend about $1.7 billion importing sugar where we can grow sugar cane to get sugar,” he said.

    While insisting that “Jonathan is the solution to the debacle we have had for decades and the idea is a matter of time to let him get the plan completed,” he said the falling oil price and devaluation of the naira have gotten Nigerians all surprised because for decades, the country adopted the wrong policies.

    In line with the new strategic thinking in favour of import substitution,the Federal Government had, as part of its emphasis on rapid growth of the non-oil sector for exports, listed 13 National Strategic Export Products (NSEP) meant to replace petroleum products whose prices have continued to tumble on the international market and in the process, threatening the stability of the economy.

    Aganga, during an unscheduled inspection and a meeting with the Executive Director of Nigerian Exports Promotion Council (NEPC), Mr. Olusegun Awolowo and members of the management team in Abuja, listed the 13 NSEP in three categories including; agro-industrial- palm oil, cocoa, cashew, sugar and rice; mining related- cement, iron ore/metals, auto parts/cars, aluminium and oil and gas industrial products- petroleum products, fertilizer/urea, petrochemical and methanol.

    The Minister noted that originally 12 products were identified, but the number increased because the Executive Director of NEPC made a very strong case for the inclusion of cashew on the list. Aganga, however, charged the NEPC to deploy its capacity for kick-starting the diversification of the country’s economy in line with the government’s agenda.

    Mr. Awolowo noted that NEPC under his leadership had long recognised the need to develop the non-oil export sub-sector and had in the process held series of strategic meetings with stakeholders for the development of ideas aimed at improving the foreign exchange earnings by Nigeria through different avenues. These, he said, included the development of a 4-year Strategic Plan, One State One Product (OSOP), Nigerian Diaspora Export Programme (NDEX) and the development of new markets for new products.

    Others, the NEPC boss said, include special initiatives on the Sub regional Economic Community of West African States (ECOWAS) markets, multi-stakeholders’ engagement of the export community, especially deepening of relationship with key stakeholders such as the Manufacturers Association of  Nigeria (MAN), Chambers of Commerce, National Cashew Association of Nigeria (NCAN), Cocoa Association of Nigeria (CAN), among others initiatives.

    Awolowo assured that the agency would do its best in collaborating with other stakeholders to ensure increasing foreign exchange earnings by Nigeria with a view to reducing the effects of the current fall in oil prices at the international markets.

  • ‘Import substitution policy to ward off economic crisis’

    ‘Import substitution policy to ward off economic crisis’

    As the harsh reality of plunging crude oil prices continues to dawn on the Federal Government, the Ministry of Industry, Trade and Investment is determined to champion the import substitution model to stem the economic crisis in the country.

    The Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, who spoke during a visit to Secure ID Limited, Lagos, said Nigeria could no longer continue to be an import-dependent country. According to him, the nation at moment, is wasting its foreign reserves on imported products most of which can be produced locally.

    Dr. Aganga noted that there is need to take urgent steps in the next four years to address more of the challenges hindering economic growth. “If we do not address the import situation in the next three to four years, we will be in a very big trouble in terms of our economic development,” he warned. He commended the factory’s efforts at boosting industrialisation, maintaining that the country is wasting its foreign reserves importing products it can produce.

    His words: “The message of this administration is very clear. We can no longer be a country that is import dependent, especially on products we can produce in this country. There are many actors we should have developed as a country, but we relied for decades on exporting raw materials which is oil.  That era is gone and this is why the president launched the Nigeria Industrial Revolution Plan (NIRP) in 2012.”

    The Minister disclosed that under the NIRP, government’s approach is to diversify the nation’s revenue sources to boost economic growth. He said going by the plan, Nigeriaby 2018, will no longer import petroleum products into the country and this will save the nation a minimum of about $10 billion. “We spend about $3 billion importing steel; we spend about $6 billion importing cars and spare parts and also spend about $1.7 billion importing sugar where we can grow sugar cane to get sugar,” he said.

    While insisting that “Jonathan is the solution to the debacle we have had for decades and the idea is a matter of time to let him get the plan completed,” he said the falling oil price and devaluation of the naira have gotten Nigerians all surprised because for decades, the country adopted the wrong policies.

    In line with the new strategic thinking in favour of import substitution,the Federal Government had, as part of its emphasis on rapid growth of the non-oil sector for exports, listed 13 National Strategic Export Products (NSEP) meant to replace petroleum products whose prices have continued to tumble on the international market and in the process, threatening the stability of the economy.

    Aganga, during an unscheduled inspection and a meeting with the Executive Director of Nigerian Exports Promotion Council (NEPC), Mr. Olusegun Awolowo and members of the management team in Abuja, listed the 13 NSEP in three categories including; agro-industrial- palm oil, cocoa, cashew, sugar and rice; mining related- cement, iron ore/metals, auto parts/cars, aluminium and oil and gas industrial products- petroleum products, fertilizer/urea, petrochemical and methanol.

    The Minister noted that originally 12 products were identified, but the number increased because the Executive Director of NEPC made a very strong case for the inclusion of cashew on the list. Aganga, however, charged the NEPC to deploy its capacity for kick-starting the diversification of the country’s economy in line with the government’s agenda.

    Mr. Awolowo noted that NEPC under his leadership had long recognised the need to develop the non-oil export sub-sector and had in the process held series of strategic meetings with stakeholders for the development of ideas aimed at improving the foreign exchange earnings by Nigeria through different avenues. These, he said, included the development of a 4-year Strategic Plan, One State One Product (OSOP), Nigerian Diaspora Export Programme (NDEX) and the development of new markets for new products.

    Others, the NEPC boss said, include special initiatives on the Sub regional Economic Community of West African States (ECOWAS) markets, multi-stakeholders’ engagement of the export community, especially deepening of relationship with key stakeholders such as the Manufacturers Association of  Nigeria (MAN), Chambers of Commerce, National Cashew Association of Nigeria (NCAN), Cocoa Association of Nigeria (CAN), among others initiatives.

    Awolowo assured that the agency would do its best in collaborating with other stakeholders to ensure increasing foreign exchange earnings by Nigeria with a view to reducing the effects of the current fall in oil prices at the international markets.

  • Rice import waivers to cost Fed Govt N40 billion

    Rice import waivers to cost Fed Govt N40 billion

    The Federal Government’s backward integration plan in the rice industry may cost the nation over N40 billion through indiscriminate granting of waivers and concessions to non-committed investors as well as smuggling of the product unless, The Nation has learnt.

    Many of the non-committed investors, who got the import allocation quotas for rice, are trading it to interested stakeholders at between 60 to 80 per cent levy, after obtaining same at 20 per cent.

    The development, it was learnt, has cost the Federal Government over N20 billion.

    Documents obtained by The Nation showed that investors, who have only submitted expression of interests in the sector without any visible form of investment, might be enjoying waivers amounting to about N20 billion under the exercise.

    For instance, allocation of rice import quotas under the new rice policy by the Federal Ministry of Agriculture and Rural Development showed that a move to bridge the supply gap of import-grade rice of 1.5 million metric tonnes was designed to ensure that existing rice millers and new investors receive a preferential levy of 20 per cent and duty of 10 per cent. But other importers pay a higher levy of 60 per cent and duty of 10 per cent.

    Agriculture and Rural Development Minister Dr. Akinwunmi

    Adesina had in a letter to the Minister of Economy and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, on the allocation of rice import quotas, noted that the criteria for allocation of quotas under a methodology, which assigns weight to key criteria of self-sufficiency in rice production and milling in Nigeria, include the submission and approval of a Domestic Rice Production Plan (DRPP) among others.

    Adesina said a supply gap of import-grade rice was determined to be 1.5 million metric tonnes for 2014 while an inter-ministerial committee discussed the methodology for allocation of the import quotas.

    “Subsequently, a letter was sent to existing rice millers and new investors to submit a DRPP, and based on their submissions;

    1.3 million metric tonnes of rice import quotas were issued to 25 qualifying millers at the preferential levy of 20 per cent and duty of 10 per cent.

    “The remaining 0.2 million metric tonnes of rice imports will be at the higher levy of 60 per cent and duty of 10 per cent for other rice importers”, the letter reads in part.

    However, documents obtained by The Nation showed that the supply gap estimate is unrealistic when compared to a total of 2.74 million metric tonnes of imported rice that made its way into the country in 2014 – representing a combination of rice imported into the country and the smuggled commodity from neighbouring West African countries.

    In other words, through the indiscriminate granting of waivers, government might have been promoting the activities of rice smugglers.

    Hence, the country, according to experts, may continue to lose at least N20 billion to smugglers, while putting the rice policy under serious threat.

    Documents also showed that new investors without milling capacity or investments in the country received the highest quota of the allocations to approved rice millers, while actual millers did not receive allocations and in some instances, received very low portion.

  • Ebola: Govt urged to ban food import

    To prevent the spread of Ebola through farm produce, the Federal Government has been advised to ban the importation of certain foods.

    According to Prof Tola Atinmo, immediate past chairman, Federation of African Nutrition Societies, agricultural and health watchdogs must keep an eye on poultry to  prevent contaminants in dairy products that can create an environment  for Ebola to prosper.

    He said adultrated food could contain poisonous substances which may render it injurious to health.

    To ensure that the disease is not spread through bush meat, he said  meat should come from regulated, government-inspected slaughter facilities.

    He urged food retailers and  growers to move to ease consumer concerns over the safety of their products.

    Fruit and vegetables should be produced on farms that are managed by safety conscious growers, Atinmo said.

    He said the country of origin tests must be conducted by the National Agency for Food and Drug Administration and Control (NAFDAC) and  other agencies to find cases of misleading origin claims.

    Atinmo said tests and investigations must be done to trace documents and analyse the accuracy of  food samples.

    He stressed the need to ascertain   whether people were receiving accurate information on the origin of their food and where the results are good for consumers and businesses.

    According to him, it is vital that consumers are provided with a true picture as to where the food they buy comes from.

    Ebola is a severe, often-fatal disease in humans and non-human primates (monkeys, gorillas, and chimpanzees) that has appeared sporadically since its initial emergence in 1976.

  • ‘Import ban not a good idea’

    ‘Import ban not a good idea’

    Dr. Jonathan Aremu, a consummate economist, former acting Assistant Director of Research of Central Bank of Nigeria, and ECOWAS consultant on Common Investment Market (CIM) was appointed as the Monitoring Expert on the Establishment of an ECOWAS Investment Guarantee/Reinsurance Agency by European Union (EU) in September 2011. In this interview with Joe Agbro Jrn he shares his views on the import ban and other related issues

    What is your take on the ban and restrictions on importations of some staple products such as rice, fish and also on motor vehicles?

    My own reaction to this is when you put a ban on an inelastic product or a particular product in which you don’t have substitute and the demand is just there and without it, quite a number of things can’t be done, the price would just go up and people would be forced to buy them. Now, again, when you put a ban on a particular product, to be able to defend that ban, you must look at other alternatives. If you put a ban and the product still finds their way into the market, then your ban is ineffective. Right now, when you put a ban on rice, our people find it so easy to bring cheaper rice from other countries within West Africa which are imported to West Africa, then, the ban becomes counter-productive. But, to me, if the ban would actually give us opportunity to buy from producers within ECOWAS markets, as a consultant in ECOWAS, I think that is a welcome idea. At Niger Basin in Mali, we have a lot of farmers that are producing rice over there. And these rice are of good quality. Under ECOWAS trade liberalisation scheme, such rice can come into Nigeria under a free import duty. And that will ensure we still have cheap rice in the country and that will not actually go against the government policy since government is part and parcel of ECOWAS. But when you put a ban and you don’t allow those ones to come in, then, number one, you’re breaking the ECOWAS protocol. So, the ban should be a ban that should allow rice to come from producers within ECOWAS countries and therefore enhance trade liberalisation. That’s a welcome idea.

    The ban should look at every other thing going on within the country and within the sub-region. As I am talking with you, rice is well-produced at Niger Basin in Mali. Again, why not even welcome some of these farmers who are doing very well. There are farmers from Morocco. These farmers that are producing rice in Niger River Basin in Mali, why can’t they come and establish in Nigeria and then sell their rice in Nigeria? My fear is that some of the powerful people within the polity who are members of political parties and who have some farms would be able to planting rice, maybe they are the ones praising government to ban these items so that their rice can sell. But, I’m afraid if they cannot meet the demand in the market, we are back to square one.

    So, we don’t just want people to be able to look at things from that parochial angle so that we can sell rice. How much can they produce? What is the quality of their rice? We already have people that are producing good rice within the region. Why don’t we open our markets to them?

    Rice is a staple consumption in the Nigerian economy and banning will definitely affect people if there is no alternative coming in.

    You’ve spoken about the implications concerning the sub-region, but most of our rice comes from Thailand, is there any way this policy would affect our relationship with countries like that?

    The best thing about it is that under the article 24 of the General Agreement on Trade and Tariffs (GATT), we can discriminate against a market coming to the sub-region. So, if we are using article 24 to enhance trade between West African countries against these countries, nobody can actually say any bad thing against Nigeria because economic integration is actually to enhance trade between members that are in the integration against non-participating members. It will lead to trade liberalisation among participating members and trade diversion from non-participating members and without violating the World Trade Organisation (WTO) rule. So, to me, what they would have done in the Nigerian economy is to look at some of these premises and position and see whether there is a producer within the sub-region that can produce better rice and we can actually have access to their rice. And secondly, my fear is that rice may still be imported into some of the West African coast, only to be imported into Nigeria again because our borders are heavily porous anyway. All what they need is to wet the hands of those officials. And you know what I’m talking about.

    Now, we have talked about rice but how do you react to the policy on increased tariffs on motor vehicles which the government said is to encourage the local automotive industry?

    I’m not happy about the development in that sector. The development in the motoring sector is not a welcoming idea. Why, because, over the years, we’ve had a lot of domestic manufacturers in Nigeria that have not performed up to expectation in terms of quality, in terms of price. But, again, my worry is this; Nigeria is importing a lot of cars from outside. The domestic producers are not good substitutes because in this high tech manufacturing activity, it depends on what you call practical integration – being what can be produced domestically to support this industry. Quite a lot of spare parts company should have been existing in Nigeria and then, all those things will make assembling to be easier. But, when you just bring all the knocked-down together and put all of them in Kaduna and then you just arrange some mechanics to put them together that is not manufacturing. So, my worry is this; factories and industries need to be developed that would be producing some of these critical parts that motor industry will be using before we can say we are going to place a ban. We have done so much of this kind of incentive for Peugeot Automobile of Nigeria (PAN) and Volkswagen but they did not lead us to anywhere. That is my position on that because I don’t think they are doing well. Government needs to promote some of the practically integrated industries to have been producing those parts which the motor vehicles would be using before you can say you ban so that the manufacturer in the economy can manufacture based on the raw material and intermediate products other companies would be producing in Nigeria.

  • SON to regulate tokunbo vehicles’ import

    The Standards Organisation Of Nigeria (SON) is set to regulate the importation of second hand vehicles (popularly known as tokunbo).

    During an interview with The Nation, its Director-General,Dr Joseph Odumodu, said this became necessary because of the compliants from consumers on the condition of these vehicles.

    According to him, SON will now, henceforth, look beyond the age of these vehicles and inspect features, such as the condition of the engine, emission and the mechanical function.

    He said the condition of such vehicles was worrisome, adding that they could contribute to the depletion of ozone layer through the emission of carbon monoxide from the vehicles.

    “In order to checkmate this ugly development and stop the country from being used as a dumping ground for all manners of used vehicles by some unscrupulous business men, SON will soon fix a date to meet with the major stakeholders to take the challenge.

    “We may commence the regulation of these used imported vehicles in the next three months,” he said.

    He also said some measures would be put in place in the interest of Nigerians as well as its eco system.

    Odumodu urged car dealers, especially those into manufacturing and importation business, to adhere to importsation guidelines.

    He called for their collaboration with SON, adding that such synergy would enable his agency to sensitise the sector.

    According to the Nigerian Automotive Manufacturers Association (NAMA), Nigeria imports 10,736 vehicles monthly. Of this, about 8,270 are used vehicles and othes brand new.

     

     

     

     

  • Food import bill hits N170b in six years

    Food import bill hits N170b in six years

    Dependence on imported foods has been on the increase, with N170.2 billion spent in six years, according to a report by the Central Bank of Nigeria (CBN).

    It showed that as growth slowed, output became increasingly inadequate to meet rising demand for food and industrial raw materials.

    Consequently, the country became food import dependent, with rising import bills, which accelerated from N89.9 million in 1961 to N3.3 billion during 1981 to 1990; N62.7 billion in 1991 to 2000 and N170.2 billion in 2001 to 2006.

    At the continental level, the World Bank report, tagged, Africa Can Help Feed Africa, says the continent would generate an extra $20 billion in yearly earnings if its leaders can agree to dismantle trade barriers that blunt more regional dynamism.

    The World Bank said with many African farmers effectively cut off from the high-yield seeds, and the affordable fertiliser and pesticides needed to expand their crop production, the continent has turned to foreign imports to meet its growing needs in staple foods.

    “Africa has the ability to grow and deliver good quality food to put on the dinner tables of the continent’s families. However, this potential is not being realised because farmers face more trade barriers in getting their food to market than anywhere else in the world.

    Too often borders get in the way of getting food to homes and communities which are struggling with too little to eat,” Makhtar Diop, World Bank Vice President for Africa said.

    The report urges African leaders to improve trade so that food can move more freely between countries and from fertile areas to those where communities are suffering food shortages. “The World Bank expects demand for food in Africa to double by 2020 as people increasingly leave the countryside and move to the continent’s cities,” it said. It said countries south of the Sahara, could significantly boost their food trade over the next several years to manage the deadly impact of worsening drought, rising food prices, rapid population growth, and volatile weather patterns.

    It said Africa’s production of staple foods is worth at least $50 billion a year. The World Bank report said Africa’s farmers can potentially grow enough food to feed the continent and avert future food crises if countries remove cross-border restrictions on the food trade within the region.

    The new report suggests that if the continent’s leaders can embrace more dynamic inter-regional trade, Africa’s farmers, the majority of whom are women, could potentially meet the continent’s rising demand and benefit from a major growth opportunity. It would also create more jobs in services such as distribution, while reducing poverty and cutting back on expensive food imports.