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Tag: importation

  • Why FG must ban 85℅ importation, by ex-envoy Adejare

    Why FG must ban 85℅ importation, by ex-envoy Adejare

    The immediate past Nigeria’s Ambassador to Mexico, Adejare Bello, has urged federal government to ban 85 percent importation practice, warning that it is dangerous for the future of the country.

    Bello, who is the former speaker of Osun Assembly, made this known during a reception organised his party and loyalists after his sojourn in Mexico.

    He noted that the importation is ten times of what Nigeria exports, saying “if the country fails to ban 85 percent of its importation, the future of the country is glooming.

    He boasted that Nigeria will overcome its problems after two years of President Bola Tinubu in government, adding that the president needs prayer and support from the people to achieve his objectives.

    Read Also: Military officers found culpable in Kaduna attack will be punished, CDS vows

    Adejare: “Nigeria is battered, we all know it but we have to give him a kind of synergy, work together, and pray for him. Where there is a trade imbalance in Nigeria against other continents is because what we bring in is almost times ten what we send out. What that means is that we have to reduce our demand for imports.

     “Importation must be banned by 85 percent of what we bring in as of today. If we don’t do it, tomorrow of Nigeria is very gloomy and we should not allow it to run murky.”

     Bello speaking on the performance of Governor Ademola Adeleke who hails from his town, wished him but said “ Adeleke’s tenure remains less than three years so he may not have the opportunity to spend another time. APC is a party to watch out for in 2026. APC is coming back to power, you can be rest assured.”

  • Fed Govt saves $5.49b from rice importation

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh has said the Federal Government saved $5.49 billion from rice importation between 2015 and now.

    Speaking on the achievements of the sector in the last three years, he said Nigeria’s rice paddy production significantly increased thereby leading to the reduction in rice importation by 95 per cent in the last three years.

    He said: “We have reduced the quantity of rice coming in through our ports by 95 per cent which amounts to saving of about 5 million dollars a day and all this happened between December 2015 and now.”

    According to him, Nigeria is currently producing between 5.8 million and 6 million tons of paddy rice and the number of paddy farmers in the country has risen from 5 million to 12.2 million and by the end of this planting season the number will increase to 9 million tons per annum by 2019.

    “We are between 5.8-6 million tons of paddy rice, the number of farmers growing paddy has risen from 5 million to 12.2 million, more are coming in as we clear more lands for them and arrange irrigation facilities. By the end of this farming season, we should be approaching 8 million tons of paddy which will give us roughly 6.5 million tons of processed rice and we hope that by this time next year we should be targeting 9 million tons of paddy but irrigation has to come on board because as long as we depend on rain-fed agriculture we will have difficulties achieving that target,” the minister added.

    Ogbeh said there are 27 large scale rice mills and over 5,000 small-scale rice mills presently in the country processing rice to international standard.

    He further noted that aside the impact of the rice revolution, there are other sub-sectors of agriculture such as maize, sorghum, millet, cassava and yams that production has increased in the last three years thereby contributing to the growth of the economy.

    “Today, Nigeria is the largest producer of maize in Africa, 10 million tons and this is according to the International Institute of Tropical Agriculture. We are the second largest sorghum producer and the third in millet, we are still leaders in yam way above everybody else because nearly 66 per cent of all the yam in the world are grown here and we are now putting a foot in the international trade in yams. We are also leaders in cassava but we are not doing well enough in cassava processing and value addition and we are number four in cashew nuts out of which we earned $700 million this year.

     

    “The biggest news probably is what Nigerians have done for which we remain eternally grateful, the response of Nigerians to the call by President Muhammadu Buhari to return to agriculture is unparalleled particularly among young people; the youths are everywhere getting involved in agriculture; youth who before now, had no interest in agriculture because it was a drudgery and wasn’t attractive.”

    He said a time will come in the country when politicians will not find people coming to their houses to beg for handouts but the politicians will have to go to the farms to beg farmers and convince them to leave their farms and to attend political rallies.

    “A time is coming in the very near future when politicians will not find people rushing to their homes to collect handout but will have to go to farms and villages to beg voters then democracy will become quite serious because you will have to be able to convince them that you have something you have done for them before or you going to do for them to persuade them to attend your rallies,” he said.

  • Unilever Nigeria partners local farmers to reduce importation

    In line with the Federal Government of Nigeria’s strategy to deepen the quality of growth through the backward integration policy, Unilever Nigeria Plc has  demonstrated its support for the policy through its “Partner to Win” initiative.

    Partner to Win is Unilever Nigeria’s initiative of investing in capabilities of intermediary companies to enable them convert farm produce to usable goods that will be sourced by the company as part of its raw materials locally. The organization believes this will enable it achieve a significant reduction in the importation of raw materials by working with local partners.

    According to Yaw Nsarkoh, the Executive Vice President, Unilever Ghana Nigeria, most of its brands in Nigeria are manufactured locally. The goal is to achieve 100%. In December, 2017 the Company commissioned its Blue-Band Margarine factory with the aim of ending the importation of the product.

    Providing the motivation for this decision, Yaw said, “the backward integration programme of the Federal Government is a sound policy and as an organization we are committed to this initiative. We have found strong connections between this policy and our business model. This has spurred us to enhance our local sourcing capabilities.”

    Yaw cited examples of steps taken by Unilever to achieve this drive in Packaging and agro-based materials. “Already, Unilever has achieved over 80% in local sourcing of packaging materials.

    The aim is to achieve 100% by the end of 2019 and overcome the current challenges of local vendor’s capacity to meet up with global best standard.” In agro-allied sector, Unilever is partnering with intermediary companies, for the supply of cassava and starch.

    Speaking on the economic benefits of aligning with the government on this strategy, Yaw said, “by working with the intermediary companies to source these materials, we are contributing to up-scaling the technical skills required for sustainable commercial farming in Nigeria.”

    “We are also investing in the production of palm oil for use in Blue-Band spreads and soaps, and exploring local production of herbs and spice for our seasoning cubes. We believe that our partnership with these investors will not only create jobs within the agriculture sector but also provide support that will enhance their technical know-how and skills.”

    The ability of the local suppliers to meet international standards for such materials and the possibility of locally produced goods being more expensive than imported goods are key challenges the company is facing. However, this is not a deterrent factor but an opportunity to help them scale up their skills and compete at the international level.

    The Procurement Director-Markets, Unilever West Africa, Supply Chain, Mwanza Thomas stated that “Our motivation and commitment to operate sustainably is far superior to these challenges. We are working with relevant authorities and local investors to ensure their produce meet the required standard for our products.”

    It would be recalled that the Federal Government of Nigeria designed the backward integration policy to deepen the economy and achieve robust growth. As it currently stands, imports are still the dominant source of inputs into food, beverages and tobacco in Nigeria, accounting for more than 70% of all raw materials.

    The Economic Recovery and Growth Plan (ERGP) blueprint anticipates a strong backward-integration led growth in the agro-processing, food and manufacturing sector.

     

     

  • Marketers to resume fuel importation soon

    Marketers to resume fuel importation soon

    The Nigerian National Petroleum Corporation (NNPC)has advised fuel marketers to seize the opportunity of special window, provided by the Central Bank of Nigeria(CBN) to access  dollars for importation, its Head, Group Manager, Public Affairs, Ndu Ugbamadu, has said.

    He said marketers will resume importation soon, when they maximise the use of the window, by accessing  enough forex for fuel importation.

    He said when this happens, NNPC will relieve itself of the  burdens of being the sole importer of fuel in the country, adding that the issue is affecting some activities of the corporation.

    He said all the marketers, including NNPC, were regarded as participants in the market, arguing that it would be wrong for marketers under the aegis of Major Marketers Association of Nigerian (MOMAN), the Independent Petroleum Marketers Association of Nigeria(IPMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to conclude that the Federal Government is  giving NNPC preference in the area of allocation of forex in the country.

    Ngbamadu said: ‘’ The fuel situation in the past few weeks is worrisome, as Nigerians were made to queque in the filling stations, trek for hours under the sun,  sleep in the heat, run businesses without being able to access light through their generators, among others. But importation of fuel has been left to only the NNPC by marketers under the guise that they are denied forex allocation by CBN.’’

    He said the more the importation of fuel, the higher the supply of the product and its usage for improved economic activities in the country.

    Still on fuel, Ngbamadu said NNPC boasts of enough supplies in the country, despite the challenges in the micro economy.

    He said NNPC would not have increased fuel supply from the normal 30 million litres per day to 50million litres and even 80million litres during the heat of fuel scarcity, if it does not have enough fuel reserve.

    He said NNPC had a meeting with tanker’ drivers and other members in the supply fuel chain days ago in order to ensure seamless distribution of the product in the country.

    He said the NNPC’s Group Managing Director, Dr Maikanti Baru, has directed all the depots that were owned by NNPC, to store fuel for onward distribution to its outlets and other marketers across the country, in order to ease fuel supplies.

    He said the proposed strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) gave more impetus to the scarcity, stressing that the scarcity would have subsided since.

    Marketers, he said, started the scarcity, by issuing a statement that they would embark on strike, following the allegations that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are short changing them by selling fuel at N142 per litre to them, as against N133.88 per litre, the price in which they got fuel from NNPC.

  • Opadokun blames fuel crisis on importation

    Opadokun blames fuel crisis on importation

    Former Secretary of the National Democratic Coalition (NADECO) Ayo Opadokun yesterday decried the fuel scarcity in the country.

    He blamed it on over dependence on importation of the premium motor spirit (PMS) into the country.

    Opadokun spoke in Offa, Offa Local Government Area of Kwara State at a colloquium organised by the Galaxy Clique in honour of late Chief Josiah Sunday olawoyin.

    The lecture was titled “Offa in Yoruba History”.

    He suggested outright ban on importation of fuel into the country to put an end to perennial fuel crisis in the country.

    Said he: “I must confess to you, I am extremely sad, weakened but I know it to be a cumulative effect of the prolonged misrule of the military over Nigeria. When Buhari was there as the military Head of State, the refineries that were built none has been since the one he built. The population was not as large as this, the vehicular movement was not  as large and wide as this. Since then what has happened, those who took over from him had totally ravaged Nigeria. What they needed do, they did not do. How on earth will a sane people in government construct the policy on home construction of domestic fuel on importation,.

    “I was part of the Nigeria Labour Congress (NLC) team that did sufficient research, we went abroad to Libya, Egypt, Saudi Arabia, UAE, Venezuela to fund out how much it costs to mine one litre of crude oil. Nigeria’s own is the most costly in the  world and then what are they doing now.

    “Each time, the independent marketers go ahead to buy at world market so Nigerians are subjected to the vagaries of world market crude oil prices. What  has happened in the last three, four months, is that because the government was not willing to add more money to their profit, they said  they will not import.

    “So the NNPC has been importing the totality of fuel being used in Nigeria. But because we have been used to a system where fuel tanks are being built independent marketers, they  made that unavailable and impossible for the distribution to go seamless. That is the cause of the crisis.”

     

  • FG to save N43 trillion from importation

    FG to save N43 trillion from importation

    The Federal Government has disclosed that it would be saving about N43 trillion in five years, from the importation of raw materials.

    Minister of Science and Technology Dr, Ogbonnaya Onu made the revelation at the weekend in Lagos at the interactive session on the National Science, Technology and Innovation Roadmap (2017-2030) with staff of the agencies of the Ministry in the South West geopolitical zone held at the Federal Institute of Industrial Research (FIIRO).

    Deputy Director Press AbdulGaniyu Aminu in a press statement, stated that Dr Onu said that the ministry is embarking on a silent revolution.

    He stated, “The Federal Ministry of Science and Technology has put in place a mechanism that would save Nigeria about N43 trillion in five years from the importation of raw materials

    “The Minister of Science and Technology, Dr, Ogbonnaya Onu disclosed that the ministry is embarking on silent revolution that will put Nigeria in a position to create jobs and fight poverty, adding that the big countries in the world do not have natural resources but her endowed with knowledge-economy.

    “The revolution, he added, would also ensure that Nigeria utilised her resources and intellectual capacity to add value to our Gross Domestic Products(GDP).

    “He said that the Ministry had already identified those raw materials and products that Nigeria can produce and also provide guidelines involving programmes and designs to ensure that Nigerians processionals are given preference in execution of contracts in Nigeria.

    “According to Dr.Onu, in the next 20 years we want Nigeria Firms to compete with Americans firms for jobs ,adding that the interest of Nigeria must first be considered above that of any expatriate.

    “The Minister appealed to members of Academic Union of Research Institutes (ASURI) to reconsider their on-going strike action while urging them to educate their members about the Road Map.

    “We are committed to making sure that the welfare of our workers is

    given top priority in the Ministry” he added

    “We are working to form a policy framework that will move our country from resource-based to Knowledge-based innovation driven economy where professionals can help to create jobs” the Minister added.

    “Dr.Onu further said that more two hundred organised private and manufacturing sectors were fully involved in the preparation and final drafting of the National Strategy for Competitiveness in Raw materials which made it all-inclusive.

    “Earlier, in his opening remark,the Director of Science and Technology Promotion, in the Ministry, MR Ekanem Udo said that the Roadmap will stimulate Researchactivities and ensure the commercialization of research results for economic development.

    “According to him, it is also intended to provide a long-term science and Technology Framework as well as facilitate the creation of knowledge while creating the platform to change the mindset of Nigerians to Science and Technology.

    “In her remarks, the Director-General, Federal Institute of Industrial Research, Professor Gloria Elemo said that the institute is 75% ready to face the assignment as contained in the Roadmap.”

  • Nigeria spends N116b on palm oil importation

    Despite the high exchange rate and its price, Nigeria has imported 450,000 tons of crude palm oil valued at N116.3billion ($323.1 million) since the beginning of the year, it was learnt at the weekend.

    The shipment was increased by 12 per cent as global price hit $718 per metric ton.

    The price of the commodity, which was $663 per metric ton in July, was increased to  $718  per ton this month (November) based on  high demand  by indigenous manufacturers.

    The country domestic production currently stands at 970,000 metric tons, while demand is 2.7million tons, leaving a deficit of 1.73million.

    Findings from the Nigerian Ports Authority (NPA) revealed that Apapa Bulk Terminal Limited (ABTL) at Lagos Port Complex took delivery of 4,000 tons from Lady Dahlia in the first week of this month, while Hamour Endurance  is still jostling for a berthing space to discharge about 5,000 tons  at JosepDam terminal, Tincan  Island Port, Lagos.

    In August this year, three vessels berthed at the Lagos Port Complex and Tincan with 32, 483 tons of the essential commodity.

    At ABTL were GSW Forward and Marios G ships, laden with 16,300 tons and  11,483 tons respectively. Another ship Theresa Success, investigation showed, has also offloaded 5, 000 tons of the product at JosepDam terminal in Lagos.

    Findings also revealed that between January and April this year, 50,010 tons of the commodity was shipped to the country.

    For instance, according to imvestigation at the Lagos Port, SeaPrice ship discharged 15,000 tons in January; Chemtrans Havel ship, 10,700 tons in February; Star Ploeg ship, 16,400 tons in  March and   Mid Nature ship, 8,000 tons in April this year.

    Following the surge and high demand for palm oil by Nigeria and Ghana this year, a shipping line, CMA CGM in August this year, imposed a new cargo protection service for shipments of the commodity into the country.

    The protection service attracted an automatic prepaid surcharge of $10 per container.

    It would be recalled that the shipping line noted that the surcharge was a new tailor-made cargo protection service for palm oil shipments exported from Indonesia and Malaysia.

    However, the company said all palm oil exporters would be compensated with up to $10,000 in the event of loss or damage of cargo during transportation.

    It added that export from Indonesia and Malaysia ports to other Africa countries would attract a prepaid surcharge of $10 per 20 feet container and $10 per 40 feet container.

    Nigeria was the largest producer of palm oil in the world with a market share of 43per cent in the 1960s. But currently, it has a world share of 2.9per cent, with Indonesia leading by 33million metric tonnes, Malaysia, 19.8million metric tonnes; Thailand, 2million; Colombia, 1.108million metric tons and Nigeria, 970,000 metric tonnes.

  • Industrialist urges govt to stop furniture importation

    An industrialist Mr. Oyemike Onaham has urged the Federal Government to curb foreign exchange wastage on furniture importation by empowering indigenous furniture producers.

    Onaham, who is the managing director of the ongoing first made- in-Nigeria furniture fair, made the call while visiting stands at the exhibition on Sunday in Abuja.

    He said the government’s empowerment with loans and grants would boost local production of world- class furniture products and effectively curb importation.

    “Government injection of fund and other policy support will open up the potentials of this multi-billion naira sector to the teeming youths for self employment.

    “The present federal administration is a responsible and serious government, I therefore, appeal to President Muhammadu Buhari to facilitate the empowerment of furniture industrialists by providing special support loans and possible grants to industrialists in the sector,” Onaham said.

    He noted that furniture production business had been profitable for local and foreign companies in the country, adding that “The sector is almost still at virgin level with a huge potential for growth, employment and even exportation.”

    Onaham said: “Nigeria is one of the countries in the world blessed with amazing varieties of wood, including hard and water proof ones, which are suitable for production of dazzling and diverse furniture products for homes, offices, factories, vehicles among others.”

    He said since no one could do without furniture, it was necessary that government pays attention to the industry, noting that funds assistance and patronage by the federal, state and local governments, and corporate organisations would boost the furniture industry and make it attractive to youths. “Once there is patronage by governments as a policy, it will be easy for corporate organisations to follow suit and thereby expand employment opportunities in the sector,” Onaham noted.

    The first made-in-Nigeria Furniture Trade Fair is being organised by Baca Furniture Products Limited.

     

  • Govt screens bidder under fresh fuel importation

    The Federal Government has started screening local and foreign oil companies which submitted bids to import fuel into the country under  the Direct Sales Direct Purchase (DSDP) model, it was learnt.

    The aim is to ensure that the firms are financially and technically fit.

    Under the DSDP, firms  get crude allocation from the government and bring products of equal value to the country   to ensure even distribution   nationwide.

    The Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation (NNPC), Ndu Ughamadu, in a telephone interview with The Nation, said the government had set up a technical committee to look at the financial strength.

    Others, he said, include ascertaining the level of credibility of the bidding firms and their capacity to deliver at an agreed date in the event their bids were approved by the government.

    According to him, the issue of eligibility of the firms is of utmost concern to the government, adding that government is stopping at nothing to ensure that only the companies with strong financial capacity and reasonable level of credibility were approved for the DSDP import model.

    He said the issue of selecting qualified bidders is sensitive and tasking, stressing that the development informed the decision of the government to take its time on the issue.

    Ughamadu said: “The process of picking bidders for fuel importation and other issues that are germane to the economy must be thorough, hence the decision of the government to handle the issue painstakingly.

    “The government has been careful with the issue of picking bidders for fuel importation ever since the time it came out with the idea of importation of fuel through Direct Sales Direct Purchase model. Both local and foreign firms have submitted bids for fuel importation under the DSDP model, in line with the directives of the government on the issue. The process of picking the best bidders is on-going. Presently, the government through NNPC is analysing the bids, while at the same time, looking into the financial capacity and ability of the firms to deliver, should they win the bids. Some firms operate onshore; others operate offshore.”

    Ugbamadu said the government is ready to open its doors to foreign crude refiners that want to invest in Nigeria. He said any attempt made by the foreign crude refining firms to invest in Nigeria is in tandem with the policy of the Federal Government, to grow the economy, by bringing in investors into the country.

    “If in the long run, crude oil refiners from developed economies, which would operate under the Direct Sale and Direct Purchase import model, wish to invest in Nigeria, they are welcomed. The more investors we have in Nigeria’s refining sector, the better for the country,” he said.

    He said the government has been calling for more local and foreign investments, in order to promote growth.

  • Fed Govt to end rice importation before Dec, says Ogbeh

    The Federal Government will stop the importation of rice before the end of the year to boost internal production of the commodity and meet foreign exchange earnings that can support economic diversification.

    Minister of Agriculture and Rural Development Audu Ogbeh spoke at the weekend in Ado-Ekiti, the Ekiti State capital, during a working visit to Ekiti State.

    He promised that the price of rice would crash within the next two weeks.

    Ogbeh also visited Afe Babalola University, Ado-Ekiti (ABUAD) Farm, where he spoke his ministry’s intention to supply the institution with 20 tonnes of rice seedlings in the next planting season to boost rice production.

    According to the minister, the Federal Government will sign a memoranda of understanding with Afe Babalola University, Ado Ekiti (ABUAD) and Ekiti State government on the production of rice.

    Ogbeh said the recession has helped the Federal Government to think outside the box and had succeeded in bringing the deserved revolution to agriculture sector.

    ABUAD Founder Chief Afe Babalola (SAN) hailed the Buhari administration for bringing revolution to the country’s agriculture sector.

    He said the sector had been neglected by successive governments, describing the economic recession as a blessing in disguise.

    He said: “To support the Federal Government’s initiative, this university for the past three years have been holding annual Afe Babalola Agriculture EXPO (ABAFEX), where we give N1 million to the best farmer in Ekiti and N250,000 to the best in 16 local governments.

    “This year, we intend to hold Rice Summit with intention to expose Ekiti potentials in the production of the commodity.”