Tag: surplus

  • Wellspring of all surplus

    Wellspring of all surplus

    It’s about time the Nigerian city achieved a rural sweep. We should profit from what we grow. Right now, our cities deify baubles and digital enlightenment, which are superfluous to the country.

    This is why social life and commerce get grounded in the heat of a crisis. At the outbreak of the coronavirus, for instance, economic activities in most cities got grounded. It was as if the metropolis and the wheels of industry didn’t matter.

    Before the advent of big tech; before our cash crops and wildflowers got decimated by murderous herdsmen and their ruck; before pastoral farms frothed with pesticides and fishes floated belly-up in Ewekoro and the oil creeks in Niger Delta, we grew what we ate.

    Cities don’t produce food. They depend on the countryside to provide it. Save their food distribution systems, cities can quarantine, shut in, and shut down, so long as the countryside doesn’t.

    A deeper look at our fate through the pandemic revealed how worthless the Nigerian city is, with its parade of glitz and chug-chug of industry. But for the country’s agricultural economy, Nigeria would starve.

    President Bola Ahmed Tinubu has his work cut out for him. His agricultural policy must manifest beyond passionate pronouncements and gazetted intent.

    The wellspring of wealth is agricultural surplus, the ability to feed more than one with the labour of one. Agricultural surplus built the groundnut pyramids of the north and the cocoa plantations of the southwest.

    Nigeria was a leading agricultural economy in the 1950s, being the largest producer of palm oil, groundnut, cotton, and cocoa globally. The sector employed over 70 per cent of the labour force and accounted for as much as 62.3 per cent of the nation’s foreign exchange earnings.

    Over the last four decades, however, the yield of most key crops has declined, in particular, cassava, cocoa beans and wheat – a reflection of low utilisation of improved seedlings, agrochemicals and poor adoption of technology, according to a recent Price Water House report.

    The yield of rice on the other hand has increased steadily, resulting from government’s increased support for rice production, by providing subsidised agrochemicals and credit facilities through various intervention funds.

    In contrast to yield, land usage in Nigeria has increased across key crops, like cassava, cocoa beans, rice paddy and wheat. This has been primarily driven by an increase in the population engaged in farming, although production remains at a subsistence level.

    For most key crops, Nigeria’s share of global production has remained low. However, the rate of consumption has outstripped production. The deficit has been met largely by importation, making the country a net importer. On average, between 2011 and 2015, N1.4 trillion has been spent on food imports with wheat, milk, rice, sugar and malt extract, constituting the bulk of Nigeria’s food import bill.

    Consequently, Nigeria is vulnerable to changes in global agro-commodity prices, with a significant impact on inflation and foreign reserves. Between 2011 and 2015, agro-processed exports declined by 41 percent to N143 billion. These exports, which accounted for an estimated 20 per cent of Nigeria’s non-oil exports in 2015, were mainly leather and processed skin, alcoholic and non-alcoholic beverages, tobacco and cocoa derivatives.

    According to the FAO, Nigeria is estimated to have lost US$ 10 billion in annual exports of agriculture and agro-processed commodities including groundnut, palm oil, cocoa and cotton as a result of the decline in production of these commodities.

    In addition, the Nigerian Export Promotion Council (NEPC) attributed the decline in food exports to non-compliance with regulatory and documentation requirements for food imports to the European Union and the United Kingdom.

    Also, the World Bank estimates that Nigeria and other developing countries could have lost as much as US$ 6.9 billion in 2015, as a result of food export rejection.

    These challenges have stifled agricultural productivity, affecting the sector’s contribution to the country’s GDP. It has also led to increased food imports amid skyrocketing population and declining levels of food sufficiency.

    For instance, between 2016 and 2019, Nigeria’s cumulative agricultural imports stood at N3.35 trillion, four times higher than the agricultural export of N803 billion within the same period.

    Of its 92.4 million hectares, Nigeria boasts 82.0 million hectares of arable land; so far, just 34 million hectares of it have been cultivated. With population explosion and government’s renewed drive to boost food security, agriculture has become increasingly crucial to our survival as a nation.

    Understandably, former President Muhammadu Buhari sought to revivify the country’s agricultural economy at his assumption of office in 2015, and then, in 2019. Despite his rural preachment, the country’s fixation with oil rendered her a whited sepulchre, sullied by wastefulness and vice, the soot that will not out.

    Read Also: Nigeria records N1.888tr trade surplus in Q2, says NBS

    Nigeria needs agriculture. Agriculture employs about 70 percent of the country’s population thus it can be used to drive sustainable growth prospects through a value chain that turns raw commodities into processed goods for domestic consumption or export.

    President Tinubu must fund the diversification of agriculture to make it more appealing to a vast youth population that is spiritless about farming but might be attracted to processing, marketing, and other business opportunities along the value chain.

    The food emergency in northeast and northwest Nigeria brought on by the Boko Haram insurgency, banditry, infrastructure deficits, and the government’s response to them emphasises the need to expand the agricultural sector to guarantee food security and nutrition.

    Until then, the Nigerian city will subsist as a plague; it is diseased because its sensuality is both morbid and commercial. Its hidden graces unclad, like the proverbial harlot, self-exiled from the village but always returning under cover of night to stalk and prey on the countryside.

    The Nigerian city does too little for the countryside. Knowing this, President Tinubu announced his decision to resurrect the country by endowing its agricultural economy with remarkable fillips. To achieve this, he must ensure that both his team and tools, unlike Thel’s worms, aren’t pathogens miming his curative mantra.

    Tinubu must understand that his government cannot achieve agricultural boon simply by pronouncing passion to resources. He must thoroughly examine if resources are pronounced to his passion.

    While the rationale for prioritising agriculture is sound, many reforms will have to be enacted if the sector is to flourish. These reforms must also include measures to save rural Nigeria with the sheen continually sponged off its greenery by the city.

    It was hay that allowed populations to grow and civilizations to flourish among the forests of Northern Europe. Hay moved the greatness of Rome to Paris and London, and later to Berlin and Moscow and New York, writes Dyson.

    Hay was responsible for Nigeria’s first brush with economic glory. Between 1962 and 1968, Nigeria’s major foreign exchange earner was the agricultural sector where palm oil and groundnut made up around 47 per cent of the country’s exports. However, Nigeria’s position as an agricultural powerhouse declined through its oil boom.

    Caught between the womb walls of the crude oil creeks and digital tech, Nigeria lives imprisoned in starvation’s bower. Yet the government recites fantastic stories of agricultural rebirth thus rejecting the strife of contraries by which Nigeria convulses.

    At the outbreak of COVID-19, our storied artifice collapsed in hysterical retreat as the country leapt from its tinseled perch and dashed, shrieking back to its native valleys.

    What was hitherto regarded as an underprivileged fetish and peasant preserve became our major source of sustenance and rebirth. Nigeria weeps but does not recognise her tears.

  • PPMC records N32 billion trading surplus

    The Managing Director, Pipelines and Product Marketing Company (PPMC), Mr. Umar Ajiya, has said the company has returned to profitability with a trading surplus of N32billion between January and November.

    He spoke during the visit of members of the House of Representatives Committee on Petroleum (Downstream) to the Nigerian National Petroleum Corporation (NNPC) Towers, Abuja.

    The other downstream subsidiaries that made presentations were NNPC Retail Limited, Nigerian Pipelines and Storage Company (NPSC) and NNPC Shipping.

    The PPMC chief also stated that as part of the zero-scarcity strategy, the company has over 170 million litres of petrol in stock at some NNPC depots across the country following their successful rehabilitation along with connecting pipelines to forestall dependence on private sector depots.

    A statement from the state-run oil firm, explained that the National Assembly commended the corporation on the strategies deployed so far to make petroleum products available to Nigerians throughout the end of year festivities and beyond.

    Chairman of the House Committee on Petroleum (Downstream), Hon. Joseph Akinlaja, gave the commendation during an oversight visit.

    The lawmaker expressed confidence that the elaborate measures put in place by the corporation to avert fuel supply shortage would be successful this year going by the painstaking efforts that went into the planning and execution of the zero-fuel scarcity strategy.

    “We are impressed by the presentation and we are sure there will be no war room here again because of products scarcity, you have done very well and I’m happy that Nigerians are going to travel effortlessly at this period of the year,” Akinlaja said.

    On the threat by oil marketers to ground the sector due to unpaid subsidy arrears, he appealed to the Federal Government to do everything within its powers to pay up the arrears to forestall any crisis.

    Speaking further on the need to support NNPC to sustain petroleum products supply Akinlaja said the corporation was overburdened and “because of that, when it runs into hiccups, somebody will say their operations are opaque. Let’s avoid fuel scarcity by supporting NNPC”.

    The Committee also expressed satisfaction with the improvement on the integrity of the pipelines and urged NNPC to expedite action on the remaining ones, especially those linking the Ore Depot from Benin City and to the Ibadan Depot.

    In his presentation to the Committee, Group Managing Director of NNPC, Dr. Maikanti Baru, reassured Nigerians of the corporation’s preparedness to ensure zero-scarcity of petroleum products during the upcoming festive season and beyond.

    Represented by NNPC Chief Operating Officer, Downstream, Mr. Henry Ikem Obih, he lauded the Committee for its support during the last fuel supply hiccups that occurred in the country from November 2017 to the early part of this year.

  • FRC berates Maritime Academy over non-remittance of surplus

    FRC berates Maritime Academy over non-remittance of surplus

    The Fiscal Responsibility Council of Nigeria has berated the management of Maritime Academy, Oron, Akwa Ibom State for flouting the Fiscal Responsibility Act by not paying its operating surplus into the Consolidated Revenue Fund (CRF) of the Federal Government.

    Its Acting Chairman, Barr Victor Muruako made this known yesterday at the interface between the scheduled corporation under the supervision of the Commission which is mandated to remit its operating surplus after the end of the year to the Federation Account.

    He noted that the Commission as one of the key government agencies saddled with the responsibility of improving on the independent revenue of the Federal Government and as such all the 122 scheduled corporation as directed by the Minister of Finance must key into this provision to improve on revenue generation that would be useful in executing the budget.

    “The Fiscal Responsibility Act of 2007 mandated our Commission to ensure that Ministries, Departments and Agencies under our supervision remit operating surplus as well as audited account for accountability and transparency in public finance and any corporation that flout this provision will be reported to the Attorney General of the Federation.”

    He maintained that the attitude of the Academy to remit operating surplus over the years calls for concern and he had no option than to ask Legal, Investigation and Enforcement Directorate of the Commission to move in and compel the institution to comply with the provisions of Fiscal responsibility Act.

  • OPEC sees surplus, lower demand for oil

    OPEC sees surplus, lower demand for oil

    The Organisation of Petroleum Exporting Countries (OPEC) yesterday said its oil production jumped in June and forecast world demand for its crude will decline next year as rivals pump more. It pointed to a market surplus next year despite an OPEC-led output cut.

    Giving its first 2018 forecasts in a monthly report, the oil cartel said the world will need 32.20 million barrels per day (bpd) of crude from its members next year, down 60,000 bpd from this year.

    It said its oil output in June rose above the demand forecast, led by gains in Libya and Nigeria, two members exempt from the cut aimed at eliminating excess supply. Its officials nonetheless remain upbeat on the outlook.

    “We remain very optimistic (about) helping the market to rebalance itself,” OPEC Secretary-General Mohammad Barkindo said at an industry conference in Istanbul.

    Oil rose above $48 a barrel yesterday as a United States (U.S.) report of falling inventories in the U.S. raised hopes that the glut is easing.

    OPEC referred to an “ongoing rebalancing” of the market.

    Under the supply deal, it is curbing output by about 1.2 million bpd, while Russia and other non-OPEC producers are cutting half as much, until March next year.

    The group’s production has increased in recent weeks, in part due to the recovery in Libya and Nigeria, which were exempted from the supply cut as domestic conflict had curbed their output.

  • UK public finances record surplus in July

    The UK government spent less last month than it received in taxes and other forms of income, official figures have shown.

    Government borrowing was in surplus by £1.3bn in July, the Office for National Statistics (ONS) said.

    That was the first July surplus since 2012, thanks largely to higher amounts of income tax receipts. The government received £59.1bn in income in July 2015, which is about 4 per cent higher than last year’s figure. The ONS said July is traditionally a month of higher tax receipts. Public sector net debt, excluding public sector banks, now stands at £1.5 trillion, which is 80.8 per cent of gross domestic product (GDP), the ONS said.

    “The recovery is well established, tax revenues are up and we have more than halved the deficit,” George Osborne said.

    “But with debt over 80 per cent of GDP, the job is not done,” the chancellor added.

    Annual borrowing has been falling since hitting a peak in the financial year ending March 2010, according to the ONS.