The Nation Newspaper

Tag: system

  • Our dream is to reposition health system — FG

    The Federal Government has said that its immediate target is to build a health sector that is capable of responding to any health challenge.

    The Permanent Secretary, Federal Ministry of Health, Mr. Linus Awute, disclosed this when he received 30 motorcycles donated by the World Health Organization (WHO) Country Director, Dr. Rui Gama Vaz, at the office of the Nigeria Centre for Disease Control (NCDC), Abuja.

    Awute assured Nigerians that the government is committed to achieving a strong and resilient health system capable of responding to any health emergency.

    He noted that support from partners and UN agencies would help significantly to move the health sector forward.

    While thanking the WHO for its gesture, said the world health body had been offering valuable support to the ministry.

    He went down memory lane, recalling the role that the WHO played last year during the period of the Ebola outbreak in Nigeria, describing it as highly commendable.

    The WHO Country Director, who was represented by the National Professional Officer, Health Emergencies, Dr. Ifeanyi Okudo, said the donation was to complement the efforts of the ministry in the areas of health surveillance and emergency response.

    Earlier, the permanent secretary led directors of the ministry on a facility inspection of the Nigerian Centre for Disease Control (NCDC).

    The National Coordinator, NCDC, Professor Abdulsalami Nasidi, assured the permanent secretary that the NCDC reference laboratory and administrative offices would be ready for commissioning before the end of September 2015.

    The permanent secretary was impressed with the level of work on the projects.

    He said when completed, they would be enduring legacies that would compare with state-of-the-art facilities in advanced countries.

    When in operation, the NC DC will also serve as the ECOWAS Regional Centre for Disease Control.

  • Experts seek investment in integrated transportation system

    Consultant to the World Bank Prof Abel Ogunwale has called for investments in refrigerated railways cargo infrastructure to take care of the growing volume of perishable agro exports.

    Ogunwale of the Department of Agricultural Economics and Extension, Ladoke Akintola University of Technology, Ogbomoso, Oyo State,  said this has become necessary as demand for perishables grow and transportation of agro cargo through other modes of transportation has become more expensive.

    According to him, inefficiencies, from the farm gate to the port of exit, increased logistics expenses and travel times  affect  trade in perishable goods.

    He said the roads are feeling the effects of expanding trade in chilled and frozen agro cargoes, and that  the  government  should  support infrastructure improvements to better handle time- and temperature-sensitive commodities.

    Conventional rail terminals, he noted, are typically designed to allow trains stop and discharge passengers and goods, advising that there is need to create cold storage facilities within the  terminal area.

    He urged the government to  construct massive refrigerated  terminals and warehouses that could handle unit trains, adding  that  the  economy is ripe  for  a refrigerated intermodal transportation  service to move containers  packed with fresh produce.

    He said there was need to improve the reliability of refrigerated rail service so shippers can entrust perishables to the railroads.

    President, National Cashew Association of Nigeria (NCAN), Mr. Tola Faseru said considerable investments are necessary for railways to accommodate intermodal containers coming from the ports and roads.

    According to him, turnaround times and proper handling of agro produce by ports should be high on the list of priorities, as slow-steaming continues to have a negative effect on perishable shipments.

    He said a supply chain with road and rail links, ports and cold storage facilities in proximity to one another which favour fresh produce farmers.

    He noted that poor quality of rural roads means high transport costs for farmers. Time delays, according to him, could lead to major product losses for producers.

  • Domestic water purifier system

    IN some parts of the world, water is not a problem that people think about.  I remember when I first went to work in Chicago in a lab as a post-doctoral fellow in 1998, my supervisor left the tap running every now and then and, coming from Nigeria, for me it was economic to close the tap any time I saw it running.  He was patient at first but in due time it got on his nerves.  Soon enough, I became a competent scientist running water myself to clear some toxin or as part of some other procedure.    Lab or home, water is something we should have in abundance.

    “Safe drinking water and basic sanitation are intrinsic to human survival, well-being and dignity”,UN Secretary-General, Ban-Ki Moon.

    We use water daily to bath, to cook, to wash, and we drink water too. Depending on our main water source we may need various levels of purification. Some people want to purify just the drinking water while some want to purify all the water used for bathing and cooking.   Some people are happy just boiling and don’t bother to filter.

    Fortunately, there is good industry around water purification and we have many choices of solutions in the market that we can purchase depending on the costs and effectiveness.

    For many professionals and city dwellers, old-fashioned purification by boiling or alum, etc., is too time-consuming and inconvenient for the high demand of pure water for modern day busy life. The water heaters, washing machines, dish washers, and jacuzzis, of modern homes require clean water.  We need fast and efficient purification systems.

    Perhaps the most important water to purify is drinking water. Chemicals, bacteria, and other contaminants in the water can make it harmful to health. Water filters eliminate chemicals, bacteria, rust and other pollutants from water. The simplest filters include the faucet or tap filter that is attached to the tap, for example, in the kitchen.  It filters water coming out of the tap. The rest of the house may have impure water.  Thus, from one tap,  one can have clean water for drinking, washing fruits and vegetables, and for safely preparing salads and foods that do not need cooking before eating. Depending on how much it is used, the faucet filter should be replaced after some time according to the manufacturer’s instructions.

    A more durable filter is the under-the-sink filter.  This needs some plumbing work for its installation as it is attached to the pipe supplying a tap such as a kitchen tap or a bathroom tap.  In the bathroom, the water from the hand basin tap is used for brushing the teeth, gargling, and even for drinking, taking medication,and midnight snacks, and therefore should be purified. A faucet filter or an under-the-sink filter may be installed. Alternatively, have a bottle of retailed pure water handy at the hand basin. Under-the-sink tap is very useful in the kitchen and one can do any kind of culinary chore hygienically without being stingy with water.

    If you are not able to be so liberal and want to purify only a small daily supply for drinking or  for some limited use for washing foods or baby supplies, Unilever Pure model, for example, has a filter and storage capacity of about 9 liters and a dispensing tap.

    Many people in developing countries, where there is lack of good public supply of purified water, would appreciate a whole-house water filter.  This is especially helpful for middle class to rich  people who are also busy people; for example with young children to care for, with busy or ambitious work schedules, who like to eat home cooking, or who just don’t like hassle.  The whole-house water purifier may need professional expertise for correct installation.  It is connected to the main waterline supplying the home to filter all the supply coming to the home taps and fixtures.

    People choose particular filters for various reasons.  The performance is important.A reliable system will remove chemicals including chlorine, lead, asbestos, mercury, and,of course, bacteria and other microbes.  Additional features such as adjustability to your plumbing system, ability to filter hot and cold water, a filter-change indicator that indicates when you should change the dirty filter, and durability also determine choice of water filters.

     

    Dr. ‘Bola John is a biomedical scientist based in Nigeria and in the USA.   For any comments or questions on this column, please email bolajohnwritings@yahoo.com or call 08160944635

  • Redeeming our education system

    It was Aristotle, who said: “The roots of education are bitter, but the fruit is sweet.” Then, the revered Nelson Mandela added: “Education is the most powerful weapon you can use to change the world.” To George Washington, education is the key to unlock the golden door of freedom.

    But the potent key to opportunities in Nigeria has witnessed many crises, leading to the drop in in quality and standard. The reason for this could be located in the way policies are formulated and behaviour of people towards education.

    Every year, we are faced with grim performances of candidates in major examinations, such as the West African Examinations Council (WAEC), the National Examination Council (NECO) and Joint Admissions and Matriculation Board (JAMB). There is always outcry whenever results are released and the government does not usually care about it. Over time, we have had cases of malpractices and several anomalies that have marred the conduct of these examinations but with the recent upgrade in the system, our flaws are exposed for everyone to see.

    Our education system is in turmoil and the older generation would castigate us, bragging about the quality of knowledge in their time. But who is at fault?

    The older generation is always quick to rubbish the new status of our education. The generation enjoyed free and quality education and a conducive environment for learning. They were served three square meals and they made their choice on what they wanted for food. They had stewards to do their laundries for them every week. They were taught by committed lecturers and had access to good libraries and useful journals.

    Some of them had jobs waiting for them before they completed their studies. They had oversea opportunities to further their studies on scholarship. They never witnessed unreasonable strike actions by lecturers. This was the system that produced the likes of the late Prof Chinua Achebe, Prof Wole Soyinka, Mrs Grace Alele-Williams, Prof John Clark, late Prof Dora Akunyili, Prof Gamaliel Onosode, Prof Babatunde Osotimehin and Ambassador Dapo Fafowora, among others.

    These people have made their marks in academic, literature and civil service. They are those, who also enjoyed the same opportunities and are occupying strategic positions in government today but cannot offer the present generation a free and qualitative education. They increase tuition fees and underpay lecturers, leading to strike.

    I wonder how they expect our parents to afford such exorbitant fees. Worst of all, they send their children abroad to get the quality they cannot provide for us here. Hence, they develop another man country’s economy and education.

    They say always that Nigerian graduates are unemployable; they would bring in expatriates and pay them millions. They are quick to blame our higher institutions for churning out half-baked graduates. But, have they made efforts to fund these institutions adequately? What scholarship and resesarch opportunities for students and lecturers? Yet, the government invests huge sum in entertainment industry as if that is the essence of our nation.

    Whatever happens to Cowbell Mathematics Competition and Zain Africa University Challenge, where students exchange ideas and challenge themselves in academic contest? Project Fame, Nigerian Idols, Big Brother, X-Factor and so on are in vogue today.

    The managements of higher institutions have shares in the blame too. What have they done with project thesis submitted by undergraduate and post-graduate students? These are supposed to be the yardstick to gauge our progress in innovations, education and development. Why would a university give contract to outsiders to build solar-powered panels and inverters when such school has a functional Faculty of Engineering?

    The youth deserve some credit for embracing technology and innovation to drive positive changes in the country. With technological advancement, we now have young people achieving more these days because the situation has taught us to fight for our own survival, which has made us to be creative, innovative and think beyond the classroom.

    The 21st Century is an era of pressure and distraction. The unnecessary pressure to perform like our peers in developed countries, pressure to pass exams while in school, communal pressure, economic pressure, pressure to meet up with certain societal standards, competition for the limited spaces available have woken the youth up from slumber.

    I think the government deliberately leaves our education sector to rot away because in all these, the people in public office seem not to be bothered. The only redemption, however, is to bring back the fortunes of the system as it were in the past. If the government, tertiary institutions and corporate organizations could pool resources together, things will change for the better. With the large number of students struggling to gain admission into the university, we need to expand the facilities available and build new ones to cater for this ever increasing population.

    Education is vital and key to our growth as a nation. As John Dewey said, education is not preparation for life; it is life itself.

     

    Habib, 400-Level Communication and Language Arts, UI

  • Gradual killing of the system

    Since the civilians took over government in 1999, we have had eight Inspector Generals of Police till date. They are- Musiliu Smith (1999-2002), Mustapha Adebayo Balogun March 2002- January 2005, Sunday Ehindero 2005-2007, Mike Mbama Okiro 2007-2009, Ogbonna Okechukwu Onovo 2009-2010, Hafiz Ringim January 2010- 2012, Muhammed D. Abubakar2012-2014 and Suleiman Abba 2014- till date. A keen observer will note that in some cases, some Inspector Generals of Police, even introduced new uniforms during their tenure.

    From 1999 till now, we have had seven Chiefs of the Air Staff. They are Air Marshall Isaac Alfa (1999-2001), Air Marshall Jonah Wuyep (2001-2006), Air Marshall Paul Dike 2006-2008, Air Marshall Michael Oluseyi Petinrin (2008-2010), Air Marshall Mohammed Diko Umar (2010-2012), Air Marshall Alex Sabundu Badeh(2012-2014) and Air Marshall Adesola Nunayon Amosu from January 2014 till date.

    From 1999, we have had nine Heads of Service of the Federation. The post is a creation of the constitution. They are Abu Obe1999-2000, Mahmmud Yayale Ahmed 2000-2007, Ms Obele Okeke 2007-2008, Ms Ammal Pepple June 16 – June 15 2009, Steve Oronsanye June 16 2009 – November 15 2010, Prof. Oladapo Afolabi November 16 2010 – September 2011, Alhaji Isa Bello Sali September 30 2011 to March 2013, Alhaji Bukar Goni Aji March 25 2013 to August 2014 and Mallam Danladi Kifasi August 19 2014 till date.

    All things being equal, Alhaji Kifasi will retire in December next year when he clocks 60. He has served as a member of the governing board of the Central Bank of Nigeria.

    I am told that Alhaji Kifasi is highly imaginative and hardworking. Poor soul. According to the pioneer Director-General of the Bureau of Public Service Reforms established in February 2004, Goke Adegoroye who retired as permanent secretary of FCT two years ago, there are over 150,000 federal civil servants (mainstream) as at now.

    The Nigerian National Petroleum Corporation was established on April 1, 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel.

    From 1999 to date we have had eight Group Managing Directors for the corporation. From March 17, 2010 when he became acting President till he was finally sworn in as President, on May 6, 2010 following the death of his predecessor, five Group Managing Directors of the NNPC have served under the current President. Likewise the present Minister of Petroleum Resources has appointed four group Managing Directors for NNPC since she came to the Ministry on April 16 2010. They are Dr. Jackson Gaius Obaseki May 1999- November 2003,Engr. Funso Kupolokun November 2003- July 2007, Engr. Abubakar Yar’adua August 2007- January 2009, Dr. Muhammed Sanusi Barkindo January 2009- May 2010, Barrister Ladan Shehu,  April 2010 to May 2010, Engr. Austen Olusegun Oniwon, May 2010- June 2012, Engr. Andrew Leah Yakubu, June 2012- August 2014 and now Dr. Joseph Thlama Dawha from August 2014 to date. Dawha joined the NNPC in 1988. All things being equal, he has less than five months to serve. The NNPC has a board of directors of which the Minister of Petroleum is the head. The board was constituted on July 17 2012. It was again reconstituted with the same membership last week.  From 2012 till now, the board has met only once. Other members of the board are Abdullahi Bukar, Steve Oronsaye, Professor Olusegun Okunnu, Daniel Wadzani, Bernard Otti and Peter Nmadu.

    From 1999 till date, we have had seven Chiefs of Naval Staff. They are Vice Admiral Victor Kare Ombu (1999-2001), Vice Admiral Samuel Olajide Afolayan 2001-2005), Vice Admiral Ganiyu T.A. Adekeye (2005-2008), Vice Admiral Ishaya lko Ibrahim 2008-2010, Vice Admiral Ola Sa’ad Ibrahim 2010-2012, Vice Admiral Dele Joseph Ezeoba 2012-2014 and Vice Admiral Usman Oyibe Jibrin January 2014-till date.

    From 1999 till date we have had eight Chiefs of Army Staff. They are Lt. Gen. Victor Malu, May 1999- April 2001, Lt. Gen. Alexander Ogomudia, April 2001- June 2003, Lt. Gen. Martin Luther Agwai June 2003- June 2006, Lt. Gen. Owoye Andrew Azazi, June 2006-May 2007, Lt. Gen. Luka Nyeh Yusuf, June 2007- August 2008, Lt. Gen. Abdulrahman Bello Dambazau, August 2008- September 2010, Lt. General Onyeabo Azubuike Ihejirika, September 2010-2014 and now Lt. Gen. Kenneth Tobiah Jacob Minimah, January2014 till date.

    The post of Chief of Defence of Staff is the highest in the Nigerian Armed Forces. The position was established for the first time under 1979 Nigerian Constitution with General Julius Alani Ipoola Akinrinade (75) as the first Chief of Defence Staff. Gen. Akinrinade, a war hero is from Yakoyo near Ile-Ife in Osun State.

    From 1999 till date we have had seven Chiefs of Defence Staff.  They are Admiral Ibrahim Ogohi 1999-2003, General Alexander Ogomudia 2003-2006, General Martin Luther Agwai January 2006-May 2007, General Andrew Owoeye Azazi, May 2007-August 2008, Air Marshall Paul Dike August 2008-September 2010, Air Marshal Oluseyi Petinrin September 2010-October 2012, Admiral Ola Ibrahim October 2012- January 16 2014 and now Air Marshall Alex Sabundu Badeh January 16 2014 to date.

    From 1999 to date, we have had six Chief Justices of the Federation. They are Muhammed Lawal Uwais 1999-2006, Salihu Modibo Alfa Belgore 2006-2007, Idris Legbo Kutigi 2007-2009, Aloysius Iyorgyer Katsina-Alu 2009-2011, Dahiru Musdapher 2011-2012, Aloma Mariam Muktar 2012 to date.

    All these appointments clearly define who really we are.

    These career appointments made in the last 15 years alone have ceiling on the number of years one has to spend in the service before you retire or you are kicked out. In case of judiciary, seniority takes precedence.

    All the appointments were made by the President. In some cases, he made the appointments, in consultations with the National Assembly or the National Council of States. He does not need consultation before appointing anyone as Group Managing Director of NNPC neither does he need to consult anyone before appointing anyone as Head of Service once, he is a Permanent Secretary.

    But there is nothing in the law or in the procedure of appointments, which says anyone less than two years left to serve, must be appointed head or anyone who is the most senior.

    And there is no law that says the Presidents can not appoint someone that has at least four to six years to serve before retirement, so that he or she could carry out the necessary reforms before he or she retires. Changing service chiefs constantly, like we change police uniforms, is amazing.

    Why must a new President distrust serving service chiefs to the extent that he has to appoint his own, bearing in mind that since 1999 till date only one political party has been in power in the centre?

    We all know that in the military tradition once you appoint a junior officer as service chiefs all his seniors automatically retire. Let us imagine how many trained and experienced officers that have suddenly left the service in the last 15 years- their careers suddenly cut short and their families in total penury, in a country of their own which they once served proudly.

    Human nature being human, someone who has less than a year to spend in the office, however competent or patriotic he or she could be, will be more concerned or worried about his retirement plans than bringing any tangible inputs into  the service, more so  when pensioners in Nigeria are treated like endangered species- neglected and humiliated. A service is not a laboratory where you perform annual experiments with new reforms and with different headships.

    The problem is that we don’t allow the system to grow. And a system does not grow over night. It has to be systematic and gradual. If we don’t allow the system to grow, then we must expect all kinds of corruption, misconduct, irregularities within the system, hence the numerous gigantic and difficult problems that have now plagued us.

    .

    Teniola, a former director at the presidency stays in Lagos.

     

  • Trouble with our educational system

    SIR: The hullabaloo that attended the poor scores recorded in the recently concluded West African School Certificate (WASC) examinations has been so deafening that stakeholders have more or less resorted to the blame game. Parents blame teachers (their eternal whipping boys) and teachers, in turn, blame en bloc, government, students and their parents. And government silently absorbs the knocks apparently because it knows that it holds the ace, the panacea to the continuous slide in the educational fortunes of this country.

    Honestly speaking, is it only government that is to be held responsible for the dismal results posted in this year’s WASC examinations? Hardly.

    The first stakeholders to blame in students’ poor and uninspiring performance at examinations are their teachers who also take the glory when they perform well. The blame for the teacher in the current academic mess derives from his non-committal approach to the job of teaching. This ugly development came into the system when government interfered in education through forceful takeover of schools immediately after the Civil War.

    The takeover was one of the greatest tragedies which the military inflicted on this nation.

    Educationists, the world over, stress inspection and supervision as very essential components of the system. Employers supervise and inspect to maintain standards in schools. Since it ceased in the system, irresponsible and undisciplined teachers have continued to cheat rather than teach the children entrusted to their care.

    The failure of teachers to apply themselves diligently to their jobs and their undue desire to post good results in public examinations prod them to lead in the corrupt option of exam malpractices. And because many of them at all levels of the education process, university inclusive, are products of examination malpractice, they deploy their energies more faithfully to examination paper leakages than to the job they were employed to do. This, simply, is the reason it might take long to kill exam malpractice in this country, the planned extinction of pencil-to-paper examination by WAEC notwithstanding.

    Parents also share in the blame. Parents who take up arms against teachers for punishing their erring children unwittingly plant seeds of indiscipline in such wards. When the seeds begin maturing into plants, they produce sour fruits. Parents who have scant time to inspect their children’s school work at home thereby failing to complement the teacher’s work contribute in no small measure to the poor results in WAEC examinations.

    Many of today’s students are only so, in name. These days one hardly sees pupils and students studying at home. Nobody burns the midnight oil anymore, the practice by which hardworking and serious students were known. Is it not saddening that a student goes through six years of secondary school and four or five of university education without reading a single novel except those prescribed for his school work? Any wonder that they vomit an admixture of tenses and mess up with prepositions in their everyday English language usage, spoken or written.

    The advent of the television, mobile telephone, the computer and allied facilities has claimed their toll on Nigeria’s student population. Regrettably, today’s students and pupils have made the television their number one curriculum. They ironically desert the television when an educational programme is introduced.

    Nigeria’s education system calls for declaration of a state of emergency because the worm that is eating into the system if not stemmed is bound to bring it down. The present situation worries all who passed through the old order because what obtains is a near fairy tale in true education.

     

    • Vincent Ekwurumadu

    Owerri

  • Govt restructures national productivity system

    Govt restructures national productivity system

    The Federal Government is set to restructure the country’s national productivity system in order to evaluate resources invested in the economy and ensure maximum performance and service delivery.

    The Permanent Secretary, Ministry of Labour and Productivity, Dr. Clement Iloh disclosed who spoke in Abuja at a workshop themed: “Implementing National Policy on Productivity and Basic productivity Improvement Techniques in Workplaces”, said the workshop was aimed at improving productivity in the country.

    He said measures were being put in place to develop and apply strategies for implementation of the national policy on productivity.

    According to Iloh,  productivity improvement tools and techniques are critical instruments for the realisation of government’s transformation agenda in innovation, excellence at work, global competiveness, products and quality services delivery. He expressed concern that for over  two decades the level of national productivity particularly labour productivity, has been on the decline.

    “Furthermore, government’s efforts at enhancing productivity have not yielded the desired impact due to low performance resulting from the low capacity of officers charged with responsibility to handle productivity improvement matters,” he said, urging participants to maximise the benefits of the workshop by acquiring knowledge, skill and competence on productivity measurement and improvement techniques for application in workplaces.

  • Group seeks improved local government system

    Group seeks improved local government system

    A non-governmental organisation, Human Development Initiative (HDI), has expressed the need for all local government councils across the country to account for the financial resources allocated to them.

    Addressing reporters in Lagos, its Executive Director, Prof Bolaji Owasanoye, wondered why the local government councils do not make their budgets public; why there is no conversation with the constituents on them and why their execution is not often reviewed.

    He said that the councils should be able to clarify how much they are spending on salary, development and capital expenditure from their budgets.

    “We want the local government to work with community development associations to know what the people need. This will enable the citizens to have a voice in the way local government budget is prepared and implemented.

    ”What is clear to us is that the local government is not regarded, yet they are the closest to the people and the shortest and most efficient route to development. If we are going to develop the system, then we must develop our local government councils because they are the ones that will bring the immediate development to the people in terms of health, education, water and good roads,” he said.

    The group, Owasanoye said, aims at creating a platform to justify and create more recognition for the local government system as very few people know what is happening there.

    “We do not follow the review of the budget allocated to them and yet, they get more money although it is not adequate. But then, they should use the little well and account for it.

    “We all follow the review on the allocation of resources to the states and the federal government, but here is none for the local government and they are given money annually. This is increasing the level of corruption and non-tolerance in the country. Citizens should come out and voice it that they want to know how their money is being spent. We need to remove secrecy from how the local government runs and bring up a structure that prescribes how it should be,” he added.

    He called on lawmakers to make laws accessible with penalty on any local government that fails to report their budgetary spending.

    A senior lecturer in the Faculty of Law, University of Lagos (UNILAG), Dr Dayo Ayoade, added: “We must be able to find transparency and accountability in the local government system. This is not in prevalence because the people don’t ask questions, an attitude that is borne out of lack of information; hence, the democratic participation of the citizens is not there.

    “To ensure that the local government have reporting obligations, they should be compelled by the law to report their budget”, he said.

    Budget watch programme officer of HDI, Mr Samuel Ajayi noted that there is high level of corruption at the local government level and the attitude with which the funds are being used is of great concern. This is increasing the level of poverty in our society, he said.

  • Push for warehouse receipt system

    Push for warehouse receipt system

    To ensure a food-secured future, the government is adopting innovations that are capable  of improving the lives of farmers.  One of these is the Warehouse Receipt System. It is meant to  help farmers gain access to loans from banks and prevent hasty sale of agricultural commodities at a loss. DANIEL ESSIET reports.

    Farmers, whether corporate or individuals,face a lot of risks. Not only are they prone to input and output price volatility, but they also face high financial risks resulting from the production cycles.

    Agric producers also have to deal with risks associated with negative outcomes mainly deriving from extreme weather shocks, such as drought, floods or cold waves. The change is significant, as temperatures rise, rainfall patterns change and pests and diseases find new ranges, posing new risks to food and farming.

    Added to this, is the challenge of    struggling with storage at post harvest levels. Those who  have  debts to  repay sell the produce when harvest season begins. They cannot   hold onto their crops until the lean season, when the price and potential for profits are at their highest. This lead them to sell off their produce immediately after harvest, when the price and potential for profits are at their lowest.

    However, a financing solution has been introduced, which seeks to cushion the producers against such eventualities, known as Warehouse Receipt System.The process starts with gathering   produce among small producers into bulking centres where quality are  affirmed. The produce is then moved into certified warehouses where it is handled professionally to guarantee quality while in storage.

    With warehouse receipt finance, a farmer or trader delivers his produce to a warehouse that has been approved by a bank, or other lender. The warehouse, or collateral management company in charge of it, then issues a receipt vouching for the quantity and quality of produce being stored.

    The bank then takes the receipt and provides financing to the farmer or trader – typically up to 70 per cent of its current market value – against it. The receipt acts as collateral for the bank, giving it the right to take ownership of the stored produce if the loan is not repaid.

    The credit advance, which is secured by the warehoused commodity, is then recovered a few months later when the depositors choose to sell their produce.

     The Team Leader, Agric Extension, Agricultural Transformation Agenda (ATA), Prof Tunji Arokoyo,  said  the  warehouse receipt system (WRS) is gaining momentum due to its potential in boosting agricultural growth.

    Its  existence, he  explained, protects farmers from seasonal price change   by giving them the opportunity to store their product and sell it during favourable price periods.

    Beyond this, he said the project helps rural farmers to access bank loans in return for storage of their produce in a community- based warehouse. Once the harvest is stockpiled in the warehouse, the producer organisation obtains a loan from a microfinance institution and distributes it to its members on the basis of their share of the total stored commodity.

    According to him, a well developed WRS can provide a platform for the development of the entire commodity chain, providing incentives for a range of different parties, including farmers, financiers, traders, processors, public sector buyers, food aid managers and investors in storage capacity.

    Warehouse receipt finance is spreading fast, giving smaller traders and bigger farmers, or cooperatives the chance to tap finance immediately while they protect their produce and hopefully negotiate better prices for it.

    There remains huge challenges though.

    According to him, if not properly managed, warehouses remain vulnerable to everything from theft,  fraud to insect infestation. And although using a collateral manager provides more comfort to banks extending the credit, there still are not enough active WRFs outlets in Africa.

    The President, National Cashew  Association  of Nigeria (NCAN), Tola Faseru, said warehouse receipting is part of a package of innovations designed to modernise and enhance the efficiency of agricultural marketing systems.

    Faseru said improper preservation or drying techniques, coupled with inadequate storage facilities, can force small farmers to let commercial or foreign traders reap the rewards of seasonal price swings.

    With warehouse receipt, howver, he said a whole series of problems are resolved. Apart from protecting the crop where an estimated  40 per cent of harvests rot before reaching market, it also frees up financing for the farmer. Without warehouse receipt finance, many commercial traders would not have enough collateral to meet banks’ requirements, given the huge quantities of grain that they are dealing with.

    Warehouse receipt finance is especially helpful for smaller traders who might struggle to borrow otherwise.

    With the use of warehouse receipt financing, also known as inventory credit, he said small farmers  will gain an advantage on the playing field.

    Expectedly, the warehouse receipts are administered to producer groups, instead of individuals, which helps the flow of market information. It   will create price transparency which empowers farmers to make informed sales decisions rather than waiting for “farm gate” buyers who often offer below- market prices.

    Negotiable warehouse receipts allow transfer of ownership of that commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.

    Banks have more faith in such negotiable warehouse receipts and farmers would be able to seek loans easily against these receipts.

    It also enhance banks’ interest in lending in respect of farm goods deposited by farmers in the registered warehouses.

    For watchers, there is need for an enabling policy environment that recognises and supports a free market – willing buyer willing seller and with minimal distortions is necessary.

    To make it work, the government needs to certify warehouses with higher  tonnes capacities  nationwide, where produce can  be deposited nationwide.

    More financial institutions have to join the warehouse receipt systems process to enable them advance credits to farmers on warehouse receipt financing using the deposited commodity.

    Managing Director, Bank of Agriculture, (BoA), Dr Mohammed Santuraki, share the same  thought  about the project.

    He said the launch of the Electronic Warehouse Receipt System, e-WRS for farm produce would bring farmers closer to the market.

    Speaking during the launch of the system in Abuja, Santuraki listed the commodities to be traded to include, cocoa, sesame seeds, maize, sorghum and cashew.

    According to Santuraki, post-harvest loss is a very big challenge for the Nigeria farmern as it forces farmers to sell their produce at very low prices.

    “But with this system, the farmers will get better value for their products and it will increase the margin farmers get for their produce.

    Director-General, Securities and Exchange Commission, SEC, Ms Arunma Oteh, described the implementation of the e-WRS for farm produce as a game-changer for Nigeria’s agriculture.

    Oteh said it was a significant milestone for the Nigerian economy and the backbone of any commodities exchange.

    “It is bound to have transforma-tive impact on agriculture, food security, poverty alleviation, economic inclusion and ultimately on the socio-economic advancement of Nigeria as encapsulated in the Transformation Agenda of President Goodluck Jonathan.

    “Agriculture employs over 65 per cent of Nigerians and this scheme will help address the persistent problems our farmers face in terms of limited access to markets and credit,” she said.

    According to Oteh, commodities exchange helps in creating effi-ciencies in the production and distribution of essential raw materials across countries.

    “They provide a centralised marketplace where commodity producers can sell their products to those who wish to use them for manufacturing, export or consumption.

    “They also facilitate price discovery, reduce risk and costs, while improving the allocative efficiency of the economy.’’

    Oteh said the federal government’s agricultural transformation agenda; ATA had already brought remarkable dividends for over 10 million farmers, making it easier to access inputs and agricultural extension services.

    “This warehouse initiative will go a long way in consolidating the gains of ATA and improving the livelihood of millions of smallholder farmers in our country,” she said.

    President, Federation of Agricultural Commodity Associations of Nigeria, FACAN, Dr Victopr Iyama said the implementation of the system would lead to sustainability along the value chain.

    “It will lead to remuneration gain for farmers as over 25 per cent of farmers’ products are lost due to lack of storage facilities.

    “A lot of sensitisation is on but we need to do more after this launch in the pilot states because no farmer will see the advantages and not jump at it.’’

    In his remark, the Chief Executive Officer, Stanbic IBTC Bank, Mr. Yinka Sanni, noted that agriculture contributes 22 per cent of the country’s GDP and affects a significant number of the people.

    He pledged the bank’s commitment to the scheme, adding that it would stand as a middleman to give confidence to participants of the programme.

     

  • UK plans reform to end pension system, lottery

    Retired workers would be allowed to switch to better paying pensions under government plans to tackle “murky” practices among insurance firms.

    Steve Webb, the pension’s minister, wants pensioners to be able to switch to better annuities regularly in the same way that home owners can change their mortgage deals every few years.

    The proposal would end the current “lottery” in which many pensioners are trapped in potentially poor-value schemes until they die.

    In an interview with The Telegraph, Webb sets out his blueprint for an overhaul of the private pension system.

    He also plans to help the long-term sick and introduce curbs on the hidden fees that can cost customers thousands of pounds.

    The intervention comes before a report from regulators that expected to accuse pension firms of making excessive profits from millions of people converting their lifetime savings into annuities.

    Currently, most people are forced to use their pension savings to buy an annuity, paying an annual income for the rest of their lives. For many people, it is the biggest financial decision they will make. However, in recent years annuity rates have plunged, trapping many people in poor-value schemes that have destroyed the value of their lifetime savings.

    The ability to switch annuities after retirement would trigger a revolution for savers and kick-start an industry catering for people who are shopping around to boost the value of their pension.

    Webb, a Liberal Democrat, said the Government must tackle “the whole issue of cost” for people buying annuities, as well as the “hidden charges” from insurers.

    “When you take out a mortgage, in a few years if rates change you can switch your mortgage. But when you take out an annuity, that is it for life. This could easily be for a quarter of a century. Why shouldn’t you be able to change your annuity provider so a few years later somebody else could offer you a bigger pension?

    “Why shouldn’t you be able to shop around?”

    The annuities market has been attacked for exploiting people’s confusion about the complicated arrangements and putting people off “shopping around” for the best deal when they retire – a decision that cannot be reversed.

    The problem has become particularly acute after the demise of final-salary pensions in the private sector, which do not require people to buy annuities.

    Webb accused insurance firms of engaging in “murky” practices when selling annuities to retiring workers, with extra charges that can add up to thousands of pounds.

    “There are almost murky things at the point where you buy an annuity,” he said. “There are odd percentages going in funny places for no good reason.”

    He called for greater clarity in the charges insurers make when selling annuities.

    “We need to ensure it’s transparent,” he said. “This is a complicated transaction for many people. The industry understands this stuff, the public don’t.

    “I think lottery is a fair word. We are worrying about charges, but if the outcome at retirement can differ by 15 to 20 per cent or more just because of whom you go to, that’s a huge difference and so there can be an element of a lottery in that.”

    Last month, a consumer watchdog warned that regulators were failing to stop insurers and pension brokers from ripping off elderly people when they buy annuities. Mr Webb said the 400,000 people who buy annuities every year “need value for money”.