Business News
Walmart makes multi-billion dollar order for farm products in Nigeria
Nigerian cashew farmers may soon be smiling to the bank as Walmart, a major American retailer had made a $7 billion order for cashew nuts from Nigerian farmers. Minister of Agriculture and Rural Development, Chief Audu Ogbeh disclosed this at an interview with the News Agency of Nigeria (NAN) . Ogbeh, had earlier in the year announced that Nigeria had begun exporting yams to the United Kingdom.
Implications of the order
The move by Walmart could lead to a rise in cashew prices in the country, as well as the prices of other commodities as farmers focus attention on cashew. Even though the order is a major one, farmers and the country as a whole would make more money if the cashew nuts were processed before being exported. The order could thus lead to an increase in investments in processing of cashew nuts in the country.
Government however benefits from enhanced revenue. Farmers and bulk buyers of the product will pay more taxes. A drop in crude oil prices, led to a fall in government revenue and pushed the economy into recession. Government at the federal level, was forced to ramp up borrowing and had to bail out state and local governments. The farmers will benefit from enhanced revenue and could decide to expand their farms, thus creating more jobs.
Walmart Stores Inc (also known as Walmart) an American retailing giant was founded by Sam Walton in 1969, and is one of the biggest companies in the world by market value. Walmart is also the world’s largest private employer as it has over 2.3 million employees. The company was listed on the New York Stock Exchange in 1972. Walmart had revenues of $475 billion for the period ended 2016.
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Business
Just in: NLC insists on nationwide strike, protest to go ahead from September 28
The NLC has set Monday, September 28, 2020, as the date for it’s proposed strike.
Economy & Politics
CBN reduces MPR from 12.5% to 11.5%
The Governor of the CBN has announced the reduction of MPR from 12.5% to 11.5%.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to reduce the Monetary policy rate (MPR) from 12.5% to 11.5%. This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday.
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The committee retained CRR at 27.5% stating that the recent inflationary pressures is not driven by monetary policies, rather as a result of structural policies.
Highlights of the Committee’s decision
- Reduce the MPR by 100 basis points from 12.5% to 11.5%
- Adjust asymmetric corridor from +200/-500 to
- Retain CRR at 27.5%
- retain liquidity ratio at 30%
Explore the Nairametrics Research Website for Economic and Financial Data
More details shortly …
Manufacturing
FG moves to clamp down on illegal fertilizer manufacturers and agro-dealers
It is now forbidden for anyone to go into fertilizer business in Nigeria, without registering with the FISSD.
The Federal Ministry of Agriculture and Rural Development has disclosed that anyone caught producing or merchandising adulterated fertilizers, under the new law, will be jailed.
This disclosure was made via the Ministry’s official Twitter handle, to the general public, and seen by Nairametrics.
The announcement notifies the general public that the National Fertilizer Quality Control (NFQC) Act 2019, is to make sure that every farmer has good and efficient fertilizer for their farms, to boost farming harvest and output.
The ministry reiterated that it is forbidden for anyone to go into fertilizer business in Nigeria, without registering with the Farm Inputs Support Services Department (FISSD) of the Federal Ministry of Agriculture and Rural Development. However, anyone caught producing or merchandising adulterated fertilizers will be jailed.
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VIDEO: FG Moves to Clamp Down on Illegal Fertiliser Producers/Manufacturers, Blenders, Importers, and Agro-dealers. 1/4 pic.twitter.com/YVSykNpJ2R
— Fed Min of Agric/RD (@FmardNg) September 22, 2020
This regulation is to address the recurring issues of the effect of substandard fertilizers on farm produce, and the market proliferation of adulterated fertilizers in the country, which continues to bedevil farm outputs and harvests in the country.
Backstory: On the 26th of August, the Permanent Secretary of Agriculture and Rural Development, Dr. Abdulkadir Mu’azu, reaffirmed the Federal Government’s commitment towards implementing the National Fertilizer Quality Control (NFQC) Act 2019. He ensured that the fertilizer regulatory system is in place, to safeguard the interest of the farmers, as when the regulation is implemented, it will protect farmers from using adulterated fertilizers that are nutrient deficient.
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Why this matters
This policy is important to safeguard both the interest of the farmers and the members of the public, as the initiative is expected to increase agricultural harvest and productivity, in a bid to make national food security a reality.
The NFQC Act will safeguard interests of fertilizer enterprises, businesses and agro–dealers, as it will create part of the enabling environment for private sector investment in the fertilizer industry, and protect the environment against potential dangers, that may result from market proliferation of adulterated fertilizers and the use of harmful substances in fertilizer.
READ: FG seeks to crash price of locally produced rice
The Executive Secretary of FEPSAN, Mr. Gideon Negedu, reiterated that the new National Fertilizer Quality Control Act 2019, is a game-changer for the nation’s agricultural sector and a powerful weapon for the farmers.
In his view, Prof. Yemi Akinseye–George (SAN), said, “that the Federal Government and relevant stakeholders of the fertilizers industry, have taken the bull by the horn in enacting a robust legal framework for quality control in the country.”
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