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How FAAC allocation is hindering agriculture

A N50 billion Export Promotion Fund has been launched for Nigerian exporters, in the bid to promote exports of made-in-Nigerian goods,



NEXIM Bank, Agriculture, Agriculture: Looking beyond the provision of finance   

The Nigerian agricultural producers and exporters have been advised to improve the quality, branding and packaging of their produce, in order to fully explore the huge marketing opportunities in the Middle East, especially the United Arab Emirates.

This and numerous issues were discussed on Wednesday at an agro stakeholders’ conference, Meet the Farmers Conference, held at the Intercontinental Hotel, in Lagos. The event was organised by Crenov8 Consulting and tagged “The Future of Agribusiness”.

Smart Agriculture

Technology is now changing the face of agriculture, not only globally, but also in some sub-Sahara African countries. Nigerian farmers were, therefore, advised to embrace the use of technology for their farming and livestock activities, so as to maximise their agricultural produce.

Various stakeholders who spoke at the agro export business conference advocated for the need for Nigeria to immediately begin to nurture younger ones, especially youths (who make up 60% of the population) to take over agriculture in the country so as to revolutionise the sector through technology.

On his part, Mr Ayodeji Arikawe, Co-Founder, ThriveAgric, said the use of technology in agriculture could be from the area of Information and Communication Technology (ICT), methodology, process etc, adding that technology will reduce the number of people who work on the farm while methodology will maximise land by reducing the amount of land used for agriculture etc.

Agribusiness in Nigeria

A key note speaker at the event and Vice President of the Nigeria Agribusiness Group (NABG), Emmanuel Ijewere, enjoined Nigerian businessmen to invest heavily in the agricultural sector saying that agribusiness has more potentials than the much talked-about oil and gas business. He said,

“in the next few years, the next group of Nigerian billionaires will be from the agribusiness.”

He said the demography of Nigerian population is an asset which should be exploited, adding that the ratio of youth to the total population is very high and should be a huge market for agribusiness, since the almost 200 million Nigerians must feed daily. He also encouraged Nigerians to pick and click into any of the value chains of agribusiness.

“The almost 200 million Nigerians must eat daily, so we need to take agriculture serious now because our population will soon double by 2050.”

Maximising Agro produce

Mr Ijewere also advised Nigerians farmers to exploit the use of greenhouse for agriculture, in order to multiply their farm yields.  He described greenhouse as the future of agriculture, especially in Africa.

According to him,

“Greenhouse is not farming, but science and technology. It protects produce and multiplies them.”

He emphasised that Kenya and many African countries have left Nigeria behind in the area of agriculture, adding that while Kenya has 1,078 greenhouses, Nigeria only have about 300 greenhouses, of which only 2 are operational.

In his own contribution, the Minister of Agriculture and Rural Development, Audu Ogbeh, represented by a Director in the Ministry, emphasised that government see technology as a way of increasing and improving agricultural produce which necessitated government’s  support for smart farming in Nigeria.

Promotion of Agric Exports

A N50 billion Export Promotion Fund has been launched for Nigerian exporters, in the bid to promote exports of made-in-Nigerian goods, according to Stella Okotete, who represented the Managing Director of the Nigeria Export-Import Bank (NEXIM), at the conference. She went on to add that several cocoa exporters have recently benefited from the fund. She also said Nigeria can even benefit from the trade war between the United States and China:

“US flying soya beans over Africa to export them to China is a shame to the continent. We have arable land for soya beans in Nigeria, but we don’t even have enough soya beans to process into soya oil. We should be exporting it in large quantity.”

The need for Partnership

She advocated the need for partnerships in the Nigerian agricultural sector, saying that most of the big companies operating in the agric space are not owned by one individual. She went on to encouraged agric exporters and farmers to form partnership and co-operative societies, in order to make it easier for them to access funds from NEXIM Bank.

Stanbic 728 x 90

On his part, the Chief Executive Officer of Nigerian Investment Promotion Council (NIPC), represented by Emmanuel Adesina, also urged farmers to form partnerships, to enable Nigeria sustain food security and increase export at the same time. He added that the foreign experts brought in by NIPC can only train local farmers on how to improve the quality of agric exports, only if they form co-operative societies.

FAAC Allocation Hinders Agric Development

However, speaking exclusively to Nairametrics, the Vice President, NABG, Emmanuel Ijewere, blamed the monthly FAAC allocation as one of the reasons why many governors are not interested in the development of Agriculture. He advised the Federal Government to halt the monthly allocation to State Governments throughout the federation.

Crenova8 Consulting is a leading consulting and digital technology firm based in Dubai, but with offices in Lagos and Nairobi. The last Meet the Farmers Conference was held in Kigali, Rwanda last week while the next edition comes up in  November.

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Business News

Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day

Shares of Guinness Nigeria Plc suffered a 9.89% loss today.



Guinness Nigeria Plc Reports Full Year F19 Results

Guinness Nigeria Plc suffered a 9.89% loss today following a heavy sell-off in the shares of the brewer. This triggered a market value loss amounting to about N6.9 billion at the close of trading activities on the Nigerian Stock Exchange, as investors scaled-down stakes in the brewer.

Data tracked at the close of the market today revealed that the shares of GUINNESS declined from N31.85 per share at the market open, to N28.70 per share at the close of the market today, to print a loss of 9.89%.

This decline saw the market capitalization of the leading maker of beer and spirits fall from N69.75 billion to N62.86 billion at the close of trading activities today, putting the total market value loss at N6.89 billion.

The shares of Guinness at the close of the market today cleared at N28.70 per share, 9.89% lower than the closing price of N31.85 per share yesterday.

At the current price, Guinness shares are currently trading 20.27% lower than their 52-week high of N36.00 per share. However, the shares of the company have returned about 120.8% gains for investors who bought them at their 52-week low trading price of N13.00 per share last week.

During trading hours on the Exchange today, about 159,380 ordinary shares of Guinness Nigeria Plc worth about N4.57 million, were exchanged in 27 executed deals.

The shares of Nigerian Breweries Plc and Golden Guinea Breweries Plc closed flat at N50.1 per share and N0.81 per share respectively, while the shares of International Breweries Plc shed 0.88% to close low today at N5.65 per share.

What you should know

  • At the close of trading activities today, the NSE All-Share Index and market capitalization appreciated by 0.29% to close higher at 39,128.34 index points and N20.477 trillion respectively.
  • The NSE Consumer Goods Index, an investable benchmark designed to track the performance of the shares of consumer goods companies like Guinness Nigeria Plc, depreciated by -0.35% to close the day lower at 553.26 index points.

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Business News

NAICOM revokes operational licence of UNIC Insurance, appoints Receiver/Liquidator

NAICOM stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.



Recapitalisation: 26 firms get NAICOM's approval

The National Insurance Commission (NAICOM) on Wednesday announced the withdrawal of the operational licence issued to UNIC Insurance Plc.

Although no official reason has been provided for the revocation of the insurance firm’s operating license, NAICOM, however, stated that the decision of the regulator was in the exercise of the powers conferred on it by the enabling laws.

According to a report from the News Agency of Nigeria (NAN), this disclosure is contained in a notice which was issued by the commission in Lagos to the general public and policyholders, where it noted that the revocation of the operational license, RIC 043, is with effect from March 25.

NAICOM, thereafter stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.

NAICOM in its statement said, “The general public/policyholders are by this notice required to direct all inquiries and correspondence regarding UNIC Insurance to the receiver/liquidator.

The receiver/liquidator will be dealing with the company’s liabilities in accordance with the provision of Insurance Act 2003.’’

What you should know

  • It can be recalled that NAICOM, for the third time in June 2020, gave insurance firms in the country a one-year extension to meet the recapitalisation obligation that was recently set for them apparently due to the coronavirus pandemic which had disrupted the activities of most insurance companies.
  • Some insurance companies had been going through some bad patches with a good number of them struggling to meet up with their obligations and the recapitalization requirements.
  • The recapitalisation programme requires life insurance firms to meet a minimum paid-up capital of N8.0 billion, up from N2.0 billion previously. In the same vein, general insurance companies are required to raise their minimum paid-up capital to N10.0 billion from N3.0 billion previously.
  • The regulatory capital for composite insurance was raised to N18.0 billion from N5.0 billion previously while reinsurance businesses are now required to have a minimum capital of N20.0 billion from a previous N10.0 billion.

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