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CBN to support maize farmers, projects 12.5 million metric tons in 18 months

All the authorized dealers have been told to return all the Forms Maize they have already registered for the purpose of importing maize.

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2020: Nigerian farmers target 22 million tons of maize production , Premier Feeds, Crown Flour and 2 others import 262,000MT of Maize

Following the ban of maize imports, the Central Bank of Nigeria (CBN) announced on Friday that it would support local maize farmers in Nigeria, as it projects production of 12.5 million tons of maize in 18 months.

This was disclosed by the CBN’s chief of Development Finance, Mr. Yusuf Yila, in a meeting with the Maize Growers Processors and Marketers Association of Nigeria (MAGPAMAN). The stakeholders in the industry discussed strategies on CBN’s MAIZE Anchor Borrowers Programme (ABP) for 2020.

Back story: Last Monday, CBN directed all authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country. This directive was contained in a notice that was addressed to authorised dealers and signed by Dr. O.S Nnaji, CBN’s Director in charge of the Trade and Exchange Department.

READ MORE: Dangote’s world biggest fertilizer plant starts production in February next year

In the notice which was made available to the public, the CBN noted four main reasons for the directive to discontinue maize importation, The reasons are:

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  • To increase local production
  • To stimulate a rapid economic recovery
  • To safeguard rural livelihoods
  • To increase jobs

In line with this development, all the authorised dealers have been told to return all the Forms M they have already registered for the purpose of importing maize. They are to return the forms on or before Wednesday, July 15, 2020.

READ MORE: CBN wants to be able to freeze bank accounts linked to suspected criminals

Why it matters: The CBN said that the bank’s support for the industry was important for the development of the maize value chains in Nigeria, as its the main commodity grown in Nigeria and it uses stretches from the farms to beverage companies.

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“CBN is passionate about maize as a commodity and we believe that there is immense opportunity in that crop and Nigeria has a comparative advantage to produce maize that will not only sustain the country but can be exported,” Nnaji said.

Nnaji said that in the 2020 wet season farming, maize farmers have met a target of 250,000 hectares and the association accounts for about 70,000. Adding that the CBN’s job is to ensure Nigeria does not run the risk of a Maize scarcity, citing that the bank’s target for the dry season is to double the present production number.

READ ALSO: Farmcrowdy launches new 7,500 acres for rice and maize farms

The President of the maize farmers association, Dr. Edwin Uche, revealed that the association has received support up to N13 billion for 70,000 farmers from the CBN for the 2020 wet season farming. He called on the farmers to take advantage of the opportunity.

He added that the scheme will help farmers not only with finance but with access to mechanization and technology to increase production in the value chain.

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Economy & Politics

FAAC disburses N682.06 billion to 3 tiers of govt in September [Full-List]

FAAC disbursed the sum of N682.06bn to the three tiers of government in September 2020.

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States lose N35.51 billion to bail-out , FAAC disburses N650.8 billion as South-South states receive highest share

The Federation Account Allocation Committee (FAAC) disbursed the sum of N682.06bn to the three tiers of government in September 2020. This is contained in the latest monthly FAAC report released by the National Bureau of Statistics.

According to the report, the federal allocation of N682.06bn disbursed to the three tiers (FG, States and LGAs) indicates a 1% marginal increase when compared to N676.4 billion disbursed in August 2020.

READ: FAAC disburses N647.35 billion in February as allocation drops further

Explore the Advanced Financial Calculators on Nairametrics

The Breakdown

A cursory look at the report showed that in September, the Federal Government received a total of N272.90bn (40%), States received a total of N197.65bn (21.6%) and Local Governments received N147.42bn (21.6%). The sum of N30.88bn (4.5%) was shared among the oil producing states as 13% derivation fund.

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In addition, revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N6.66bn (1%), N13.48bn (2%) and N5.70bn (0.8%) respectively as cost of revenue collections.

READ: Report accuses World Bank of ‘toying’ with Nigeria over $1.5 billion loan

READ: MTN Nigeria posts N975.76 billion revenue for Q3 2020

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Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N196.56bn was disbursed to the FGN consolidated revenue account; N4.78bn was disbursed as share of derivation and ecology; N2.39bn as stabilization fund; N8.03bn was for the development of natural resources; and N6.12bn to the Federal Capital Territory (FCT) Abuja.

READ: ASUU insists on rejection of IPPIS, says some Professors get N8,000 as salary

States federal allocation rose marginally

In September 2020, allocation to states rose by 3.4% to N197.65 billion compared to N198.8 billion recorded in the previous month.

The top five states with the largest share of monthly allocation in September are Delta (N13.8 Billion), Lagos (N11.44 billion), Rivers (N11.04 billion), Akwa Ibom (10.33 billion) and Bayelsa (N8.33billion). On the other hand, the top five states at the bottom of the ranking are Ekiti (N3.8 billion), Ogun (N3.7 billion), Plateau (N3.6 billion), Osun (N3.24 billion), and Cross River (N3.23 billion).

READ: FG warns Nigerians about on-going N3million COVID-19 grant scam

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READ: Despite shutdown, Caverton rakes in N8billion in Helicopter and Aircraft revenues

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Key Takeaway

The federal allocation disbursed to the three tiers in September showed consistent improvement, when compared the previous months. However, this is still a short fall when compared to N740.87bn disbursed to the three tiers in the corresponding period of 2019.

READ: Power: Nigeria records transmission peak of 5,459.50MW – TCN

The marginal growth recorded in the disbursed federal allocation may be due to the rise in revenue generation, on the back of earlier improvement in both domestic and cross border economic activities.

For states in Nigeria that largely depend on federal allocation to meet recurrent obligations, this may represent some sort of boost. However, the outbreak of the Covid-19 pandemic (second wave) currently emerging in some developed economies may threaten oil price (the country’s main revenue source), as industrial activities may collapse globally for the second time in the year.

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Economy & Politics

WTO: Nigeria to persuade the US to join the consensus on Okonjo-Iweala – Trade Ministry

Nigeria is making moves to reach out to the US to agreed to appoint Okonjo-Iweala as Director-General of the WTO.

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WTO, Okonjo-Iweala joins South Africa's presidential economic advisory council as nation struggles with recession, Dr. Okonjo-Iweala officially declared candidate with the largest and broadest support among members

The Federal Ministry of Industry, Trade & Investment has said that Nigeria is currently reaching out to the United States and South Korea to back the WTO preferred candidate, Dr. Ngozi Okonjo-Iweala, for the role of DG of WTO.

This was disclosed in a statement by the Ministry and reported by Reuters on Saturday morning.

READ: Why Okonjo-Iweala should win the WTO DG role – Prof. Moghalu

Recall that Nairametrics reported this week that the Ministry of Foreign Affairs announced in a statement that Nigeria’s candidate for Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, had secured the support of the majority of the member-nations – but was yet to be declared and returned as the winner, as the United States opposed the consensus.

READ: Smartphone users spend $120 billion on mobile apps in 2019 

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Nairametrics also reported this week that Dr. Ngozi Okonjo-Iweala was close to being appointed as the new Director-General of the World Trade Organisation (WTO). A group of ambassadors also known as “troika” had proposed Okonjo-Iweala to lead the WTO, giving her a clear path to becoming the first woman to head the WTO since it started 25 years ago.

The U.S President, Donald Trump, blocked the appointment of Ngozi Okonjo-Iweala as the WTO’s next DG on Wednesday, declaring support for South Korea’s Yoo Myung-hee instead.

READ: Nigeria’s Vehicle, Aircraft & Vessel import jump 891% in Q3 2018

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The Ministry said that the FG would try to persuade the United States to join the consensus, as most of the WTO’s members had agreed to appoint Okonjo-Iweala as DG.

Nigeria is currently reaching out to all members of the WTO including the United States and South Korea to overcome the impasse as well as persuade the United States to join the consensus,” the trade ministry said.

READ: WTO DG: Okonjo-Iweala gets the backing of 79 countries so far

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Economy & Politics

WTO: US opposing consensus to declare Okonjo-Iweala as DG – Foreign Affairs Ministry

The Ministry announced Okonjo-Iweala has secured the support of the majority of the member nations but is being opposed by the US.

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Ngozi Okonjo Iweala, World Bank, Davos, World Economic Forum, WTO accepts nomination of Okonjo-Iweala as DG despite opposition from Egypt,WTO:  Happy to be in final rounds of DG Campaign- Okonjo Iweala

The Ministry of Foreign Affairs announced in a statement that Nigeria’s candidate for Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has secured the support of the majority of the member-nations – but is yet to be declared and returned as the winner, as the United States is opposing the consensus.

This was announced in a statement by the Ministry on Thursday evening to inform the nation that the third and final round of the selection process of the WTO DG position was formally announced on Wednesday 28th October 2020.

READ: This is what Ngozi Okonjo-Iweala is up against

What you should know

Nairametrics reported this week that Dr. Ngozi Okonjo-Iweala is close to being appointed as the new Director-General of the World Trade Organisation (WTO).

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A group of ambassadors also known as “troika” had proposed Okonjo-Iweala to lead the WTO giving her a clear path to becoming the first woman to head the WTO since it started 25 years ago. The three ambassadors are thought to wield significant powers in determining what is a very “intricate and opaque” process.

READ: #EndSARS: Access Bank announces N50 billion interest-free facility for businesses

The U.S President, Donald Trump blocked the appointment of Ngozi Okonjo-Iweala as the WTO’s next DG on Wednesday, citing support for South Korea’s Yoo Myung-hee.

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Dr. Okonjo-Iweala stated that she is positive despite hiccups in her bid to emerge as the next DG of the organization. She said, “Happy for the success & continued progress of our WTO DG bid. Very humbled to be declared the candidate with the largest, broadest support among members and most likely to attract consensus. We move on to the next step on Nov 9, despite hiccups. We’re keeping the positivity going.”

READ: WTO: Nigeria’s Ngozi Okonjo-Iweala gets European Union support

The Ministry of Foreign Affairs said in its statement that, “Dr. Ngozi Okonjo-Iweala has secured the support of the majority of the member countries, but is yet to be declared and returned the winner. This is because apart from winning the election, all 164 Member States of WTO were expected to adopt the winner by consensus. In accordance with the rile of the procedure of the WTO.”

It is important to highlight that Dr. Okonjo-Iweala has secured cross-regional backing with only the United States opposing the consensus.

READ: Transport Ministry to share N10 billion palliative scheme

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The Ministry added that a meeting would be held by the General Council of the WTO on the 9th of November 2020 to declare a final decision on the election process.

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