Spotlight Stories
4 selected Maize importers will not be affected by Buhari forex for food ban
Companies recently given approval to import maize will not be affected by the President’s directive.
Nairametrics has gathered that the recent ban of foreign exchange for food and fertilizer importers would not affect the 4 companies approved to import 262,000 tons of maize into Nigeria from August to October. The approved companies are using their own forex sources as the CBN will not be providing forex for the imports.
On Thursday, President Muhammadu Buhari ordered that food and fertilizer importers should not be given access to foreign exchange by the CBN, adding that the country would rather empower more local farmers, and use agriculture as a means to solve unemployment among youths.
READ: This is where PSB, CBN got it all wrong
“I am restating it that nobody importing food or fertilizer should be given foreign exchange from the Central Bank. We will not pay a kobo of our foreign reserves to import food or fertilizer. We will instead empower local farmers and producers,” the President said.
Recall that the Central Bank of Nigeria in July, directed all authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country. The CBN noted that the ban was necessitated in order to protect local production of maize, stimulate rapid economic recovery, safeguard rural livelihoods and increase job creation.
READ: Farmcrowdy launches new 7,500 acres for rice and maize farms
However, Dr. Ikechukwu Kelikume, the Programme Director of the Lagos Business School Agribusiness programme, warned that the policy could further compound the woes of poultry farmers given that maize, which constitutes over 50 per cent of poultry feed content is currently very scarce, and where available, is very expensive, even as the price keeps rising.
Due to the high cost of poultry production after the ban on maize imports. President Muhammadu Buhari ordered last week that the Federal government will release 30,000 tons of maize from the national reserves to animal feed producers.
READ: Buhari stops estimated billings as he directs mass metering of electricity consumers
The Nigeria Customs Service also confirmed last week that 4 companies that have been given the CBN emergency approval to import 262,000 tons of maize into Nigeria.
The companies are Wacot Limited, Chi farms Limited, Crown Flour Mills Limited and Premier Feeds Company Limited.
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Bottom Line: Nairametrics gathered that the 4 approved companies are some of the biggest Maize traders in the country and will not be affected by the president’s ban on the importation of food items including maize. According to a reliable source from the CBN, the apex bank is not selling FX directly to the 4 companies, as the approved companies would source FX to import the maize directly from their cash reserves. The source added that the CBN picked companies that prioritize Backward Integration in Nigeria’s maize industry.
ENDSARS
Lekki Tollgate Shooting: Sanwo-Olu insists on 2 deaths, no bloodstains at the scene
Governor Sanwo-Olu has reiterated that only two people were killed in last week’s shooting at the Lekki toll plaza.
The Lagos State Governor, Babajide Sanwo-Olu, has insisted that there were only two confirmed deaths during the shooting incident that happened a week ago at the Lekki Tollgate.
He also said that there were no bloodstains at the scene of the incident.
According to a report on Vanguard, the Lagos State Governor made the disclosure during an interview with CNN’s Becky Anderson about the incident and the fall out of the #EndSARS protests over police brutality and extra-judicial killing.
The Governor’s statement is against the backdrop of several reports in the public space, which had claimed that over 30 protesters and in some cases about 70 protesters allegedly died as a result of the shooting by soldiers at the Lekki Tollgate.
The Governor said, “Two dead bodies, that is what we have seen from all the morgues, that’s what we have seen going to hospitals, that’s what we have seen as a record. What has happened is that there have been so many footages that were seen, that people have shown, but we have not seen bodies, we have not seen relatives, we have not seen anybody truly coming out to say I am a father or a mother to someone and I cannot find that person. Nobody has turned up. I have been to the ground, there is no scratch of blood anywhere there.
“From the footage that we could see, because there were cameras at that facility, it seems to me that they would be men in military uniform. That’s what the footage shows.”
While insisting that there was no form of international pressure as a result of the protests, Sanwo-Olu said, “I genuinely believe there would be change. For two reasons; what has happened, especially in Lagos is extremely unimaginable. It was also a clarion call for all of us in government to understand and realize what the youths want us to be doing. It hit all of us like a thunderbolt and it was just a wake-up call.”
In order to aid the investigation to ascertain what happened at the Lekki Tollgate, Sanwo-Olu assured that the Close Circuit Television (CCTV) footages will be made available to the judicial panel already set up to investigate the incident and has already started sitting on Monday.
While responding to a question, Sanwo-Olu said he was ‘absolutely’ committed to a full investigation of the incident.
He said, “It’s beyond my control to mete out punishment to those found culpable; however, those responsible will be held accountable. I am not the Commander-in-Chief of the Armed Forces. The report will be out, we will channel the report to all the relevant authorities in the State to ensure everyone that is found culpable is accountable for the act.”
Despite the Lagos State Governor’s insistence on the number of fatalities, a lot of Nigerians do not believe his account of the incident and think that there is some form of an alleged cover-up by government officials. They are still outraged that despite some video evidence and accounts of people that were there, the government is still understating the fatality figures.
Business News
Nigeria’s Manufacturing Sector contracts for 6th consecutive month
The manufacturing sector contracted for the sixth consecutive month as 8 subsectors contracted out of 14.
The Manufacturing Purchasing Managers’ Index (PMI), for the month of October, witnessed a contraction for the 6th consecutive month, as it stood at 49.4 index points.
This was disclosed by the Central Bank of Nigeria (CBN), in its October PMI report released today.
READ: Manufacturing PMI dips further as recession scare looms
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According to the information contained in the report, despite the fact that the Manufacturing Purchasing Managers’ Index (PMI) for the month of October contracted, the Manufacturing PMI index recorded a month-on-month increase owing to improved New orders, faster manufacturing supplier delivery time, and slight changes in production and employment levels.
READ: FG meets group to access AfCFTA’s $650 billion market
What you should know
The report stated that, out of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month in the following order:
- Electrical equipment
- Transportation equipment
- Printing & related support activities
- Chemical & pharmaceutical products
- Textile, apparel, leather & footwear
- Cement
READ: Global Stocks rise higher, on positive Chinese manufacturing report
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While the remaining 8 subsectors reported contraction (below 50% threshold) in the review month in the following order:
- Primary metal
- Petroleum & coal products,
- Paper products
- Fabricated metal products
- Furniture & related products
- Nonmetallic mineral products
- Plastics & rubber products
- Food, beverage & tobacco products
READ: The CBN data that can reveal whether we are already in a recession
PMI for the non-manufacturing sector stood at 46.8 points in October 2020, indicating contraction in Nonmanufacturing PMI for the seventh consecutive month. Of the 17 sub-sectors surveyed, 3 subsectors reported growth, while 11 subsectors declined.
Business
What led to the Ogba tanker explosion- Lagos
Lagos State Government has disclosed the explosion was caused by the spillage of petrol from a truck laden with petrol.
The Lagos State Government has attributed the tanker explosion that occurred at Yerevan Filling Station earlier today to the spillage from the articulated truck, laden with 33,000 litres of Premium Motor Spirit (PMS), popularly called petrol.
READ: FG set to create at least 5 million jobs for youths in the power sector – Minister of Power
This was disclosed via the official Twitter handle of the state on Tuesday.
According to the government, the revelation was as a result of the investigations by the LASEMA Response Team.
READ: #EndSARS: Kwara State sets up N500 million recovery fund for businesses destroyed by hoodlums
It tweeted, “The inferno was quickly curtailed due to the prompt response of the Agency’s team in conjunction with the Lagos State Fire Team.
“The leaky valve which was the source of the inferno has been shut off, the inferno has been extinguished while blanketing of the truck and entire area is ongoing in order to avert any secondary incident.”
Explore Data on the Nairametrics Research Website
LASEMA Response Team in swift response earlier this morning, has extinguished the fire outbreak that ocurred inside Yerevan Oil. A filling station located at Ajayi Road in Ogba Aguda area of Lagos.@jidesanwoolu @drobafemihamzat @lasemasocial @LAG_FireService @gbenga_omo#LASG pic.twitter.com/BTJplOIGk4
— The Lagos State Govt (@followlasg) October 27, 2020
Details soon …
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9jaRealist
September 11, 2020 at 8:13 pm
Sorry, but this seems a NON-STORY if (as stated in the report) the 4 companies are sourcing their own forex outside of the CBN window. Importation of maize is NOT prohibited, only access to the CBN forex window for such imports.