Connect with us
nairametrics

Business

Commissioner attributes high cost of rice to increased production cost

The high cost of rice in the market has been attributed to the increased cost of production, owing to the rising input cost.

Published

on

local, Rice will be abundant this Christmas, RFAN says

The Ebonyi State Commissioner for Agriculture and Natural Resources, Mr. Moses Nomeh, has attributed the high cost of rice in the market to the increased cost of production, owing to the rising input cost.

According to data compiled by Nairalytics – the research arm of Nairametrics, during its Household Market Survey in October, the price of a 50kg local bag of rice which sold for N21,750 as of November 26, 2019, sold for N29,750 three weeks ago- 36.8% higher.

READ: Lagos Multi-billion naira rice mill nears completion

Mr. Nomeh, who is the Agriculture Commissioner of one of the key rice-producing states in Nigeria, disclosed in Abakaliki on Wednesday, that farmers are not to be blamed for the persistent increase in the price of staple food items in the country, especially rice.

READ: CBN invests over N120 billion on 320,000 farmers across CTG within four years

GTBank 728 x 90

According to the news report by the News Agency of Nigeria (NAN), Mr. Nomeh asserted that the cost of production, which covers inputs such as labor, hiring of machinery, land, and herbicides has increased tremendously.

Therefore, as it is imperative to make profits or at least break-even, the farmers had to increase the price of rice to compensate for the persistent increase in the costs of production.

READ: Flour Mills of Nigeria Plc: Increase in agro-allied, others boost revenues

Coronation ads

What they are saying

Commenting on this development, the Commissioner said, “Farmers are not to blame for the increase in the cost of rice; the cost of production has doubled, don’t forget also that farmers must make small profits.

“They are business people too, they must factor in the cost of production to the final cost of the product. The business will crumble if such is not done.”\

READ: Bitcoin Whale transfers $1.1 billion worth of crypto for $3.58

However, in defense of the consumers, Mr. Nomeh said, “Every consumer wants maximum satisfaction from their money, our farmers have to bear this in mind as business people.”

Jaiz bank ads

Explore Data on the Nairametrics Research Website

Stanbic IBTC

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

N117 billion approved by FG for road rehabilitation

Babatunde Fashola has disclosed that the FG has approved the sum of over N117 billion for road rehabilitation across the country.

Published

on

Second Niger Bridge will be completed in 2022, project, Minister of Power works and housing Babatunde Fashola, Shell Nigeria Exploration and Production Company, SNEPCo Bayo Ojulari, Power supply in Nigeria

The Federal Government has approved the sum of over N117 billion for the rehabilitation of roads across the country in 2021.

This was disclosed by Babatunde Fashola, Minister of Works and Housing, in a press briefing after the Federal Executive Council (FEC) meeting was held in Abuja on Wednesday.

What you should know 

  • Nairametrics reported last month that Mr Fashola had stated that the Ministry’s priority in its 2021 budget was to complete already ongoing road and bridge projects across the nation.
  • Fashola also said that the Federal Government needed at least N500 billion annually for the next 3 years to develop and fix its 35,000 kilometres road network, as work continued on 13,000 kilometres of the network.
  • Fashola stated last month that the Federal Government was committed to finishing the Lagos-Ibadan expressway, adding that the drop in crude oil prices could not be a barrier to its completion.

Fashola disclosed on Wednesday that the sum of N18.9 billion, was approved for the rehabilitation of roads and bridges including the 26 km of Kano-Dambatta-Kazaure-Daura road, Anambra- Enugu Roads, Bridge construction Cross River, Nkumi bridge and others.

The other memorandum relating to roads also is for the total sum of N98.7 billion,” he added. This includes roads and bridges in Zamfara, Kebbi, Katsina, Anambra and Kano

GTBank 728 x 90
Continue Reading

Business

$1.3 billion Malabu oil field sale was perfect – Dan Etete

Nigeria’s former Petroleum Minister has said that the sale of the $1.3 billion Malabu oil field to Shell and Eni in 2021 was legally perfect.

Published

on

FG seizes Dan Etete’s luxury private jet linked to Malabu oil deal

Dan Etete, former Nigerian Minister of Petroleum has said that the $1.3 billion sales of Malabu oil field to Shell and Eni in 2021 was legally perfect, with zero traces of corruption in the deal.

He disclosed this on Wednesday through his lawyer, Antonio Secci, in a Milan Court, investigating the cases of bribery and corruption related to the deal, as reported by Reuters.

In Wednesday’s hearing, Dan Etete’s lawyers called for the former Nigerian Minister to be acquitted of corruption charges related to the deal.

Reuters disclosed that 13 other people are involved in the corruption case including CEO of Eni, Claudio Descalzi.

The accused pleaded non-guilty and said that the proceeds of the deal were paid into accounts owned by the Nigerian Government.

GTBank 728 x 90

The ex-Shell executives also accused in the case will have a hearing on the 9th of December.

What you should know 

Multinational oil companies, Eni and Shell, paid $1.3 billion in 2011 to acquire OPL 245 offshore field.

The payment was to a company called Malabu, which was owned by Nigeria’s former Oil Minister, Dan Etete.

Coronation ads

However, Italian prosecutors claim that most of the payments were kickbacks to Nigerian government officials. Italian prosecutors also claim that nearly $1.1 billion was stolen by Nigerian politicians and middlemen, with Dan Etete keeping half.

Nigeria’s Minister of Justice, Justice Abubakar Malami, reported in July that the Dutch and Swiss governments were expected to send the sum of $200 million from the OPL 245 Malabu Oil deal to Nigeria.

Multinational Petroleum oil and gas giant, Royal Dutch Shell, announced that it would write down its investment in the controversial Malabu OPL 245 offshore field in Nigeria.

in June, the Federal Government tracked down and grounded a luxury private jet, owned by the country’s former Petroleum Minister, Dan Etete, over his alleged involvement in the $1.1 billion Malabu oil scam. The luxury private jet was alleged to have been purchased with proceeds from that oil deal.

Nairametrics reported that the Federal Government, on Wednesday, September 9, 2020, asked a court in Milan to order Royal Dutch Shell and Eni to pay the sum of $1.092 billion as an immediate advance payment for damages in the Malabu oil scandal.

Jaiz bank ads

Stanbic IBTC
Continue Reading

Business

Nigeria is the 14th largest producer of tomatoes in the world, second in Africa – NIHORT

NIHORT has said that Nigeria is the world’s 14th largest producer of tomatoes, finishing second in the continent.

Published

on

OPINION: Development policies should focus on producers, not consumers

The Executive Director of the National Horticultural Research Institute (NIHORT), Dr. Abayomi Olaniyan has said that Nigeria is the world’s 14th largest producer of tomatoes, finishing second in the continent.

According to the News Agency of Nigeria, Dr. Olaniyan disclosed this during the inauguration of a one-week empowerment and training programme for 150 youths and women farmers on Telfairia (Ugwu vegetable) production and tomato value chain in Kwale, Ndokwa West Local Government Area of Delta State.

Despite producing 2.3 million metric tonnes of tomato annually, current national demand is estimated to be slightly higher at 3 million metric tonnes annually

READ: CBN restricts forex for milk import to Nestle, Chi, Friesland, 3 others

READ: BUA Cement set to establish ultramodern 3million cement plant, 50mw power plant in Adamawa

GTBank 728 x 90

What they are saying

Commenting on the subject matter, Dr. Olaniyan who was represented by the Director of research at the institute, Dr. Ephraim Nwanguma stated that: “Tomato is a profitable horticultural crop that provides income to farmers and agents involved in its production and marketing.

“Nigeria is the 14th largest producer of tomato in the world, second in Africa, but it is the 13th largest importer of tomato paste in the world and third in Africa.

READ: CBN launches Private Sector-led Accelerated Agriculture Development Scheme

Coronation ads

“Nigeria currently produces 2.3 million metric tonnes against 1.8 million metric tonnes produced two years ago while the national demand is three million metric tonnes.

“Also, there is a high prospect in production of telfairia and marketing within and outside Nigeria.”

READ: NASCON’s Unimpressive Revenue Impairs Bottom-Line Performance

What you should know

  • The recent production capacity of 2.3 million metric tonnes indicates an increase of 27.8%, from the corresponding figure recorded in 2018.
  • Despite being one of the largest producers of tomatoes in the world, Nigeria is also one of the world’s net importers of tomato paste, placing 13th globally and 3rd in Africa.
  • This fact was corroborated in a research by the Global Alliance for Improved Nutrition titled ‘’Landscape analysis of dried tomato production and market in Nigeria’’, which stated that over 45% of fresh tomato produced in Nigeria is lost due to poor handling practices and other logistics issues

READ: Fear among tomato farmers as Dangote Farms suspends seedlings distribution 

READ: Nigeria’s $1.5 billion steel plant set to produce 1 million MT of steel annually

Jaiz bank ads

Stanbic IBTC
Continue Reading