Connect with us
nairametrics

Business

CBN launches Private Sector-led Accelerated Agriculture Development Scheme

The CBN has launched the P-ADDS initiative aimed at engaging 370,000 youths in agricultural production.

Published

on

Agricultural financing

The Central Bank of Nigeria, in line with its development mandate, has recently unveiled the Private Sector-led Accelerated Agriculture Development Scheme (P-ADDS) to complement the Accelerated Agriculture Development Scheme (ADDS), which is aimed at engaging 370,000 youths in agricultural production.

This is according to a recent notice by the CBN.

The P-ADDS is designed to complement ADDS by exploring private sector partnership to facilitate more rapid land clearing for production of key agricultural commodities.

What you should know

  • The broad objective of P-AADS is to facilitate increased private sector agricultural production of staple foods and industrial raw materials, as well as support food security, job creation, and economic diversification.
  • P-AADS shall be funded from the Anchor Borrowers’ Programme (ABP).
  • The maximum loan accessible under the Scheme shall be N2 billion per obligor. The facility shall be repaid from the Economics of Production (EOP), for cultivating on the cleared farmland.
  • Interest rate under the intervention shall be 5.0% p.a. (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a. (all inclusive)
  • The loan tenor for annual crops is set at a maximum of six years with six months moratorium, while that of perennial crops are ten years with one year moratorium.
  • Repayment of the facility shall be made on instalment basis through the participating banks, which in turn remit payments to the CBN on quarterly or annual basis depending on the commodity.
  • The collateral to be pledged by participants under the Scheme shall be title of the cleared land and other acceptable collateral prescribed under the ABP. CBN shall bear 50% of the credit risk in the event of default by the participant.
  • For the flag off, thirteen agricultural commodities are eligible for consideration under the scheme, and they include rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, oil palm, cocoa, livestock/diary, and any other commodities, as may be listed by the CBN from time to time.

Eligibility criteria

GTBank 728 x 90
  • Be existing or new firms engaged in agricultural production with proven capacity and bankable proposal.
  • Possess acceptable title for contiguous lands of not less than 20 hectares.
  • Have good credit record.
  • Be able to provide the required collateral for participation.
  • Provide evidence of capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in-growers or out-growers to cultivate on the land after clearing.

Why it matters

With the annual population growth rate of about 3%, recent empirical findings revealed that Nigeria’s population pyramid is bulging around the youth segment, with an estimated 75 per cent of the population identified to be aged below 35 years.

A large segment of this population can become meaningfully employed and make a living from agriculture, if opportunities in the sector is well harnessed, given its potential of employing over 70% of the nation’s workforce.

Coronation ads

1 Comment

1 Comment

  1. Anonymous

    November 11, 2020 at 2:19 pm

    P – ADDS is a good idea if only it can be fully/properly implemented.

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

ASUU says union has not yet agreed to call off strike

ASUU has denied media reports that the union agreed to call off its 8-month old strike action.

Published

on

ASUU gives conditions to call off its nationwide strike action

The Academic Staff Union of Universities (ASUU) has denied media reports that the union agreed to call off its 8-month old strike action.

There was a bit of relief when news emerged that the strike action has been called off, after the latest meeting between ASUU top echelons and the Federal Government negotiation team, led by the Minister of Labour and Employment, Senator Chris Ngige, on Friday.

According to a report from Vanguard, the ASUU President, Prof. Biodun Ogunyemi, said he is not aware of any agreement to call off the strike. However, he noted that it was agreed at the meeting that the union would convey government’s message to their various organs and then report back to the government.

Ogunyemi said, “I am not aware of that. All I know is that we had a meeting and we are going to report to our members. But, I don’t know about suspension of the strike.”

It was also reported that ASUU reached an agreement with the Federal Government after the latter increased its offer for Earned Allowances and funding for the revitalization of public universities from N65 billion to N70 billion.

GTBank 728 x 90

However, ASUU in a tweet insisted that the funding should be implemented before the union suspends its strike action.

What you should know

Coronation ads

Nairametrics earlier reported that ASUU had called off its 8-month-long strike. It said that the union took the decision after it agreed to accept government’s total payment of N70 billion and that the payment of their outstanding salaries must not be done through the Integrated Personnel Payroll and Information System (IPPIS).

ASUU embarked on strike in March 2020, following its disagreement with the Federal Government over the funding of the universities and implementation of the IPPIS, which according to the union, negates the autonomy policy for the universities.

ASUU, however, has its own developed and preferred payment platform, University Transparency and Accountability Solution (UTAS), which the government said it is looking into.

Continue Reading

Business

Export of our products in West African sub-region now less competitive – MAN

President of the Manufacturers Association of Nigeria has lamented the less competitive nature of made-in-Nigeria products.

Published

on

Dangote group, CBN unification of exchange rate a welcome development-MAN

The export of made-in-Nigeria products in the West African sub-region has become less competitive according to the President, Manufacturers Association of Nigeria (MAN), Mansur Ahmed. He made this remark in a statement seen by Nairametrics.

According to Ahmed, MAN members are losing market share daily to other African countries due to the closure of the border, as the sub-region has now become less competitive.

READ: Finance Bill: No plans to increase tax — FG

READ: AfCFTA: Nigeria’s borders to remain closed till we can trust our neighbours- Trade Negotiator

He said,

GTBank 728 x 90

Major manufacturers of beverages, polypropylene bags, tobacco, cement, toiletries, and cosmetics industries were losing markets they had worked very hard to secure in the West and Central African region.

“These manufacturers were hoping to leverage their market share to secure a strong position in the African Continental Free Trade Area, which kicks off in January 2021.

READ: Nigerians pay heavy price as laptop scarcity bites harder

Coronation ads

“Since the closure, the association has conducted a research with its members, the outcome is that some sectors had considerable increase in their productivity, while some sectors recorded sharp decline.”

He emphasized that the export group of the association clearly suffered huge losses due to logistics issues occasioned by the closure, as it takes an average of 8 weeks for the carriers to ship and truck goods within countries in the same region vis-à-vis trucking through the land border, which takes an average of 7 to 10 days.

READ: Afreximbank’s African commodity index dips by 1% q-o-q in Q3 2020

The increased traffic through our seaport as a result of the closure has increased the perennial congestion at the Apapa and Tin Can Island Ports, leading to greater challenges for exporters and increased demurrage cost, as well as other port levies,” he added.

READ: Coalition of African lawmakers seeks debt relief for African states

Jaiz bank ads

What it means

Nigeria’s President Buhari recently signed the Africa Continental Free Trade Agreement exposing local Nigerian manufacturers to the regional competition.

Stanbic IBTC
  • Whilst border closures impact positively on local markets due to restrictions on imports, it is unhealthy for local businesses looking to export across borders to regional African countries.

Explore Data on the Nairametrics Research Website

Continue Reading

Business

AfCFTA: African Customs Officials to draft free trade continental guidelines

Customs officials from around Africa gave a nod to the adoption of continental guidelines to facilitate the free flow of cross-border trade.

Published

on

Q1 2020, AfCFTA, African Continental Free Trade Area, Africa Free Trade Agreement, Business new, Nairametrics news

The African Continental Free Trade Area (AfCFTA) got closer to actualization on Saturday as Customs officials in the continent agreed to draft continental guidelines to enable the movement of goods, services and people for the agreement.

This was disclosed by the UN Economic Commission for Africa on Saturday evening.

“Liberalization of 90% of tariff lines will affect customs revenues. About 85% of import come from outside Africa, leaving about 15% from the continent, but the agreement is an opportunity for Nigeria to boost exports and production,”  the Customs Service disclosed at the AfCFTA Sensitization Seminar.

READ: Export of our products in West African sub-region now less competitive – MAN

The joint adoption of a continental customs guidelines comes a few weeks before the AfCFTA kicks off in January 2021.

GTBank 728 x 90

The meeting organized by the African Union Commission (AUC) virtually was attended by Customs Chiefs in Africa, who agreed to implement measures to facilitate cross-border trading challenges heightened by the covid-19 pandemic.

READ: African free trade will boost development of manufacturing in Nigeria – NEPC

The Director of Regional Integration and Trade, UN Economic Commission for Africa, Stephen Karingi, disclosed that the guidelines were drafted to boost coordination and implementations of a common customs guideline covering areas including transport and infrastructure and others.

Coronation ads

“The aim is to have the continental guidelines in place early next year to reinforce start of trading under the AfCFTA,” he said.

READ: AfCFTA: Improving guidance on standards can make Nigeria a beneficiary – Trade Minister

The guidelines cover a number of new sub-sections to respond to specific gaps in existing rules, including the regulation of small-scale cross-border trade and cross-border trade by fishermen, gender considerations, and treatment of essential workers, including transport and humanitarian workers.

“Once in force, the continental guidelines are expected to ensure a harmonized approach to support smooth and safe trade amid the pandemic, including transit trade between RECs,” said Hussein Hassan, AUC’s Acting Director for Trade and Industry.

READ: Covid-19: First world nations oppose waiving intellectual rights for vaccine development

Jaiz bank ads

What you should know 

Stanbic IBTC

The African Continental Free Trade Area (AfCFTA) is one of the  biggest free-trade agreements in the world right now with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion

The Federal Government announced that it has ratified Nigeria’s membership to the African Continental Free Trade Area (AfCFTA), ahead of the December 5, 2020 deadline. The agreement goes into effect from the 1st of January 2021.

Nairametrics reported in September that the Nigerian Customs said the facilitation of trade requirements ranging from Pre-Arrival processes to Electronic Payments of duties would be important for the AfCFTA implementation for Nigeria.

Continue Reading