Business
LCCI lambasts FG’s N60bn phones-for-farmers policy
LAGOS: The Lagos Chamber of Commerce and Industry (LCCI) have lambasted the federal government over the proposed N60 billion phones-for-farmers policy saying it is a misplaced priority.
On Tuesday, Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Mrs. Ibukun Odusote disclosed the federal government intends to spend N60 billion to purchase mobile phones for 10 million rural farmers across the country. She said that the fund had has already been provided and the distribution will commence in the first quarter.
Reacting to this development in an interview with Biztellers, the Chairman, Agric sector of the LCCI and Managing Director of Bama Farm Food, Prince Wale Oyekoya, said the Federal Government’s intention would not make any meaningful impact on the lives of the farmers.
“Imagine our Federal Government wants to give rural farmers N60b cell phone, is this what our poor farmers need now with the high interest rate of 28 per cent. This is part of corruption we are talking about; it is a way of laundering our money by the federal government. Farmers need working capital and not cell phone, who will be recharging the phones for them? Is it still the federal government that will do that?” he said.
According to him, the Nigerian farmers need a single digit interest rate on agric loans, input research and development, tractors, working capital and other amenities to excel in agriculture, adding that, Nigeria is one nation that is endowed with goodness of nature , wonderful weather, excellent soil texture and great business environment.
He urged the federal government to provide basic infrastructure that would make agricultural business venture progress and less stressful, adding that the government should invest more in farmers with a single digit interest rate on agric loans instead of giving out cell phones.
On Thursday, Minster of Agriculture, Dr. Adeshina Akinwunmi though denied that the FG was spending N60 billion to purchase the mobile phones, he however strongly defended the policy. Adesina said the Permanent Secretary of the ministry, Mrs. Ibukun Odusote, was totally misquoted on the issue as there “is no N60 Billion for phones anywhere.
The Minister said agriculture today is more knowledge-intensive and they are willing to modernize the sector, and get younger (graduate) entrepreneurs into the sector, “and we will arm them with modern information systems.
“Whether small, medium or large farmers they all need information and communication systems. Connecting to supermarkets and international markets require that farmers know and meet stringent consumer-driven grades and standards.”
He added “In today’s supply chains, the flow of information from buyers to farmers must be instant, to meet rapidly changing demands. Unless farmers have information at their finger tips, they will lose out on market opportunities.
“Our goal is to empower every farmer. No farmer will be left behind. We will reach them in their local languages and use mobile phones to trigger an information revolution which will drive an agricultural revolution.”
On why the need for cell phones, Dr. Akinwumi explained that Nigeria has 110 million cell phones, the largest in Africa, but regretted that there is a huge divide as the bulk of the phones are in urban areas.
“The rural areas are heavily excluded. For agriculture, which employs 70% of the population that means the farmers are excluded and marginalized.
“In today’s world, the most powerful tool is a mobile phone. As Minister of Agriculture, I want the entire rural space of Nigeria, and farmers, to be included, not excluded, from the advantages of mobile phone revolution.
The Phone-For-Farmers scheme is part of the Agricultural Transformation Agenda (ATA) of the federal government introduced by the Ministry of Agriculture. The goal of ATA is to add 20 million metric tones (MT) to the domestic food supply, or 5 million MT per year, by 2015, and to create a total of 3.5 million jobs by 2015.
According to the Minister the goal of ATA is to transform agriculture to grow food, create wealth and generate jobs. The focus is on expanding domestic food production, reducing import dependency and expanding value addition to locally produced agricultural products.
Adesina set out to eliminate decades of corruption in the fertilizer and seed sectors through radical policy reforms, reduce the role of government and expand incentives for the private sector to drive the transformation and modernization of Nigeria’s agriculture. One of such reforms brought about the Growth Enhancement Support Scheme (GESS).
The scheme which kicked off last year is a special agricultural scheme of the Federal Government aimed at delivering subsidized farm inputs to farmers and facilitates a shift from subsistence to commercial farming.
GESS is hinged on the use of technology to enhance effective distribution of various farm inputs, especially fertilizers, to farmers. This is in line with government vision of making agriculture the cornerstone of Nigeria’s economy.
With the program, Government sought to withdraw from direct fertilizer purchase and distribution, and introduce an alternative system of distribution built on the voucher system. Under the scheme, registered farmers receive e-wallet vouchers with which they can redeem fertilizer and seeds from agro dealers. The GESS is a 3-year scheme and the first cycle was implemented last year.
The scheme has been designed to encourage a private sector led market development process, ultimately geared towards improving Nigeria’s competitiveness and food security. Through this scheme, government will subsidize the costs of seeds and fertilizers for farmers by 50%, while providing soft loans to the seed and fertilizer companies and agro-dealers to sell their inputs directly to farmers and build their supply chains to get to rural areas.
The Minister of Agriculture and Rural Development, Akinwumi Adesina who introduced the program, described it as the best way farmers can access the direct subsidy of agro-inputs.
He particularly explained that the introduction of allocating fertilizer and seedlings directly to benefiting farmers through electronic vouchers to their mobile phones has helped eliminate the activities of middle men who for decades have been preventing farmers in the country from enjoying such subsidy from government.
But reports from farmers at the end of the planting season last year show lots of complains from farmers across the country as to their inability to access the subsidy or in some cases getting the subsidized inputs after harvesting.
During a tour of five states of Taraba, Gombe, Bauchi, Nasarawa and Benue by reporters sometimes last year, farmers expres their disappointment over the scheme.
In Taraba State, the picture was not rosy. The farmers complained that they didn’t receive their two bags of fertilizer and two bags of improved seedlings in time. One of them was Hamman-Tukur Baba-Anda, a 72-year-old farmer. He said though he got his two bags of fertilizer, they came late. He lamented that if he had gotten them in time, he would have gotten about a hundred bags of maize instead of the 28 bags he got.
“We should have gotten it from January, February to April, but this time it came around June/July. May be it is from you,” Baba-Anda said.
Not all the farmers in the state got fertilizer. Out of the 75,000 farmers that got registered for the program, only 22, 000 were able to redeem their allocation, according to the state director, Federal Ministry of Agriculture and Rural Development, Dr Samuel Adaji.
The story was slightly different in Gombe State where the federal coordinator of the GES scheme in the state, Mallam Muhammad Umar Deba, said out of the 148,032 farmers registered for the GES program, 144,000 farmers redeemed their fertilizers.
“I couldn’t get even a single bag of fertilizer or seed,” said Malam Usman Bangu, an old farmer, in flawless English. But those who got their allocation in the state called for creation of more redemption centers as they said the ones in the state were too small to cater for them.
For Mr. Akin Balogun, the scheme had made the purchase of fertilizers more difficult and urged the government to review its implementation.
Mr. Shedrack Madlion, the Executive Director of the Admiral Environmental Care Limited, an NGO, stressed the need to put in place checks and balances to ensure success of the initiative.
Madlion observed that the e-wallet scheme had only succeeded in arousing the farmers’ interest, but its implementation had fallen short of expectation.
It was in an attempt to review its implementation and move agriculture away from development program to business that the ministry came up with a modern way of reaching the farmers using new tools like mobile phones.
Business
NNPC Ltd, SPDC Comfort Borno Flood Victims With US$1m
The Shell Petroleum Development Company of Nigeria Limited (SPDC JV) – Operator of the NNPC Limited, SPDC, TotalEnergies and Nigerian Agip Oil Company Joint Venture – has, announced the donation of US$1 million to support efforts to provide relief to over half a million people displaced in flood impacted communities of Borno State.
Managing Director, SPDC, and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said, “The donation will go into the procurement and distribution of relief materials and medical supplies for displaced residents who are now in urgent need of critical aid.”
He added that a Non-Governmental Organisation (NGO), local to the region with understanding of working with displaced people, will manage the distribution of the materials in collaboration with the Borno State Emergency Management Agency.
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According to Okunbor, the SPDC JV intervention was in response to the alert issued in September by the National Emergency Management Agency (NEMA), following the significant rise in water levels caused by the overflowing of the Alau Dam, and the calls for support by Borno State Governor, Babagana Umara Zulum.
“We consider providing this support to be of necessity to demonstrate our commitment to our society and the duty of care to our people. It expresses our deep concern for the victims of the devastating floods in Borno State,” Okunbor said.
He noted that the SPDC Joint Venture’s gesture is a continuation of similar assistance given over the years to the region that is recovering from recent conflicts.
Chief Upstream Operating Officer of the NNPC Upstream Investment Management Services (NUIMS), Bala Wunti, in a statement, added, “The urgency in providing this relief is important given the region’s existing vulnerabilities, with people recently barely recovering from conflict-induced displacement. The flooding has severely disrupted socio-economic activities, with women and children being disproportionately affected and we are glad that the joint venture is able to provide succour at this time.”
Wunti said, “As a responsible corporate organization, NNPC is glad to support the SPDC Joint Venture in this essential activity. Our thoughts are with those affected and with the government agencies working tirelessly to provide relief. We pledge to support ongoing efforts through immediate humanitarian aid and long-term partnerships for sustainable recovery.”
Business
Nigerian Investors Gain N217bn In Positive Trading On NGX
Investors on the Nigerian Exchange Limited (NGX) saw a boost of N217 billion added to their portfolios on Thursday, with the All-Share Index rising by 0.37% to close at 96,924.86 points.
This increase also lifted market capitalization to N58.73 trillion, driving the year-to-date return to 29.62%.
The insurance, consumer goods, oil and gas, and industrial goods sectors saw gains, increasing by 1.84%, 0.01%, 1.77%, and 0.02%, respectively, while the banking sector experienced a slight decline of 0.38%.
READ MORE: Why LCCI Considers DIL A Pillar Of Strength For Nigeria’s Industrial Growth
A total of 33 stocks advanced, with top gainers including Conoil, Aradel, Eunisell, John Holt, and Thomas Wyatt. Meanwhile, Tantalizer, NGX Group, and Wema Bank were among the 17 decliners.
Trading activity surged with a 744.54% increase in volume and 16.48% increase in value, as 744.54 million shares worth N16.48 billion were traded across 9,700 deals. Consolidated Hallmark led in volume with 124.8 million shares, followed by Japaul Gold and EllahLakes. FBN Holdings, which recently opened its N150 billion rights issue, also featured prominently on the volume chart.
This robust trading activity highlights renewed investor confidence and growing momentum in Nigeria’s capital market.
Business
Marketers Test Legality Of Banning Importation Of Refined Petroleum Products
Nigeria would soon have her own definition of free market, albeit by judicial interpretation, so long as the petroleum sector is concerned.
This follows the legal tussle on the legality of importation of refined products into Nigeria, on the heels of the deregulation of that sector.
Biztellers reports that three oil marketers, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have approached the Federal High Court in Abuja, praying for a dismissal of a suit filed by the Dangote Petroleum Refinery and Petrochemicals (DPRP) to stop them from importing refined petroleum products.
The marketers, in response to an originating summon filed by the DPRP, filed a joint counter affidavit marked: FHC/ABJ/CS/1324/2024, and dated November 5, 2024.
They maintained that granting the application of the DPRP would spell doom for Nigeria’s oil sector.
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Their legal and economic argument assert that any form of monopoly for Nigeria’s oil sector is a recipe for disaster.
Recall that the DPRP in its originating summon dated September 6, 2024, had sued the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria National Petroleum Corporation Limited (NNPC Ltd), AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as 1st to 7th defendants respectively.
Specifically, the DPRP prayed the court to declare that the NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.
It asserted that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
Consequently, the DPRP urged the court to declare that the NMDPRA was in violation of its statutory responsibilities under the PIA for not encouraging local refineries, the DPRP inclusive.
As a result, Shafa, A. A. Rano, and Matrix Petroleum, countered that the DPRP does not produce adequate petroleum products for the daily consumption of Nigerians.
According to their affidavit, the plaintiff had not placed anything before the court to prove the contrary.
They argued that they are well qualified and entitled to be issued an import licence by the NMDPRA to import petroleum products in Nigeria within the meaning of Section 317(9) of the PIA.
They also noted that they are fully qualified for the issuance of the import licences issued to them by the 1st defendant, as they duly met all the legal requirements for the issuance of such import licences, before the same were issued to them.
They categorically stated that, “The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.
“The import licenses issued to the defendants by the 1st defendant are in line with the provisions of the Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018, and other relevant laws.”
They insisted that giving the DPRP the power of monopoly in Nigeria’s petroleum industry as it sought in the instant suit, would kill competitive pricing of petroleum products in the country.
They cautioned that such an act would further deteriorate the country’s critically ailing economy.
They also added that it would “unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity”.
The marketers explained that if Nigeria puts all her energy eggs in one basket by stopping the importation of petroleum products and allowing the plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products will continue to rise and energy security will elude Nigeria.
In addition, they pointed out that should the DPRP break down being a monopolized sector, Nigeria would be plunged into a-difficult-to-manage energy crisis.
“That in the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises because it does not have the reserves that would last it for at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.
“That amidst the glaring absence of any credible and demonstrable proof that the plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, is a recipe for disaster in Nigeria’s energy sector,” they wrote.
They further told the court that granting the reliefs sought by the plaintiff was a design to leave Nigeria and Nigerians at the mercy of the plaintiff with respect to the availability and cost of purchasing petroleum products in the country.
The presiding judge, Justice Inyang Ekwo fixed January 20, 2025, for a report of settlement or service.