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LCCI lambasts FG’s N60bn phones-for-farmers policy

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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.

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Audit Report Exposes ₦514bn Financial Infractions In NNPCL

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Nigerian National Petroleum Corporation Limited, NNPCL,

The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).

The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.

READ MORE: Powerful 6.8-Magnitude Earthquake Hits China, Dozens Killed

Breakdown of Infractions

The audit detailed four major financial discrepancies within NNPCL:

“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.

“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.

“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.

“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.

The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.

According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.

However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”

The deductions were made unilaterally by NNPCL without adequate documentation or justification.

Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.

“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.

“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.

“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”

On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”

The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.

It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”

 

 

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Opayemi Salutes Sanwo-Olu Over Successful Lagos Shopping Festival

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The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.

This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.

According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.

ALSO READ: Tinubu Okays Bulletproof SUVs, Medical Benefits, Others For Retired Army Generals

While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.

For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.

On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.

While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”

On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”

A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.

Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.

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Naira Depreciates In Parallel Market, Gains In Official FX Market

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Naira To Dollar Exchanges At N464.67

The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.

In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).

RELATED NEWS: Naira Weakens Against Dollar Amid FX Shortages

This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).

As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.

 

 

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