Connect with us

Business

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

Published

on

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.

Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Business

Shell Reinforces Safety Commitment at CEO Contractors Forum

Published

on

The 2026 annual Shell Leadership and Contractor CEO Conference, which aims to shine a light on “a shared commitment to people, performance and safety,” held in Lagos on August 18.

A company statement has it that the event brought together chief executives of contracting companies and highlighted the need to sustain safe operations across its businesses in Nigeria.

The theme of this year’s event is “Learn. Adapt. Improve.” Addressing the session, Executive Vice President and Country Chair Nigeria, Elohor Aiboni said: “Shell is delivering an extensive portfolio of projects and operations that will help meet Nigeria’s growing energy needs, create value for our stakeholders, and support national development. We are advancing major opportunities, executing complex work, and pursuing ambitious goals. But no matter how significant the opportunity, no matter how important the project, our success will always be measured first by how safely we deliver it. That is why this conference matters.”

READ ALSO: Citizens Agitation Threaten Resumption of Oil Exploration in Ogoniland

The conference featured among other things, discussions and cascade of learnings, an exhibition and awards and recognitions for outstanding safety performances. The highlight of the event was the signing of the Leadership Charter which was jointly created in 2025 through collaboration between SNEPCo and her contractor partners.

“This year’s conference theme, Learn. Adapt. Improve, connects strongly with the purpose of the Charter,” SNEPCo Managing Director Ronald Adams said before the signing. “To learn, we must be honest about what has worked, what has been difficult, and what our people and operations are telling us. To adapt, we must be willing to adjust our approach where the realities of work require us to do better. To improve, we must make sure that the commitments in the Charter are not only discussed during conferences, but embedded into how we lead, how we engage, how we review performance, and how we support safe execution every day.”

Elohor reiterated the place of safety in company operations, adding: “Every person who works for Shell or on behalf of Shell deserves to return home safely to their family, every day, without exception.”

Continue Reading

Business

Oando Tables Foreign Listing Before Shareholders

Published

on

Leaf Investment Emerges Substantial Investor in Oando

The desire to deepen access to international investors and capital markets has seen Oando Plc table a strategy to list its shares on one or more foreign stock exchanges before shareholders for approval.

The energy company’s proposal is contained in the agenda for its 47th Annual General Meeting (AGM), scheduled to be held virtually in September.

Under the special business before shareholders, the company is asking its shareholders to authorise its Board of Directors to approve and implement the listing of Oando’s shares on any foreign stock exchange or exchanges it considers suitable.

If approved, the resolution will empower the board to take all necessary steps, execute relevant documents and meet the listing requirements of the selected foreign market, subject to obtaining all required regulatory approvals.

READ ALSO: DPRP Receives $1bn Guarantees for Upcoming IPO

The firm said the proposed mandate was deliberately not tied to a particular foreign exchange, giving the directors the flexibility to determine the market or markets considered most appropriate for the company.

The move would ultimately widen access to Oando shares among international investors, improve the company’s visibility outside Nigeria and potentially increase its liquidity and market.

The proposed cross-border listing comes as Oando continues to position itself as an integrated energy company with operations and investments across different markets.

Shareholders will also consider a general mandate covering transactions with related parties and interested persons. The mandate would allow the company to obtain goods, services and financing from related parties for its normal business operations, provided such transactions are conducted on commercial terms and comply with its transfer pricing policy and applicable Nigerian regulations.

The meeting will also consider the ratification of qualifying related-party transactions entered into before the AGM.

In another major proposal, Oando plans to amend its articles of association to expressly allow general meetings to be held physically, electronically, virtually or through a combination of these arrangements, subject to applicable laws and the rights of shareholders to participate and vote.

The company is also seeking approval to amend its Memorandum of Association to expand its business objects to include activities relating to digital assets and digital representations of value, rights, interests, obligations and ownership.

Continue Reading

Business

DPRP Receives $1bn Guarantees for Upcoming IPO

Published

on

To underline readiness for its Initial Public Offering (IPO) now in the offing, the Dangote Petroleum Refinery and Petrochemicals (DPRP) has secured a $1bn underwriting for the capital raising.

The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600m private placement and a further $400m underwriting commitment in support of the refinery’s planned IPO.

This was detailed in a statement on Tuesday, in which the Dangote Group said that the $600m private placement has been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

It added that Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors.

READ ALSO: With Sights Restored, NNPC/Shell Vision First Outreach Makes Mark in Badagry

The response, according to the advisers, has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value.

The programme is also expected to catalyse significant intra-African capital flows and help pave the way towards a more integrated African capital market under the auspices of the African Continental Free Trade Area (ACFTA).

President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for both the refinery and African capital markets.

“This is an important milestone for DPRP and for African capital markets,” Dangote said, adding that the transaction reflected confidence in the refinery’s strategic role and created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.

“The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role. The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa,” he said.

Chairman of Marob Strategies, Prof Benedict Okey Oramah, said the transaction demonstrated the appetite for African-led capital markets transactions providing access to transformative assets on the continent.

“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.

“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.

Also, Chairman of Lilium Capital Group, Simon Tiemtoré, described the mandate as part of the firm’s effort to connect major African opportunities with institutional investors across Global Africa and international markets.

“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets.

“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent.

“We are proud to support DPRP on this landmark transaction and look forward to mobilising capital for more transformative projects that create lasting value for Africa”, he said.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x