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Osinbajo: Farmers to Secure Credit at Single Digit from Bank of Agriculture

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Vice President Yemi Osinbajo

Vice President Yemi Osinbajo monday said efforts were being made to ensure that farmers secure financing from the Bank of Agriculture (BoA) at single digit interest rate in a determined move to boost agriculture as part of government’s diversification strategy.

He said the Federal Ministry of Finance had practically concluded plans to recapitalise and re-engineer the BoA adding that the bank should be ready to give single digit rates by the end of the quarter.

He said with the current double digit interest rate and reluctance by commercial banks to lend to agriculture, there was need to develop alternative model for financing the sector in the short term.

He said the Central Bank of Nigeria’s (CBN) Anchor Borrower programme has been useful and had recorded huge successes in local rice and wheat production through the provision of loans at single digit.

Speaking yesterday in Abuja at the unveiling of the “Green Alternative: the Agriculture Promotion Policy 2016-2020” which is a four-year blueprint on growing the sector, he said repositioning agriculture was critical for economic transformation.

He said the sector would not only be revived to achieve food security but also have the capacity to produce and export to earn foreign exchange.

He said the inability of past administrations to adhere to policy direction and the unbridled importation of items which ought to be produced locally, coupled with high interest loans to farmers were some of the major drawbacks to the development of the sector.

He said the current administration inherited a near colapse economy and had to take far reaching decisions to reposition it.

According to him, one of the most critical component of the plan was to position agriculture as arrow-head of its recovery efforts.

“There’s no question at all that if we get agriculture right, we will get our economy right,” he said.

He added that the roadmap identified the inability to meet domestic requirements which is more of productivity challenge as well as inability to export at levels required or market success adding that the Green Alternatives will solve the challenges.

He said: “You cannot have a policy of encouraging local production of food and on the other hand, have a high tarrif on imported agricultural equipment. There’s no way that we can encourage local production when we allow unbridled importation of the same thing that we are trying to produce.

“There’s no way we can do the scale of agricultural production both for domestic consumption and export without ensuring local improved seedling development alongside those that we import. And of course, encouraging the works of the agents of the ministries of science and technology who have been making great breakthroughs in local development of agricultural equipment.”

Osinbajo said as part of the 500,000 teachers that federal government plans to recruit, about 100,000 will be trained as extension workers for the farms.

He commended the Minister of Agriculture and Rural Development, Mr. Audu Ogbeh, for what he described as his unbridled advocacy for a new policy on agriculture and for also spearheading the policy development within a short period.

Nevertheless, Ogbeh thanked both President Buhari and Osinbajo for their support in ensuring that a blueprint on agriculture was developed.

The minister said the new document was not entirely new as it was built upon the Agricultural Transformational Agenda (ATA) of the previous administration.

He maintained that the present administration had no intentions to jettison good ideas from the past regime noting that policy summersaults were often costlier than new initiatives.

He said adjustment would be made to past administration’s policies where necessary.

He expressed confidence that with the recent interventions, “It won’t be long before we begin to cruise to reasonable altitude.”

He said government would work with state governments to put over 200 dams located across the country into use.

He added that stakeholders would now be expected to use only duly certified fertilizers by government as well as adhere to advisory of soil conditions for bumper yields.

The federal government has already invested massively in soil mapping/testing aimed at increasing crop yields.

He said adequate security arrangement was being put in place to shield local and foreign investors into agriculture from the snares of armed robbery and kidnapping.

On the new policy document, Ogbeh said there had been no alternative to oil and gas in the past 30 years while agriculture had totally been relegated, a situation which according to him led to annual food import bills at a historic $22 billion.

He said given Nigeria’s population projection, the government cannot continue to subsidise feeding, adding that “We have to feed or perish.”

He said tales of widespread hunger will be brought to an end as government expects bumper harvest this year, bouyed by innovations in fertilizer utilisation and education of farmers on new ways of doing things.

Essentially, the new 129-page policy document produced by the ministry of agriculture after extensive consultations with stakeholders, among other things, targets three key pillars including productivity enhancements, crowding in private sector investment and institutional strengthening/realignment.

The key objectives is to grow the agricultural sector to between six to and 12 per cent annually; doubling agricultural household incomes in 6 to 12 years and integrating agricultural commodity value chains into the broader supply chain.

Other immediate targets are to drive job growth and wealth creation as well as ensuring enhanced capacity for foreign exchange earnings.

The six focal areas of intervention include institutional setting and roles, youth and women, infrastructure, research and innovation, and food and national security as well as climate smart agriculture.

He said currently, government’s drive towards food security is in progress particularly for rice, maize, sorghum, millet, wheat, and animal products and tomato paste.

The minister added that the new policy would further educate the people on how to keep bees which are critical for pollination of farm produce particularly tomatoes.

He also said government is presently addressing the issues around cattle rearing and the incessant conflicts with farmers, adding that it is also working with state governments to secure the grazing reserves for herdsmen, a situation that could limit movement and reduce confrontations.

Ogbeh said government’s focus was also to promote commercial agriculture to go side by side with subsistence farming in order to boost exports.

He said a lot of investments would go into palm oil and lemon grass oil productions for export.

He said the new document will also require all undergraduates in tertiary institutions to own farms on campus.

The minister lamented that the 774 local government areas in the country have almost collapsed when it comes to agriculture, stressing that they all must be brought back into the system.

He said whatever the problems of local government are they must be productive or better scrapped.

He, therefore, enjoined every Nigerian to take to farming to save the ailing economy while assuring them of government support.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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