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GDP: Govt Targets N21tn From Agriculture



  • GDP: Govt Targets N21tn From Agriculture

The Federal Government has said it will raise the contribution of agriculture to the nation’s Gross Domestic Product by N5tn before 2020.

It stated that the country’s GDP from agriculture, which stood at N16tn in 2015, would be increased to N21tn in the next three years.

It stated strategies being put in place to achieve this feat in its Economic Recovery and Growth Plan for 2017 to 2020, which was released last week by the Federal Ministry of Budget and National Planning.

Outlining its policy objectives for the sector, the government said it would “increase agriculture GDP from N16tn in 2015 to N21tn in 2020 at an average annual growth rate of 6.92 per cent from 2017 to 2020.

“Government will significantly reduce food imports and become a net exporter of key agricultural products, such as rice, tomatoes, vegetable oil, cashew nuts, groundnuts, cassava, poultry, fish, livestock and Nigeria will become self-sufficient in tomato paste by 2017; rice by 2018; and wheat by 2019/2020.”

The ERGP document noted that in 2015, agriculture accounted for just 23.1 per cent of the GDP and employed about 38 per cent of the working population.

It divided the country’s agriculture sector into four sub-sectors, which were given as crop production, representing 89 per cent of agriculture GDP and recorded 4.1 per cent growth in 2010-2015; livestock, eight per cent, with 3.3 per cent growth; fishing, two per cent, with 7.5 per cent growth; and forestry, one per cent, with 4.3 per cent growth.

On strategies being put in place to meet the targeted N5tn growth in the GDP, the government said it was supporting the integrated transformation of the agriculture sector by boosting productivity in all the four sub-sectors, as well as improving access to markets.

Outlining some key activities to embark upon, it stated that it would fast-track the development and execution of irrigation projects; enhance agricultural extension services, including through N-Power programmes, from the current ratio of 1:3,000 to 1:1,000 by 2020.

It said it would improve access to finance; extend the Anchor Borrowers Programme of the Central Bank of Nigeria to all states and major crops and recapitalise the Bank of Agriculture to provide single-digit interest rate credit to small-scale farmers through the network of micro-credit banks.

The government further stated that it would strengthen the CBN schemes to improve access to finance for all players, including the Agricultural Credit Guarantee Scheme, Commercial Agriculture Credit Scheme and the SME Credit Guarantee Scheme, which will include long-term sunset clauses.

The Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri, had earlier said that the agriculture sector would play a vital role in the economic recovery plan of government.

Lokpobiri, who spoke at an event in Abuja, observed that the government was working to diversify the Nigerian economy, away from oil, using agriculture.

According to him, the government is making concerted efforts to achieve its backward integration programme, adding that this will make Nigeria to be self-sufficient in food production when successfully achieved.

The ERGP document further stated that agriculture in Nigeria was facing four big challenges.

It listed the challenges as limited access to financing and inputs for farmers; serious threat of climate change to yield; limited access of agricultural outputs to the national and international markets; and security threats to agricultural investment including cattle rustling, kidnapping, and destruction of farmlands by herdsmen.

It said most farmers struggled to obtain financing to modernise or expand their farms; as well as invest in productive assets or buy inputs.

It added, “To address these issues, the Federal Government launched the Growth Enhancement Support scheme in 2012 to supply subsidised inputs to smallholder farmers. As of mid-2015, 14 million farmers had registered in the scheme.”

To increase agricultural productivity, it stated that government had also mapped soil characteristics across the country and inaugurated irrigation projects.

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

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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024




The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%



IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty



South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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