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Farmers Now Get Fertilisers at 50% Reduced Price

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fertilizer - Investors King
  • Farmers Now Get Fertilisers at 50% Reduced Price

Farmers have started accessing fertilisers at the new rate, which is about 50 per cent less than what obtained some weeks ago.

The Minister of Agriculture and Rural Development, Mr. Audu Ogbeh, had in January announced that the price of fertilisers would crash by half, down from N12,000/N10,000 to around N5,000.

Ogbeh also stated that a shipload of phosphate would arrive in Nigeria from Morocco and that blending of the product to manufacture fertiliser would commence immediately because Nigeria’s target in fertiliser production was between 700,000 and 800,000 tonnes per annum.

“Once the blending starts in the course of our negotiation, the price of fertiliser will fall by about 50 per cent,” the minister had stated.

Also, about two weeks ago, agro-dealers in Abuja stated that the shipload of phosphate had landed in Nigeria and that the price of the commodity would crash, although the product was not sold at the new rate then.

However, findings revealed that some farmers, particularly those in the northern region had started accessing fertilisers at the new reduced rate of N5,500 for a 50kg bag as opposed to the former price of N12,000 for the same quantity.

It was gathered that members of the Nigeria Agribusiness Group held a meeting last Wednesday, which focused largely on the new fertiliser price, as they urged the Federal Government to ensure that the commodity was sold at N5,500 per 50kg across the country.

The Chairman, All Farmers Association of Nigeria, Femi Oke, told our correspondent that the NABG, as well as other groups of farmers under the body, commended the Federal Government for slashing the cost of fertiliser.

He stated that the development would enhance crop production because more farmers would harvest improved yields as a result of their ability to access fertilisers at a cheaper price.

Oke said, “We are aware of the price reduction. In fact, the meeting we had with the NABG two days ago focused on the Federal Government’s decision to reduce the price of fertilisers. It is a very good gesture and we know ourselves and there won’t be any third party in the process. Farmers accept it and are happy with the Presidential initiative on fertiliser production in Nigeria and price reduction.

“In our meeting with the NABG, which is headed by Sani Dangote of the Dangote Group, we discussed this issue extensively and we came out with other ideas on how farmers will have one voice as regards the price and other issues. Also, we discussed how all the agencies and farmers will come onboard to take advantage of this initiative in order to increase crop yields.”

When asked if farmers had started accessing fertilisers at the new price, Oke said, “Definitely those of us who have not been able to get it at that rate will soon get it since the government has said it should be sold at N5,500, we are going to get it. I’m sure our counterparts in the North are already getting it at that rate.

“The government is very serious about this initiative and we welcome such seriousness; we have no doubt about it. I’m definitely sure that some farmers in the North have started accessing it at the new price.”

Also confirming the price reduction and fertiliser accessibility by farmers, the National Chairman, Agro-dealers Association of Nigeria, Mr. Kabiru Fara, told our correspondent that part of measures put in place by government to bring down the cost of the commodity and enhance its distribution was the approval for payment of the balance of N22bn out of the N66bn that was owed agro-dealers.

He explained that the debt was owed by the previous government, but its payment was recently approved by President Muhammadu Buhari.

Fara said, “We will use this payment to buy what fertiliser producers produce and distribute it across the market at N5,500. So, releasing our money will make the presidential initiative on fertiliser distribution very easy.”

Similarly, the Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, had confirmed that the government of Morocco had supplied the shipload of phosphate for fertiliser blending in Nigeria.

This, he said, would boost agriculture across the country, adding that several blending plants had commenced fertiliser production in many states.

Baru, who spoke at the Abuja headquarters of the corporation, said, “The Moroccans have already supplied a cargo of phosphate, which has been delivered to various blending plants across the country. Already, 11 blending plants have come into production because of the supply.

“I am happy to inform you that this development has translated to the creation of about 50,000 jobs and led to the production of about 1.3 million tonnes of fertiliser in the country.”

He added, “Following the arrival of the first consignment, the Moroccans have also given Nigeria a generous credit term of 90 days and they are planning to bring in more cargoes that will fit the various blending plants in the country.”

The South-West Coordinator, Nigeria Export Promotion Council, Mr. Babatunde Faleke, said exporters had been paying duties between 16 and 25 per cent, which could be removed if they had exported under the AGOA programme.

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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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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