Economy

Bumper harvest: Operators Predict Rice to Sell for N6,000/Bag

Published

7 years ago

October 5, 2017

Bumper harvest: Operators Predict Rice to Sell for N6,000/Bag

Rice farmers, millers and processors on Wednesday announced that the price of a 50kg bag of the produce would fall to around N6,000 in the next few months.

According to them, the current market price of rice, which is about N15,000 per 50kg bag, will drop to between N6,000 and N7,000 in a couple of months going by the bumper wet season harvest by farmers.

Speaking on the sidelines of a meeting between the rice farmers/processors and the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at the ministry’s headquarters, in Abuja, the National President, Rice Farmers Association of Nigeria, Mr. Aminu Goronyo, told journalists that the operators had resolved to reduce the price of the commodity to N13,000 per 50kg bag, but stressed that the price would further drop to N6,000 in the coming months.

He said, “This is just the beginning, the actual price of rice will come down because we are expecting a bumper harvest this year. We have sat down with the millers and agreed that we are going to work together in the interest of Nigerians.

“I think you had been buying a bag of rice at the cost of N18,000; but today, the price is between N13,000 and N15,000; meaning that the price is coming down.”

Asked whether the price would crash further as was the case some years back, Goronyo replied, “Of course! Not even N7,000, it will crash to N6,000. Just give us some time; in fact, in the next few months, it will be N6,000 for 50kg.

“You have heard what the minister said earlier. Our major challenge is the cost of production, but the minister has promised to bring down this cost to a very minimal level. I won’t state a particular month, but I can tell you that this will happen in the next few months. The various stakeholders, including the Central Bank of Nigeria, have all agreed to work with us.”

The President, Rice Processors Association of Nigeria, Abubakar Mohammed, stated that operators in the rice value chain were working hard to crash the price of the commodity.

This, he said, prompted the meeting with Ogbeh, as he explained that rice farmers, millers and processors had agreed to cut down the cost of rice paddy, a development that would obviously bring down the market price of the commodity.

Mohammed stated, “We came here to inform the minister about our agreement with farmers on the price of paddy for rice production. This is what brought us here together with the farmers’ association to let the minister know that we have agreed on a price per tonne of paddy for the 2017/2018 wet season harvest.

“The price is N110,000 at the farm per tonne of paddy. Bringing this down in relation to the cost of one bag of rice, as we mentioned it to the minister earlier, a 50kg bag will now drop to between N13,000 and N13,500. This will reduce further in the coming months.

“Before, we used to buy paddy at the rate of N140,000 to N150,000 per tonne, and we sold at about N16,000 per 50kg bag . So, if this works, we hope to sell a bag of rice at between N13,000 and N13,500, according to where you are in the country; and the paddy cost will be N110,000 per tonne.”

Asked whether there were doubts as to the workability of the latest initiative between the private sector players and the Federal Government, Mohammed replied, “No! We have just signed the Memorandum of Understanding. So let the process start and if it works, then it is fine for everybody.”

Earlier in his address during the event proper, Ogbeh assured his guests that the Federal Government would give them the required support, as he noted that it was in the interest of Nigerians and local rice dealers to further cut down on the price of the commodity.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

FIRS VAT Revenue Surges to N1.56 Trillion in Q2 2024 Amid Economic Struggles

Published

2 days ago

September 10, 2024

Samed Olukoya

The Federal Inland Revenue Service (FIRS) generated N1.56 trillion in Value Added Tax (VAT) in the second quarter (Q2) of 2024, according to the latest report from the National Bureau of Statistics (NBS).

This represents an increase of 9.11% compared to the N1.43 trillion reported in the first quarter of 2024.

A breakdown of the report showed that local VAT payments accounted for N792.58 billion of the total amount generated, while foreign VAT payments stood at N395.74 billion, and import VAT contributed N372.95 billion.

A quarterly analysis of the report revealed that human health and social work activities recorded the highest growth rate with 98.44%. This was followed by agriculture, forestry, and fishing with 70.26%, and water supply, sewerage, waste management, and remediation activities with 59.75%.

On the other hand, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84%, followed by real estate activities with –42.59%.

Sectoral analysis showed that the manufacturing sector contributed the most at 11.78%. Information and communication and mining and quarrying contributed 9.02% and 8.79%, respectively.

Nevertheless, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organizations and bodies with 0.01%, and water supply, sewerage, waste management, and remediation activities and real estate services with 0.04% each.

On a year-on-year basis, VAT collections grew by 99.82% from Q2 2023 despite ongoing economic challenges.

Nigeria’s inflation rate remains well above 30 percent, while new job creation is almost nonexistent.

Other key economic factors, such as investor sentiment, the purchasing managers’ index, and consumer spending, remain weak amid intermittent protests by citizens demanding improvements in quality of life.

Economy

Nigeria Sees 9.11% Increase in VAT Revenue, Generating N1.56 Trillion in Q2 2024

Published

3 days ago

September 9, 2024

Investors King

The federal government in the second quarter of 2024 generated a total of N1.56 trillion from Value Added Tax. This is a 9.11 percent increase from the N1.43 trillion in Q1 2024.

According to the National Bureau of Statistics report, local payments recorded were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

“On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and water supply, sewerage, waste management and remediation activities with 59.75%,” NBS reported.

“On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84%, followed by Real estate activities with 42.59%.

“In terms of sectoral contributions, the top three largest shares in Q2 2024 were
manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organisations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and real estate services 0.04% each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.”

Economy

Finance Minister Denies VAT Hike, Confirms Rate Remains at 7.5%

Published

3 days ago

September 9, 2024

Investors King

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Monday, debunked reports doing the rounds that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10% from 7.5%.

The Minister, in a statement signed by him, affirmed that VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

“The current VAT rate is 7.5% and this is what government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of government.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses to flourish.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun said