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Ranches: FG to Use Own Land as States Resist

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  • Ranches: FG to Use Own Land as States Resist

The Federal Government has decided to use some of its own land in various parts of the country for the establishment of ranches in order to put an end to clashes between herders and farmers across the nation.

It was learnt that the Federal Government’s decision was prompted by the continued delay of state governments in providing land for ranches.

Our correspondent gathered that the Federal Government would use its land as well as some identified grazing reserves for the establishment of ranches.

On July 14, 2018, it was exclusively reported that with the refusal of some state governors to give land for ranching, the Federal Government had decided to reactivate and convert about 177 out of the 415 grazing reserves across the country to ranches.

It was also reported that aside from Kogi State that had officially agreed to provide about 5,000 hectares of land, no other state had publicly announced willingness to provide land for ranches or cattle colonies, which the Federal Government favours.

Governors of the South-East states in July rose from a meeting in Enugu with a decision that no land would be made available for the establishment of cattle ranches in the zone, while other states have deliberately been delaying in acceding to the request of the Federal Government.

Officials of the Federal Ministry of Agriculture and Rural Development, however, stated that the Federal Government was still making plans to establish ranches across the country despite the delay by state governments.

They told our correspondent in Abuja that the government recently realised that it had more than enough land for this purpose.

The Director, FMARD, Tolu Makinde, said, “The latest decision is that the government has more land than required, even as far as ranching is concerned. There are various pieces of land in different locations across the country that have been documented and gazetted, the Federal Government has decided that it is better to use them than ask state governments to donate land.

“So, the decision has been taken and the issue now is funding, but as soon as the release from the 2018 budget starts to come in, the government will come up directly with what it intends to do. So many options are being considered.”

Makinde noted that with the latest development, the government would not compel any state to donate land for the establishment of ranches or grazing reserves.

He, however, observed that a lot of people had encroached on some of the Federal Government’s grazing reserves, adding that the remaining ones and the available land were more than enough for the establishment of cattle ranches.

Makinde added, “The fact now is that the government has discovered that it has more land and it is not compelling any state to donate land for grazing reserves or for ranches.

“It may interest you to know that the number of grazing reserves that the government has; some of them have been encroached upon. However, the remaining available ones are more than enough.”

When asked to state where the Federal Government’s pieces of land were located, he replied, “Before Nigeria got independence, the colonial masters actually had land scattered from Maiduguri to Sokoto, up to Oyo. These were large expanses of land that were mainly left for only grazing.

“And so, when the herders are migrating with their cattle, they go to these pieces of land; they don’t go to the land of other people. But problem started when we now decided to create states, as some of the land fell within some states. And some state governments decided to take them over.

“However, the ones that are documented and gazetted right now are more than enough for the Federal Government to use, instead of asking state governments to donate. So, it is the gazetted land that the government is trying to do something about as well as the identified grazing reserves.”

Another official of the ministry stated that the government would use the gazetted land as demonstration grazing centres.

“The government is going to use the gazetted land as demonstration centres, because it will have security there. There will be dams in these grazing centres to ensure adequate water supply,” the official, who pleaded to remain anonymous, said.

“This is because three things are required in these centres. There must be security, water and fodder, which is grass for the cattle to feed on. So, anybody who wants to make use of the place will bring his livestock there and pay some token. This is against the earlier claim that the government is trying to take the land of citizens,” the official stated.

The ministry said it would commence public enlightenment campaigns to educate Nigerians on the need to create ranches and why the Federal Government would use its own land for the purpose.

“It is becoming clear now that we don’t have any vibrant alternative to addressing the clashes than the establishment of ranches. And this is because it is going to benefit the farmers and herdsmen. Also, the minister (of agriculture) recently revealed that there is going to be a programme for artificial insemination in some of these centres,” Makinde stated.

He noted that a number of state governments gave indication that they would provide land for ranches, but only Kogi State had fulfilled its part.

It was also learnt that about 15 other states had volunteered to provide land for the establishment of cattle ranches.

They include Adamawa, Kano, Kaduna, Katsina, Zamfara, Kebbi, Nasarawa and Plateau.

Others are Bauchi, Gombe, Borno, Jigawa, Yobe, Niger and Kwara states.

Findings from the headquarters of the FMARD in Abuja showed that while there were dissenting voices in some of the documented states that had volunteered to provide land, the 15 states had agreed to provide 5,000 hectares of land each for the establishment of ranches.

Earlier this year, the Minister of Agriculture and Rural Development, Audu Ogbeh, announced that the establishment of cattle colonies in the states that had volunteered land would commence within weeks.

This, however, has not happened.

Senior officials at the agriculture ministry re-echoed what Ogbeh said, as they stressed that the Federal Government would not force any state to volunteer land for the initiative.

The officials, however, stated that the 16 northern states had been documented as locations where the initiative would start, adding that the government was canvassing support from more states, particularly from the southern part of the country.

Ogbeh’s Special Assistant on Media, Olukayode Oyeleye, and Makinde provided our correspondent with various speeches by the minister, which extensively explained how the Federal Government planned to go about the initiative.

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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Economy

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

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Gas-Pipeline

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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Economy

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

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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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Economy

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

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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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