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Nigeria’ll be Second Biggest Rice Importer in 2019 –USDA

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Rice
  • Nigeria’ll be Second Biggest Rice Importer in 2019 –USDA

Nigeria’s rice imports will rise by 13 per cent next year to 3.4 million metric tons, making the country the world’s biggest rice importer after China, according to the US Department of Agriculture.

“China and Nigeria are projected to remain the largest rice importing countries in 2019, followed by the European Union, Cote d’Ivoire, and Iran,” the USDA said in its latest Rice Outlook released on Tuesday.

“Nigeria and Egypt are projected to account for the bulk of the 2019 import increase,” it added.

The forecast growth is a setback for the Nigerian government, which plans to stop rice imports by the end of this year to save foreign currency.

Production had increased more than 50 per cent since 2012 to 3.7 million tons last year. Domestic demand rose by four per cent to 6.7 million tons in the 2017-18 year that ended in May.

President Muhammadu Buhari wants to diversify Nigeria’s economy away from hydrocarbons, and agriculture is one of the sectors he has bet on.

The economy of the country, Africa’s biggest oil producer, is still recovering from a slump in 2016, after the crash in crude prices.

Rice farmers in Nigeria have reported a drop in output since last year due to a combination of higher input costs, insecurity and widespread flooding in the main growing regions. At the same time, people are giving up traditional coarse grains in favour of rice in the country of almost 200 million people.

“The rain has not been favourable to rice farmers this year,” Mohammed Sahabi, Chairman of the Rice Farmers Association of Nigeria in Kebbi, one of the main rice-growing states, was quoted by Bloomberg as saying.

“We lost more than 20,000 hectares of unharvested rice this year in Kebbi alone,” he added.

Last month, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said the heavy flood in about 14 states might lead to a shortage of rice across the country next year.

Ogbeh warned that if adequate measures were not taken to replant the rice affected by severe flood in some states, Nigeria might experience a shortage of the staple by 2019.

He stated these at the inauguration of the National Agricultural Seed Council Molecular Facility and the 2018 Seed Fair and Farmers’ Field Day in Abuja on Thursday.

He said the flood affected some major rice-producing states, and this might be risky in terms of rice availability in the country if not addressed.

Current global production exceeds consumption by 2.3 million tons, according to USDA, with 2018-19 “global ending stocks” projected to reach 163 million tons, 17.8 million tons more than previously forecast.

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

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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