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FG okays N60bn for rice subsidy

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Rice mill
  • FG okays N60bn for rice subsidy

The sum of N60bn has been approved by the Federal Government as a subsidy for rice production in the country, the Minister of Agriculture, Chief Audu Ogbeh, said on Friday.

He spoke with State House correspondents after the National Food Security Council ended its meeting at the Presidential Villa.

President Muhammadu Buhari presided over the meeting.

The minister explained that the subsidy was meant to cut down prices.

Ogbe, who was flanked by the Kebbi State Governor, Atiku Bagudu, explained that the purpose of the subsidy was to help bring down the price of the commodity in the country.

He said, “There is a subsidy programme coming up. The government has approved some money, N60bn, to support the rice industry to bring down prices. But, we are going to handle it differently.

“We don’t want to get into petroleum subsidy problem. So, a committee is looking at it with the Ministry of Finance.

“We think that it is better for us to loan money to the millers, farmers and distributors at a very low-interest-rate so that the capital doesn’t disappear and they have cheaper credit to do their business that should impact on the price of rice in the market.

“When we are ready, we will let you know.”

On the use of NPK 151515, a brand of fertilizer, by farmers, Ogbeh stated that government’s intention to place a ban on it was real.

He said the reason was that the fertilizer brand did not add much value to crop production by the farmers.

The minister added, “We call for the ban of fertilizer NPK 151515, which has been used in the country for many years but recent research has revealed that it is not useful for any crop or any soil.

“Soils differ and so do crops. To believe there is one uniform fertilizer you can spread for every crop is a fallacy. And it is because we have done soil tests and change the formulation of fertilizers, local blenders, that some of the yields we are getting now are rising from two tonnes per hectare to five and six.

“So, the President is looking into that and how we can deal with it.”

Kebbi State Governor, Atiku Bagudu, who also addressed journalists, recalled a recent report by the United States Department of Agriculture, indicating that Nigeria was still a major importer of rice.

“We drew the attention of the Council to a report, which suggested that Nigeria had been importing rice to the tune of about three million tonnes.

“We informed the council that contact has been made with the US agency to tell us the basis for the report because it is not consistent with the report available to us.

“The only official importation in Nigeria is about 4,000 metric tonnes of rice.

Secondly, the biggest exporter of rice, Thailand, exported 1.1 million metric tonnes of rice to West Africa between January and October this year and India exported 402 million metric tonnes of rice to West Africa between January and the end of July this year.

“That is a total of 1.5 million metric tonnes.

“Even if all was smuggled into Nigeria, that was the total amount of importation one could attribute to Nigeria.”

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.

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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