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Nigeria Imports N362bn Worth of Wheat in 2018

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wheat
  • Nigeria Imports N362bn Worth of Wheat in 2018

Despite reports that agricultural productivity has been growing in Nigeria in recent years, data released by the National Bureau of Statistics showed otherwise.

In the Foreign Trade Statistics report released by the NBS, importation of agricultural goods increased for the most part of 2018. The report showed that wheat importation represents 42.5 per cent or N362.4 billion of the total N852 billion spent on importation of agricultural goods in the year.

Ayodeji Balogun, country manager, AFEX Commodities Exchange Limited, said: “If you look at the derivatives of wheat, it is top line food for the younger, (upper and lower) middle income class, and that population is growing.

“The population of people eating pasta will continue to increase, and every sachet of Noodles is a part of wheat. That number will keep growing and wheat is not a crop we have any efficiency in producing,” he added.

The Agricultural Promotion Policy (2016-2020) put Nigeria’s annual wheat consumption at 4.7 million metric tonnes and local production at a mere 60 thousand metric tonnes, leaving a deficit of 4.64 million metric tonnes. Suggesting manufacturers of bread, biscuits, semovita etc had to import 4.64 MMT of wheat in 2018 to meet growing demand.

According to Oluwasina Olabanji, executive director, Lake Chad Research Institute, Nigerian wheat farmers produced less than 300,000 metric tonnes in 2017 farming season, while that was better than the 2018 farming season, the deficit was still 4.5 metric tonnes.

Experts believed government intervention can help deepen wheat production and agricultural produce as a whole. A visit to Borno state last year, by BusinessDay, showed about 67,000 hectares of land that was farmed for Wheat in Chad basin has been abandoned and uncultivated for years due to the insurgency.

Abdulkadir Jidda, chairman, All Farmers Association of Nigeria (AFAN), Borno State chapter told journalist “nobody can go there now.”

The President, Wheat Farmers Association of Nigeria (WFAN), Salim Muhammad, revealed that the body has not received any intervention from the current administration. He said the last time they got any form of support was during Goodluck Jonathan administration under the Growth Enhancement Scheme (GES) programme.

“Since it stopped, nothing like intervention came to wheat farming,” Muhammad said.

Despite wheat budgetary allocation rising every year, wheat production continued to decline. Federal government reportedly approved N8.85 billion through the Ministry of Agriculture, yet nothing substantial has been achieved in the industry.

In the first quarter of 2018, Nigeria imported N72.8 billion worth of Wheat, N85.46 billion in the second quarter, N101.4 billion in the third quarter and N102.7 billion in the final quarter. Bringing the total amount spent on Wheat in 2018 to N362 billion.

However, local sugar production rose by 101.1 per cent in the same year, largely driven by the private sector. Same with rice production that has enjoyed government enormous intervention in recent years. Nigeria is now the largest rice producer in Africa after attaining 4 million tonnes a year.

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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