Commodities

Wheat Importation Costing Nigeria N2trn Annually: FMAN Laments

Published

3 years ago

February 8, 2022

Members of the Flour Millers Association of Nigeria have decried about N2 trillion yearly losses incurred on the importation of wheat from Canada, the United States, Mexico and other countries.

FMAN made the disclosure at the 2022 edition of the annual Wheat Farmers Greenfield Day, organised by the association, on Tuesday, in one of the largest wheat farms in Zindi, Misau LGA of Bauchi State.

According to the National President of FMAN, Alhaji Salim A. Salim, wheat farmers in the country have not been able to meet up the demands, as Nigeria is one of the top consumers of the commodity. Calling for increased wheat farming, Salim stressed that the importation of wheat has a negative impact on Nigeria’s economic growth, costing the nation N2 trillion annually.

Salim advised that if Nigeria can get serious with wheat production, “we will save money and make our farmers wealthy. We need to concentrate on farming wheat to meet up with our local demand.”

Applauding the Central Bank of Nigeria’s agricultural initiative – Anchor Borrowers’ Programme, the FMAN president explained that the scheme aided in boosting wheat farming and production in 15 Northern states. He urged more farmers to key into the initiative and participate in the program to boost wheat production in the country, significantly reducing the level of importation.

Salim also assured the farmers that their products will be purchased directly by FMAN association members. He added that presently, there are 27 demonstration wheat farms in 7 Local Government Areas across Bauchi state.

Wheat is a popular commodity in Nigeria as an estimated 75 million food portions consumed daily in Nigerian homes are wheat derivatives. Food products such as semolina, bread, noodles, and pasta among others are produced from wheat flour. They form a regular part of meals in most urban and rural households across the country.

On his part, the state governor, Senator Bala Mohammed Abdulkadir, represented by the Commissioner of Agriculture and Rural Development, Tula Mbami commended the Anchor Borrowers’ Programme, funded by the CBN. While declaring the programme opened in Bauchi, Mohammed stated that if well implemented, the country will benefit from growth in food production and security, while imports will be reduced.

The governor said his administration is ready to support agricultural development, as it has invested much in the sector, through the procurement of improved seedlings, pesticides, chemicals and other farming implements. He advised the farmers to reciprocate the government’s efforts by committing to increasing wheat production.

He said, “Bauchi State has been in the forefront of wheat production over the years. We are ready to do that again as can be seen here in Zindi wheat farm.”

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Commodities

Cooking Gas Prices Surge Amidst Import Reliance, NIPCO CEO Calls for Local Refinery Support

Published

7 days ago

October 15, 2024

Yetunde Olugbenga

Just like the surge in fuel pump prices, the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased.

The Managing Director/Chief Executive Officer of the Nigerian Independent Petroleum Company (NIPCO) Plc, Suresh Kumar, has urged the Federal Government to encourage Dangote Refinery and other domestic refineries to produce LPG to help lower the soaring price of cooking gas.

According to experts, the increase in cooking gas prices was due to insufficient local production.

Meanwhile, at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar revealed that over 60 percent of the cooking gas consumed in Nigeria is imported, which is a major factor behind the price hike.

Kumar acknowledged that support for local refineries would boost cooking gas production and reduce LPG importation.

“There is hope that reliance on imported LPG will decrease, which will positively influence domestic prices. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics,” he stated.

Kumar further noted that the Federal Government should provide financial aid by investing in local refineries to accelerate LPG production, meet public demand with adequate supply, and reduce costs.

“We must work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to end gas flaring in the country. Substantial investments are needed to capture and process flared gas to increase domestic supply beyond the current 1.5 million MT to at least 5 million MT annually,” he reiterated.

As of the time of this report, Investors King gathered that in the Osogbo area of Osun State, the price has risen from N1,400 to N1,500. In Ilorin, Kwara State, it is currently being sold for N1,500.

Meanwhile, in Lagos State, the current price is N1,400, compared to the previous price of N1,300.

Commodities

Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

Published

3 weeks ago

October 2, 2024

Bassey Marshall

The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

Commodities

Osun Government Seals Off Gold Mining Company For Allegedly Evading Tax

Published

3 weeks ago

September 30, 2024

Ugwoke Ogbodo

The Osun State Government said it has sealed up the business premises of Segilola Resources Operating Limited over alleged tax evasion.

A statement by the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, on Monday, said the action followed a court order permitting the state to seal the company for “various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.”

“Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the State as a subsidiary of Thors Explorations Limited listed on London and Toronto Stock Exchanges.

“After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations. The Attorney-General of Osun State approached the court and consequently obtained an Order of the Court to seal up the Company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government Account.

“The state notes with regret that while some companies make billions of naira in the state, especially in the mining sector, they are not ready to give the state its lawful dues.

“While the issue of shareholding values due to the acquisition of Osun state interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions,” he said.

Recall that the gold mining company, in a statement by its Country Manager, Austin Menegbo, had denied the allegations by the state government, claiming that it has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.