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Agricultural Productivity in Nigeria Abysmal Due to Rising Cost of Farm Inputs – Experts

The Chief Executive of Nigerian Agricultural Mechanisation And Equipment Leasing Company (NAMEL) Dr. Ahmed Adekunle, has described agricultural productivity in Nigeria as terrible lately.

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Agriculture

The Chief Executive of Nigerian Agricultural Mechanisation And Equipment Leasing Company (NAMEL) Dr. Ahmed Adekunle, has described agricultural productivity in Nigeria as terrible lately.

He stated that Nigeria’s agricultural productivity is growing at less than 1 percent which he lamented is not good for the country as it poses a lot of challenges.

While speaking at the flag-off of the Rural Agricultural Development Consortium (RAD-C )with the theme ” Repositioning Nigeria Agriculture for Global Competitiveness” in Abuja, Dr. Adekunle disclosed that the reason for the slow growth in the nation’s agricultural sector is due to the 200 percent increments in the prices of farm inputs.

In his words, “Today with the rising cost of farm inputs where there are over 200 percent increments in the prices of herbicides and fertilizers, the cost of a tractor in 2013 was 5.5 million naira but today it has increased to 35 million Naira for the same tractor.

“The price of diesel has increased by almost 300 percent and our population is projected to be 263 million by 2030 and 401 million by 2050 according to Development experts yet our agricultural productivity is growing at less than one percent.

“The question is how then do we feed the over 250 million people by 2030? How do we achieve so much economic diversification and be part of the global agriculture competitiveness like Brazil, China, India, Thailand, Vietnam, etc?

He further proposed a solution that would solve Nigeria’s agricultural challenges, by stating that the country’s agricultural sector needs to be repositioned to enable it to compete for global competitiveness and also to address the issue of food insecurity in the country.

He said the implementation of the RAD-C Model was necessary, as it would fast-track projects for national food, nutritional and social security.

This model according to him is not going to compete with smallholder farmers for the available lands but will develop the unused contiguous arable lands, opening new opportunities for the communities and the farmers.

It should be recalled that on September 30, 2022, Investors King reported that Nigeria’s Agricultural sector performed below its potential, after the National Bureau of Statistics (NBS) revealed that agriculture accounted for 23% of the country’s GDP.

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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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