Connect with us

Economy

Surprise Resurgent of Rice Farms in Ebonyi

Published

on

david-umahi

Faced with just N500million monthly to address the challenges of governance, infrastructure and other capital projects, Ebonyi State government had no choice but to redirect the people to the farms as a survival strategy in this recession period. The state commissioner for Information, Senator Emmanuel Onwe took journalists down the route of the rice farms revival efforts. 

The beginning of the rice revolution
It’s been such a great narrative about how Nigeria needs to diversify its economy. We took that to heart. Ebonyi has nothing else going for it other than allocation from the centre and we realise that allocation from centre is dwindling. In the month of April, Ebonyi got only N450m There was a time Ebonyi used to receive N6b.  Former governor, Martin Elechi had an average income of N5.5b throughout the period of eight years he was in power. That is verifiable. The current government has an average of N2.1bn and of that; N1.6bn goes to overheads, subvention to universities, Colleges of Education, general hospitals and so on.

Incidentally, we have a governor who is very interested in infrastructure given the fact that he is an engineer. But beyond being an engineer, Abakaliki hasn’t had a capital until the current effort that is being made. In the last 18 months, he has constructed about 250km of roads within the urban areas. But it quickly dawned on us that allocations might end tomorrow and if it did, Ebonyi is one of those states identified as probably not viable once allocation ends.  Because of our peculiar history, the possibility of returning to a situation whereby Ebonyi is part of a larger political entity where nothing happens in that section and those here from the South- East will probably understand that Ebonyi basically has been the weeping child of the South East since the period we had Eastern region.

So, one of the fascinating stuff that happened was that there was a troubling headline about the governor of Ebonyi and EFCC recently. I chose to ignore that until there is this other headline that a bag of rice sells for N8,000 in Ebonyi state. That is true in one sense depending on the type of rice and the stage of processing you are talking about. If it is unprocessed rice because when the CBN Governor and the Chairman of Presidential Task Force on Rice Production and the Minister of Agriculture visited Ebonyi last week, they went to a very large farm complex, which is basically the centrepiece of Ebonyi rice production. The local farmers made a case that with the assistance of the Anchor Borrower Scheme that the CBN is doing, Ebonyi was able to borrow certain amount of money and gave to farmers by way of inputs like fertilizers, herbicides and grains. They said rice is now moving from N5, 000 to N8,000 per bag. He was talking about unprocessed paddy rice, which will normally yield eight barns.

In Ebonyi, state, the price is between N6,500 to N9,000. Two of those will make 50kg. 50kg of rice from Ebonyi is between N13,000 and N18,000 depending on the quality. We wanted to follow up on that. It happens that right now, we are harvesting. Ebonyi is making the largest proportion of its harvest of rice since history. That was possible because the government borrowed N2b from CBN, bought about 50 tractors and gave to Cooperative Societies and individuals who have the capacity to produce. I own a rice farm of about 100 hectares, which I am also harvesting right now. The challenge was to break the jinx of not being able to harvest up to 4,5,6 metric tonnes of rice per hectare. We are doing that right now which is why I’m confident that by the end of harvest season this year, Ebonyi would have reached the mass of production that will satisfy local needs. If we are successful in the dry season farming we are trying to embark on from December to April, we would have satisfied local needs and then be able to saturate selected markets in Lagos, Port Harcourt and Abuja with Ebonyi rice. One positive thing today is that Ebonyi rice, which used to be called Stoneville or Stonefest, has changed. If you eat Ebonyi rice today and you encounter stone in the rice, then forget about it.

Relationship between Ebonyi and Kebbi rice production
Across the country, Kebbi state is doing extremely well. Kebbi state is a very large state in terms of its landmass and its potentials. The difficulty they have is a very limited rainfall, which is about 2.5mm of rainfall. In Ebonyi, we have about 4mm; but Ebonyi is only about 4,500 square kilometers while for a state like Kebbi, it is up to 18,000 square kilometers. This means Ebonyi can fit into Kebbi state three, four times. Therefore, they have a much larger disposable and cultivable land for rice.

But I think the advantage we have is our rice does not require much of fertilizer.
You may have seen some news spreading in the social network about some people in China using plastic to produce pellets as rice. How true that is, I have no idea but the truth is most of the rice imported to Nigeria has been in storage for about 10 years. Such rice cannot be good for local consumption. Ebonyi has the record of being the only state in this country to produce organic rice. The price may be premium but why spend money buying food supplements when actually you can eat healthy? That is why Ebonyi state governor has banned the sale and consumption of foreign rice.

Impact on employment drive in the state
Very positive. I will use a personal experience. I use a combination of mechanisation and direct labour on my farm. From the process of clearing the bush, tilling the land, transplanting and broadcasting of rice, application of fertilisers and the harvesting, which are ongoing now. But above all, we concentrated in employing local labour to do that. As at last week Friday, 3,000 people have worked on my farm and that has happened across all the farms in Ebonyi state, including the governor’s own farm. Every member of the Ebonyi state cabinet has at least two hectares of rice farm. It was made compulsory. All portions of land that were lying fallow were distributed to cabinet members and that was to give impetus to all citizens to buy into the idea of rice cultivation because if the governor is doing it, if the commissioners are doing it, then there should be no reason why everybody else is not doing it. Youth unemployment is being reduced.

N250,000 was made available for about 7,000 youths and women to participate by way of soft loans through the N2b loan that the state government got from CBN at an interest of about nine percent. The government has taken responsibility of paying the nine percent. The CBN economics of rice production is N248, 000 per hectare. So, we gave N250,000 per farmer. The additional money on top of the N250, 000 is for ongoing maintenance because rice production is a very tedious process. You have to clear the bush. You have to till the bush. You have to do a nursery where you first broadcast rice that you transplanted on the field after tilling it. Then, you weed. After that you apply NPK fertiliser. After two weeks, you apply Urea fertiliser. You weed again and then you ensure that you take measures to prevent pest, especially birds. Then you harvest and thresh and bag. After that you parboil. The parboiling process is one of the most convoluted processes one can think about. You put quantity of rice in a big drum overnight. The next day you pour it out and then put it in the same drum. This time, you do not fill it with water until the steam comes out. Then you dry it, bag it again. You then take it to the processing mill where ultimately the chaffs are removed and you have your grain rice. That is so labour intensive. By the time you’ve done all of that, at least 20 people will be involved in the processing of 100kg of rice.
Farmers’ congress

We don’t have farmer’s congress. Farmer’s congress is just another bureaucratic organ that will completely kill the whole thing. It is like a trade union. But we have Cooperative Societies. In every ward, we have at least 10 Cooperative Societies. It’s a good policy the CBN set up; that is they can only disburse funds to Cooperative Societies. The maximum is 25 farmers per cooperatives. We have more than 200 farmers’ cooperative societies in Ebonyi.

Agriculture is the flagship of this administration’s agenda. We have nothing else. If we don’t do this, we’ll sink. It is a swim and sink situation for Ebonyi.

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.

Continue Reading
Comments

Economy

Seme Border Sees 90% Decline in Trade Activity Due to CFA Fluctuations

Published

on

The Seme Border, a vital trade link between Nigeria and its neighboring countries, has reported a 90% decline in trade activity due to the volatile fluctuations in the CFA franc against the Nigerian naira.

Licensed customs agents operating at the border have voiced concerns over the adverse impact of currency instability on cross-border trade.

In a conversation with the media in Lagos, Mr. Godon Ogonnanya, the Special Adviser to the President of the National Association of Government Approved Freight Forwarders, Seme Chapter, shed light on the drastic reduction in trade activities at the border post.

Ogonnanya explained the pivotal role of the CFA franc in facilitating trade transactions, saying the border’s bustling activities were closely tied to the relative strength of the CFA against the naira.

According to Ogonnanya, trade activities thrived at the Seme Border when the CFA franc was weaker compared to the naira.

However, the fluctuating nature of the CFA exchange rate has led to uncertainty and instability in trade transactions, causing a significant downturn in business operations at the border.

“The CFA rate is the reason activities are low here. In those days when the CFA was a little bit down, activities were much there but now that the rate has gone up, it is affecting the business,” Ogonnanya explained.

The unpredictability of the CFA exchange rate has added complexity to trade operations, with importers facing challenges in budgeting and planning due to sudden shifts in currency values.

Ogonnanya highlighted the cascading effects of currency fluctuations, wherein importers incur additional costs as the value of the CFA rises against the naira during the clearance process.

Despite the significant drop in trade activity, Ogonnanya expressed optimism that the situation would gradually improve at the border.

He attributed his optimism to the recent policy interventions by the Central Bank of Nigeria, which have led to the stabilization of the naira and restored confidence among traders.

In addition to currency-related challenges, customs agents cited discrepancies in clearance procedures between Cotonou Port and the Seme Border as a contributing factor to the decline in trade.

Importers face additional costs and complexities in clearing goods at both locations, discouraging trade activities and leading to a substantial decrease in business volume.

The decline in trade activity at the Seme Border underscores the urgent need for policy measures to address currency volatility and streamline trade processes.

As stakeholders navigate these challenges, there is a collective call for collaborative efforts between government agencies and industry players to revive cross-border trade and foster economic growth in the region.

Continue Reading

Economy

CBN Worries as Nigeria’s Economic Activities Decline

Published

on

Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has expressed deep worries over the ongoing decline in economic activities within the nation.

The disclosure came from the CBN’s Deputy Governor of Corporate Services, Bala Moh’d Bello, who highlighted the grim economic landscape in his personal statement following the recent Monetary Policy Committee (MPC) meeting.

According to Bello, the country’s Composite Purchasing Managers’ Index (PMI) plummeted sharply to 39.2 index points in February 2024 from 48.5 index points recorded in the previous month. This substantial drop underscores the challenging economic environment Nigeria currently faces.

The persistent contraction in economic activity, which has endured for eight consecutive months, has been primarily attributed to various factors including exchange rate pressures, soaring inflation, security challenges, and other significant headwinds.

Bello emphasized the urgent need for well-calibrated policy decisions aimed at ensuring price stability to prevent further stifling of economic activities and avoid derailing output performance. Despite sustained increases in the monetary policy rate, inflationary pressures continue to mount, posing a significant challenge.

Inflation rates surged to 31.70 per cent in February 2024 from 29.90 per cent in the previous month, with both food and core inflation witnessing a notable uptick.

Bello attributed this alarming rise in inflation to elevated production costs, lingering security challenges, and ongoing exchange rate pressures.

The situation further escalated in March, with inflation soaring to an alarming 33.22 per cent, prompting urgent calls for coordinated efforts to address the burgeoning crisis.

The adverse effects of high inflation on citizens’ purchasing power, investment decisions, and overall output performance cannot be overstated.

While acknowledging the commendable efforts of the Federal Government in tackling food insecurity through initiatives such as releasing grains from strategic reserves, distributing seeds and fertilizers, and supporting dry season farming, Bello stressed the need for decisive action to curb the soaring inflation rate.

It’s worth noting that the MPC had recently raised the country’s interest rate to 24.75 per cent in March, reflecting the urgency and seriousness with which the CBN is approaching the economic challenges facing Nigeria.

As the nation grapples with a multitude of economic woes, including inflationary pressures, exchange rate volatility, and security concerns, the CBN’s vigilance and proactive measures become increasingly crucial in navigating these turbulent times and steering the economy towards stability and growth.

Continue Reading

Economy

Sub-Saharan Africa to Double Nickel, Triple Cobalt, and Tenfold Lithium by 2050, says IMF

Published

on

In a recent report by the International Monetary Fund (IMF), Sub-Saharan Africa emerges as a pivotal player in the global market for critical minerals.

The IMF forecasts a significant uptick in the production of essential minerals like nickel, cobalt, and lithium in the region by the year 2050.

According to the report titled ‘Harnessing Sub-Saharan Africa’s Critical Mineral Wealth,’ Sub-Saharan Africa stands to double its nickel production, triple its cobalt output, and witness a tenfold increase in lithium extraction over the next three decades.

This surge is attributed to the global transition towards clean energy, which is driving the demand for these minerals used in electric vehicles, solar panels, and other renewable energy technologies.

The IMF projects that the revenues generated from the extraction of key minerals, including copper, nickel, cobalt, and lithium, could exceed $16 trillion over the next 25 years.

Sub-Saharan Africa is expected to capture over 10 percent of these revenues, potentially leading to a GDP increase of 12 percent or more by 2050.

The report underscores the transformative potential of this mineral wealth, emphasizing that if managed effectively, it could catalyze economic growth and development across the region.

With Sub-Saharan Africa holding about 30 percent of the world’s proven critical mineral reserves, the IMF highlights the opportunity for the region to become a major player in the global supply chain for these essential resources.

Key countries in Sub-Saharan Africa are already significant contributors to global mineral production. For instance, the Democratic Republic of Congo (DRC) accounts for over 70 percent of global cobalt output and approximately half of the world’s proven reserves.

Other countries like South Africa, Gabon, Ghana, Zimbabwe, and Mali also possess significant reserves of critical minerals.

However, the report also raises concerns about the need for local processing of these minerals to capture more value and create higher-skilled jobs within the region.

While raw mineral exports contribute to revenue, processing these minerals locally could significantly increase their value and contribute to sustainable development.

The IMF calls for policymakers to focus on developing local processing industries to maximize the economic benefits of the region’s mineral wealth.

By diversifying economies and moving up the value chain, countries can reduce their vulnerability to commodity price fluctuations and enhance their resilience to external shocks.

The report concludes by advocating for regional collaboration and integration to create a more attractive market for investment in mineral processing industries.

By working together across borders, Sub-Saharan African countries can unlock the full potential of their critical mineral wealth and pave the way for sustainable economic growth and development.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending