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FG Targets 17 Million Rice Farmers This Year

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The number of rice farmers in Nigeria is currently being increased by five million people in order to enhance rice cultivation across the country, the Federal Government has announced.

It said although rice farmers in Nigeria increased from five million to 12 million in the past two years, it was important to attract more people into the business so as to attain sufficiency in rice production.

The Minister of Information and Culture, Lai Mohammed, who disclosed this during a tour of some rice farms, stated that the government had commenced the cultivation of rice on additional 200,000 hectares of land in different states across the country.

He stated that 25 farmers would cultivate the crop on each hectare, adding that a total of five million farmers would be needed to work on the 200,000 hectares of farmland.

Mohammed further explained that the initiative had commenced in Kano, where 31,000 farmers had been engaged by the Central Bank of Nigeria through the CBN Anchor Borrowers Programme.

He said, “We’ve grown the number of rice farmers from five million two years ago to over 12 million today. And there is a pilot scheme going on this season again with 200,000 hectares for the cultivation of rice. Now, each hectare employs 25 people; so that will have another five million people that will be added to the rice revolution.

“We want to make Nigeria self-sufficient in rice production and the fact that we are now growing the number of our farmers and we are reducing importation means that we are gradually getting to our target of self-sufficiency in food production.

“The cultivation of rice on 200,000 hectares has been flagged off and right now, about 31,000 farmers are being empowered by the CBN under this initiative in Kano this season.”

Mohammed stated that aside from Kebbi State, one of the most popular states involved the project, 31 other states were already planting rice in commercial quantity.

“There are 32 states producing rice in Nigeria and the same model is being used, which is the CBN Anchor Borrowers programme. This programme provides the farmers with seedlings, farm inputs, extension and advisory services, among others. And we can see the result of this programme,” he said.

The minister reiterated that Thailand had commenced moves to establish rice mills in Nigeria, encouraged by the increasing number of farmers and states involved in rice production in the country.

He said the Federal Government had won its fight against rice importation, especially from Thailand, as Nigeria had reduced its importation of rice by over 90 per cent.

“As we speak today, Thailand rice growers are making passionate appeal to the Federal Government. What they are doing now is that they want to set up rice mills in Nigeria, which means we have won,” Mohammed stated.

When asked again to explain why Thailand rice producers were pushing to set up mills in Nigeria, Mohammed said, “Thailand wants to set up several rice mills in Nigeria because we have stopped importing from them.”

He stated that Nigeria was able to cut down on the importation of rice from Thailand from 644,000 metric tonnes two years ago to a little over 20,000MT currently.

Mohammed particularly lauded the Kebbi State Government as he noted that the state was pushing the country’s rice revolution to greater heights.

Speaking alongside the information minister, the Commissioner for Agriculture, Kebbi State, Mohammed Dandiga, said over 200,000 farmers were involved in the cultivation of rice across the 16 local government areas in the state.

He said Kebbi had attained self-sufficiency in rice production and was already supplying the commodity in large quantity to other states of the federation.

Dandiga noted that between December 2015 and March 2018, the volume of rice from Kebbi State has grown from 2.5 metric tonnes per hectare to 11 metric tonnes per hectare.

He said, “For us, this is something very important, considering the impact which it has on wealth creation for these farmers, particularly since the past two years. We are working hard to increase the participation of others who are interested in agriculture because we now have off-takers.

“Nigerian rice is now the preferred choice, unlike what it used to be in the past and this is because we now have standard rice mills in Kebbi and some other parts of the country.”

The President, Rice Farmers Association of Nigeria, Aminu Goronyo, recently stated that Nigerians consumed about 7.9 million tonnes of rice in 2017, with the country’s local farmers producing 5.8 million tonnes last year.

Out of this local production, Kebbi State accounted for about one million tonnes last year.

The state government recently stated that with greater investment, especially from the CBN Anchor Borrowers Programme and better access to farm inputs, Kebbi planned to raise its rice production to 2.5 million metric tonnes in 2018. Rice is grown mainly in 16, out of the 21 local government areas in Kebbi State.

In August 2017, Vice-President Yemi Osinbajo inaugurated a N10bn rice mill in Argungu, Kebbi State, with a milling capacity of 500,000 tonnes.

The Kebbi State Governor, Abubakar Bagudu, recently announced that the 200,000 farmers in his state were growing rice on over 400,000 hectares.

He said, “It is heart-warming for us to know that we are able to create wealth for rice farmers and that as a result of the production of rice in Kebbi, Nigeria has been able to reduce its importation of rice by over 90 per cent.

“This is good news and it shows that a lot of people not just in Kebbi State are now producing rice and very soon, we will start exporting the commodity. In Kebbi, there are farmers who are under the Central Bank of Nigeria Anchor Borrowers programme.

“We also have those who work for private companies. A large number of farmers numbering about 200,000 are into rice production in our state and they now cultivate on not less than 400,000 hectares of land across the state.”

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.

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Nigeria’s N3.3tn Power Sector Rescue Package Unveiled

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President Bola Tinubu has given the green light for a comprehensive N3.3 trillion rescue package.

This ambitious initiative seeks to tackle the country’s mounting power sector debts, which have long hindered the efficiency and reliability of electricity supply across the nation.

The unveiling of this rescue package represents a pivotal moment in Nigeria’s quest for a sustainable energy future. With power outages being a recurring nightmare for both businesses and households, the need for decisive action has never been more urgent.

At the heart of the rescue package are measures aimed at settling the staggering debts accumulated within the power sector. President Tinubu has approved a phased approach to debt repayment, encompassing cash injections and promissory notes.

This strategic allocation of funds aims to provide immediate relief to power-generating companies (Gencos) and gas suppliers, while also ensuring long-term financial stability within the sector.

Chief Adebayo Adelabu, the Minister of Power, revealed details of the rescue package at the 8th Africa Energy Marketplace held in Abuja.

Speaking at the event themed, “Towards Nigeria’s Sustainable Energy Future,” Adelabu emphasized the government’s commitment to eliminating bottlenecks and fostering policy coherence within the power sector.

One of the key highlights of the rescue package is the allocation of funds from the Gas Stabilisation Fund to settle outstanding debts owed to gas suppliers.

This critical step not only addresses the immediate liquidity concerns of gas companies but also paves the way for enhanced cooperation between gas suppliers and power generators.

Furthermore, the rescue package includes provisions for addressing the legacy debts owed to power-generating companies.

By utilizing future royalties and income streams from the gas sub-sector, the government aims to provide a sustainable solution that incentivizes investment in power generation capacity.

The announcement of the N3.3 trillion rescue package comes amidst ongoing efforts to revitalize Nigeria’s power sector.

Recent initiatives, including tariff adjustments and regulatory reforms, underscore the government’s determination to overcome longstanding challenges and enhance the sector’s effectiveness.

However, challenges persist, as highlighted by Barth Nnaji, a former Minister of Power, who emphasized the need for a robust transmission network to support increased power generation.

Nnaji’s advocacy for a super grid underscores the importance of infrastructure development in ensuring the reliability and stability of Nigeria’s power supply.

In light of these developments, stakeholders have welcomed the unveiling of the N3.3 trillion rescue package as a decisive step towards transforming Nigeria’s power sector.

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Nigeria’s Inflation Climbs to 28-Year High at 33.69% in April

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Nigeria's Inflation Rate - Investors King

Nigeria is grappling with soaring inflation as data from the statistics agency revealed that the country’s headline inflation surged to a new 28-year high in April.

The consumer price index, which measures the inflation rate, rose to 33.69% year-on-year, up from 33.20% in March.

This surge in inflation comes amid a series of economic challenges, including subsidy cuts on petrol and electricity and twice devaluing the local naira currency by the administration of President Bola Tinubu.

The sharp rise in inflation has been a pressing concern for policymakers, leading the central bank to take measures to address the growing price pressures.

The central bank has raised interest rates twice this year, including its largest hike in around 17 years, in an attempt to contain inflationary pressures.

Governor of the Central Bank of Nigeria has indicated that interest rates will remain high for as long as necessary to bring down inflation.

The bank is set to hold another rate-setting meeting next week to review its policy stance.

A report by the National Bureau of Statistics highlighted that the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.

Food inflation, which accounts for the bulk of the inflation basket, rose to 40.53% in annual terms, up from 40.01% in March.

In response to the economic challenges posed by soaring inflation, President Tinubu’s administration has announced a salary hike of up to 35% for civil servants to ease the pressure on government workers.

Also, to support vulnerable households, the government has restarted a direct cash transfer program and distributed at least 42,000 tons of grains such as corn and millet.

The rising inflation rate presents significant challenges for Nigeria’s economy, impacting the purchasing power of consumers and adding strains to household budgets.

As the government continues to grapple with inflationary pressures, policymakers are faced with the task of implementing measures to stabilize prices and mitigate the adverse effects on the economy and livelihoods of citizens.

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FG Acknowledges Labour’s Protest, Assures Continued Dialogue

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Power - Investors King

The Federal Government through the Ministry of Power has acknowledged the organised Labour request for a reduction in electric tariff.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had picketed offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies nationwide over the hike in electricity tariff.

The unions had described the upward review, demanding outright cancellation.

Addressing State House correspondents after the Federal Executive Council (FEC) meeting on Tuesday, Minister of Power, Adebayo Adelabu, said labour had the right to protest.

“We cannot stop them from organizing peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.”

“We have heard their demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

“But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

“A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position.

“My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.”

He said there was the need for sacrifice from everybody, “from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain”.

“I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.”

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