Connect with us

Business

Local Tomato Farmers Lose over N10bn to Importation

Published

on

tomato paste
  • Local Tomato Farmers Lose over N10bn to Importation

Disturbed by the significant losses incurred annually, Tomato Growers Association of Nigeria (TOGAN), has lamented the lack of implementation of the policy on tomato approved by the federal government.

With its members numbering over 47 million, the association said it has lost about N10 billion during this tomato season.

This was disclosed at a press conference organised in collaboration with Nigeria Agribusiness Group in Lagos. The Secretary-General, Sani Danladi Yadakwari, said that due to the lack of the much needed infrastructures which include packing houses, storage warehousing, functional dams and others, in rural farming communities, farmers are faced with a loss of over 40per cent of their expected production.

Yadakwari added that data from the Ministry of Agriculture has shown that out of 1.5million metric tonnes (MT) of tomato produced every year, 700,000 MT were lost.

The Secretary-General said: “Yearly, during the dry season, the tomato sector experience glut resulting from bumper harvest in all the tomato producing regions. The lack of guaranteed off-takers for this produce results in even more loses to the farmers. Our farmers have continued to remain in perpetual poverty and the poverty level will continue to rise if the necessary steps are not taken”.

Yadakwari, commended the efforts of the Nigeria Agribusiness Group (NABG), Pyxera Global, GAIN PLAN and many others for their continuous effort in ensuring farmers are linked with major off takers such as Dangote Farms, Savannah Farm, Ikara Processing Plants, as these Off-takers have several Memorandum of Understanding (MoU’s) with tomatoes farmers to feed their processing plants.

He noted that in 2016, NABG, approached the Vice President of Nigeria, Prof. Yemi Osinbanjo, to help address the challenges facing farmers in Nigeria.

And the VP said: “Federal government cannot fully enforce an outright ban on importation of tomato paste or concentrates as Nigeria is a member of the World Trade Organisation. There must be adequate proof of “dumping”.

“In 2017, the federal government announced a New Tomato Policy with primary aim that include; increasing the local production of fresh tomatoes; increasing local production of tomato concentrates and reducing post-harvest losses”, he said.

The Secretary-General said: “The policy seeks full implementation of the zero per cent import duty policy for greenhouse equipment aimed at boosting production and attracting investment into the tomato sector, enforcement of the ban on importation of tomatoes prepared or preserved otherwise than by vinegar or acetic acid, the restriction on the importation of tomato concentrate to seaports only and not through land borders and the inclusion of tomato production and processing in the list of industries eligible for investment incentives by the Nigeria Investment Promotion Commission (NIPC).

“The policy also seeks to increase the tariff on tomato paste or concentrates, not put up for retail sale: Triple concentrate and other (H.S Cod 2002.90.11.00 and 2002.90.19.00) from 5 per cent duty rate in the National List to 10 per cent duty rate with an additional Import Adjustment Tax (IAT) of 40 per cent bringing the total to 50 per cent as well as a levy of $1,500 per MT.

“The association expressed regret that “since the pronouncement by the federal government, this policy has been ignored by officials of the Federal Ministry of Finance in connivance with the cabal and Nigerian custom service for interest best known to them that outweighs the survival of Millions of Farmers and Nigeria as a whole.”

It added: “Unfortunately when we approached the Nigerian Custom Service regarding the motive behind the non-implementation of the policy, we were told that between the date the policy was approved and the date they were given the gazette of the policy for the implementation, it had exceeded the stipulated time of ninety days, hence, they cannot work on it as it has expired.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Livestock Feeds Appoints Adegboyega Adedeji as Substantive Managing Director

Published

on

Adegboyega Adedeji is the Substantive Managing Director

Livestock Feeds Plc on Monday announced it has appointed Mr. Adegboyega Adedeji as the company’s substantive Managing Director, effective from 2nd October 2020.

In a statement released on the Nigerian Stock Exchange (NSE), the company said Mr. Adedeji was the Acting Managing Director of the Company before he was appointed as the Managing Director.

It added that Mr. Adedeji was “formerly the General Manager, Sales and Operations responsible for all sales activities and the strategic development of the Company’s markets, along with new products portfolio generation and development.”

He graduated from the famous Obafemi Awolowo University, Ile-Ife in 1996 and had his MBA from the University of Roehampton, UK in 2018.

He worked with Grand Cereals Limited as Regional Sales Manager before becoming their procurement manager. He moved to UACN Plc in 2007 as the Training Services Manager, a position held till September 2009 before he was transferred to UAC Restaurant.

Continue Reading

Business

COVID-19 to Plunge Global Consumer Spending by 8.6 % in 2020

Published

on

Global Consumer Spending to Drop by 8.6 Percent in 2020

The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.

According to data presented by Stock Apps, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.

$4.2trn Drop in Spending Amid COVID-19 Crisis

Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.

Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.

However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.

Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.

60% of Consumers Changed their Shopping Behaviour

The McKinsey&Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lockdowns, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.

Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.

However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.

The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.

In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset.

Continue Reading

Business

Survival Fund: Buhari Commences Disbursement of N75 Billion Support Fund

Published

on

President Muhammadu Buhari

FG to Commence Disbursement of N75 Billion Survival Fund to MSMEs

The Federal Government to commence the disbursement of N75 billion COVID-19 support fund to successful Micro, Small and Medium Enterprises (MSMEs) that applied for financial support under the National MSME Survival Fund this week.

On September 10, 2020, the Federal Government announced the introduction of two financial support schemes to support around 1.7 million small businesses with N75 billion.

According to Tola Adekunle, the Special Assistant to the President on MSMEs, Office of the Vice President, who doubles as Project Coordinator, Survival Funds Scheme, payment disbursement to some of the beneficiaries of the schemes would commence this week.

He said, “Presently we are doing it in batches of 12 states to be able to monitor the scheme and as we speak now 12 states are ready. We are hoping that by the end of this week, we will be able to pay 12 states.

“We are starting with the artisans and it is 4,500 persons per state, plus 4,500 for transporters, bringing it to about 9,000 for each state. Right now, we have about 54,000 from 12 states.”

Asked by journalists when those on payroll support would start receiving payments, he said “By the end of this month.

“We want to ensure that the staff start getting their salaries and same for the second and third month.

Adekunle explained that payroll support which was introduced under the survival fund to help businesses that employed between 10 to 50 people, will ensure 10 of the 50 employees are paid between N30,000 to N50,000 depending on their salaries. Payment, he said would commence by the ending of this month.

He said, “We now pay 10 of those people from among the 50 employees and we pay them between N30,000 and N50,000.

“But the minimum we pay is three staffs for three months to support their businesses and to ensure that we are helping businesses to augment their salaries.”

He, however, said the program ended on October 15 but states that were yet to meet their quotas were demanding extension. A demand he said was valid given that only less than 20 states have met their quotas.

In my own opinion, it is valid but the decision lies in the hands of the committee and the project coordinator so I have to convince them based on data analysis,” he said.

Speaking on the total number of applicants for the payroll support, Adekunle said, “As at the day it closed, we had about 432,000 businesses that had applied. However, we have shortlisted less than 70,000 businesses that qualify and meet the requirements.”

Continue Reading

Trending