Our rice’ll be sold at N13,000 per bag

Lagos State Government has pledged to make rice available to residents at a reduced cost of N13, 000 per 50kg bag.

The Lagos State Governor, Mr. Akinwunmi Ambode, disclosed this on Thursday during the 2016 Agricultural Summit organised by the Agricultural Sectoral Group of the Lagos Chamber of Commerce and Industry.

Ambode, who spoke through his  Special Adviser on Food Security, Mr. Ganiyu Okanlawon, said the state had entered into a partnership with Kebbi State Government to produce ‘Lake Rice’ which would be made available to consumers at N13,000 per bag in the coming weeks.

Speaking during the programme with theme ‘walking hand-in-hand to move agriculture forward,’ Amobode disclosed that his government had also established a department of  agribusiness in the Ministry of Agriculture, an agricultural trust fund and the first commodity exchange market in Nigeria.

In his opening remarks, the President, LCCI, Dr. Nike Akande noted that the agricultural sector was expected to play a pivotal role in the nation’s quest for diversification through increased non-oil earnings, job creation and foreign exchange earnings.

“These are needed to drive the economy towards the path of recovery from recession,” she said.

Citing data from the National Bureau of Statistics, Akande noted that even after the recent rebasing of the nation’s Gross Domestic Product, agriculture still accounted for a large share of its economic activities.

She urged the government to do more in terms of providing enabling business environment where private sector businesses could thrive, adding, “The development of a good rail network to facilitate the movement of agro produce to markets cannot be overemphasised.”

How dollar rush by farmers fuelled fears of famine

There are fears of looming famine in the country. And this is not unconnected to the huge desire by farmers to earn dollars.

Recently, it was gathered that grains and other farm produce became scarce in the country after farmers decided to take their produce across the borders for sale to earn dollars, thereby starving the local market.

The President of the Poultry Association of Nigeria, Dr. Ayoola Oduntan, attributed the high cost of poultry feed to the scarcity of maize and soya beans.

He said, “The price of feed has gone up; and feed is the most important component of production. For instance, in egg production, the feed is the most expensive part. What makes up the feed is maize, 40-50 per cent; and soya beans, 20-30 per cent.  So, 70 per cent of the cost of production is made up of feed.

“Now that is the beginning of harvest, when the price of maize is supposed to be at its lowest, we are currently buying maize at N120,000 per tonne. Soya beans used to be between N80,000 and N100,000 per tonne; now, it is N140,000 per tonne. When it was N80,000, we thought it was too expensive.”

However, recently, the Federal Government came out to allay the public fears over famine, assuring the people of sufficient mechanisms to achieve food security in the country.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who gave the assurance, said the Federal Government had engaged in the buy- back of assorted grains under the Guarantee Minimum Price Programme for restocking of strategic silo complexes.

He also said that farmers in some states of the federation had already commenced preparation for the dry season farming to ensure adequate food security across the country.

He added that the government was poised to make farming an all-year business by creating dams and lakes in every part of the country to support irrigation system.

He noted that crops would thrive and yield better through the irrigation system.

He said, “Nigerians have no reason to panic; we have made arrangement for some states to start planting so that we have second crops by April.”

Ogbeh disclosed that Nigeria had signed an agreement with the government of Morocco on local production of fertilizer, with a target of one million tonnes. This would boost food production in the country.

He added that the introduction of soil-specific fertilizer application, developed by the ministry, would go a long way in increasing high crop yield.

According to him, a total of 30,000 slots have been allocated to the ministry under the N-power scheme of the Federal Government.

This, he said, would enable the people to be trained under the agricultural development programmes as agriculture extension workers and they would serve in their respective local government areas.

Ogbeh added that the ministry had acquired 110 various capacities of rice mills of 10 tonnes, 20 tonnes, 50 tonnes and 100 tonnes per day for distribution to cluster farmers to boost rice production and milling capacity in the country as a way of attaining food sufficiency.

The minister admitted that for the first time in the history of Nigeria, the country was witnessing strong purchase of grains from as far as Namibia and other countries, which signalled a challenge to the nation as well as a benefit to Nigerian farmers.

He, however, stressed that the market forces would be stabilised through an increase in local production of food commodities

FG assures of self-sufficiency in rice production in 2018

The Federal Government has assured of self sufficiency in rice production in 2018 through the implementation of right policies aimed at boosting agricultural production in Nigeria.

Addressing participants at the 3rd edition of the Rice Investment Summit anchored by the Nepad Business Group Nigeria in Abuja, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh said that Food sufficiency was a major goal of the Federal Govt.

He said the Federal Government has put in place an Agric Promotion Policy (APP) which sets a target for self sufficiency in rice production for 2018.

Represented by the Director of Agricultural Development in the Agric ministry, Mr. Obinna Opara, Chief Ogbeh in a Keynote Address, expressed delight that Nepad Business Group Nigeria had brought key actors together to chart a way forward for rice production which he described as a critically important staple.

He also reeled out implementation strategies for government’s auspicious drive.

Earlier, the Chairman, Nepad Business Group Nigeria, Mrs. Nike Akande, represented by the group’s top official, Mallam Abu Aliu stressed that the 3rd edition of the Rice Investment Summit was geared to build on the success of the previous editions. She also highlighted the crucial need for diversification of the economy which rice production could fill.

Also speaking, Mr. Dosumu Oluwole the Acting Head, NEPAD Business Group Nigeria Secretariat expressed his appreciation to all who graced the occasion and used the occasion to restate the resolve of the NEPAD Business Group Nigeria to continue to intervene and partner with other stakeholders in the rice value chain to help bring transformation to the economy of Africa.

The theme for the event was: 2018 Self Sufficiency in Rice Production: Opportunities Challenges, and the Road Ahead – Stimulating Production with the Right Policies, Practices and Technologies.

Lagos to train youths in agro-business

The Lagos State Government says it is set to partner the National Images Incorporation to train 5,700 youths in agro-business.

The Permanent Secretary, Ministry of Local Government and Community Affairs, Mr. Olakulehin Dapo, said the government was ready to support the scheme to enable youths in the state to be self-reliant.

He said, “The state government is supporting the scheme by sensitising all councils in the state to collaborate with the National Images Incorporation on the execution of the training programme.”

The project Director, Mr. Bamigbade Oluwasheyi, said the training was aimed at providing youths with the necessary skills in agriculture.

“Over 5,700 participants from all the local government and local council development areas across the state are expected to participate in the training programme. They will be trained in best practices for catfish production, processing and marketing, as well as soilless vegetable production and marketing techniques,” Oluwasheyi said.

He  added that the training would guide the trainees on how to access credit facilities from cooperative societies.

How To Start A Profitable Goat Farming Business

One major form of animal farming that has not been adequately tapped by Nigerian farmers and agro investors is goat farming.

Everywhere in the world, goat meat has been rated high in nutrition and very important alternative to beef which has been noted to be a major cause of over accumulation of cholesterol. Goat meat is generally acceptable and consumed worldwide as a major table delight.

However, as nutritious as goat meat is, as desired as goat meat is,as marketable as as goat meat is, Nigerian investors and farmers are yet to adequately tap into this venture and reap the abundant profit therein.

Goat farming is unarguably a vast investment opportunity for any serious entrepreneur to make huge returns of profits on investment.

This is assured because goat meat has a very high demand than any other animal meat such as beef,chicken which have high concentrates of animal fats. An intensive investment in goat farming can also produce goat milk that is currently demanded for the production of cheese, butter, ice cream and yoghurt.

Also, in Nigeria, only a few supermarkets can boast of having goat meat for sale while beef and chicken are abundantly available. The demand is absolutely high. More so, the meat could be used for all kinds of delicacies ranging from Stew, Soup, Pepper Soup, Suya, the popular Isi-Ewu, etc.

These various forms of consumption have made its demand very high. It may interest us to know that in view of the afore mentioned high demand, about 60% of goats meant for consumption in Nigeria is imported form Niger Republic, 30% is realized from goat farms in the North while as little as 10% is realized from isolated goat farms across other parts of Nigeria.

Therefore, given the current campaign and advocacy for direct increase in Agriculture, goat farming is a sure way for increased productivity and boost in the employment generation drive of the nation.

It may also interest us to know that goat farming has a capacity to increase the revenue base of a nation as it has proven in some countries to be the major source of family income, where families produce averagely per family about 500 to 700 goats annually.

The cumulative results of this is that the families as goat farmers produce beyond the consumption capacities of such nations. When this happens, there is enough for export which thereby result in foreign exchange earnings.

With the availability of grazing land in Nigeria,we can have goat farming investors that could produce more than the local market demand in Nigeria. That would be a direct foreign exchange earning. This means there is a huge untapped market potential for goat farming. 

Why wait when this opportunity is there? Why choosing to be unemployed when you can earn much from goat farming. YES YOU CAN ! Invest in goat farming now and reap high profits.

HOW TO START A GOAT FARM

 
There are basic things an investor or a farmer must consider adequately in setting up a goat farm. Such things include:

(1) GRAZING LAND

 
A farmer must acquire a pasture as grazing land for his goats. Goats need good pasture because they eat quite a variety of grasses, weeds, leaves and plants. They also tend to eat these and other varieties at different seasons. 

Although, other formulated animal feed could be used, it is more advisable and cheaper to allow goats on a grazing land and natural pasture.

It is important to also know that goats like roaming and they eat while moving. This therefore means that we must strive to acquire space for their natural grazing. 

The land considered for acquisition here , however depends on the number of goats one wishes to keep in his farm. 

We need to keep a maximum of 20 goats in an acre of land This space is necessary because goats like to move about in spacious environment. 

They like to move away from each other. For the farmer, it is also necessary to disallow over crowding because over crowding would aid disease contamination and spread. Therefore to keep 600 goats, we need about 30 acres of pasture ground.

(2) FENCING.

 
Fencing is another major thing to be considered in goat farming. Once the land has been acquired, it is highly necessary to fence it . Although , some farmers may decide to construct perimeter short block fence round the pasture ground, it is however recommend to use barb wire to fence the farm. This would allow adequate exposure to natural ventilation. 

The barb wire fence is also more protected against external predators like carnivorous beasts. This fence should be about 1.3 to 1.5 meters high. With this, the goats cannot successfully climb over the fence.

PROVISION OF REST HOUSE

 
Goat generally like to rest after eating . And in doing so, they like to move over to a comfortable place in the farm to rest, just as humans like to rest after work. Goats do not like to stay in the rain or remain in a hot atmosphere in a sunny day. 

Also, when the weather is too cold for them, they move over to a more favorable place. This is why housing is a major consideration.

VETERINARY OFFICER(S)

 
There is the need to ensure the availability of veterinary services . You may need to hire a veterinary officer who will daily monitor the well being of the goats and administer the necessary medication if the need arises . You could also arrange a contact with a veterinary officer, who would from time to time visit your farm to assess your goats. The method adopted here is largely dependent on the number of goats in the farm.

PROFIT MARGIN IN GOAT FARMING.

 
It has already been established that there is a wide profit margin in goat farming. I want to state that one can start small ,but this business has a limitless capacity of expansion. Assuming one starts this business at a small scale of about 420 goats , a matured goat for harvest for sale is sold at about N15, 000. 

If you produce 400 goats at N15,000 ( assuming you lost 20 goats to mortality) you would realize N6,000,000. That is , 420 minus 20. This leaves us with 400 goats. Then, multiply 400 by N15,000. 

Assuming you incure as high as N1,000,000 as costs of purchasing kid goats ,feeding and medication, you would have made a profit of N5,000,000. 

That means after about 2 years of establishing this business , your money making venture is sure and guaranteed. N5,000,000 annually puts you at a monthly salary of about N400,000.

This is indeed a business with high profit on return. It is also less time consuming and you can engage in other businesses while doing goat farming.

Thinking of starting a goat farm? Yes ! Take the step to start. This is the right time. Let your farm take off in January. Prepare for it now. It is simple and stress free. At your request, we can help you prepare a feasibility report and business plan to properly take off. Why feasibility report? This will enable you to know the A to Z about Goat Farming, approach a Micro Finance Bank or Agric Development Bank in case you need a loan which would not be much. A business plan would also act as a working guide on stages of this business.

How to effectively store seed crops

One of the major challenges confronting farmers in the country is their inability to properly store seed crops, which is responsible for aflatoxin and moulds in stored crops.

In order to effectively tackle the issue, the Nigerian government in the recently released Agriculture Promotion Policy said that N66 billion had been allocated for the establishment of 33 silo complexes, 25 grain aggregation centres and 9 units of Blumberg warehouses, which have now been privatised by way of concession.

Dr. Samson A. Odedina, Provost of the Federal College of Agriculture, Akure, advises that farmers only keep clean seeds in stores. He said most of the insect pests start from the field and are carried to stores and warehouses.


Best ways to store

Dr. Odedina stated that the type of storage depends on what you are using the grains for; whether it is for re-planting immediately, for feed, short-term storage or long-term storage, and on the volume of the produce to be stored.

He advised farmers keeping grains in stores and warehouses to maintain good ventilation in order to prevent humidity build-up or contamination.

An Agricultural Economist from the International Institute of Tropical Agriculture (IITA), Dr. Abdoulaye Tahirou, explained that non-chemical storage ensures no residue is left in the produce thus ensuring food safety and saving farmers from incidences of crop ban at global markets.

“Non-chemical storage can save the situation of produce being banned, you actually see that Purdue Improved Cowpea Storage (PICS) bag is the solution for small holder farmers,” he said.


The Improved Cowpea Storage (PICS) bag technology

Abdoulaye explained that the PICS bag is a three layered plastic bag that is recommended for farmers for storing their produce, adding that each PICS bag gives farmers the opportunity to store grains properly without using chemicals.

Speaking further, he pointed out that PICS bags initially designed as a solution storage method for cowpea (beans) were experimented with other grains by farmers and they proved very successful. He explained that the success rate is 100% guaranteed provided there are no holes on the bag.

Ahmad Idris, Block Extension Supervisor for Tudun Iya Funtua Zonal Office Katsina State Agricultural and Rural Development Authority (KTARDA), said, “Information about PICS bags is not well circulated to farmers, they are not easily convinced to accept new technology,” he noted.

“This is the best storage method you can use to store grains, Kenya has been using these bags and they have proven to be very successful. We have recorded about 80% success rate using the PICS bags,” he said.
Ahmad, however, lamented that farmers still use harmful storage chemicals like ‘Gamalin A’ despite warnings by extension agents.


The appropriate moisture level required

Ahmad Idris, said moisture is one of the major causes of storage losses as such grains should be properly dried before they are kept so as to eliminate the avenue for microorganisms to thrive.

Speaking on moisture level, Abdoulaye said, moisture content of grains has to be anywhere between 10% and 12% and can be measured by taking a grain and putting it in your teeth, if it cracks its dry.

Ahmad said silos which are relatively the best storage method are not available to majority of farmers due to high cost of constructing them, as such they store grains the traditional way.

A farmer, Malam Abba, said he uses the normal storage bags for storing his grains. He said to prevent termites’ attack they used powdered insecticide to protect the grains.

He added that some people mixed some chemicals which is also very effective and that the mixtures are readily found in market.

Glut hits onion farmers in Sokoto

Farmers in onion-producing areas of Wurno, Goronyo and Gada are having hard times as poor market hit the produce.

A visit to the Kara onion depot in the Sokoto capital revealed thousands of sacks of onions filled to capacity just as huge quantity of the commodity is spread all over the place waiting to be bagged.

However, the usual hustle and bustle at the Kara onion market was absent as at the time of the visit.

Onion buyers who used to flood the market around this time every year are not forthcoming and few that did to come do not buy more than two to three sacks.

Every year, around this time, onion gets quite expensive in Sokoto due to high demand from people in the southern part of the country who purchase the commodity in large quantities which they transport to their respective places for sale during the Christmas.

This year, however the commodity is all over the market but without so many buyers.

Alhaji Bawa Mai Albasa, 75, the immediate past chairman of Sokoto State Onion Farmers/Sellers Association attributed the prevailing situation to the economic downturn.

But he was optimistic that despite the seeming glut, a large percentage of the commodity would be sold before  Christmas.

An onion merchant, 50-year-old Alhaji Muazu Mai Albasa, who has been in the business for decades, ascribed the abundance of the commodity in the market to the profound investment made by farmers in onion farming this year. He, however, lamented the decrease in patronage.

“Our people have invested heavily in onion this year as you can see, we have more than enough for Christmas customers,” he stated.

Malam Aliyu, a farmer said they responded to government’s call and invested very well in onion farming as such they recorded a bumper harvest.

Onion prices at the depot ranged from N10,000 to N15,000 per sack depending on the  quality of produce.
Previously, a sack of onion went for between N30,000 and N50,000 when it was in high demand.

Another farmer, Alhaji Yaro, 45, said he got 32 sacks of the commodity which he sold at N19,000 per sack when he transported it to Lagos

Farmers in onion-producing areas of Wurno, Goronyo and Gada are having hard times as poor market hit the produce.

A visit to the Kara onion depot in the Sokoto capital revealed thousands of sacks of onions filled to capacity just as huge quantity of the commodity is spread all over the place waiting to be bagged.

However, the usual hustle and bustle at the Kara onion market was absent as at the time of the visit.

Onion buyers who used to flood the market around this time every year are not forthcoming and few that did to come do not buy more than two to three sacks.

Every year, around this time, onion gets quite expensive in Sokoto due to high demand from people in the southern part of the country who purchase the commodity in large quantities which they transport to their respective places for sale during the Christmas.

This year, however the commodity is all over the market but without so many buyers.

Alhaji Bawa Mai Albasa, 75, the immediate past chairman of Sokoto State Onion Farmers/Sellers Association attributed the prevailing situation to the economic downturn.

But he was optimistic that despite the seeming glut, a large percentage of the commodity would be sold before Christmas.

An onion merchant, 50-year-old Alhaji Muazu Mai Albasa, who has been in the business for decades, ascribed the abundance of the commodity in the market to the profound investment made by farmers in onion farming this year. He, however, lamented the decrease in patronage.

“Our people have invested heavily in onion this year as you can see, we have more than enough for Christmas customers,” he stated.

Malam Aliyu, a farmer said they responded to government’s call and invested very well in onion farming as such they recorded a bumper harvest.

Onion prices at the depot ranged from N10,000 to N15,000 per sack depending on the quality of produce.

Previously, a sack of onion went for between N30,000 and N50,000 when it was in high demand.

Another farmer, Alhaji Yaro, 45, said he got 32 sacks of the commodity which he sold at N19,000 per sack when he transported it to Lagos

CBN to unveil N30bn Agric/SME fund in January

The Central Bank of Nigeria has said it will, together with the Deposit Money Banks, set up a new fund to boost agriculture and the Small and Medium-sized Enterprises in the country, targeting at least N30bn for the first year.

The Governor, CBN, Mr. Godwin Emefiele, disclosed this on Saturday at a press briefing after the eighth Bankers’ Committee annual retreat in Lagos.

He said the Agriculture/SME Fund would be unveiled on January 1, 2017, but the money would not be available until around March or April after the DMBs’ audited accounts would have been presented to the public.

Emefiele, who is also the Chairman of the Bankers’ Committee, said the committee would continue to promote an efficient and stable economy to deliver price stability, financial system stability, financial inclusion and economic growth.

According to him, the committee has defined goals for 2017 to include supporting government’s efforts to develop adequate infrastructure to engender viable and productive SMEs, and increasing access and cost of funding, particularly to the agriculture and manufacturing SMEs.

He said, “We will identify opportunities to provide funding and necessary support for agriculture and manufacturing SMEs, including structures and systems to improve the ease of regulatory compliance.

“The central bank will, together with the banking sector, establish an agriculture/SME fund from contributions of a portion of profit after taxes of Deposit Money Banks as a deliberate strategy to support the funding and access to finance by the SMEs and primary agriculture.”

The governor said the modality for the fund, which will operate as an equity fund, would be worked out by the Bankers’ Committee and communicated in due course.

He said the committee would continue to focus on capacity building and expansion as well as deepening awareness of available information infrastructure.

The communiqué issued at the end of the retreat, “Efforts will include providing industry-focused SME financial skills curriculum to develop financial and business capacity; promoting the need for capacity building; promoting the use of payment systems; providing shared structures for basic financial records; and providing the use of new and existing financial infrastructures for access to credit.

“Over the next few days, the Bankers’ Committee will finalise the strategy, governance framework action plan and assign responsibilities for implementation of the committee’s programme for 2017 that will achieve the desired results and outcomes.”

CBN Moves to Protect Beneficiaries of Intervention Fund

Barely a week after the Minister of Agriculture and Rural Development, Dr. Audu Ogbeh, spoke on the fears of an impending famine in the country, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele’s warning to financial institutions participating in the CBN-guaranteed intervention funds to desist from granting loans with interests above nine per cent has further put development in the agricultural value chain under focus.

Emefiele gave the warning in Abeokuta, Ogun State, during an interaction between the Presidential Task Force on Agricultural Commodities and Production and young farmers at the Owowo Model Farm Estate. He also assured the young farmers of the bank’s funding support through their respective PFIs, and asked them t*o report any bank that charg*es them above 9 per cent interest on loans guaranteed by the CBN. He also urged operators in the sector to report any erring PFI to the apex bank for possible sanction.

The warning, coming shortly after the alarm by Ogbeh, that famine was imminent in the country if certain steps were not taken urgently, may have flagged some questions around the country’s agricultural value chain. Keen observers would wonder -why a country with massive potential in the sector could not guarantee food security for its citizenry or, in the least, guarantee lower food inflation.

This appears to gain more traction considering that various interventionist funds have been put in place to galvanise potential in the sector towards ensuring food security in the country and diversification of the country’s revenue base away from the oil and gas, and services sectors.

While the warning from Emefiele underscores low compliance rating among the PFIs, some observers opined that it is also a signal that the CBN is determined to improve on monitoring and enforcement of guidelines attached to intervention funds for critical sectors.

Commercial Agriculture Credit Scheme (CACS)

According to information sourced on the website of the CBN, one of the -*intervention funds dedicated to the sector is the Commercial Agriculture Credit Scheme. The site stated that, “As part of its developmental role, the Central Bank of Nigeria (CBN) in collaboration with the Federal Ministry of Agriculture and Water Resources (FMA&WR) established the Commercial Agriculture Credit Scheme (CACS) in 2009 to provide finance for the country’s agricultural value chain (production, processing, storage and marketing). Increased production arising from the intervention would moderate inflationary pressures and assist the bank to achieve its goal of price stability in the country.”

The site also listed the primary objectives of the scheme to include, “Fast-track the development of the agricultural sector of the Nigerian economy by providing credit facilities to large-scale commercial farmers at a single digit interest rate; enhance national food security by increasing food supply and effecting lower agricultural produce and products prices, thereby promoting low food inflation; reduce the cost of credit in agricultural production to enable farmers exploit the untapped potentials of the sector; and increase output, generate employment, diversify Nigeria’s revenue base, raise the level of foreign exchange earnings,” among others.

The scheme, which is a sub component of the Federal Government of Nigeria’s Commercial Agriculture Development Programme (CADP), is financed through a N200billion Bond raised by the Debt Management Office (DMO).

Reactions to the New Directive

Speaking with THISDAY, Chairman, Nigeria Agribusiness Group, Sanni Dangote, welcomed the directive but noted that there was need for segmentation of the agribusiness. He added that, while the nine per cent interest rate favour operators in the agribusiness sector, it does not favour the primary segment of the agricultural value chain.

Dangote argued for a lower interest rate for operator involved in activities that require long gestation period including tree and pineapple plantation, land development among others. He stated that, “it is fine for agribusiness because it is a short term window and brings quicker returns; some activities require longer period of gestation even with the moratorium in place.”

He said: “It is a good development and we welcome it. However, there is need for the CBN to do a proper segmentation of the agribusiness sector because nine per cent is still too high for the primary segment of the sector. For those in the primary segment, at best it should be six per cent.”

Besides, he argued that the call on sector operators to report erring PFIs would not work. According to him, the call would have been more effective if it came with a guarantee that the whistle blower will enjoy some guarantee against blanket blacklisting from PFIs.

“Under the present circumstances, nobody will report any erring bank for fear of being blacklisted by the bank. I would have preferred if the call came with assurance that the CBN will guarantee an operator a loan at another bank if he is refused a loan at the bank he reported as offering double-digit interest rate,” Alhaji Dangote said.

In his own submission, a former acting Managing Director, Unity Bank Plc, Dr. Muhammad Rislanudeen, recalled that, “Intervention funds were introduced as part of efforts towards strengthening the economy and financial institutions themselves after the stress test conducted in 2009. They were meant to bridge a funding gap especially for small and medium enterprises as well as agriculture financing.

“CBN initiated the power and aviation, small and medium enterprises as well as commercial agriculture credit facilities sometimes around 2009 with specific aim of providing more funding to real sector, income enhancing and employment creating sectors that have long-term benefit of supporting growth at single digit interest rate. It is even more relevant now with economy in recession and most of those critical sectors contracting due in large part to high cost of doing business inclusive of high interest rate charged by banks.

Rislanudeen noted that, “In the guidelines for those intervention funds, it is clear that banks will charge single digit interest rate of 7 per cent for SME, power and aviation loans and 9 per cent for agriculture loan inclusive of all charges. The central bank is therefore right to insist on single digit interest rate in compliance with extant guidelines.”

His view was shared by economist and ex-banker, Dr. Chijioke Ekechukwu, as he justified the need for the apex bank to closely monitor such funds which are aimed at reflating certain sectors of concern to the economy. According to him, “Part of the core functions of the CBN is, occasional interventions to stimulate the economy, grow and regulate same. Depending on what sector of the economy that needs intervention. It could be aviation, power, textile or general real sector as experienced recently. Intervention funds therefore are aimed at reflating certain sectors of concern to the economy considered necessary to grow the economy. Intervention Funds are meant to provide cheap loans to the players in these sectors.

“When a loan is considered cheap in this context, interest rate should be between 5 per cent to 9 per cent (single digit) per annum. CBN has recently deployed intervention funds in Youth Entrepreneurship Development Programme, Anchor Borrowers Programme; Micro, Small and Medium Enterprises; Commercial Agriculture Credit Scheme and Development Funds.”

He added that, “These loans are availed through Participating Financial Institutions(PFIs) like BOI and some selected commercial banks. CBN has mandated these PFIs to ensure that these loans are given at single digit interest rates. This is to be able to achieve the ultimate purpose of such interventions. The higher the interest rate, the higher the risk of default in repayment by the debtors or beneficiaries and the higher the prices of their output.”

“Some other times, CBN cushions the loan burden of commercial banks by moving them out of their books as loans to the books of PFIs to save the lives of these ailing banks or to encourage them to extend more loans to certain sectors.

These are how relevant these funds are to the economy. They are indeed used to control some macro-economic indices” he explained.

Russia Urges Nigeria To Improve Processing, Packaging For Agric Produce

The Government of Russia has urged the federal government and relevant stakeholders in the agricultural sector to help improve the processing and packaging of fruits such as banana, papaya, pineapple and mango to meet up with the expectation of the Russia market.

Russia however pledged to strengthen its relations with Nigeria through the purchase of agricultural product.

In 2015 Russia agricultural total export was $16.2 billion, expecting $16.9 billion in 2016.

Speaking to news men in Abuja, the Ambassador of the Russian Federation to Nigeria, Mr Nikolay Udovichenko said that Nigeria’s major export to Russia for now is coco beans, describing Nigeria as a
tropical zone that has an abundant supply of fruits and vegetables.

Amb. Udovichenko noted that Russia now generate more revenue from selling agricultural produce, plant and machinery in the international market not fire arms.

“The Russian government is delighted and ready to export Nigerian agricultural products, especially, mangoes, pineapples, banana, pawpaw and cocoa beans. “We are ready to bring finished products and machines to promote the Agriculture sector in the country,” the envoy said. 

He said, ‘’In the international market, agricultural produce exports now bring in more revenue to Russia than arms exports.

We would probably have scarcely imagined such a thing possible. In 2015 our export came to $14.5 billion in 2015, and our agricultural produce exports came to $16.2 billion.’’

He said though the trade volume between Nigeria and Russia is $500,000, adding that both countries are making efforts to deepen bilateral ties.

He also noted that Russia do not want confrontation with any country, saying that Russia do not have need for it likewise the global community.

Quoting the presidential address by the president of Russia Vladimir Putin, the envoy said that Russia do not seek and never has sought enemies. ’’But we not allow our interest to be infringed upon or ignored.

He said Russia is also ready to work with the new US administration to put bilateral relations back on track and to develop them on an equal and mutually beneficial basis.

He also noted that the strategic partnership between Russia and China have become one of the key factors in ensuring global and regional stability.

The envoy also said that Russia will support Nigeria’s bid for a permanent seat in the United Nations Security Council if its candidate is a consensus of the African Union (AU).

The Security Council is one of the six principal organs of the UN and it is charged with the maintenance of international peace and security.

It has 15 members comprising five permanent and 10 non-permanent members. No Africa country has a permanent representative. The five permanent members are Russia, UK, France, China and the United States.

“If there is a consensus candidate of the AU and from Nigeria, we will be very pleased to support it,” said Udovichenko.