Wednesday
MoneyGram Recognized as Trusted Money Transfer Provider in Nigeria
MoneyGram (NASDAQ: MGI) announced the continuity of its operations inNigeria. The commitment follows recent market developments as the Central Bank of Nigeria (CBN) changed its policy on how remittance companies (including MoneyGram) can continue to provide money transfer services in Nigeria.
MoneyGram offers its customers in Nigeria the ability to send and receive money from family and friends throughout the world within minutes. Customers can either send or collect the funds from a MoneyGram agent location or receive them directly to their personal account.
"Remittances play an important role in the Nigerian economy. Nigerians living abroad sent more than $21 billion back to their country in 2015 alone," explained Grant Lines, chief revenue officer, AMEAP, Russia and CIS. "MoneyGram recognizes and supports the Central Bank of Nigeria in its efforts to ensure these inflows are brought into Nigeria for the benefit of consumers as well as the economy at large. Being recognized by the CBN as a legitimate money transmitter is a testimony to our commitment to compliance and willingness to continue working with the CBN in the best interests of the economy."
"MoneyGram's relationship with Nigeria is strong," said Kemi Okusanya, head, MoneyGram Anglophone Africa. "Lagos has been chosen to serve as MoneyGram's hub for Anglophone Africa operations. In addition, we have invested millions of dollars to improve product delivery for remittances to Nigeria. We know the needs of our customers vary and we are always striving to provide them with a solution that is most convenient for them. For example, our cash-to-account service allows Nigerians to receive funds directly to the customer's personal bank account."
Remittances are the second largest source of foreign exchange in Nigeria after the oil sector. According to the World Bank data,Nigeria accounts for nearly two-thirds of total remittance inflow to Sub-Saharan Africa. In 2015, an estimated $21 billion flowed into the country, including $5.7 billion sent from the United States and about $3.7 billion from the United Kingdom. #moneygramnews
About MoneyGram International, Inc. MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them. We also provide bill payment services, issue money orders and process official checks in select markets. More information about MoneyGram International, Inc. is available at moneygram.com.
Tuesday
LASG TO RECRUIT 1000 TEACHERS IN LAGOS STATE PUBLIC SECONDARY SCHOOLS
In a bid to improve teaching and learning in Lagos State public secondary schools, the Government is set to recruit additional 1000 teachers to fill the vacancies in the classrooms.
This was made public today by the Deputy Governor, Dr. Idiat Oluranti Adebule at the flag-off of the sensitization seminar on Healthy Living for staff of the Post-Primary Teaching Service which was organized by the Teachers’ Establishment and Pensions Office (TEPO).
The Deputy Governor urged the teachers to support Governor Akinwunmi Ambode’s administration in its drive to take education sector to higher level, adding that the government is very sensitive to the plight of teachers and committed to building their capacity building and ensure adequate welfare package to serve as motivation.
She also intimated the teachers that full rehabilitation of schools would soon commence to upgrade the facilities and give the schools a new look.
Adebule equally noted that the issue of security in the schools is being taken into consideration, urging them to be security conscious and also to monitor the students very well.
Further to this, she disclosed that despite the economic recession, the State government is doing its best to address the issue of dearth of teachers and admonished them to be more diligent, committed and dedicated to ensure effective and efficient service delivery.
The Deputy Governor advised the teachers to stay healthy because health is wealth noting that when the teaching workforce is healthy there would be increased productivity.
Also speaking at the event, the Permanent Secretary, TEPO, Mrs. Sewanu Amosu decried inadequate information on health issues, noting that the development could be responsible for the high level of sudden death in the country.
She admonished the teachers to cultivate and encourage clean environment at home and in the schools, adding that the seminar is to educate them on the importance of healthy living and also support those that have health challenges such as diabetes, asthma, heart disease, chronic pains, arthritics and hypertension. It is also designed to effect real behavioral changes among staff for the maintenance and sustainability of good and vibrant health.
This was made public today by the Deputy Governor, Dr. Idiat Oluranti Adebule at the flag-off of the sensitization seminar on Healthy Living for staff of the Post-Primary Teaching Service which was organized by the Teachers’ Establishment and Pensions Office (TEPO).
The Deputy Governor urged the teachers to support Governor Akinwunmi Ambode’s administration in its drive to take education sector to higher level, adding that the government is very sensitive to the plight of teachers and committed to building their capacity building and ensure adequate welfare package to serve as motivation.
She also intimated the teachers that full rehabilitation of schools would soon commence to upgrade the facilities and give the schools a new look.
Adebule equally noted that the issue of security in the schools is being taken into consideration, urging them to be security conscious and also to monitor the students very well.
Further to this, she disclosed that despite the economic recession, the State government is doing its best to address the issue of dearth of teachers and admonished them to be more diligent, committed and dedicated to ensure effective and efficient service delivery.
The Deputy Governor advised the teachers to stay healthy because health is wealth noting that when the teaching workforce is healthy there would be increased productivity.
Also speaking at the event, the Permanent Secretary, TEPO, Mrs. Sewanu Amosu decried inadequate information on health issues, noting that the development could be responsible for the high level of sudden death in the country.
She admonished the teachers to cultivate and encourage clean environment at home and in the schools, adding that the seminar is to educate them on the importance of healthy living and also support those that have health challenges such as diabetes, asthma, heart disease, chronic pains, arthritics and hypertension. It is also designed to effect real behavioral changes among staff for the maintenance and sustainability of good and vibrant health.
AMBODE FLAGS OFF EPE-MARINA LAGOON RECLAMATION PROJECT
Lagos State Governor, Mr Akinwunmi Ambode on Tuesday embarked on extensive inspection of on-going projects across the State, where he equally flagged off the world class Epe-Marina Lagoon reclamation project aimed at giving a quantum leap to the tourism potentials of the State.
Governor Ambode, who was accompanied on the inspection tour by top government functionaries, said the lagoon reclamation projects in Epe and Badagry, upon completion, would look like that of Dubai in United Arab Emirates (UAE).
He assured that the Badagry-Marina Lagoon reclamation project would be completed by the end of August, this year.
The Epe-Marina Lagoon reclamation project is a complete redevelopment of project site to facilitate development of the area and promote tourism.
The project comes with sand filling to the lagoon up to about 200 meters and dualization of the network of roads in the axis with functional walkways.
Speaking on why the Epe-Marina and Badagry-Marina projects were embarked upon simultaneously by the State Government, Governor Ambode said: “We want to actually duplicate what you see in Dubai-Marina. This is a whole stretch of two kilometers of real estate and new tourist centres that we are putting in Epe and Badagry at the same time.
“We believe strongly that coming out from our retreat that we said we are going to grow the IGR of Lagos State by 2017 to N30billion and 2018 to N50billion, we believe that some of these projects that we are commencing now are just inlets to our dream of growing the IGR.
“We know that by the time we are expanding tourism potentials of Badagry and Epe at the same time, we will be able to get new investors that will be able to come to our new locations to do other things beyond what you see about recreation, tourism or entertainment and then get a whole lot of investments into Lagos State. This is part of our dreams and dreams do come true.
“We are looking at the future of tourism from both axis. You cannot put tourism in those places without doing the infrastructure that is required to allow people to come in and that is why we are also doing the road network,” the Governor said.
Governor Ambode, who equally inspected the on-going dualization of about 25 network of roads in Epe, said the massive investment of government in the area was part of the grand plan to transform the axis and same was in line with the Lekki Free Trade Zone (LFTZ) project.
He expressed satisfaction with the level and pace of work done so far, saying that the quality was of international standard.
He also expressed optimism that the projects, upon completion, would decongest the heartland of Lagos as people would be encouraged to move to Epe and Ibeju-Lekki axis.
Speaking to journalists at the project sites, Governor Ambode said: “We believe with this expansion, the whole lot of what we are trying to do in Epe and Ibeju-Lekki axis will be developed.
“We are inspired to see how we can look at the phase two of this project as quickly as possible. This road dualization is expected to be completed in 16 months but because we are ahead of schedule, we are looking at the first quarter of next year.
“With this, we have just injected 30 kilometers of standard roads into Epe and the meaning of that is of course changing the economy of Epe Township, real estate will be boomed and we are encouraging commerce and industrialization.
“This project is the backbone of the Lekki Free Trade Zone, Deep Seaport and the proposed Airport. All the State Government is doing is stimulating the economy and that is what is happening here,” he said.
Governor Ambode also inspected the VIP Chalets in Epe where he disclosed that government will expand the housing scheme in the area and carry out perimeter fencing of the project site.
Earlier, Governor Ambode and his team inspected the Adeniji Adele transport interchange outward Third Mainland Bridge, where he ordered massive enforcement against illegal dropping and picking of passengers at undesignated bus stops.
This, the Governor said, would enhance ease of vehicular movement around that axis and drastically reduce traffic on the Third Mainland Bridge inward Obalende and Lagos Island.
The Governor also inspected the on-going rehabilitation and upgrading of Freedom Road and Admiralty Way in Lekki, as well as the on-going bridge being constructed at Ajah Roundabout.
He, however, urged the people to continue to pay their taxes so that government would continue to provide the needed infrastructures.
He said: “I think in the last 14 months, we have been able to show Lagosians that we can actually appropriate the taxes that they paid judiciously and then allocate it to the different sectors that really have meaning and impact to the ordinary Lagosians.
“The more they see what we are doing, the more inspired tax payers should be to perform their civic obligations and when they pay their taxes, our commitment remains the same, we will use these taxes judiciously and also expand the growth and economy of Lagos so that life becomes safer, cleaner and then more prosperous for all Lagosians,” he said.
Governor Ambode, who was accompanied on the inspection tour by top government functionaries, said the lagoon reclamation projects in Epe and Badagry, upon completion, would look like that of Dubai in United Arab Emirates (UAE).
He assured that the Badagry-Marina Lagoon reclamation project would be completed by the end of August, this year.
The Epe-Marina Lagoon reclamation project is a complete redevelopment of project site to facilitate development of the area and promote tourism.
The project comes with sand filling to the lagoon up to about 200 meters and dualization of the network of roads in the axis with functional walkways.
Speaking on why the Epe-Marina and Badagry-Marina projects were embarked upon simultaneously by the State Government, Governor Ambode said: “We want to actually duplicate what you see in Dubai-Marina. This is a whole stretch of two kilometers of real estate and new tourist centres that we are putting in Epe and Badagry at the same time.
“We believe strongly that coming out from our retreat that we said we are going to grow the IGR of Lagos State by 2017 to N30billion and 2018 to N50billion, we believe that some of these projects that we are commencing now are just inlets to our dream of growing the IGR.
“We know that by the time we are expanding tourism potentials of Badagry and Epe at the same time, we will be able to get new investors that will be able to come to our new locations to do other things beyond what you see about recreation, tourism or entertainment and then get a whole lot of investments into Lagos State. This is part of our dreams and dreams do come true.
“We are looking at the future of tourism from both axis. You cannot put tourism in those places without doing the infrastructure that is required to allow people to come in and that is why we are also doing the road network,” the Governor said.
Governor Ambode, who equally inspected the on-going dualization of about 25 network of roads in Epe, said the massive investment of government in the area was part of the grand plan to transform the axis and same was in line with the Lekki Free Trade Zone (LFTZ) project.
He expressed satisfaction with the level and pace of work done so far, saying that the quality was of international standard.
He also expressed optimism that the projects, upon completion, would decongest the heartland of Lagos as people would be encouraged to move to Epe and Ibeju-Lekki axis.
Speaking to journalists at the project sites, Governor Ambode said: “We believe with this expansion, the whole lot of what we are trying to do in Epe and Ibeju-Lekki axis will be developed.
“We are inspired to see how we can look at the phase two of this project as quickly as possible. This road dualization is expected to be completed in 16 months but because we are ahead of schedule, we are looking at the first quarter of next year.
“With this, we have just injected 30 kilometers of standard roads into Epe and the meaning of that is of course changing the economy of Epe Township, real estate will be boomed and we are encouraging commerce and industrialization.
“This project is the backbone of the Lekki Free Trade Zone, Deep Seaport and the proposed Airport. All the State Government is doing is stimulating the economy and that is what is happening here,” he said.
Governor Ambode also inspected the VIP Chalets in Epe where he disclosed that government will expand the housing scheme in the area and carry out perimeter fencing of the project site.
Earlier, Governor Ambode and his team inspected the Adeniji Adele transport interchange outward Third Mainland Bridge, where he ordered massive enforcement against illegal dropping and picking of passengers at undesignated bus stops.
This, the Governor said, would enhance ease of vehicular movement around that axis and drastically reduce traffic on the Third Mainland Bridge inward Obalende and Lagos Island.
The Governor also inspected the on-going rehabilitation and upgrading of Freedom Road and Admiralty Way in Lekki, as well as the on-going bridge being constructed at Ajah Roundabout.
He, however, urged the people to continue to pay their taxes so that government would continue to provide the needed infrastructures.
He said: “I think in the last 14 months, we have been able to show Lagosians that we can actually appropriate the taxes that they paid judiciously and then allocate it to the different sectors that really have meaning and impact to the ordinary Lagosians.
“The more they see what we are doing, the more inspired tax payers should be to perform their civic obligations and when they pay their taxes, our commitment remains the same, we will use these taxes judiciously and also expand the growth and economy of Lagos so that life becomes safer, cleaner and then more prosperous for all Lagosians,” he said.
Wednesday
Nigeria: Pipeline Bombings - Militant Group Announces 2-Wk Ceasefire
A militant group, Niger Delta Revolutionary Crusaders, NDRC, based in Bayelsa State, Wednesday, declared a two-week armistice within which it urged President Muhammadu Buhari to review his hard-line stance to consequential dialogue with militants and first-rate leaders of Niger Delta to prevent total devastation of crude oil export facilities.
This came as the Niger Delta Avengers, NDA, accused ExxonMobil of telling lies about the bombing of its Qua Iboe 48-inch crude export pipeline on Monday evening.
Spokesperson of the militant group, self-appointed Brig Gen Mudoch Agbinibo, stated: "ExxonMobil can deny and fool the general public about their Export Pipeline blown, yesterday (Monday). How long can they lie to their investors? Just in matter of days, the whole world will see the truth. Qua Iboe 48" crude oil export pipeline is down, so said the Avengers."
NDRC, which recently blew up the Brass Creek Manifold, the largest in West Africa, situated in Peretorugbene, Ekeremor local government area, Bayelsa state, said: "With clear evaluation of the happenings and advice of well- meaning Nigerians and Niger Delta stakeholders, we hereby declare a two- week ceasefire for a sincere and proper dialogue.
Flexible Forex Policy Arouses Positive Sentiments
The decision to implement a flexible foreign exchange policy has once again being described as one that would certainly have positive effect on the Naira in particular and the Nigerian economy in general.
Prominent financial analysts, who spoke to Independent, believed that the implementation of the policy at this period will bring back the lost glory and restored the country’s currency, the naira, back to its good old days.
Johnson Chukwu, the Chief Executive Officer of Cowry Asset Limited, said that the Naira has enjoyed some stability in all the market segments since the introduction of the new forex policy unlike when we had wide fluctuations in the parallel market.
“It should be emphasised that what business managers seek for is not necessarily a revaluation of the Naira, but exchange rate stability to enable them plan.
“For those expecting Naira to appreciate, this may be feasible in the medium to long-term when the country’s foreign exchange earnings improve and previously active but now dormant sources of foreign exchange inflows get reactivated, particularly Diaspora remittances, foreign portfolio investments and foreign direct investments and non-oil exports.
“The introduction of the flexible foreign exchange policy, which removed the peg of the Naira from an artificially overvalued rate of about N197/$ to a more market reflective spot rate of N280 – N282/$ has restored some stability, including the parallel segment where Naira is still trading at about N350 – N352/$, against fluctuations between N320/$ -N400/$.
“Also the new forex policy has eliminated some distortions in the economy by creating a fair playing field as against the previous arrangement where some people accessed forex at N197/$ while others sourced theirs from the parallel market at N380/$,” he said.
But, he said that readmitting BDCs is hinged on the desire to create multiple sales outlets and reduce the spread between the interbank rate and the parallel market rate.
Citing the CBN-led Prof. Chukwuma Soludo era, he said increased dollar sales to BDCs led to drastic reduction in the spread between the official and parallel market rates to about N2/$.
“Given that there is no longer an official exchange rate, what the CBN is considering may be to allow the BDCs buy from the banks and resell to their customers who need minimal dollar cash for personal and business travel allowances. It will certainly improve supply in that market and reduce the current premium of about N70/$ between the interbank rate and the parallel market rate,” he added.
For a currency expert and Research Analyst at FXTM, Lukman Otunuga there was a strong feeling of positivity dispersed across the economy in June following the unexpected decision to de-peg the Naira against the dollar in an effort to ease the severe pressures on external reserves and foreign exchange supply shortages.
For an extended period, depressed oil prices have weathered the nation’s government revenues, while supply disruptions heightened concerns over a potential slowdown in domestic economic momentum.
“With fears elevated that Nigeria could enter a potential technical recession in second quarter, the swift decision taken by CBN consequently boosted investor sentiment.
“Unfortunately, the policy faces noticeable pressure now, following the fading optimism over the effectiveness of the Naira de-peg and such has created unease throughout the Nigerian economy.
“However, while it was expected that the Naira should depreciate heavily post de-peg as the natural forces of supply and demand create an equilibrium price, it really does not reflect on the official exchange that showed N281 against the dollar.
“Although there are fears that a weakening Naira could drive inflation higher in the short term, this same weak Naira could attract foreign investments while boosting demand for domestically created products.
“The decision taken by the central bank to float the Nigeria may have been a painful move in the short term, but this could be the first critical steps needed to steer away from oil reliance, while also promoting economic stability in the long term.
“Naira weakening on the parallel markets cannot all be put on CBN alone. Global instabilities have exposed the Nigerian economy to downside risks while the awful mixture of depressed oil prices and a firming dollar will translate back to a vulnerable Naira.
“With liquidity still lacking, coupled with the 41 banned items, which cannot be purchased on the official exchange, market participants will be naturally attracted to the black markets,” he said.
Also, the Executive Director, Investment Finance, BGL Capital Limited, Olufemi Ademola, assessed the new policy as going in the right direction as expected.
The implementation of the flexible exchange rate policy is going on very well. As expected the level of the demand in the market is driving the exchange rate rather than the CBN fixing the prices.
However, it appears that the CBN is the only supplier of foreign currency to the market for now and the market is pricing the high demand into the rates.
“If you check the bids submitted to the CBN by banks on the first day of trading, some were as high as N382/US$. This is based on the request of the customers (since they are requested by banks to state the price in their bid instruction) who just want the foreign currency to complete their transactions.
“With the clearing of the backlog of forex demand and the introduction of forward contracts and futures market, it is expected that going forward, future demand would be lower and even over the period as artificial demands and speculative activities moderate significantly.
“Therefore, as more forex supplies enter the market from International Oil Companies, other exporting companies and foreign investors, the rate is expected to moderate in the very near future.
“The continued ban of some 41 products from accessing the interbank forex market will continue to create opportunities for black market and account for a large amount of forex transactions.
“Additionally, the difficulty in accessing the interbank market by end users, especially retail and individuals due to the stringent requirements for accessing the market otherwise, is leading to the continued patronage of the black market by the end users. These are making the efforts of the CBN to appear futile,” he said.
Still, he said BDCs need to be accommodated and given a role to play, otherwise they will continue to trade outside of the official market and keep the parallel market significantly active.
“The consideration to engage the BDCs for forex trading was a good one, which need not be politically motivated by big economic players or any other persons for that matter. It should be a rational economic decision with a view to make the foreign exchange policy successful,” he added
Agriculture as engine of diversification
Nigeria’s current economic woes are primarily as a result of over-dependence on oil, a commodity presently known for its pricing volatility. The current economic quagmire has made many Nigerians to proffer soluations to the current situation. While some are calling for a restructuring of the nation’s political-economic architecture to free up the potential of the States, others have advocated the maintenance of the status quo, with greater emphasis on economic diversification. However, the present nature of our convoluted federal system calls for a more satisfactory and accomplished discussion of economic diversification.
The efforts to diversify the economy should be considered and effected with a robust approach towards bolstering the economy. Agriculture is one of the sectors we should focus on for the purpose of actualizing our economic diversification goal. There is no doubt that the present administration and its predecessor made agriculture one of the focal sectors to invest in towards strengthening our economy.
The previous administration under the stewardship of the then Agriculture Minister, Dr. Akinwumi Adesina, commenced the process of maximizing the potentials of the sector. Some initiatives were introduced such as: the utilization of technology in a sector that has been mostly archaic in approach and practice, exemplified via updates and information to farmers through small holder farmers. In addition, concerted efforts were made to attract private sector participation to the industry, among other laudable interventions.
The current administration, acknowledging that more work needs to be done, has consolidated on the efforts of the previous administration by granting N40 billion in form of soft loans for rice and wheat production through the CBN Anchor Borrowers Programme (ABP). The creation of this fund is a strategic move for the the attainment of national food security, job creation and poverty reduction.
As laudable as the efforts of the current administration are, it should be said that more efforts are still required in order to positively transform Nigeria’s agriculture sector and turn it into a major revenue earner for the nation, as it once was. The issue of financing indigenous farmers has been a major impediment to the take off and growth of the agriculture sector.
It is pertinent to note that commercial banks, with the exception of a few, are still reluctant to provide credit facilities to the Agricultural sector, in spite of the encouragement by the Central Bank to do so. CBN has consistently encouraged commercial banks to meet and comply with their agricultural credit financing thresholds through schemes like Nigeria Risk Incentive-Based Sharing System for Agricultural Lending (NIRSAL) and Micro Small and Medium Enterprises Development Fund (MSMEDF). Yet, many banks still fail to avail farmers credit facilities.
Understandably, some of the reasons for the unwillingness of banks to give agricultural loans can be found in the widespread subsistent nature of farming in Nigeria. Especially, in rural areas which makes it practically impossible for farmers and banks to agree on loan modalities combined with the illiteracy level of some farmers. Furthermore, the farmers are scared of the double digit-interest rate associated with these loans. There is also the issue of diversion of funds by some farmers.
Moreover, there is a varying degree of improper engagement of the youths in the agricultural sector which is in dire need of well-trained manpower and technological advancement. A friend once made a remark that if a Nigerian farmer who died fifty years ago resurrects today, he can simply walk into a farm and carry on farming activities since nothing in practice and tools have changed.
Indeed, nothing has changed except the rhetoric. The farms we have are largely un-mechanized, with Nigeria having the lowest tractorization in the world in terms of intensity and density. Our youths who are known to be dexterous and creative, can resolve most of these issues inhibiting modern day technology in today’s farming. However, the youths cannot provide succour if graduate youths are not engaged in agribusiness. They need to be sensitized on the value chain of agriculture and the benefits it can provide. The Nigerian youths can provide the skilled manpower and managerial skills that are deficit within the sector considering the enterprising nature of some of these youths.
There is no gainsaying the fact that having agriculture as one of the big revenue earners of our economy would be to our benefit. It will, among other things, serve as a source of raw materials for agro-allied industries, help advance Nigeria’s quest and march to industrialisation. Furthermore, research comes up with new findings of breakthroughs and solutions obtained from agricultural produce, most of which can be found in our geographical entity.
The citizens and government of Nigeria should be more proactive in investing in the restructuring of this viable sector and harnessing its value chain in boost its contribution to the GDP and sustainability of our livelihood and economy. An example is Benue state, which recently took bold steps towards achieving citizens’ participation by declaring Friday a work-free day for civil servants to take part in farming activities in this year’s crop season.
The efforts to diversify the economy should be considered and effected with a robust approach towards bolstering the economy. Agriculture is one of the sectors we should focus on for the purpose of actualizing our economic diversification goal. There is no doubt that the present administration and its predecessor made agriculture one of the focal sectors to invest in towards strengthening our economy.
The previous administration under the stewardship of the then Agriculture Minister, Dr. Akinwumi Adesina, commenced the process of maximizing the potentials of the sector. Some initiatives were introduced such as: the utilization of technology in a sector that has been mostly archaic in approach and practice, exemplified via updates and information to farmers through small holder farmers. In addition, concerted efforts were made to attract private sector participation to the industry, among other laudable interventions.
The current administration, acknowledging that more work needs to be done, has consolidated on the efforts of the previous administration by granting N40 billion in form of soft loans for rice and wheat production through the CBN Anchor Borrowers Programme (ABP). The creation of this fund is a strategic move for the the attainment of national food security, job creation and poverty reduction.
As laudable as the efforts of the current administration are, it should be said that more efforts are still required in order to positively transform Nigeria’s agriculture sector and turn it into a major revenue earner for the nation, as it once was. The issue of financing indigenous farmers has been a major impediment to the take off and growth of the agriculture sector.
It is pertinent to note that commercial banks, with the exception of a few, are still reluctant to provide credit facilities to the Agricultural sector, in spite of the encouragement by the Central Bank to do so. CBN has consistently encouraged commercial banks to meet and comply with their agricultural credit financing thresholds through schemes like Nigeria Risk Incentive-Based Sharing System for Agricultural Lending (NIRSAL) and Micro Small and Medium Enterprises Development Fund (MSMEDF). Yet, many banks still fail to avail farmers credit facilities.
Understandably, some of the reasons for the unwillingness of banks to give agricultural loans can be found in the widespread subsistent nature of farming in Nigeria. Especially, in rural areas which makes it practically impossible for farmers and banks to agree on loan modalities combined with the illiteracy level of some farmers. Furthermore, the farmers are scared of the double digit-interest rate associated with these loans. There is also the issue of diversion of funds by some farmers.
Moreover, there is a varying degree of improper engagement of the youths in the agricultural sector which is in dire need of well-trained manpower and technological advancement. A friend once made a remark that if a Nigerian farmer who died fifty years ago resurrects today, he can simply walk into a farm and carry on farming activities since nothing in practice and tools have changed.
Indeed, nothing has changed except the rhetoric. The farms we have are largely un-mechanized, with Nigeria having the lowest tractorization in the world in terms of intensity and density. Our youths who are known to be dexterous and creative, can resolve most of these issues inhibiting modern day technology in today’s farming. However, the youths cannot provide succour if graduate youths are not engaged in agribusiness. They need to be sensitized on the value chain of agriculture and the benefits it can provide. The Nigerian youths can provide the skilled manpower and managerial skills that are deficit within the sector considering the enterprising nature of some of these youths.
There is no gainsaying the fact that having agriculture as one of the big revenue earners of our economy would be to our benefit. It will, among other things, serve as a source of raw materials for agro-allied industries, help advance Nigeria’s quest and march to industrialisation. Furthermore, research comes up with new findings of breakthroughs and solutions obtained from agricultural produce, most of which can be found in our geographical entity.
The citizens and government of Nigeria should be more proactive in investing in the restructuring of this viable sector and harnessing its value chain in boost its contribution to the GDP and sustainability of our livelihood and economy. An example is Benue state, which recently took bold steps towards achieving citizens’ participation by declaring Friday a work-free day for civil servants to take part in farming activities in this year’s crop season.
World Bank loan for Port Harcourt
The World Bank's private sector arm, the IFC, has granted $73.5 million for the build of a new port terminal in southern Nigeria, says Reuters.
The aim behind the new terminal currently being constructed at Port Harcourt in Nigeria's Niger Delta, will be to help increase the country's non-oil exports.
It will be used to ship 2 million tonnes of dry bulk urea exports per year from Indorama Eleme's fertiliser plant.
It’s a joint venture between Indorama Eleme Petrochemicals Limited and Oil and Industrial Services Limited and will cost $150 million in total to build.
Finance for the terminal is made up of The IFC grant plus an additional $31.5 million loan for the terminal from Rand Merchant Bank.
Nigeria currently relies on crude oil sales for around 90% of its foreign exchange, but it’s suffering from a plunge in oil prices spurring the government on to steer the economy towards other trading goods.
- See more at: http://www.portstrategy.com/news101/world/africa/world-bank-loan-for-port-harcourt?#sthash.kwuPf34F.dpufFederal Govt. of Nigeria to establish renewables, power sector committees
The minister of state for Works, Power and Housing, Mustapha Baba Shehuri, has said committees will be established and saddled with dealing with the specific issues that need attention with regard to the power sector, adding that all stakeholders need to be on board in moving the sector forward,opinionvoices reports.
Addressing participants at the second edition of the National Council on Power organised by his ministry in Kaduna, Shehuri, represented by Louis Edozien, permanent secretary, Power in the ministry, said the power industry is currently going through specific challenges and it is important the council deliberate on them especially as the industry is in transition.
He tasked stakeholders in the sector to come up with the right energy mix among the volumes of energy resources in the country that will serve the best interest in delivering power to all Nigerians. He noted that committees would be established to discuss how to effectively harness these various energy resources and develop an energy target and mix that will better serve the country as well as on the prospect of better utilization of gas resources in the country.
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