Connect with us

Business

Of Research, Finance And Cashew Value Chain Dev

Published

on

President Buhari and Audu Ogbe, Minister of Agriculture

President Buhari and Audu Ogbe, Minister of Agriculture

When President
Muhammadu Buhari-led government came into power in 2015, its desire is to revive the economy through diversification from dependence on crude oil into the non-oil sectors.
With this drive, the government focuses on agriculture among others, apparently because the sector inherent many potential, including foreign exchange earnings, guaranteeing the nation food security and providing raw materials for the manufacturing sector.
The spotlight on agriculture saw cashew gaining the necessary attention as one of the economic crops on which the economy revolved prior to the discovery of crude oil in Nigeria in 1956 at Oloibiri, in now Bayelsa State, in the Niger Delta.
The discovery was made by Shell-BP, at the time the sole concessionaire, after half a century of exploration.
Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd.
It is pertinent to note that before then, Nigeria’s major foreign exchange earner was agricultural products, including cocoa, palm oil and groundnuts as recorded in “Groundnut Pyramids’’ of Kano.
Seizing the opportunity that the cashew sub-sector was getting the desired attention it needs; stakeholders under the auspices of the National Cashew Association of Nigeria (NCAN), organised it maiden Cashew Festival and Awards.
The Festival was tagged, “Cashew: A Game Changer for the Nigerian Economy’’.
It is targeted at increasing value addition, fostering more national policies and creating more wealth and that implies economic growth.
The objectives are also to exhibit the potential in the cashew industry, and seek ways to enhance production, processing and ultimately develop the value chains.
Participants included 2,000 farmers, processors, exporters, shipping companies and marketers and government agencies in agriculture from all over the world.
They discussed the challenges militating against the development of the industry, especially production of cashew, and noted that research, access to finance, quality management and commercialisation were affecting the overall growth of the industry.
The participants also proffered interventions that could salvage the situation in the immediate and long-term.
Gov. Abdulfatai Ahmed of Kwara said at the event held on Monday, Feb. 29, in Ilorin, that the state had acquired 13,000 hectares of farmland for unemployed youths to plant cashew.
Ahmed said that different crops, including cashew would be cultivated on the land, adding that the state was ready to support cashew farmers in all ramifications to strengthen the state’s Internally Generated Revenue.
The governor in his keynote address expressed the hope that other state governments would align with the Federal Government as it tilted towards an agriculture-based economy.
According to him, cashew, which seems to be an economic crop in terms of the by-products that could be got from it, like cashew juice, honey, nuts and chocolate among others, is growing in demand globally.
“The global demand for cashew is growing strongly in terms of volume and value and the world demand for cashew will continue to increase rapidly.
“This presents an opportunity for us to increase our foreign exchange earnings, diversify our agriculture products, develop our agro industry and of course, provide employment for our teeming youths,’’ Ahmed said.
The governor also said that the country must take commercialisation seriously in the development of agriculture if the government’s diversification drive would thrive.
“Kwara State is taking the issue of commercial agriculture very serious, on this premise; we have already identified 13,000 hectares of land to be cleared and made available to the unemployed youths in the state.
“Again, one of the crops that have been adopted to be farmed on the land is cashew. We are also creating a new generation of farmers with training of farmers at our integrated farm.
“This to enable them to become change agents in their communities and agriculture will be made a business activity that will attract the youths,’’ Ahmed said.
He noted that farmers needed finance for commercialisation of agriculture, which was important to developing the value chains in agricultural production that was capital intensive.
The News Agency of Nigeria (NAN) reports that already, the state’s micro credit scheme has over 50,000 beneficiaries, including farmers and Small and Medium Enterprises (SME’s).
Also, the government has earmarked N2 billion for the scheme over the next three years.
Mr Segun Awolowo, the Executive Director of Nigerian Export Promotion Council (NEPC) in his paper on “Promoting Nigerian Cashew Export’’, said Nigeria generated 250 million dollars in foreign exchange in 2015.
Awolowo said that processing of cashew which was capital intensive, was just about 10 per cent of the total cashew produced.
He said that there was a steady progression in cashew production from 130,000 metric tons to 155,000 in 2014 and 160,000 in 2015.
The executive director said one of the areas where the council was focusing on is the exportation of raw cashew nuts illegally.
“We need a strong policy from the council that will kick against the illegal exportation of raw cashew nuts outside Nigeria.
“In 2015, raw cashew nuts generated 250 million foreign exchange earnings from 150,000 metric tons of cashew out of 160,000 tons produced in the 2015 cashew season.
“Cashew is one of Nigeria’s main agricultural export produce with about 325,000 hectares presently cultivated and local processing capacity is just 10 per cent.
“There is the projection for increasing locally processed cashew to 50 per cent in the next year. The cashew value chain is one that needs regulation and development to help farmers maximise production,’’ Awolowo said.
He said that the country needed about N100 billion to fund research, production, processing and marketing in the 2016 cashew farming season.
Awolowo asked for the reversal of the export grant presently suspended by the Federal Government and appealed for more support in the distribution of jute bags free of charge.
He suggested that old cashew trees should be cut down and replaced with new hybrid seedlings that would increase production and quality.
On his part, the Managing Director of African Cashew Alliance (ACA), Dr Babafemi Oyewole, said that there was a new scheme by the Central Bank of Nigeria (CBN) to support the commodity sector.
Oyewole said that in line with the CBN scheme, Kwara State Government was going to engage private sector in the development of the crop.
“We have highlighted the challenges and number one is access to finance, and that is why some commercial banks were invited to speak about how they can help farmers to get the necessary credits.
“This is because they are interested in profit making and can mobilise financial resources into the sector.
“Also, donor agencies like USAID Next Project; these are projects that are coming up to support the cashew sector.’’
The managing director also opined that since the rise in the exchange rate of the Dollar, the prices of cashew is increasing.
“The addresses by the Minister of Agriculture and Rural Development and the Gov. Ahmed are a signal that cashew is a very strategic product that government has decided to promote, to replace oil.
“Now that the price of oil is going down while the price of cashew is going up, diversifying the economy via cashew is fast becoming an imperative source of foreign exchange earner and employment provider,’’ Oyewole said.
In the same vein, the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, lamented that the total of processed cashew is low.
Nigeria currently produces 160,000 metric tons annually out of which about 50,000 tons (33.3 per cent) is the total processed.
Enalamah challenged stakeholders to up their game by seeing to it that cashew becomes the game changer in the Nigerian economy.
He urged the stakeholders to ensure that they meet the 50 per cent target of the total production within the next few years.
“Not adding value to cashew locally is costing Nigeria huge losses in form of foreign exchange and employment opportunities.
“For example, raw cashew nut is sold at 800 to 900 dollars per metric ton, while processed cashew is sold for 6,000 dollars per metric ton.
“Other problems plaguing the cashew industry includes seed production, packaging and marketing of the commodity,’’ he said.
Enelamah said that the Nigerian Industrial Revolution Plan developed by the ministry was the nation’s first strategic, comprehensive and integrated roadmap to industrialisation.
He said expressed belief that the festival would help to draw a unique chart and evolve a blueprint for harnessing cashew potential to attract investment and increase its value chain in other to sustain economic diversification.
Chief Audu Ogbeh, Minister of Agriculture and Rural Development, said that agriculture contributed about 42 per cent to Nigeria’s annual Gross Domestic Products (GDP).
Ogbeh said that agricultural commodities were traded at high volume in the export market and cash contributed a significant part of this.
“Unlike the oil and gas sector that is an industry restricted to a small part of the country, employing a very tiny population all across its value chains, agricultural commodities are produced in many states.
They involve a large population of actors, providing jobs, incomes and livelihoods across its value chains.
“Now that our foreign reserve is less than 30 billion dollars, which can hardly pay for our five months import bills, Nigeria can no longer afford to allow unbridled capital flight occasioned by huge imports.
“With the free-fall of exchange rate of the Naira, we still believe that every challenge has its opportunities, so, we should leverage on the prevailing exchange rate to boost export,’’ Ogbeh said.
The minister disclosed that one of the priority commodities for foreign exchange earnings that is receiving attention is cashew.
He said cashew was identified as one of five agro-industrial products, among 13 national strategic export products for Nigeria.

Itohan Abara-Laserian, News Agency of Nigeria (NAN)

 

Itohan Abara-Laserian,

Continue Reading

Business

FG Flaggs Of Renewed Hope Employment  Initiative 

Published

on

As part of its programme to empower Young Nigerians with the necessary employability skills, the Federal Government, through the National Directorate of Employment (NDE), has flagged off the second phase of the “Renewed Hope Employment Initiative” (RHEI).
Performing the ceremony in Port Harcourt, the Director General of NDE, Silas Ali Agara, said the second phase of the programme will absorbed over 41,307 youths across the country.
Agara said the first phase of the programme, which was flagged off December 2024, successfully trained 32,692 unskilled and unemployed Nigerians in demand-driven skills across the 36 states and the Federal Capital Territory (FCT).
According to the DG, who was represented by the Rivers State Coordinator of the Programme, Matthew Amala, “The strategic goals were increasing trainee employability, supporting small scale enterprises, promoting agricultural productivity, improving rural infrastructure and providing transient jobs.”
He said, over 5000 beneficiaries were resettled with loans and starter packs, while linkages to credit institutions for those that could not be accommodated under the Directorate’s soft loan scheme was ongoing.
“As we reflect on the achievements of the first phase of the Renewed Hope Employment Initiative, I’m excited that the second phase is being flagged off today.
“In the second phase, NDE will train 41,307 persons in over 30 skills set, ranging from vocational, entrepreneurial, agricultural, ICT, and activities in the public works sector.
“We have improved and digitalized our processes through a robust registration portal fully equipped with scalable backends and geofenced capabilities.
“This has made our processes more transparent, fair, equitable, as well as providing us with a credible database”, he said.
The DG said at the end of the training, a total of 14,457 will be resettled with starter packs to help them establish themselves in their chosen fields.
“It’s our sincere expectation that the participants would be equipped positively with skills to enhance their employability, foster entrepreneurship mindsets in them and improving livelihoods to contribute to their community and the economic growth of the Nation”, he added.
He said despite the challenges of limited budgetary resources, the NDE remains committed to equipping unemployed Nigerians with demand driven skills in order to empower these individuals to become employers of labour and future wealth creators.
John Bibor & Edidiong Johnson
Continue Reading

Business

Kachikwu Makes Case For Increased NCI Fund To US$1bn … Timeline For Developing Oil Blocks

Published

on

Former Minister of State for Petroleum Resources, Prof. Emmanuel Ibe Kachikwu, has canvassed that the $450m Nigerian Content Intervention Fund (NCI Fund) be increased to US$1bn.
He said the increase will be deployed to cater for the funding of mega oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.
Kachikwu also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, saying same condition should also be for firms that win industry contracts based on commitments of investments.
He made these recommendations on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).
The Tide gathered that the webinar drew nearly 500 participants via Zoom and the Board’s YouTube page.
The former minister, who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.
According to him, the  fund should include contributions from operators, and other investors in the sector and not just government resources, expressing dismay that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land which has caused huge losses to the nation.
“I like to advise the Government to cancel oil blocks that are not developed after a prolonged period. We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally. We need to begin to produce those equipment.
“You’ve to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology?  You need to give a timeline”, he said.
Speaking on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that there was a lot of money waiting to be tapped, saying that however it is only going to countries where there is a perception of regularity.
“Nigeria’s image needs to improve, while the Government also needs to create the right investment climate to attract investment. There’s enough investment money out there if you have a holding of hands.
“They need to portray Nigeria as the place you can put money and get good returns. Government should consider co-investing with private companies if there are good prospect of returns”, he added.
The erstwhile Petroleum Minister lauded the transformation in the oil and gas sector with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs).
“Mere ownership transfers are insufficient without enhanced output, management, revenue returns and compliance with extant laws.
“My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue. There’s the need to involve local communities to avoid past disconnects that fueled conflicts”, Kachikwu said.
He also commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, for upholding the agency’s mission and recording significant strides since assumption of office.
Reflecting on the NCDMB  Scribe’s pivotal role in shaping the Board, Kachikwu emphasized that advancing local content was a core pillar of his tenure as Minister and chairman of the NCDMB Board, noting that local content is not just a slogan, but rather a tool for industrialisation, job creation, and knowledge transfer.
“There should be consistency of policies. For too long, foreign companies dominated every segment of the sector, while our people remained bystanders.
“My message to young professionals is clear: the oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.
“The industry is not just about barrels and dollars. it’s about national survival, community welfare, and the environment. Achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial.
“Confidence in yourself and your abilities will fuel your progress and help you overcome challenges. Principles matter: Let your ethics and integrity be a guiding light. Build relevant skill sets. Equip yourself with the skills that make you competitive and adaptable in the job market”, the former Minister urged.
Earlier in his welcome address, the Executive Secretary of the NCDMB’s Director of Capacity Building, represented by the Director of Capacity Building, Engr. Abayomi Bamidele, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence.
Hee said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.
In his closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.
He also thanked the guest lecture for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.
“NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content. The Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series.
“We want to assure you that this Mentorship series will continue as a key platform for engaging and educating stakeholders of the industry. I also want to urge interested listeners to visit NCDMB’s YouTube channel to watch the recording of the webinar”, he said.
Ariwera Ibibo-Howells, Yenagoa
Continue Reading

Business

FG Embarks On Sanitizing Mining Industry 

Published

on

The Federal Government has embarked on sanitizing the mining industry, as concrete steps are being taken through the Mining Cadastre’s office to put things in order.
Already, some of the mining licences have been revoked, and more mining licences will be revoked, as part of ongoing efforts to sanitise the solid minerals sector, as well as to protect investors from fraudsters.
Director-General (DG) of the Mining Cadastre Office, Obadiah Nkom, who disclosed this on a live conversation on X (formerly Twitter), said the move was aimed at driving transparency and order in Nigeria’s solid minerals sector.
According to the DG of the Federal Government agency, the clean-up exercise, which covers expired, speculative, and inactive titles, is necessary to make room for genuine investors and ensure compliance with the law.
Nkom disclosed that the agency had identified about 4,709 licences, including 1,400 expired titles, 2,338 refused applications, and 971 notifications of grant where applicants failed to pay, which led  to an outright revocation by the Minister of Solid Minerals Development, Dele Alake.
The DG stressed that the revocation was not punitive but part of a deliberate sanitisation process to weed out speculators who hoard licences without adding value to the economy.
Nkom explained that the exercise had already boosted investor confidence in the sector.
“When you talk about backlog, for now, the ministry has had reasons to clear or revoke close to 4,709 mineral licenses. There were implementations in terms of revoked expiring titles of up to 1,400 licenses.
“We have had reasons to refuse  2,338 applications in the system. We have had a mineral title notification of 971. Can you imagine 971 notifications of grants that were notified, but did not come to pay.
“There are even instances where some people have collected the grants, but they refuse to pay. So what do we do? So this cleaning exercise that we are doing is to be able to now create that space in the minefield for people.
“So, imagine having over 4,709 erased from our system by way of revocations implemented. It has sanitised our sector, and investors now know that if they are not going to be involved in exploration and value addition, there will be consequences.
“We are cautious. We follow the law. And this is why I repeat, we have had 100 per cent success in litigations because we are an agency compliant with the provisions of the Act.
“Where we are wrong, we do not shy away from trapping ourselves and doing the right thing. I would hope that at the end of the day, we will not have any risk by following the provisions of the Act”, he said.
Recall that the minister in 2024 revoked 924 licenses over failure to pay statutory charges and fees due for the Federal Government through the Mining Cadastral Office.
He warned licensees yet to resume work on their mining projects to do so immediately.
Corlins Walter
Continue Reading

Trending