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Of Research, Finance And Cashew Value Chain Dev

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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,

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Paper Industry’s Economic Contribution Hits N398bn

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The contribution of the paper industry rose to N398.8billion in 2023 from N356billion it recorded in 2022.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Musa Yusuf, disclosed this in a report released to mark the inauguration of World Envelopes Day in Lagos.
Marking the event, which also commemorated the 50th anniversary of envelope manufacturing firm, FAE Limited, Yusuf stated that the paper industry has a profound economic impact across all sectors of the economy.
He, however, noted that the growth in digital technology had greatly disrupted the sector, especially as a mode of communication.
“As of 2023, the value of the Nigerian paper industry was N398.8billion naira, according to the National Bureau of Statistics.
“The value was N365bn in 2022; N363 billion in 2021; and N255billion in 2020. This is a significant contribution to our GDP. However, when compared to the size of our economy, which is estimated at N230trillion as of 2023, it is still very small”,  the CPPE boss stated.
Yusuf said the paper industry had been largely in recession because of the digital technology disruptions and other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.
He emphasised that the paper industry had a profound economic impact across all sectors of the economy, which underscored the need for government intervention in the sector.
In her opening remarks, the Managing Director of FAE Limited, Funlayo Bakare, described World Envelopes Day as the brainchild of the company, which sought to set aside April 16 as a day to celebrate the fundamental role envelopes play in daily communication.
“As we celebrate our golden jubilee, we are delighted to announce the inauguration of World Envelopes Day, to be celebrated annually on the 16th day of April.
“This is a pioneering initiative by FAE Ltd in accordance with our leadership position in the sector.
“The establishment of World Envelopes Day is to raise awareness about the importance of envelopes in various aspects of human endeavour, including personal correspondence, business transactions, and creative expressions”, she said.
The Publisher of The Guardian Newspaper, Maiden Ibru, who chaired the occasion, stressed the need to strike a balance between digitalisation and physical paper production, especially due to the indispensable role paper plays in cultural preservation.
Nigeria once had three paper mills: the Nigeria Paper Mill Limited, located in Jebba, Kwara State; the Nigerian Newsprint Manufacturing Company Limited, Oku-Iboku, Akwa Ibom State; and the Nigerian National Paper Manufacturing Company Limited in Ogun State.
The mills are no longer operational, and the country has had to depend on importation to make up for the shortfall.
The Asset Management Company of Nigeria has taken over the management of NNMC over unpaid debts.

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Aviation Union Threatens Strike Over Revenue Deduction

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The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has said it would embark on industrial action if the Federal Government refuses to exempt aviation agencies from a directive that seeks to deduct 50 per cent from their Internally Generated Revenue (IGR).
ATSSSAN disclosed this in a communique issued by its National Executive Council (NEC) after its National Economic Council meeting in Ibadan, Oyo State.
The NEC, which had in attendance all 17 affiliates of ATSSSAN comprising all branch Chairmen, Secretaries, and national officers, reiterated calls for the exemption of the aviation agencies from the deduction of 50 per cent  of their IGR under the Fiscal Responsibility Act.
The association said the agencies were not established for profit, hence stifling them of the required funds would jeopardise the effective performance of their safety and security mandates.
ATSSSAN warned that if the Federal Government insist on the deduction, it would compound the current financial state of the agencies, and “we may be forced to direct all aviation workers to down tools until the government reverses itself”.
Last year, the Federal Government directed the Office of the Accountant General of the Federation to immediately commence the presidential directives on a 50 per cent automatic deduction from the IGR of Federal Government-owned enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had issued a circular titled, “Re: Implementation of the Presidential Directives on 50 per cent Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises (FGOEs)”.
According to the circular, all partially-funded Federal Government agencies and parastatals (receiving capital or overhead allocation from the Federal Government’s budget) should remit 50 per cent of their gross IGR, while all statutory revenues, like tender fees, contractor’s registration, and sales of government assets, among others, should be remitted 100 per cent to the sub-recurrent account.
ATSSSAN stated its apprehension over what it perceives as deliberate efforts by certain private airlines to stop their employees from forming labour unions.
Citing Section 40 of the Nigerian Constitution and international labor norms, the association contends that such actions constitute a violation of workers rights.
The statement, however, did not specify the airline operators suppressing workers from joining unions.
Part of the statement read, “The NEC-in-session calls on all employers in the private sector in the aviation industry to respect collective bargaining agreements in order to avert industrial crises at the workplace.
“NEC-in-session was seriously disturbed by the continuous willful acts by some private airlines towards frustrating the unionization of their employees, contrary to the letters and spirit of Section 40 of the Constitution of the Federal Republic of Nigeria and relevant international conventions and laws”.
The association, therefore, called upon the Federal Ministry of Labour and Employment to uphold and enforce employees’ rights to unionise within the aviation industry.
It urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to orchestrate a dialogue involving all relevant stakeholders, including the non-compliant airlines and labour unions, under the auspices of the Labor Ministry.
At the meeting, other issues affecting workers, especially members’ welfare and working conditions, and the aviation industry at large were discussed, and positions and resolutions were taken.
The aviation group decried what it perceive as a dearth of avenues for career progression within government-owned aviation entities.

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NCDMB Rakes In $1m Return On NEDOGAS Investment

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Management of the Nigerian Content Development and Monitoring Board (NCDMB) says it has received a cheque of $1 million from Nedogas Development Company Limited (NDCL).
A statement made available to newsmen by the Directorate of Corporate Communications and Zonal Coordination of the Board said the sum received was part of the return on investment (ROI) on one of its strategic investments.
The statement added that: “The cheque was presented by the Chairman of the company, Engr. Emeka Ene, when he visited the Nigerian Content Tower in Yenagoa, Bayelsa State, where he was received by the NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, and other members of the Board’s management.
“Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.
“As part of the project, Nedogas NDCL constructed and commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
“The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
“Nedogas is one of the several strategic and successful investments of the NCDMB funded from the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act”.
In his remarks, according to the statement, the NCDMB Executive Secretary stated that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil and gas producing communities to minimise gas flaring, saying that Ogbe also declared the Board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing.They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.
“The NCDMB had continued to receive briefings from its investment partners. We’re still waiting for them to come back with success stories. Some of them are near completion and have not started operations yet”, the NCDMB’s Executive Secretary said.
In his remarks, Chairman of NEDOGAS, Mr. Emeka Ene, conveyed the company’s excitement in returning part of the credit and profit, adding that it was a proof that the NCDMB’s investment was a success and they are getting back that investment, adding that the firm looks forward to further collaboration with the NCDMB to expand its scope.
Responding, the NCDMB boss said the Board was now doing effectively and practically and tangibly what it was set up for, saying its mandate was to impact the economy by direct interventions.
“That’s the way the economy can grow, improve the gas infrastructure in such a way that’s sustainable despite the tight economic conditions”, he said.
He added that, “the  value propositions of the Nedogas project include total eradication of flared gas and conversation of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetize gas”.
Other benefits, according to Ogbe, include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s Gross Domestic Product (GDP).
“The partnership with NEDOGAS is one of NCDMB’s 15 strategic investments geared towards actualizing the Federal Government’s aspirations in key areas of the oil and gas industry.
“Most of the projects were targeted at actualizing the Federal Government’s Decade of Gas programme.
“Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State, and Duport Midstream’s 2,500bpd modular refinery in Edo State.
“Other investments of the Board include Better Gas Energy for LPG terminal and gas distribution, partnership with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State, and Alaro City in Lagos and the partnership with Butane Energy to deepen LPG utilization in the North”, he stated.
The Executive Secretary also noted that there was the partnership with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day and partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited, and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, in the Brass Local Government Area of Bayelsa State.

By: Ariwera Ibibo-Howells, Yenagoa

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