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

NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

Published

on

The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day  plant.
A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.
The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.
Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.
According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.
The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.
Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.
He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.
“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.
“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr  Ogbe said.
Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.
“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.
He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.
He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.
“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.
“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.
In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.
“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice.  As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.
Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.
High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.
The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.
The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.
In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.
Ariwera Ibibo-Howells, Yenagoa
Continue Reading

Business

Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

Published

on

The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
Continue Reading

Business

Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

Published

on

A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
Continue Reading

Trending