Connect with us

Business

Nigeria To Revive Six Fertilizer Plants

Published

on

The Nigeria Government is to revive six fertilizer blending plants before the end of the year, through the Infrastructure Unit of its Sovereign Wealth Fund.
The Managing Director of Nigeria Sovereign Investment Authority (NSIA), Mr Uche Orji, disclosed this on Monday, in Abuja, when the Minister of Information and Culture, Alhaji Lai Mohammed, paid him a working visit.
Orji said that the six plants set for revival across the country would bring the total number of operational fertilizer blending plants to 17.
He said the project was done through the Fertiliser Initiative Programme of President Muhammadu Buhari’s administration, which was conceived to make the commodity available to farmers at cheaper rate.
The NSIA boss disclosed that since the inception of the programme in December 2016, the authority had delivered more than six million bags of fertilizer below market price to farmers.
Specifically, he said a bag of fertilizer which hitherto sold between N11,500 and N13,000 had been brought down to N5,500 per bag since the beginning of the year.
He added that more than 50,000 jobs had been created by “rehabilitating 11 fertiliser blending plants which were either producing below capacity or moribund’’.
“The programme has saved the government more than N60 billion in subsidy in 2017, as government used to subsidise fertilizer up to the tune of N6,000 per bag.
“The programme has also saved the government foreign exchange through the introduction of local contents in fertilizer blending,’’ he said.
Orji said that the feat was achieved through the local sourcing of two of the four major raw materials for ferltiliser blending.
“You need four materials for fertilizer blending which were hitherto imported, Phosphate, Limestone, Urea and Potash.
“Urea and limestone which accounts for 65 per cent of the raw materials are in abundance in Nigeria while phosphate and potash are what we need to import.
“However, what had happened before now was that all the four raw materials were imported.
“NSIA was therefore invited to work with the Fertiliser Blenders Association of Nigeria in a committee chaired by Jigawa governor.
“So far, we have produced and sold six million bags across the country at the lower rate,’’ he said.
He said that the target of the NSCIA was to revive all the 28 fertiliser blending plants in the country.
According to Orji, the retail price is boldly written on the fertilizer bags with a telephone number for whistle blowing in case of sharp practices by racketeers.
Orji said that NSIA was set up in 2012, as an agency to build a saving base for the country, enhance development of the nation infrastructure as well as provide stabilisation support in times of economic stress.
“The NSIA has three Funds; Stabilisation Fund which holds 20 per cent of the Agency’s asset; Future Generation Fund which holds 40 per cent of the asset and Infrastructure Fund which also holds 40 per cent of the asset.
“The stabilisation fund and the future generation fund are mostly invested outside the country while the infrastructure fund is invested in Nigeria,’’ he said.
The minister commended the Authority for its intervention in the critical sector of the economy through the Infrastructure Fund.
He underscored the need for the NSIA to place priority attention on making public its activities to correct the erroneous impression that the Authority was only to access fund.
Mohammed also assured the management that the Federal Government was addressing the challenges of rail infrastructure which would help in the transportation of fertilizer and its raw materials across the country.

Continue Reading

Business

Lawmakers Want CBN To Halt Naira Devaluation

Published

on

The House of Representatives has asked the Central Bank of Nigeria (CBN), to urgently put in place a policy to check further devaluation of the naira to the United States dollar and other international legal tenders.
The House decried that while the Nigerian currency was losing value, others in Africa were appreciating.
At the plenary on Wednesday, the House unanimously adopted a motion moved by the Deputy Chairman of the Committee on Pensions, Mr Bamidele Salam, which warned the CBN of the implications of further devaluing the naira.
The motion was titled, ‘Matter of urgent public importance on the need for the Central Bank of Nigeria to urgently put in place monetary policies to stop the free fall of the naira against the dollar and other international legal tenders’.
Salam recalled that the CBN governor, Godwin Emefiele, while addressing the Bankers’ Committee at a summit on the economy in Lagos earlier in February, informed the committee about the naira devaluation against the dollar.
The lawmaker also quoted Emefiele as saying at the summit that the official exchange rate stood at N410 to the dollar.
“That is 7.6 per cent weaker than the rate of N379 published on the central bank’s website,” Salam noted.
According to the lawmaker, while the value of the naira relative to the dollar had declined by nine per cent in the last six months, the South African rand and Ghanaian cedi had appreciated by 11.4 per cent and one per cent, respectively.
Salam also recalled that the CBN adopted multiple exchange rates in 2020, in a bid to avoid an outright devaluation. 
He noted that the official rate used as a basis for budget preparation and other official transactions differed from a closely controlled exchange rate for investors and exporters known as the Nigerian Autonomous Foreign Exchange Rate Fixing Methodology.
He stressed that the naira had traded in a tight range between N400 and N410, while the NAFEX rate was different from the parallel market, considered illegal by the CBN, where the naira closed at 502.
Salam said, “The House is concerned that devaluation is likely to cause inflation because imports will be more expensive any imported goods or raw material will increase in price; aggregate demand increases, causing demand-pull inflation. Firms/exporters have less incentive to cut costs because they can rely on the devaluation to improve competitiveness.
 ”The concern is that the long-term devaluation may lead to lower productivity because of the decline in incentives.
 ”The House is further concerned that devaluation of the naira makes it more difficult for Nigerian youths especially in the IT sector, whose businesses are online and must necessarily transact businesses in the US dollars. 
“It also reduces real wages. In a period of low wage growth, a devaluation that causes rising import prices will make consumers feel worse off “.

Continue Reading

Business

Four West African Countries To Buy Nigeria’s Unutilised Electricity

Published

on

Four West African countries, Niger, Togo, Benin and Burkina Faso, are collaborating to buy the unutilised power produced in Nigeria. 
The Chairman of the Executive Board of the West African Power Pool (WAPP), Sule Abdulaziz, disclosed this at the WAPP meeting on the North core project in Abuja, on Wednesday. 
Abdulaziz, who is also the acting Managing Director of the Transmission Company of Nigeria (TCN), said the four countries were collaborating to make the power purchase from Nigeria through the North core Power Transmission Line currently being built.
He explained, “The power we will be selling is the power that is not needed in Nigeria.
“The electricity generators that are going to supply power to this transmission line are going to generate that power specifically for this project. So, it is unutilised power”.
He said Nigeria was expecting new generators to participate in the energy export for the 875km 330KV Northcore transmission line from Nigeria through Niger, Togo, Benin to Burkina Faso.
Abdulaziz said, “In addition, there are some communities that are under the line route, about 611 of them, which will be getting power so that there won’t be just a transmission line passing without impact”.
The WAPP chairman noted that the project, funded by World Bank, French Development Council and the African Development Bank, had recorded progress, adding that the energy ministers would be addressing security issues for the project at another meeting in Abuja.
He said, “Nigeria has the greatest advantage among these countries because the electricity is going to be exported from Nigerian Gencos (generation companies). 
“So, from that, the revenue is going to be enhanced and a lot of people will be employed in Nigeria”.
The Secretary-General, WAPP, Siengui Appolinaire-Ki, said the cost of the project was about $570 million, adding that part of the investment in each country would be funded by that particular nation.
According to him, the countries in the partnership, including Nigeria, are also being supported by donors.
He said the funding agreement was ready as partner countries were awaiting the disbursements.
Appolinaire-Ki, however, said the donor agencies had said they needed a Power Purchase Agreement between the buying and the selling countries to be executed before releasing the fund.

Continue Reading

Business

Reps Probe N275bn Agric Loans Under Yar’Adua, Jonathan, Buhari

Published

on

The House of Representatives has resolved to investigate the disbursement of loans and credit facilities by the Federal Government in the agriculture sector since 2009.
The period under review covers the administrations of the late Umaru Yar’Adua, Goodluck Jonathan as well as the present President, Muhammadu Buhari.
The resolution was sequel to the unanimous adoption of a motion moved by Hon. Chike Okafor at the plenary last Wednesday, titled ‘Need to investigate disbursements of all agricultural loans/credit facilities to farmers from 2009 to date to enhance national food security’. 
Okafor said, from 2009 to date, the Federal Government had approved the disbursement of funds to farmers in various schemes to the tune of over N275billion, ranging from Commercial Agricultural Credit Scheme to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, to help farmers improve agricultural production and guarantee food security in Nigeria.
The lawmaker also noted that apart from increasing food supply, the schemes were to grant agricultural loans to large and small-scale commercial farmers to lower the prices of agricultural produce, generate employment and increase foreign exchange earnings.
He said, “The House is aware that since the approval, most farmers have not been able to access the loans due to stringent requirements being demanded by banks from prospective borrowers and the alleged siphoning of over N105billion meant for farmers by management of NIRSAL.
“The House is concerned that food production has not attained the expected level, despite the approval of over N275billion facilities to farmers. 
“The House is worried that the projected diversification of the economy from oil production to agricultural production and increase in agricultural output, food supply and promoting low food inflation will not be achieved if farmers are unable to access loans meant to increase agricultural production”.
Adopting the motion, the House resolved to mandate the Committee on Banking and Currency to “investigate disbursements and compliance of all agricultural loans/credit facilities to farmers from 2009 to date to enhance national food security in the country”.

Continue Reading

Trending