Business
Don Gives Reasons For Economic Recession
Professor Valentine Omubo-Pepple of Rivers State University (RSU), Port Harcourt, has attributed the economic recession witnessed in Nigeria to the nature of the monetary policy that permits excessive liquid cash kept at home.
Speaking with The Tide yesterday in Port Harcourt in an interview on the state of the nation’s economy and other issues, Omubo-Pepple said that in order to restart a general down turn in the business sector, aggregate demand had to rise, and this would happen only when there is the regular flow of income.
Omubo-Pepple who is the dean, Faculty of Sciences of the institution, said that the effects of keeping money outside the banking system had made commercial banks not to perform their obligatory financial intermediate functions optimally between the customers and financial institutions.
According to him, “the capacity of banks to create money and stimulate the economy is constrained as the size of funds available to lend is severely affected”.
He maintained that monetary policy is made more difficult for the apex bank when it has little or no control over money circulating outside the banking system, adding that people keep money at home to meet emergencies and for other purposes.
Omubo-Pepple stressed that cash is the most liquid asset and therefore easy access to cash could be a motivation for keeping such cash at home rather than depositing in the banks.
The University don also said that a man with questionable means of livelihood would rather shun the banks and store his liquid cash in his home, noting that some people had apathy for putting money in the bank which he described as common if the savings rate was low to generate interest on such savings account.
Bethel Sam Toby/Peace Ihedoro
Business
Obj Harps On Cheap Credit, Policy Consistency For Food Production
Nigeria’s former President, Olusegun Obasanjo, has called on the government to provide cheap credit and ensure policy consistency to enable farmers increase food production in the country.
The former President made the call as food inflation and nutrition security concerns grow in Africa’s most populous country.
Obasanjo’s made the call at the 9th Agrofood & Plastprintpack conference in Lagos recently, where he said farmers in the country were yearning for consistency in policy and single-digit interest loans to drive growth in the sector and attain food security.
“Policy sustainability and predictability is what farmers want. It helps them to plan. Availability of finance is also what farmers want. They cannot survive on the double digital interest rate”, Obasanjo, who is also a farmer, said at the conference.
According to him, food and nutrition security start with availability, then affordability by ensuring that everyone who needs food can get it.
He noted that food was one of the major imperatives in life, adding that “there cannot be food without agriculture and agribusiness”.
Obasanjo further stressed the importance of agriculture in changing the fortunes of the economy, with attendant exponential gains by way of earnings, employment, food security and other spin-offs.
He noted that agriculture must be made attractive to the country’s teeming youth population, saying this would address the rising unemployment, worsening insecurity and youth migration through the Mediterranean.
“We have to make agriculture attractive to the youths. We have to think within and outside the box to make it attractive to the youths so they are willing to get their hands dirty and feet wet”, he advised.
He continued that “Part of the security issue is owing to our inability to get them engaged. The need for agro-food and agribusiness is for food security, employment, wealth creation and income generation, particularly foreign exchange”.
Speaking also, Wouter Plom, the ambassador of the Kingdom of the Netherlands, said his country had faced challenges similar to those Nigeria confronts – feeding a growing population with limited resources.
He said as partners with a joint vision, the Netherlands and Nigeria recognise that the agricultural sector was one of the prominent drivers for economic growth.
He noted that the Netherlands has further strengthened its partnership with Nigeria to boost the agriculture sector in three main areas- economic growth, improved diets and youth employment.
The ambassador noted that all the challenges in driving growth through the sector, improving diets and tackling unemployment can be addressed when food production is efficient.
Paul Maerz, Managing Director of Fairtrade Messe, said with more investment in agro-food & plastprintpack solutions, products and technologies, brighter days were ahead for Nigeria’s agriculture.
Business
Abuja Farmers, Others Lose N12bn To Ginger Disease
The Federal Government, has confirmed the outbreak of ginger blight epidemic in four States in Nigeria, saying ginger farmers have lost over N12 billion due to the disease.
The government disclosed this at the inauguration of the National Ginger Blight Epidemic Control Taskforce in Abuja, revealing that the fungal disease had inflicted significant damage on ginger farms in Kaduna, Nassarawa Plateau and the Federal Capital Territory.
The Minister of State for Agriculture and Food Security, Aliyu Abdullahi, said the blight had caused billions of naira in losses, impacting not only the livelihoods of farmers, but also Nigeria’s position as the world’s second-largest ginger producer.
“Our preliminary estimates suggested that affected farmers in southern Kaduna lost over N12bn.
“Furthermore, considering that over 85 per cent of Nigeria’s ginger cultivation occurs in this region, we can safely assume a substantial loss of cultivated land, potentially exceeding 70 per cent of total land”, he stated.
Abdullahi, however, stated that the Federal Government through the National Agricultural Development Fund would launch a N1.6bn recovery package for affected farmers in ginger-producing areas.
He said the ginger blight epidemic served as a stark reminder of the importance of preparedness in safeguarding agricultural resources, adding that by investing in research, extension services and farmer support systems, “we can build a more sustainable future for our agricultural sector”.
On his part, the Chairman of the task force committee, Abubakar Abdullahi, said there was no doubt that the blight on ginger had negatively affected the Gross Domestic Product earnings from this subsector.
“It is of necessity and great urgency that various subcommittees are put in place to forestall these negative effects”, he stated.
Abdullahi assured the minister of the commitment of the team to salvage the situation, as he pleaded with the minister to give the committee the power to co-opt members that would add value to the task force to discharge their duties efficiently and effectively.
Business
Fan Milk, Obasanjo Farms Partner To Boost Agriculture
Fan Milk Plc and Obasanjo Farms Nigeria Limited have entered into a strategic partnership, aimed at advancing dairy farming expansion and promoting local sourcing in Nigeria.
The farm, situated in Iseyin, Oyo State, is expected to produce 300 heifers within the first year of project and it is expected that the farm would double that figure by end of December 2026, while Fan Milk will be importing 100 pregnant heifers from Egypt.
Fan Milk would off-take the fresh milk produced according to the terms of the five-year partnership agreement and would also provide training and technical capacity building for the personnel.
The collaboration is expected to lead to the creation of employment opportunities, particularly in rural areas while both companies are committed to engaging with local communities to foster positive relationships, address social concerns, and promote responsible corporate citizenship.
Speaking on the partnership, former President Olusegun Obasanjo and chairman of Obasanjo Farms limited expressed excitement over the partnership, saying it will drive forward dairy farm expansion and local sourcing initiatives.
“By investing in training and capacity-building programs for local farmers, we will empower communities, enhance productivity, and contribute to the development of Nigeria’s agricultural sector”, Obasanjo said.
On his part, the General Manager of Danone Sub-Saharan Africa, Mr. Herve Barrere said, ”the partnership emphasised the importance of sourcing raw materials locally, empowering local farmers, improving their livelihoods, and contributing to the growth of the agricultural sector.
“This partnership marks a significant milestone in Fan Milk Plc commitment to backward integration, following the successful launch of its model dairy farm in Odeda Ogun state and training for local dairy farmers in the Odeda Dairy Training Institute in 2022.
“It also aligns with some of the current government administration’s 8-point agenda, including ensuring food security, promoting economic growth and job creation, and ending poverty”.
Also speaking, the Project Lead for Obasanjo Farms Nigeria Limited, Dr. Olusegun Ariyo, said, “We are very pleased to be partnering with Fan Milk Plc (A Danone Company) on this remarkable journey.
“This is no doubt important towards achieving the ambitions we have for the Nigerian dairy industry, and both Companies are taking steps towards a more efficient and economically sustainable environment for dairy farming in Nigeria”.
Furthermore, the managing director of Fan Milk Plc, Kayode Adebiyi, while commenting on the development said the strategic partnership between Fan Milk Plc and Obasanjo Farms Nigeria Limited is designed to leverage the strengths of both companies to enhance local dairy production, reduce import dependency, and foster sustainable agricultural practices.
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