Business

Stakeholders X-ray Progress In Oil, Gas

Published

17 years ago

July 10, 2009

Insurance professionals and other stakeholders in oil and gas insurance are set to review progress made in the sector, and to explore ways to develop capacity expertise to meet government expectations.

The review is expected to be the highpoint of the insurance stakeholders parliament, jointly packaged by Risk Analyst Insurance Brokers Limited and Financial Standard Newspaper Holding in Lagos on Thursday.

The Managing Director of Risk Analyst, Mrs. Funmi Babington-Ashaye disclosed this while addressing newsmen in Lagos. She expressed optimism that the parliament would afford the operators the much needed opportunity to address some of the unacceptable development in the oil and gas insurance sub-sector in the economy.

Determined to ensure that Nigerian individuals and business tap fully into the opportunities provided by the exploration and exploitation of petroleum in the country to better their lots, the Federal Government initiated a local content with which it mandated that a given percentage of business opportunities arising in content at 10 per cent and increased it toi 45 per cent the sector is reserved for local operators.

At inception of the policy, government pegged local by 2006, and intends raising the level to 70 per cent by next year (2010).

Babington-Ashaye noted that in spite of the policy being in place, nothing significant has changed and called for decisive action on the part of government and regulatory agencies to ensure that the initiative is not sabotaged by some foreigners.

“The local content policy of government is a well thought-out initiative designed to accelerate the involvement of Nigerians in the all important oil and gas sector. Several years after it was evolved, not much has been achieved”.

“Although, there are no statistics to validate the extent of compliance to the targets of 45 per cent in 2006 and derive towards 70 per cent by 2010, the continuous dominance by foreigners of the commanding heights of the sector bears eloquent testimony to the need for urgent action by government and regulatory bodies”, she said.

Babington-Ashaye also reflected on some of the issues that the parliament is expected to answers to, including how existing underwriters can develop the technical capacity to acess the risks inherent in the sector and how they can develop the financial capacity to underwrite such high-risk insurance business given their poor level of capitalization.

According to her, the parliament would also review the state of reinsurance business in Nigeria and how market induced consolidation in the insurance sector could be of help in this regard.

Business

IFAD: Nigeria Leads Global Push For Youth, Women Investment In Agriculture

Published

58 minutes ago

February 13, 2026

The Tide

The 49th Session of the International Fund for Agricultural Development (IFAD) Governing Council has concluded in Rome, with Nigeria taking a prominent leadership role in advancing global agricultural development priorities, particularly strategic investment in youth and women.

The biennial meeting, themed “From Farm to Market: Investing in Young Entrepreneurs,” underscored the growing recognition of young people as critical drivers of job creation, innovation, and inclusive economic growth across global food systems.

The session opened with the election of Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, as Chairperson of the IFAD Governing Council.

Having previously served as Vice Chair, his emergence as Chairperson reflects the strong confidence reposed in Nigeria by Member States, recognising the country’s constructive engagement and leadership in promoting global food security.

In his acceptance remarks, Senator Kyari expressed deep appreciation to Member States for the trust placed in him, pledging to serve with humility, diligence, and a strong commitment to improving the livelihoods of rural women and men across the world.

Addressing delegates during the session, the Chairperson emphasised that prioritising youth and women in agriculture is key to unlocking economic opportunities, accelerating innovation, and driving inclusive growth.

He noted that such investments would ultimately strengthen global food systems while helping to reduce hunger and poverty.

Senator Kyari also commended President Bola Ahmed Tinubu for placing food security at the centre of Nigeria’s national priorities.

He noted that Nigeria’s leadership role at IFAD aligns with the President’s directive to boost agricultural productivity, expand economic opportunities for youth and women, and build resilient food systems capable of withstanding climate and market shocks.

The Minister further praised the IFAD Nigeria Country Office, led by Country Director Ms Dede Ekoue, for translating global development commitments into measurable outcomes for rural communities.

He highlighted the office’s role in strengthening agricultural value chains, empowering youth and women, and improving resilience among smallholder farmers nationwide.

Business

Expert Tasks FG On Food Imports To Protect Farmers

Published

2 hours ago

February 13, 2026

The Tide

The Federal Government has been urged to balance consumer protection with farmers’ sustainability by ensuring timely food imports, input subsidies expansion and price stabilisation mechanisms to secure investments across the agricultural value chain.

An agriculture expert, Dr Fatai Afolabi, gave the advice at a forum organised by the Plantation Owners’ Forum of Nigeria (POFON), in collaboration with the Oil Palm and Other Oil Seeds Value Chain, themed ‘Current Government Food Strategy, the Concomitant Effects and Implications for Food Security in Nigeria’, and held in Lagos, Wednesday.

Afolabi cautioned that the recent food import policies, while easing consumer prices, could undermine local farmers and long-term food security if not carefully managed.

He noted that Nigeria’s food system was navigating an exceptionally difficult period, marked by inflationary pressures, climate variability, insecurity in major food-producing regions, and rising energy and logistics costs.

He said the Federal Government’s decision to temporarily relax restrictions on selected food imports was understandable, noting that the market had responded swiftly with a reduction in prices of major staples.

However, the convener observed that while the policy had brought much-needed relief to consumers, it posed significant challenges for local farmers and agriculture value chain investors.

“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high.

“Farmers continue to contend with expensive fertilisers, rising transport costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure, and inadequate storage and processing facilities, which result in significant post-harvest losses.

“This situation, where farmers sell produce at declining prices while production costs remain elevated, has created widespread distress across agricultural ecosystems,” he said.

Afolabi said the effects were being felt across all segments of agriculture, with rice farmers among the hardest hit.

He said reports from producing states indicated that about 3,500 rice farmers were considering exiting rice cultivation after incurring estimated losses of over N93 billion.

He added that cassava farmers were selling produce at prices that barely covered harvesting costs, leaving them unable to recover their investments.

According to him, vegetable and edible oil producers are also under pressure as imported vegetable oil brands reduce demand for locally processed alternatives.

He added that cocoa farmers continue to battle price volatility in international markets amid rising domestic labour and maintenance costs.

Afolabi noted that tree crops such as oil palm and cocoa, which require long gestation periods, were particularly vulnerable to sudden market disruptions that undermine investor confidence and discourage new investment.

He said the effects extended downstream to agro-processing and value addition, with soybean farmers supplying vegetable oil processors experiencing reduced demand and lower prices.

He said the development threatened not only farm incomes but also rural employment and agro-industrial growth, raising concerns about national food security.

According to him, sustained losses could force farmers out of production, increasing Nigeria’s dependence on food imports and exposing the country to global supply shocks, foreign exchange pressures and long-term vulnerabilities.

Afolabi cited India and the Netherlands as countries offering useful lessons in balancing consumer protection with farmer sustainability.

He said India deploys food imports strategically during shortages, while complementing them with strong domestic support systems.

He added that the Netherlands, despite being one of the world’s leading agricultural exporters, supports farmers through input subsidies, tax incentives, affordable energy, strong cooperatives, and close integration with research and extension services.

He said agricultural students in both countries also benefit from subsidised tuition, transportation and meals, as well as grants and start-up support for farm enterprises.

“This approach ensures generational continuity and innovation in the agricultural sector,” he said.

Afolabi said Nigeria’s current food import policy could play a stabilising role if complemented by deliberate measures to protect local producers.

He recommended carefully timed imports to avoid peak harvest periods, strengthened price stabilisation mechanisms, aggressive subsidies for critical farm inputs, and support for agro-processors to remain competitive.

He also called for clear communication of policy intentions to reassure farmers that import measures were strategic and temporary.

“Food imports should function as a strategic shock absorber rather than a permanent market feature.

“Government should develop and publish a national crop production and harvest calendar for major staples and align import decisions with documented supply gaps.

“Affordable food and profitable farming are not mutually exclusive goals. With thoughtful coordination and sustained support for farmers, Nigeria can achieve both,” he said.

Business

FMN Calls For Entries for 5th Edition of Prize for Innovation with Focus on Cassava Industrialisation

Published

2 hours ago

February 13, 2026

The Tide

Flour Mills of Nigeria (FMN), a leading diversified pan-African food and agro-allied group, has officially opened entries for the fifth edition of its annual Prize for Innovation (PFI 5.0).

Building on a five-year legacy of driving transformation across Nigeria’s agricultural value chain, the 2026 edition, themed ‘Innovative Practices in Cassava Production and Processing,’ focuses on advancing homegrown innovations in cassava, reinforcing the group’s commitment to local content development and sustainable food systems.

The initiative is open to registered Nigerian small and medium-scale enterprises (SMEs) in the food and agro allied sector and student innovators.

Successful participants in the SME category will receive cash prizes of N5 million for first place, N3 million for second place, and N2 million for third place.

In the student category, winners will receive N300,000, N200,000 and N100,000 for the top three positions. Beyond prize money, winners will gain access to corporate mentorship and industry insight to support the commercialisation of their solutions and drive business longevity.

This year’s focus reflects a deliberate response to one of Nigeria’s economic paradoxes, being the world’s largest producer of cassava, while continuing to import significant volumes of cassava-based industrial derivatives.

Through PFI 5.0, FMN is directing attention to innovations capable of strengthening cassava industrialisation.

Speaking on the milestone edition, the Group Chief Executive Officer (GCEO), FMN, Mr. Boye Olusanya, said: “The FMN PFI 5.0 is an industrial priority. Over the past five years, we have deliberately supported local innovation in building solutions within Nigeria’s food system. Our focus on cassava is strategic. It holds the key to industrial self-sufficiency, and economic progression through the Food and Agro-allied space. Since its inception, the FMN Prize for Innovation has been enabling sustainable food systems in Nigeria, and progressively reduce dependency on imported raw materials.”

Since its launch in 2021, the FMN Prize for Innovation has empowered 24 innovators across four editions, disbursing over N42 million in funding, and over N200 million in the provision of structured system to help winning ideas scale.

Previous editions have addressed priority areas including food loss and waste, local content development, precision agriculture and livestock farming.

Also speaking, the Managing Director, FMN Agro and Group Director, Strategic Stakeholder Relations, FMN, Mr. Sadiq Usman, said the initiative is structured to deliver long-term outcomes.

“The Prize for Innovation is designed to move ideas beyond the concept stage. By combining funding, mentorship and access to industry insight, we have enabled past winners to strengthen their operations and progress towards commercial viability. We expect the fifth edition to further deepen the pipeline of scalable cassava-focused innovations,” he said.

According to the company, entries are now open and will close on March 16, 2026.

Interested innovators can learn more and submit their applications through the official prize for innovation website.