Business
2011 Grain Output, Prices Rise – FAO
World cereals output is expected to rise to a new record in 2011 due to more planting and improved yields, the UN’s Food and Agriculture Organisation (FAO) said.
“But low stocks are set to keep prices high and volatile,’’ FAO said on Tuesday in its first estimate of 2011 total global crops.
FAO noted that the global cereals output was expected to rise 3.5 per cent to 2.315 billion tonnes this year, recovering after a 1 per cent fall in 2010.
According to its key Food Outlook report, world wheat output is seen rising 3.2 per cent to 674 million tonnes this year; down from an earlier forecast of 676 million due to unfavourable weather in North America and parts of Europe.
Wheat outlook in the main producing countries is patchy with the European Union’s output seen flat at 137 million tonnes, U.S. crops falling 8.5 per cent to 55 million hit by bad weather.
Russia’s output is expected to jump 32.5 per cent to 55 million, recovering after 2010’s severe drought.
The Rome-based agency said that the weather in the coming months remained critical for shaping final crop outcomes.
The FAO said increasing global grain production this year would not be sufficient to rebuild strong stocks which could stabilise prices, adding that demand growth was expected to slow down this year, especially from the biofuels sector.
World cereals stocks at the end of 2011 and 2012 season were expected to edge 0.8 per cent higher to 494 million tonnes, still well below 534 million tonnes at the end of 2009/10 season.
Wheat stocks are seen down 2.6 percent at the end of 2011/12 season to 183 million tonnes.
“With total cereal production barely meeting consumption, international prices are likely to stay high, especially in the wheat and coarse grain markets,” it said.
It however noted that surging international prices of grains and vegetable oils were likely to help raise global costs of imported foodstuffs by 21 per cent this year to a record of 1.29 trillion dollars.
This it said would surpass the $1 trillion mark for the third time in the past four years.
“The poorest countries are going to be hit hardest because their food import bill is expected to surge 30 per cent and account for roughly 18 per cent of all their import spending.
“That compares to a 20 per cent jump in the food import bill for developed countries.
“But even increased spending on food imports would not guarantee greater food availability in poor countries where bigger imports would only compensate for falling domestic supplies,’’ it said.
Business
Nigeria’s Gold, Other Solid Minerals Being Stolen – NEC
The National Economic Council has expanded the mandate of its Ad-hoc Committee on Crude Oil Theft Prevention and Control to cover illegal mining.
This is just as the council raised the alarm that the nation’s solid minerals, including gold, are being mined and stolen.
Imo State Governor, Hope Uzodimma, who chairs the committee, disclosed this while briefing State House correspondents after the 153rd NEC meeting chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja, yesterday.
Uzodimma said the expanded mandate is part of the government’s efforts to curb resource theft and increase revenue from Nigeria’s solid minerals sector.
“The National Economic Council Ad-hoc Committee on Crude Oil Theft Prevention and Control, which I chair, presented an interim report today to the Council.
“NEC received our report with satisfaction and expanded our Terms of Reference to now also take interest in solid minerals, because our solid minerals are being mined and stolen and not adding to national revenue,” said Uzodma.
He noted that the expanded role would enable the committee to coordinate with the Ministry of Solid Minerals Development and other federal and subnational institutions to combat widespread illegal gold mining and other forms of mineral smuggling that have deprived the country of much-needed foreign exchange.
“Going forward, our committee, working with other government agencies, will look at how to ensure that the revenue of the country arising from solid minerals like gold and other forms of solid minerals are not allowed to be stolen,” the governor added.
NEC’s Ad-hoc Committee on Crude Oil Theft Prevention and Control was first established under former President Muhammadu Buhari in August 2022.
It was reconstituted under President Bola Tinubu in December 2023 with Uzodinma as chairman.
The committee was initially mandated to address the challenge of crude oil theft and pipeline vandalism.
Its creation followed rising oil theft that had crippled national production and forced international oil companies to shut down key pipelines.
At the time, oil production had crashed to around 700,000–800,000 barrels per day, far below Nigeria’s OPEC quota, costing the government billions of dollars in lost export revenue.
Uzodimma explained that through what he called a “collaborative approach” involving regulators, operators, and the security forces, the committee had helped raise daily crude oil production to over 1.7 million barrels per day in the past 22 months.
The governor stated, “Before May 29, 2023, when President Bola Tinubu was sworn in, our crude oil production was around 700,000 to 800,000 barrels a day.
“Working with stakeholders, the regulators, operators in the industry, and the Navy, we were able to involve all the governors of crude oil-producing states and raise different security organisations.
“You would agree with me that as I speak, daily production is now in excess of 1.7 million barrels a day, and cases of pipeline vandalism and vandalisation of oil assets have also been on the decline.”
The council, he said, was satisfied with the progress and decided to deploy the same model of intergovernmental coordination, private-sector partnership, and multi-agency surveillance to the mining sector, plagued by resource theft.
“We are determined to ensure that crude oil production and gas are properly preserved for the benefit of our citizens.
“Now, with this new directive, we will also protect our gold and solid mineral assets,” Uzodinma added.
Nigeria’s illegal mining economy, particularly in gold, lithium, and other high-value minerals, has grown into a multibillion-naira shadow industry.
According to data from the Nigeria Extractive Industries Transparency Initiative, the country loses an estimated $9bn annually to illegal mineral extraction and smuggling.
The Federal Government has linked several unlicensed mining operations to armed groups in the North-West and North-Central regions, where gold has become a source of illicit financing for bandits.
A 2023 NEITI audit also showed that over 80 per cent of mining activities in Nigeria were conducted informally, without licenses or environmental oversight.
In September 2024, the Ministry of Solid Minerals Development revoked over 900 dormant licences and announced plans for a national gold reserve policy. But enforcement remains difficult, with weak surveillance, limited manpower, and overlapping regulatory mandates.
According to Uzodimma, the expanded mandate aims to integrate the fight against illegal mining into the broader national resource protection framework previously used in the oil sector.
“We have done well,” he claimed, adding, “Among other things, we recommended that NNPC, working with security agencies and their consultants, should strengthen security in all the creeks and extend coverage to offshore regions. That will help in curtailing and supervising illegal entries and exits of vessels into our export terminals. This same spirit will now guide our solid minerals sector.”
The committee is expected to submit its first progress report on the expanded mandate at the next NEC meeting in November.
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