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FG-IFAD Value Chain Programme’s $37.2m Contribution To GDP

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The Value Chain Development Programme (VCDP), initiated by International Fund for Agricultural Development (IFAD) has contributed 37.2 million dollars (about N13.4 billion) to Nigeria’s Gross Domestic Product (GDP).
IFAD’s Communication Officer, Mrs Vera Onyeaka-Onyilo disclosed this in a document presented to a news agency in Abuja, recently.
The document, titled “VCDP Summary Progress”, noted that data on the 2016 wet season farming and 2016/2017 dry season farming indicated that VCDP also contributed 58,376 tonnes of rice and 184,378 tonnes of cassava to the national food basket.
The Federal Government is implementing VCDP, which became disbursement-effective in January 2015, in Niger, Ogun, Taraba, Benue, Ebonyi and Anambra States.
The completion date of the programme, whose goal is to reduce poverty and accelerate sustainable economic growth, is December 31, 2019.
Onyeaka-Onyilo explained that from the revenue of N38.5 billion and the implementation cost of N14.7 billion, the income-investment analysis, inclusive of overhead costs, indicated a benefit of N 2.5 for each N1 invested from the sale of produce alone.
She said that going by the review, the overall achievements indicated that the VCDP had made appreciable progress in the last two years of effective implementation.
“The programme is planned to increase agricultural income by at least 25 per cent for 45,000 smallholder farmers.
“It is also expected to indirectly benefit up to 320,800 people from the production of rice and cassava along the two value chains,” she said.
Onyeaka-Onyilo said that the specific programme development objective was the enhancement of the incomes and food security of rural poor households that were engaged in production, processing and marketing of rice and cassava on a sustainable basis.
She noted that the programme had continued to invest in group and cluster development schemes as a viable value chain business model.
“It has strength working with the private sector to facilitate service delivery to smallholder farmers, identifying viable business opportunities within the commodity chains for the youth.
“It has also ensured arable land development to boost women and youth access to land, while sharing innovative agronomic practices with farmers to enhance their productivity and youth engagement in agriculture,” she said.
Besides, Onyeaka-Onyilo said that some of the participating state governments had adopted some aspects of the value chain to enhance their service delivery to smallholder farmers.
She said that the VCDP had also influenced strong state government ownership, which was reflected by the governments’ payment of counterpart funds and policy support in land development to enhance the access of youths and women to land for dry season farming.
“The programme has also facilitated an innovative Commodity Alliance Forum (CAF), which empowers smallholder farmers to engage and transact businesses with major private sector players in each state.
“The forum involves farmers and key private sector operators who meet quarterly to review the stakeholders’ engagement in the selected commodity,” she added.
Investigations by the news agency revealed that the CAF, which had been empowering smallholder farmers and restoring confidence between off-takers and farming communities, was considered a key pillar in the sustainability of VCDP.
Mrs Laadi Ngbegha, one of the beneficiaries and a rice farmer in Iye Community, Guma Local Government Area in Benue State, said the off-taker arrangement had strengthened the use of value chain action plans (VCAPs) by participating field officials (FOs).
She said that the FOs were those officials facilitating cashless credit services on farm inputs for farmers in Benue and Niger States.
Ngbegha said the programme had facilitated the establishment of group seed production enterprises by youths via a partnership with Africa Rice Centre, National Root Crops Research Institute (NRCRI) and International Institute of Tropical Agriculture (IITA).
“It has introduced the use of private sector extension schemes to promote good agronomic practices and enhance farmers’ productivity.
“The VCDP has demonstrated that value chain is a sound economic investment model for Nigeria,” she said.
Some of the beneficiaries in Benue noted that smallholder rice and cassava farmers were now having new market opportunities.
They said that the development marked the farmers’ first steps out of poverty through a contract farming scheme in which farmers were guaranteed markets for their crops.
They emphasised that the VCDP had been able to link over 3,603 rice farmers in Benue to Olam International, an agribusiness company, to buy paddy from rice growers.
“Last year, Olam International bought around 997 tonnes of paddy from rice farmers in Benue; the rice was later processed and sold in the Nigerian market.
“Olam also provided the farmers with necessary inputs, certified seeds, fertilisers, and agrochemicals with a guaranteed `buy-back’ of the produce at prevailing market prices at the end of the season.
“Olam International extended financial credit to farmers to meet their equity contribution to the VCDP matching grant through a commercial bank,” they said.
A young rice farmer in Omor, Ayamelum Local Government Area of Anambra State, Michael Afune, said that empowering young people through agribusiness was a success story.
He said that in line with the Federal Government’s commitment to reducing youth unemployment and poverty, the VCDP had been creating a new generation of young farmers in Anambra State, with sound training in techniques that could generate new economic opportunities and boost income.
“I have been cultivating rice for years with poor yields, but learning modern methods of rice farming through the VCDP has led to better yields and better incomes,” Afune said.
Eze Michael Ogbonnaya- Ukwa, the traditional ruler of Igbeagu, Izzi Local Government Area of Ebonyi State, noted that the VCDP had constructed 134.5km roads in the six benefiting states.
He said the newly constructed road and bridge in Igbeagu community, for instance, had positively impacted on the social and agribusiness activities of the residents of the community.
“The primary purpose of the road, constructed under the VCDP, is to create access for farmers to transport produce from their farms.
“The road is also facilitating the efforts of large-scale produce buyers to reach farm gates to buy produce directly from the farmers.
“Prior to the construction of this road, our farming experience had been horrendous and we couldn’t do much. We are happy that the road has eased our burden,” Ogbonnaya- Ukwa said.
A rice processor, Hadiya Hajara Mohammed of the ZokoYegborolo Multipurpose Cooperative Society in Bida, Niger, said that the VCDP had significantly increased the quantity and quality of the rice produced in the neighbourhood.
She said the “false bottom” parboiling technology was introduced by the VCDP to enhance the quality of locally grown rice and make it to compete favourably with imported rice.
“`More than 1,623 participants across the project six states were trained on the use of `false bottom’ parboiling technique and it has changed how we process rice.
“We’ve been in rice business for more than 20 years, with nothing to show for it, but within one and half years, IFAD-VCDP has made us rich.
“We are now expanding our business and employing people to work and get paid,” she added.
In a nutshell, IFAD-VCDP has been supporting smallholder farmers in the six benefiting states of Benue, Anambra, Ebonyi, Taraba, Niger and Ogun States in rice production.
It has also signed 1,106 agreements with major off-takers in rice and cassava value chains, while supporting farmers to increase their production, in efforts to improve Nigeria’s food security.
Ogun State Coordinator of VCDP, Mr Samuel Adeogun, said, “There has been increase in the number of people having access to land, especially women and youths.
“Land development has also provided room for farm mechanisation. We believe that the use of farm mechanisation increases efficiency; reduces cost of production and improves farm yield.”
A cassava farmer in Aiyetoro community in Yewa North Local Government Area of Ogun State, Mrs Folashade Arijogbade, said that through the VCDP intervention on land development, her group now owned a 30-hectare farmland, up from the previous 0.5 hectares.
She said that the land development scheme of the VCDP required land owners or communities to sign a land-leasing agreement for a minimum of 10 years.
“The lands are sourced from either the communities or the government.
“By this, they will be able to recoup their investment on the lands because land development is a capital intensive venture which is beyond the capacity of smallholder farmers,” she said.
It was learnt that the land development project of the VCDP has facilitated improved mechanisation among the farmers, while creating services for farmers and jobs for farm mechanisation service providers.
It has also developed 1,292 hectares in the six participating states and provided mechanisation at a 50 per cent subsidy to boost farmers’ participation.
In the programme that has a budget of 104.4 million dollars, IFAD is providing 74.4 million dollars, while the Federal Government is contributing 9.9 million dollars.
The state governments are contributing 10.4 million dollars; the local government councils are providing 4.3 million dollars; the complementary financing is 2.8 million dollars, while the beneficiaries are contributing 2.1 million dollars.
Lawal is of the News Agency of Nigeria (NAN)

 

Hawa Lawal

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NSIB, AAAU Sign MoU On Air Safety Training

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As part of efforts to curb mishaps in the aviation industry, the Nigerian Safety Investigation Bureau (NSIB) has signed a Memorandum of Understanding (MoU) with the African Aviation and Aerospace University (AAAU) to deepen training on preventing and reducing accidents in Nigeria’s air transport.
Director, Public Affairs and Consumer Protection of NBIS, Mrs Bimbo Olawumi Oladeji, in a statement, said NSIB granted AAAU access to its facilities to facilitate an efficient exchange of resources and expertise.
According to the statement, the Director-General/Chief Executive Officer of NSIB, Captain Alex Badeh, who spoke at the ceremony held at the NSIB Training School, noted that the MoU sets the stage for facility sharing, capacity building, and collaboration between the Bureau and AAAU.
“I am confident that this MoU will enhance the effectiveness of our collaboration and commitment to promoting safer skies and operational excellence in the aviation industry in Nigeria and beyond”, Badeh said.
Registrar of AAAU, represented by the Director of Physical Planning and Works, Engineer Masud Aliyu Yerima, was also quoted in the statement, saying, “The journey of AAAU’s establishment and progress would have faced considerable challenges without NSIB’s generous support”.
He commended Badeh for his exemplary leadership and steadfast dedication in propelling NSIB to greater heights, and affirmed AAAU’s readiness to engage in mutually beneficial endeavours with NSIB.
“This partnership marks a significant milestone in fostering a culture of safety and excellence within Nigeria’s aviation sector, and both NSIB and AAAU are poised to leverage this synergy for the benefit of the industry and the nation at large.
“The African Aviation and Aerospace University, AAAU, is the first Pan-African university dedicated to aviation, aerospace, and environmental science.
“Addressing two critical needs within the continent’s industry, AAAU tackles the research and development gap in Africa’s aviation and aerospace sector while simultaneously cultivating a skilled workforce to propel it forward”, the statement added.

By: Corlins Walter

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Naira Rebound, Air Peace’s Expansion Deepens International Route Competition 

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he commencement of flights operations on the London route by an indegenous Carrier, Air Peace Airline, and the recovery of the local currency have sparked fresh competition on international routes.
Air Peace, Nigeria’s outstanding indigenous airline, may face a prolonged market battle with many foreign airlines with decades of experience in the industry following its entrance on the Nigeria-London route.
Some of the industry’s experts say the airline required support from the government and a strategic approach to stay competitive.
Analysts have also stated that the strategic move has garnered high praise from stakeholders in the aviation sector, considering that Nigerians were paying exorbitant prices to travel from Nigeria to London, but that sustaining this momentum will require more than just offering low prices.
On March 31, 2024, the 11-year-old airline made a bold statement with its inaugural flight, using a Boeing 777 aircraft, offering a capacity of 274 seats and carrying 260 passengers from Lagos to London.
It sold its tickets for N1.2m, a price way lower than the rates offered by most foreign airline operators plying the same route.
Just two weeks after entering the market, Air Peace’s Chief Executive Officer, Allen Onyema, complained on Arise TV that foreign airlines were undercutting prices in an attempt to push Air Peace out of the market.
Onyema said, “We are aware that there are devilish conspiracies. All of a sudden, airlines are pricing below the cost. One airline is advertising $100  and the other $350. If you peel up your entire aircraft and carry people on the wings, it is not even enough to buy fuel.
“Why are they doing that? Their government is supporting them because Nigeria has been a cash cow for everybody. The idea is to take Air Peace out, and the moment they succeed in taking Air Peace out, Nigerians will pay 20 times over. It would happen, God forbid, if they were able to take Air Peace out”.
It was gathered that an economy ticket for a flight scheduled for April 29, 2024, from Lagos to London costs about N679,375 on Ethiopian Airlines, an operator with 75 years of experience.
Air Peace priced the same ticket at N1,090,750. The difference is that on Air Peace, it will be a 6-hour non-stop flight, while on Ethiopian Airlines, it will take 16 hours with one stopover.
Last Friday, Ethiopian Airlines reduced the price of its London ticket by 0.77 per cent to N1,628,660 from  N1,641,249 two weeks ago.
In the same period, Air France’s price dropped to N1,687,824, nearly halving from last month’s N2,482,138.
On March 4, 2024, Lufthansa offered the Lagos-London route for N1,966,165. Qatar Airways provided the same ticket for N2,016,824, and KLM priced it at N2,448,740.
This continuous decline in air ticket prices was also driven by the strengthening of the naira against the US dollar and the payments of airlines’ trapped funds by the Central Bank of Nigeria.
Minister of Aviation and Aerospace Development, Festus Keyamo, had confirmed that the Federal Government, through the CBN, had cleared all the trapped funds (foreign exchange backlogs) to the tune of about $160m.
Beyond the ongoing price war, the Air Peace Chairman had also lamented the challenges with ground handling and space allocation at the London Gatwick Airport, adding that no airline has faced such obstacles before.
He noted, “On the inaugural flight out of London, 24 hours before departure, the management of Gatwick Airport moved us to another checking area instead of the designated one.
“The area they provided had a malfunctioning carousel, forcing us to manually transport luggage 50 meters away, causing delays”.

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PH Airport Users Lament Down Turn In Flight Operations 

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Users and business operators at the Port Harcourt International Airport, Omagwa, have decried the downward trend in flight operations at the airport.
Some of the users and operators told The Tide that flight operations at the airport, rather than go upward, have steadily been irregular, and diminishing steadily.
A regular air passenger of the airport, Simeon Echeonwu, in a chat with The Tide, said many airlines, both domestic and international operators, that usually operate at the Port Harcourt airport, have stopped operations, whereas others that are still operating are no longer very stable as before.
Echeonwu noted that airlines such as Aero Contractors, United Nigeria, and Green Africa airlines, now operate about one flight, twice a week, unlike before that they flew every day on Lagos and Abuja to Port Harcourt.
Also speaking, former Chairman of the FAAN Accredited Car Hires Association, Clifford Wahunoro, lamented that the down turn in Operations has affected the business of car hires.
“If you have noticed, I have not been regular at the airport for some time now, because business is no longer flowing at the airport as before. I will not fold my hands and be sitting down doing nothing, so I have to look for other things, so I come when I think there will be something.
“You can see that between 12noon and 1pm, after that segment of flights, when you have few flights arrival, many people will close for the day, and when you wait till evening, flight like Dana may come very late at night, and sometimes, it will not arrive, and by that time, many people will not like to book for commercial vehicle”, he said.
Meanwhile, a travel agent, who wished to be anoyimous, decried the rate at which the airport is going down in terms of flights operations, noting that Port Harcourt airport ought to be competing with the other major airports like Lagos and Abuja.
He queried if such was a calculated attempt to bring the airport to its kneel in terms of flight operations, while other major airports have steady flow of flight operations both for domestic and international.
TheTide observed a continuous distortions in flight movement at the airport. Some of the airlines, like Max air, which many passengers patronize, have completely stopped operations, and no new airline has been added.
Apart from the Air Peace Airline that has maintained some level of stability in operations, other few operators have been involved in either steady rescheduling of flights, cancellation and regular delay, resulting in poor and unpredictable flight movement, which affects or determine other businesses in the airport.

By: Corlins Walter

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