Business
‘Nigerians Imported N903bn Worth Food In Three Months’
The Central Bank of Nigeria released $689.88million (N903.95billion) at the official exchange rate of N1,309/$ as of March 31, 2024 to Nigerians for importing food items in the first quarter of 2024.
The amount of food imported into Nigeria increased by 16.37 per cent within the first six months of 2024, The Tide’s source gathered.
According to the monthly Consumer Price Index data released by the National Bureau of Statistics (NBS), the average price index for imported food rose to 806.0 points in June 2024, up from 692.6 recorded in January 2024.
On a month-on-month basis, imported food inflation jumped to 36.38 per cent in June 2024, from 34.83 per cent recorded in the previous month, which represents a 1.55 per cent increase as the naira weakened following the unification of all segments of the forex exchange market by the CBN.
The unification process in June 2023, aimed at creating a more transparent and efficient foreign exchange market, resulted in a steep naira depreciation.
Further analysis by the source showed that imported inflation has increased consecutively for over four years, largely driven by both internal and external factors.
Data from the NBS on imported food inflation from January to June 2024 reveals a troubling and steady increase in costs. In January, Nigeria recorded an imported inflation rate of 26.29 per cent. This increased to 29.81 per cent in February, marking a notable jump of 3.52 per cent in the inflation rate from January.
The trend continued in March, with the imported food inflation rate climbing to 32.89 per cent, an increase of 3.08 per cent from February.
In April, the inflation rate further increased to 34.01 per cent, growing by 1.12 per cent from March, showing a slight deceleration in the rate of increase.
May recorded an imported food inflation rate of 34.83 per cent, indicating a continued upward trend. The increase in the inflation rate is 0.82 per cent from April.
By June, the imported food inflation rate had hit 36.38 per cent, marking an increase of 1.55 per cent from May.
While the overall trend is upward, the rate of increase in inflation shows signs of gradual deceleration from March to May before picking up again in June.
Recently, the Federal Government approved a 150-day duty-free window to allow the importation of maize, husked brown rice and wheat as part of efforts to tackle rising inflation which had impoverished many Nigerians.
Consequently, the government suspended duties, tariffs and taxes for the importation of certain food commodities through land and sea borders.
However, the President of the African Development Bank, Dr Akinwunmi Adesina, raised concerns over the federal government’s plan to import food, stating that the policy is depressing. According to him, Nigeria cannot rely on food imports to stabilize prices, and resorting to it could destroy the country’s agricultural policy.
Also, the National President of the All Farmers Association of Nigeria, Kabir Ibrahim, said the duty-free importation of food items would lead to the erosion of gains made in local maize, rice and wheat production.
He called on governments to invest through the provision of subsidies on inputs such as machines, fertilizers and chemicals to have a sustainable food system in the country.
Nigeria’s inflation rate in June 2024 surged from 33.95 per cent in May 2024 to 34.19 per cent in June. The headline inflation rate in June 2024 was 11.40 percentage points higher compared to June 2023, rising from 22.79 per cent.
On a month-on-month basis, the headline inflation rate in June 2024 was 2.31 per cent, an increase of 0.17 per cent from May 2024’s rate of 2.14 per cent.
Similarly, the quarterly statistics of CBN have shown that the country exported large amounts of food from foreign countries despite being touted as the food basket of Africa.
An analysis showed that its citizens spent $689.88m on import bills between January and March 2024. This was an increase of $12m or 1.77 per cent from $677.61m recorded in the same period of the previous year.
The high food import bill is a concern for the government. The country has a large agricultural sector, and there have been efforts to boost local production to reduce the dependence on food imports. However, factors such as inadequate infrastructure, insecurity, and climate change have hindered progress in the sector.
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Bayelsa Urges Cooperatives To Apply Global Best Practices
… Make Investment in Social Capital
Ariwera Ibibo-Howells, Yenagoa
Bayelsa State Deputy Governor, Senator Lawrence Ewhrudjakpo, has restated the need for cooperative societies in the country to follow global trends in their operations to contribute meaningfully to the growth and development of the national economy.
Senator Ewhrudjakpo, who spoke recently during a courtesy visit by the Former Legislators’ Wives Association (FLEWA) to his office in Government House, Yenagoa, described cooperative societies as strategic engines of growth and stabilization of any economy.
The Deputy Governor opined that, apart from pooling resources together and sharing same among their members, cooperatives could do a lot more to impact society by investing in both profitable and non-profit making ventures.
He encouraged cooperatives in Bayelsa to imbibe global best practices by partnering government and other well-meaning organizations to invest in education and other areas of social capital.
While expressing appreciation to the women for supporting the re-election of the Governor and himself, Senator Ewhrudjakpo urged the Association to key into the policies and programmes of the Governor Diri-administration, especially those on women and youth empowerment.
He also called on FLEWA to take their public enlightenment programmes against drug addiction, cultism and other antisocial vices to the primary schools, which according to him, have become breeding grounds for such societal ills.
”Cooperatives, as far as I am concerned, are the engines of growth and stability of the economy. Most of the big economies and companies you see started off as cooperatives.
“The biggest football clubs in Europe were cooperatives that have become very mega investments.
“So, while I will really want to encourage you with your cooperative, I want you to have more than one area of focus. Our cooperatives should do more than contributing money for members in turns.
“We will match forward with our agenda, and expect you to match behind the state. I encourage you to come up with programmes that will help fight against cultism and other vices in our primary schools.
“Don’t always focus your enlightenment programmes on the secondary and tertiary learning institutions alone because our primary schools have become the breeding ground for all the vices we have mentioned here”, he said.
Speaking earlier, the President of FLEWA, Mrs. Margaret Boye Debekeme, said the goal of the association was to foster unity and collective development, through the pooling of resources for financial self-reliance.
Mrs Debekeme, who lauded the development strides of the present administration in the state, solicited the support of government for their programmes lined up for the year, including enlightenment campaign against cultism in schools.
The Nigeria Customs Service (NCS) has intensified its anti-smuggling operations in Nigeria’s northeastern corridor, intercepting Premium Motor Spirit (PMS) and vehicles with a total Duty Paid Value (DPV) of over N63 million.
This success was recorded through Operation Whirlwind, a targeted enforcement drive against the smuggling of PMS outside Nigeria.
Disclosing the seizure in a statement at the Customs House in Yola, the Adamawa State Capital, last Friday, the National Coordinator of the operation, Assistant Comptroller-General of Customs (ACG), Hussein Ejibunu, who represented the Comptroller-General of Customs, Adewale Adeniyi, described the outcome as a clear result of intelligence-led and coordinated enforcement within Zone ‘D’.
He disclosed that 1,959 jerry cans, amounting to nearly 49,000 litres of PMS, were intercepted along with five vehicles used in their conveyance.
The seizures were made along well-known smuggling routes, including Dasin-Fufore, Belel-Farang, Mubi-Sahuda, Maiha, and Girei-Wuro Bokki.
“Smugglers fled upon sighting Customs operatives, abandoning their illicit consignments in their desperate bid to evade arrest”, ACG Ejibunu said.
He added that the operation aligns with the Federal Government’s broader economic protection goals under the guidance of the Comptroller-General of Customs, Adewale Adeniyi, and the leadership of President Bola Tinubu.
He emphasised that dismantling illegal fuel supply chains curbs scarcity, stabilises market prices, and strengthens national security.
“This is our contribution to safeguarding national resources and fostering economic resilience”, he said.
In line with Section 245 of the Nigeria Customs Service Act, 2023, the flammable petroleum products will be auctioned immediately, and the proceeds will be paid into the Federation Account.
By: Nkpemenyie Mcdominic, Lagos
Towards advancing President Bola Tinubu’s vision of achieving a $1trillion economy, the Minister of State for Industry, John Owan, has emphasised the strategic importance of Nigeria’s sugar sector.
A statement obtained by The Tide’s source said Enoh stated this during a public hearing organised by the House of Representatives Committee on Industry, held as part of efforts to amend the Establishment Act of the National Sugar Development Council.
The Minister, while addressing stakeholders, shared insights from a recent Federal Executive Council (FEC) meeting, which disclosed President Tinubu’s recognition of the potential in the sugar sector.
He said, “about two weeks ago, the President spoke about sugar at the FEC meeting.
“That in itself reflects the importance of sugar as a strategic industrial and domestic product that no country should take lightly, and Nigeria should be no exception.
“The sugar sector has a significant role to play in the President’s commitment to a $1 trillion economy.
“Our approach must ensure it contributes effectively to job creation and rural economic development.”
Commenting on it, the Executive Secretary of the NSDC, Mr. Kamar Bakrin, said full implementation of the Nigeria Sugar Master Plan could save the nation over $1 billion in foreign exchange annually.
The NSDC scribe noted the plan’s potential to drive employment, attract large-scale investment, and stimulate rural development.
Bakrin explained that the proposed legislative amendments aim to redefine the council’s powers and align its financial structure with the 1999 Constitution.
Stressing the necessity of robust investor confidence to realise the NSMP’s vision, Bakrin said “We require about $4.5 billion in investments to fully achieve the NSMP’s objectives.
“Investor confidence is therefore crucial, and this can only be attained through transparent and rule-based policies.”
He, however, expressed concern over a recent government directive mandating that 50 per cent of the sugar levy be paid into the Consolidated Revenue Fund, warning that such a move could undermine sectoral progress.
“The sugar levy was not intended as a general revenue-generating mechanism but as a dedicated fund to support the sector’s growth.
“Redirecting it threatens to defeat its original purpose”, Bakrin stated.
The National Agency for Food and Drug Administration and Control, represented by Iba Edward, acknowledged the bill’s intent but cautioned against regulatory overlaps.
She said, “Some proposed provisions encroach on NAFDAC’s core responsibilities under Section 5 of our Act. We urge lawmakers to clearly define roles to avoid duplication”.
A former Minister, Aliyu Idi Hong, who represented BUA Group, highlighted the company’s commitment to sugar development, citing a 50,000-hectare plantation, with 20,000 hectares currently under cultivation.
He stressed the importance of policy stability to sustain investor interest.
Speaking, the Head of Government and Community Relations at Flour Mills of Nigeria, owners of the Golden Sugar Company in Sunti, Niger State, Mr. Onome Okurah, shared ongoing efforts to boost local production.
He noted that GSC cultivates over 6,000 hectares and currently sustains sugar production for four months each year.
“With stronger partnerships, we expect tangible results in the coming years”, he stated.
On his part, Chairman of the House Committee, Enitan Dolapo Badru, assured all stakeholders that the amendment process would be inclusive and aimed at empowering the NSDC to fulfil its mandate effectively.
Former Nigerian President, Dr. Goodluck Jonathan, has been awarded the “Lifetime Achievement Award” of the Nigerian Content Development and Monitoring Board (NCDMB).
Jonathan was bestowed the award at the maiden edition of the “Champions of Nigerian Content Awards”,recently, as part of events for the 5th edition of the NCDMB’S Nigerian Oil and Gas Opportunities Fair (NOGOF), which took place at the content tower, headquarters of the Board in Yenagoa, the Bayelsa State capital.
Receiving the award, the ex-President commended the management and staff of the Board for the milestones achieved by the Board in the implementation of the Nigerian Content in the Oil and Gas industry.
He noted that prior to the enactment of the Nigeria Oil and Gas Industry Development Act (NOGIC-D Act), there were no better laws regulating operations in the hydrocarbon industry in the nation, save for a few that post- existed the discovery of oil in commercial quantity in the Niger Delta region.
The ex-Nigerian leader also lauded former Senator Lee Maeba of Rivers State, who he said sponsored the NOGIC-D Act as a private member bill, noting that the Nigerian National Assembly then was made up of people of integrity and honesty.
“Before the NOGIC-D Act was enacted by the Nigerian National Assembly when I was President, there wasn’t any good law guiding the operations in the oil and gas industry in this nation.
“As Deputy Governor of Bayelsa State under the late Chief DSP Alamieyeseigha’s administration, I led a state business delegation to China to understudy certain things in that nation, especially the oil industry.
“So, when we came back, Alamieyeseigha asked me to interface with President Obasanjo, the then President. I met him in the State House and discussed our findings with him, but there wasn’t any enabling law to save the situation.
“As God may have it, in 2010 when I became Acting President, the bill, which established the Nigerian Content Development and Monitoring Board, was sponsored as a private member bill by Senator Lee Maeba and upon its passage, I hurriedly, but meticulously assented to it to create the NCDMB.
“I’m happy with the milestone achievements of the NCDMB under various Executive Secretaries. The Board is doing tremendously well. I’m happy to hear that the Board has implemented the Local Content policy to about 56 percent”, he said.
The Tide reports that some firms and other individual stakeholders in the oil and gas industry also received awards in various categories.
They include, Dangote Refinery and Petrochemical Company, which received the award of the “Nigerian Content Downstream Operator of the year”, Dorman Long Engineering Limited, was awarded the “Nigerian Content Indigenous Service Company of the year”, while TechnipFMC clinched the “Nigerian Content International Service Company of the year” award.
Others are: This Day Newspapers, which received the award of the “Nigerian Content Media Organisation of the year”; Bank of Industry (BOI), which got the award of the “Nigerian Content Financial Service Provider of the year”; the Nigerian Liquified Natural Gas (NLNG) took the “Nigerian Content Midstream Operator of the year” award; Aradel Holdings Plc clinched the “Nigerian Content Independent Upstream Operator of the year” award; while Shell Petroleum Development Company (SPDC), now Renaissance Africa Energy Company Ltd., was given the “Nigerian Content International Upstream Operator of the year” award.
In other categories, Mr. Tony Attah of Renaissance Africa Energy Company Ltd, won the “Nigerian Content Icon of the year” award; Professor Emenike of the University of Nigeria (UNN) clinched the “Nigerian Content Innovator of the year” award; while Mrs. Iroghama Ogbeifun of Starzs Gas Ltd. won the “Nigerian Content Women in Leadership” award for promoting Women Empowerment in the oil and gas industry.
Earlier in their separate remarks, the duo of the Executive Secretary, NCDMB, Engr. Felix Omatshola-Ogbe, and the Chairman of the NCDMB award advisory committee, one time Executive Secretary of the Board, Engr. Ernest Nwapa, underscored the need for the award.
The NCDMB’S Scribe, Ogbe, who reiterated his desire to improve on the gains of the Board, promised a continued implementation of the NOGIC-D Act within its guidelines, saying the new Presidential executive orders has also strengthened the Board under his stewardship.
By: Ariwera Ibibo-Howells, Yenagoa
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