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CBN-policy

Understanding CBN Perspectives on RT200

With the current unstable accruals in the Foreign Exchange (FX) Reserves; dwindling from $39,650 billion in April to $38,540 billion in May 2022, and compounded by the volatile exchange rate of the Naira, the newly introduced monetary policy intervention by the Central Bank of Nigeria (CBN) referred to as ‘Road To $200 billion’ (RT200), promises to be the masterstroke strategy to shore up the nation’s exchange rate and boost the FX Reserves.

No doubt, this is one of the manifest efforts, in the recent past, by the CBN to tangibly promote diversification of the economy given that crude oil sale dominates sources of FX inflow to the economy. 

The policy, therefore, gives impetus to investors in the non-oil sector whose products are meant to be exported. Apart from the value addition of these products, they must also comply with international standards before the exporter would be qualified to earn the maximum benefits equal to the earnings of competing exporters of rival products from other countries.

According to the CBN policy guidelines for RT200 released in February 2022, it is a non-oil exports proceeds repatriation rebate scheme that is part of the apex bank’s effort to reduce exposure to volatile sources of FX and to earn more stable and sustainable inflows of FX into the country.

The  shift in strategy, at this point, is vital given the fact that the volatility of sources of FX impacts the exchange rate of the Naira, the accruals to FX reserves as well as the inflationary trends in the country.

The policy “aims to raise $200 billion in Foreign Exchange (FX) earnings from Non-Oil Proceeds over the next 3-5years” according to CBN documents. A major anchor of the program is the Non-OIl Export proceeds repatriation Rebate Scheme. The rebate scheme is designed to incentivize exporters in the Non-Oll export sector to encourage repatriation and sale of export proceeds into the FX Market.

The policy is borne out of the need to mainstream export-bound non-oil sector products as a means of earning more stable and sustainable FX inflows to insulate the Nigerian economy from shocks and FX shortages. The desired outcome would be to enhance Foreign Exchange inflow, diversify the sources of FX inflow, increase the level of contribution of non-oil exports to economic growth and Gross Domestic Product, ensure stability and sustainability of FX inflows, and support export-oriented companies to expand their export operations and capabilities.

In order to ensure value addition under the non-oil exports, the approved products, goods, and services must be finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, permissible and excluded under the existing export prohibition list. 

The incentives available to qualified companies in the scheme are derived from quarterly payment by the CBN of N65 for every US$1 repatriated and sold at the Investors’ and Exporters’ ( I & E) Window to Authorized Dealer Bank (ADB) for other third-party use, and N35 for every US$1 repatriated and sold into (I & E) window for the Exporter’s use on eligible transactions only. Of course, the incentive payments for every dollar repatriated and sold at the designated banks encourage repatriation of profits and discourage capital flights just as it ensures adequate account of repatriated FX to fund economic growth rather than being frittered away in the open FX black market.

However, this is not an all-comers’ participation affair. Consequently, there are certain operational safety nets embedded in the scheme to ensure that it is not abused or derailed. It is also designed to boost the revenue base of dedicated exporters of non-oil products, goods, and services through payments of rebates for each repatriated dollar.

One of the safety nets of the scheme is that although it is categorically stated that “the CBN (Trade & Exchange Department) shall be responsible for the day-to-day administration of the Scheme”, the ADBs are reposed with further gatekeeping functions.

 For instance, all applications/requests for participation are routed through the ADBs which scrutinize them to ascertain compliance with CBN specifications, the veracity of documents submitted, determination of eligibility of products and exporters (applicants), as well as the verification and confirmation of participating exporter (s) due for payment of rebate by the CBN. The exporters must also receive credits on agreed amounts through their accounts domiciled with the ADBs. 

The complementing but overlap of functions between the Apex Bank and the ADBs adds credibility to the overall process. The apex bank is responsible for the policy measures and issuing of updates from time to time while also taking into consideration the recommendations of the ADBs in the process of effecting payment of rebates to beneficiaries.

The CBN can also impose sanctions on any ADBs found guilty of any infractions or attempts to circumvent the intent of the Scheme. Sanctions may include suspension from the FOREX dealership license for a period of 24 months. The apex bank can also sanction any Exporter who presents fraudulent document(s) in an attempt to undermine the scheme with a ban from accessing the incentive for upwards of 24 months. 

The banks are expected to play pivotal roles in assuring that the policy objectives of RT200 are realized on or before the cut-off time of the scheme in 2026. To this effect, the CBN has reposed on the ADBs the responsibilities of interfacing with the apex bank and Exporters. Under this role, the ADBs oversee that application procedures and eligibility criteria conform with the standards and meet qualifications specified by the apex bank. In other words, ADBs must not only ensure that potential exporters provide verifiable documented proof of their eligibility and that of their products but are also ascertainable and authenticated by the banks for recommendation to CBN. In addition, banks process requests, render periodic reports on disbursements of rebates and make regular recommendations on the operational guidelines to the CBN.

Barely two months after its introduction, statistics released in April 2022 by the Bankers Committee indicate that 150 exporters have repatriated $60 million in export proceeds which qualified them for the quarterly payments of N3.5 billion FX rebate and the rebates have been ordered to be released to them by the CBN Governor, Godwin Emefiele. This was confirmed by the Managing Director/Chief Executive, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe in her briefs after the Bankers Committee meeting on the performance of the RT200 program in the 1st quarter of 2022. 

The outlook is eliciting positive interest across the industry. To future-proof the scheme, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, advises the CBN to take cognisance  that critical export infrastructure, international trade diplomacy, and adequate funding are prerequisites for sustaining and optimising the scheme. 

It is hoped that similar suggestions will be accommodated by the CBN, and hopefully, constitute parts of the considerations to look out for in the CBN’s future updates on the guidelines.

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FMDQ-Commermorate-Stanbic-IBTC-Dollar-Money-Market-and-Bond-Funds-Listed-on-its-Platform-2

Investors Trade Foreign Exchange Worth N24.93trn in 5 Months on Growing Demand

Following growing demand investors have in five months to May 31, 2022, traded Foreign Exchange (FX) worth N24.93 trillion as against N21.36 trillion traded in the same period of 2021 via the Investors & Exporters (I& E) window, indicating an increase of N3.57 trillion or 16.71 per cent.

This is according to the FMDQ Exchange Fixed Income and Currencies (FIC) monthly report, made available to newsmen in Lagos.

The FMDQ markets comprised of FX, Treasury Bills, Open Market Operation (OMO), CBN Special Bills, FGN & Other Bonds and money market.

The Central Bank of Nigeria (CBN) had in 2017 introduced the I&E window to further deepen the FX market and accommodate all obligations in the country.

The CBN had stressed that its purpose was to boost liquidity in the market and ensure timely execution and settlement for eligible transactions.

However, in 2021, the apex bank adopted the I&E as the official rate, stating that it would help boost investor confidence which has been lacking for some time.

According to the report, the average turnover trade by investors and exporters in the period under review is N4.99trillion as against N4.72 trillion in the prior year. 

The turnover of FX trade at its highest and lowest amounts was N7.29trillion and N4.06trillion in April and February 2022, respectively.

Comparing the highest and lowest amount of FX turnover traded in 2021, the FMDQ report had disclosed N5.11 trillion in April 2021 and N5.07trillion in March 2021, respectively. 

Meanwhile, the increasing total foreign exchange turnover at the FMDQ impacted on the Naira as it depreciated mostly in May 2022.

The report disclosed that Naira depreciated against the US Dollar, losing 0.38 per cent or N1 60 to close at an average of US Dollar/N419.15 in May 2022 from US Dollar/N417.55 recorded in April 2022.

The report noted that, “Further, exchange rate volatility increased in May 2022 compared to April 2022 as the Naira traded within an exchange rate range of US Dollar/N417.00-421.50 in May 2022 compared to US Dollar/N416.50-419.50 recorded in April 2022.”

The report further disclosed that turnover in FMDQ Markets increased by 1.98 per cent or N1.15 trillion to N78.25 trillion in five months of 2022 from N76.74 trillion in five months of 2021.   

According to the report for May 2022, the turnover in FMDQ markets for the month ended May 2022 was N15 39 trillion, representing a MoM decrease of 20.42 per cent or N3.95 trillion and YoY increase of 50.29 per cent or N5.15 trillion, respectively

The report stated that, OMO, CBN Special Bills and Foreign Exchange (transactions were the highest contributors to the FMDQ markets turnover in May 2022 jointly accounting for 63.03 per cent of the total FMDQ markets turnover.

For the spot market, the report disclosed that a total market turnover for all products traded in the spot market was 13.48 trillion in May 2022 representing a MoM decrease of 15.01 per cent or N2.38 trillion from the turnover recorded in April 2022

The FIC report for May said, 
“The M-o-M decrease in total spot market turnover was driven by the 27.66 or N1.05 trillion and 30.39per cent or N1.55 trillion decrease in FX market and money market turnover, respectively, which offset the 3.17 per cent or N0.22 trillion increase in fixed income market turnover in May 2022

“The M-o-M increase in FI market turnover was driven by the M-o-M increase in CBN Special Bills and T bills turnover by 134.97 or N1.65 trillion and 1.70 or N0.02 trillion, respectively. 

“Although, the turnover for OMO bills, FGN Bonds and Other Bonds decreased M-o-M by 37.34 per cent or N1.29 trillion, 12.74per cent or N0.15 trillion and 36.75 per cent or N0.01 trillion), respectively.”

Analysts have expressed that increasing business activities has played a critical role in the FX demand, stressing on the CBN sustained interventions that have reduced investors and foreign pressure.

Analyst at PAC Holdings, Mr. Wole Adeyeye attributed the growth recorded in the total foreign exchange turnover in the first two months to increasing business activities.

He said that the slow growth in business activities in the first five months of 2021 affected foreign exchange turnover traded, attributing it to uncertainty in the global economy. 

He said: “The restrictions had affected investors and exporters’ demand for FX in the first five months of 2022. The war between Russia/Ukraine affected capital inflow into the country and led to volatility in the foreign exchange market. 

“However, with the ease of movement in 2022, investors and exporters surge for FX from the FMDQ market increased and it reflected in the amounts.”

Analysts at Guaranty Trust Holding Company in a report titled, “Nigeria macro-economic: outlook for 2022,” explained that, “In the light of the gradual improvement in vaccination rates, a better understanding and management of the pandemic, strong oil prices and positive GDP growth albeit on the back of a lower base, the business environment made an impressive recovery from the weak pandemic-induced performance of 2020.” 

The Chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion, also attributed the growth to increasing demand for FX, maintaining that global economy was expected to have expanded in 2022 but might be slowed down due to the crisis between Ukraine and Russia.

According Omordion, “The Nigeria economy has witnessed more business activities in the first five months of 2022 and demand for FX has increased significantly.”

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Ambassador Isopi

Isopi: €6bn EU-Nigeria Balance of Trade in Favour of Nigeria

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The European Union (EU) Ambassador to Nigeria, Ms. Samuela Isopi, has stated that the balance of trade between Nigeria and the EU reached €6 billion in 2021 in favour of Nigeria.

The Ambassador stated this during a press conference to announce its eight edition of the E U business forum scheduled to hold in Lagos.

According to her, the European Union as a Bloc is by far the largest trading partner of Nigeria with about €28 billion in 2021.

She said the oil and gas sector represents the bulk of the trade adding that Europe accounts for 20 per cent of the overall Nigerian trade with the rest of the world.

According to her, “This is an agenda that we are trying to develop further. Discussions are ongoing between the Nigerian government and the European Union on how to develop economic relations.”

She noted that the EU is the main investors to Nigeria, adding that plans are ongoing to quantify and measure EU’s contribution to Nigeria’s economic development in terms of job creation.

She said one of the tools to reducing migration is to create economic opportunities for the youths, pointing out that a country like Nigeria needs to diversify its economy away from oil to promote backward integration in its quest to boost local production.

“Our dialogue with the Nigerian government on migration issues is on course and getting better. We are also expecting a delegation from Brussels to discuss migration. We presented European External Strategy anchored on three pillars, which includes energy efficiency to reduce energy consumption, diversify suppliers and fast-tracking energy transition into renewables. In Africa we are looking at four countries namely Nigeria, Mozambique, Senegal and Angola, “she added.

She however tasked the Nigerian government to address its infrastructure and security challenges to boost gas export to Europe.

“We think there is a huge opportunity for Nigeria. The current international situation is creating a huge opportunity for Nigeria, but we need to address the challenges, “she advised.

Also speaking, the Team Leader, Green and Digital Economy, Ms. Inga Stefanowicz, said under its new programme and budget of the EU for the year 2021-2027, the EU would be working with the private sector to create employment opportunities, growth of SMEs.

“We are also looking for development of agriculture value chains in horticulture, aquaculture and livestock development under the Team Europe initiatives,” she added.

The Trade Counsellor, EU Delegation to Nigeria and ECOWAS, Mr. John Taylor, said the business forum has served as a strong platform for European and Nigerian businesses to engage with the Nigerian authorities towards improving the business environment.

“This year’s event themed, “Nigeria and the New Economy,” will focus on three key sectors, including backward integration policy of the Nigerian government; opportunities to increase gas exports to Europe; and new initiatives in the agricultural sector.

“While these sectors are not new, the potential in them remains largely untapped. During the 8th EU-Nigeria Business Forum, discussions will aim to identify the causes of these hindrances and explore how these opportunities can be unlocked for the mutual benefit of Nigeria and Europe,” he stressed.

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NUPRC

Two Years After, NUPRC Closes Out 2020 Marginal Oilfields Bid Round

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday finally closed out the 2020 marginal oilfields bid round two years after the process commenced.

This was just as the Group Managing Director (GMD) of Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari, yesterday lamented that none of the government-owned refineries are presently working, even as he revealed that there were over 200 illegal refineries being operated across the country.

With the issuance of the Petroleum Prospecting Licences (PPL), the winners of the awarded oilfields can now move to site for preliminary prospecting activities, THISDAY learnt. In the process of getting to conclude the bid rounds, the NUPRC stated that about N200 billion was raked in from the 57 oilfields to the coffers of the federal government, plus an additional $7 million in signature bonuses and others.

In addition, the NUPRC announced the unveiling of the Template and Procedure Guide for the Host Communities’ Development Trust (HCDT) for commencement     of implementation of the provisions of Section 235 of the Petroleum Industry Act (PIA) 2021.

The unveiling of the template on host communities fund administration was a major development for oil-producing areas of the Niger Delta who are expected to benefit from the three per cent operating expenses of oil companies in the area.

Section 235 of the PIA provides for the incorporation of Host Communities Development Trust by the Settlors, that is, the oil and gas companies, for the benefit of their hosts. It places the responsibility to set up the HCDT and appoint the Board of Trustees (BoT) on the companies in consultation with the host communities.

In addition, Section 247 of the Act requires the BoT to set up a management committee to handle the general administration of the fund.

The HCDT provided by the PIA proposes to advance the development of the host communities within the scope of funds available to the BoTs for such purposes. It is also envisaged that sabotage of oil and gas infrastructure will be reduced since local communities now have a slice of the pie.

Since the regulations, which were officially unveiled by the government are now ready, the managers of the fund should be announced anytime soon.

Describing the ceremony as a giant milestone for the current administration, Minister of State, Petroleum, Mr. Timipre Sylva, who spoke during the event, noted that about 70 per cent of the entire bid winners had fully paid up.

He recalled that the roadmap of the marginal field awards began with two fields awarded in 1999, adding that prior to the award, 13 fields had been awarded on land, eight fields in swamp and nine fields offshore, leading to a cumulative of 30 marginal fields so far awarded in Nigeria.

“It is worthy of note to state here that this present award process saw 57 fields offered and over 70 per cent of them have their signature bonuses fully paid. This indeed is a testament to the increasing interest in our petroleum operations,” he said.

With the implementation of the PIA 2021 in top gear, the minister reminded the new awardees that their assets would be fully governed by the provisions of the new law.

“As a result, each successful field will be issued a Petroleum Prospecting Licence (PPL) in line with the PIA. This is a complete departure from what used to be where the marginal field owners had no licences.

“This marks the beginning of a new era for us in the oil and gas sector and I urge the awardees of the PPL to take full advantage of the opportunities being presented to exploit, develop, and bring the assets to productive use,” he declared.

As they move to develop their assets with the Special Purpose Vehicles (SPVs), he urged the award winners to ensure that good oilfield practice was employed, while environmental considerations and community stakeholders’ management should not be neglected.

He charged the commission to provide every necessary support to ease and facilitate seamless upstream petroleum operations in line with the objectives and provisions of the PIA.

Some of the winners of the bid rounds included Matrix Energy, SunTrust Oil, PetroGas Energy, Genesis Hydrocarbons, Samora Oil & Gas, Ardova, Terra Energy and Mainland Energy.

It also included Energia, Bono, Calm Marine, Virgin Forest, Tempo, Deep Offshore, North Oil, Shepherd Oil, Hilltop Global, Duport, among others.

The process which commenced in 2020 had been bogged down by bureaucratic challenges, meaning that the actual drilling for oil had yet to effectively take off after a long time, although 161 companies were eventually shortlisted to advance to the final stage from 591 entities that applied for pre-qualification.

The then head of the defunct DPR, which has now transformed into the NUPRC, Sarki Auwalu, had said the exercise was worth roughly $500 million in signature bonuses.

But in his remarks at the event, the Chief Executive of the NUPRC, Mr. Gbenga Komolafe, noted that the commission was faced with several constraints during the course of the exercise which have now been surmounted.

He listed some of them as the COVID-19 interruption, partial payment of signature bonuses by some of the awardees, and the unwillingness of co-awardees to work together in forming SPVs for field development.

Komolafe explained that historically, the marginal fields award initiative began in 1999 and was borne out of the need to entrench the indigenisation policy of government in the upstream sector of the oil and gas industry and build local content capacity.

 Besides, the initiative was also targeted at creating employment opportunities and encouraging increased capital inflow to the sector.

“Again, it is noteworthy that the 2020 marginal field bid round exercise in respect of which PPLs are being issued today has attracted government revenue of about N200 billion and $7 million respectively,” he stressed.

He noted that the NUPRC would continue to provide a predictable and enabling regulatory environment to operators in line with its technical and commercial statutory mandates with a view to optimising the development and exploitation of the nation’s hydrocarbon resources.

Komolafe lamented that Nigeria currently wasn’t meeting its oil production quota, stating that it was the reason Nigeria wasn’t feeling the positive impact of the current surge in crude prices.

“It is worthy of note that the average price of crude oil in recent months has been above $100 per barrel. This upward swing in market fundamentals is largely associated with the Russian-Ukraine conflict.

“However, the impact of the upswing in the crude oil price is not reflecting in the nation’s revenue earnings due to disruptions in our national oil production owing to sabotage, theft, and other operational challenges.

“Therefore, potential licensees are urged to take advantage of the current market realities and quickly bring their fields to production,” he said.

In addition, the NUPRC head announced the unveiling of the Template and Procedure Guide for the Host Communities Development Trust for commencement     of implementation of the provisions of Section 235 of the PIA, 2021.

He said the commission was committed to transparency in its processes and has therefore, implemented the Beneficial Ownership (BO) reporting, which requires full disclosure of ownership information.

“The objective is to ensure financial transparency, accountability, and public financial management among others,” Komolafe stated.

Speaking on the sidelines of the event, a former Chairman of the Petroleum Technology Association of Nigeria (PETAN) and an oilfield winner, Bank-Anthony Okoroafor, described the awards as the most transparent process in the history of marginal fields awards in the country, adding that the issue of “forced marriage” has now been resolved.

He noted that the IOCs should fully cooperate with the winners by giving them assess for evacuation of crude as far as it was optimal and avail them all the information needed to make it easier to transition to first oil.

Okoroafor urged the federal government to solve the issue of crude theft and vandalism as well as declare it a national emergency.

Kyari: Over 200 Illegal Refineries Operating in Nigeria

Meanwhile, Kyari, has lamented that none of the government-owned refineries are presently working, even as he revealed that there are over 200 illegal refineries being operated across the country.

The GMD made this known when he appeared before the House of Representatives Joint Committee on Petroleum Resources (Downstream) investigating the increase in prices of diesel and cooking gas.

Addressing the Committee chaired by Hon. Abdullahi Gaya, the GMD said though the situation was regrettable, the NNPC was doing something to bring the refineries back to work.

While noting that a good number of illegal refineries had been taken out, he said the company was in the process of doing a quick fix on the Warri refinery.

On petroleum supply, the GMD stated that no one could guarantee the security of petroleum supply, as countries are preserving excess volume that they have in their kitty.

Kyari blamed the current energy crises on the Ukraine and Russia war which resulted in the increase of petroleum product.

He said the solution was to restore crude oil production, and for the Central Bank of Nigeria (CBN) to create more dollars, adding that there was a massive intervention that was ongoing to see if the issue would be resolved by the end of July.

He explained, “Community members are not the thieves, absolutely not. Everything we are doing is to incorporate the communities into the process of protecting these assets.

“The National Assembly in its wisdom also included Trust Fund for the communities in the Petroleum Industry Act (PIA) so that they become parts and parcel of the system. Criminals in the Niger Delta come from all parts of the country. At these illegal refineries there are people from all works of life there.

“Many of these people are completely armed and the community members cannot even report them, they are helpless because if they report them, they will come after them.

“My suggestion this moment is deliver supply, make sure oil marketers are also able to import, and there’s need to engage the CBN to create more dollars, once we do these, dollars will be allocated for the import of AGO, the will also dampen the effects of going to buy dollar in the open market.

“So you can have cheaper dollar and definitely it will affect the price. Secondly, the regulatory institutions, the authority, Consumer Protection Council and NNPC, I suggest we need to sit jointly to see how arbitrage can be managed so that the end user is not completely exploited.”

Speaking further, Kyari ruled out the possibility of returning to the regime of subsidising diesel and LPG.

“Today countries are toying with subsidy because prices are so high because they don’t think they can manage inflation associated with it,” the GMD added

On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA), Mr. Farouk Ahmed agreed with the GMD that the invasion of Ukraine by Russian contributed to the energy crises, due to fact that Russia is a major producer.

Ahmed also blamed supply disruption, the rise in the barrel of crude oil price to as high as $120 and the prevailing naira exchange rate for the energy crisis in the country.

He opined that the availability of adequate foreign exchange at official rate of N410 to the dollar and the revitalisation of the nation refineries remained the panacea to the energy crisis in the country.

According to him, “it is important to stress that the country has no control over the price of AGO or any other petroleum products at the international market.

“However, countries all over the world are making various efforts at easing the present global high crude oil prices on domestic petroleum products prices. The following are recommended initiatives to address the current high prices of AGO and LPG in the country.

“Required amount of FX for importation of the petroleum products be made available to the genuine importers at CBN official rate; encourage establishment of more local refineries and LPG processing facilities to meet domestic demands, and increase LPG supply from major domestic producers including NLNG, BRT processing, CNL LPG FSO. Consequent upon the foregoing, an extensive consultation is required amongst key Stakeholders, towards lessening the present tension being generated by the global high oil prices.”

In their presentations, some of the oil marketers appealed to the lawmakers to urge the CBN to make FX available to them, in order to make the importation of petrol into the country competitive, reduce the rising cost of the product, and stop the overdependence on NNPC.

Earlier in his remarks, Gaya noted that Nigerian has refining capacity but because none of the refineries were functioning was what placed the country in its sorry state.

He said there was need to find solution to the high cost of diesel and cooking gas in a bid to cushion the effect on the generality of Nigerians.

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catfish-business-plan

Stakeholders unveil plan to upgrade catfish production  

Stakeholders, experts and participants in the fishery and aquaculture value chain have presented a 10-years  development plan to improve the catfish sector by 2032.  

The stakeholders made the presentation plan on Tuesday at a FISH4ACP workshop for selected fishery and Aquaculture farmers in Lagos.  

The development plan projected that by 2032, it foresees a 20 per cent increase of catfish production that would lead to 30 per cent more benefit, in particular for small-scale aquaculture producers  

They include Mr Ime Umoh, Director of Fisheries and Aquaculture, Federal Ministry of Agriculture and Rural Development, Abuja and Mrs Urszula Sołkiewicz, International Partnerships Officer of the EU Delegation in Nigeria.  

Others are Dr Fred Kafeero​, FAO’s Representative in Nigeria and to the ECOWAS and Dr Amadou Tall, Team Leader PESCAO/ECOWAS.  

FISH4ACP is an initiative of the Organisation of African, Caribbean and Pacific States (OACPS) implemented by Food and Agriculture Organisation of the United Nations (FAO).  

It also has funding from the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ), works to make fish value chains more productive and sustainable.  

They said Nigeria’s huge catfish sector can improve production and offer better jobs without additional burden on the environment.  

The experts discussed concrete action to achieve the strategy’s ambitious goals, FISH4ACP strategy was for improved production, better jobs and reduced carbon footprint of catfish aquaculture.  

Umoh, said Nigeria is the world’s largest producer of African catfish which millions of people’s livelihoods depend.  

He was represented by Mr Ibrahim Abubakar, Deputy Director, Planning in the ministry stated that by 2032, the plan foresees a 20 per cent increase of catfish production  

He said that it foresees a 10 per cent growth of employment and the health of workers would improve due to measures reducing air pollution and others.  

“Our goal is to improve domestic catfish production, not only in quantity, but also in quality, while providing better jobs for our people and making sure no harm is done to the environment,”  

“The 10 year strategy was developed by the global fish value chain development initiative ‘FISH4ACP’ with stakeholders from across the Nigerian catfish sector.  

“The stakeholders lays down a roadmap for better quality and increased production of fresh and processed catfish, more income and employment for millions of small-scale farmers and workers.  

“It also provide a climate adapted approach that would reduce environmental and health impacts.  

“By 2032, the plan foresees a 20 per cent increase of catfish production that would lead to 30 per cent more benefit, in particular for small-scale aquaculture producers.  

“At the same time, there would be a 10 per cent growth of employment and the health of workers would improve due to measures reducing air pollution, while at the same time halting deforestation, protecting waters and wildlife,” he said.  

Urszula Sołkiewicz, International Partnerships Officer of the EU Delegation in Nigeria said that  FISH4ACP’s was a flag bearer of the EU’s development support for sustainable fisheries and aquaculture.  

She said that the project would make a difference to Nigeria’s catfish sector.  

“This ambitious plan for a more sustainable catfish sector that offers prosperity to small-scale producers and better jobs to fish workers while reducing its carbon footprint fits the sustainable development agenda that Europe supports.  

Dr Fred Kafeero​, FAO’s Representative in Nigeria and to the ECOWAS said that Nigeria is one of the twelve countries where FISH4ACP is holding.  

Kafeero, represented Abubakar Usman, said that participants would discuss the strategy in details and agree on concrete activities to actualise them.  

“Over the next two days, some 50 stakeholders and experts involved in Nigeria’s catfish aquaculture will discuss the strategy in detail until they agree on a set of concrete activities to carry them out.  

“There outcome will set the agenda for FISH4ACP in the years to come and beyond its completion in 2025. FAO is happy to support Nigeria’s ambition to increase and improve its domestic catfish production.  

“FISH4ACP’s innovative value chain approach is a fine example of how FAO’s core objectives of Better Production, Better Nutrition, a Better Environment, and a Better Life can become a reality in Nigeria,” he said.  

Dr Amadou Tall, Team Leader PESCAO/ECOWAS representative said the 15 countries that made up ECOWAS was happy to be part of the programme.  

Tall added that ECOWAS have very strong relationship with the Federal government and the ministry of Agriculture and rural development on fishery and aquaculture.  

He said that ECOWAS have secured 500 million dollars to develop agriculture.  

Mr Audu, Director Fisheries in the Lagos State Ministry of Agriculture urged the participants to own the project and become a reference point to other participating countries.   

Stakeholders propose boost in local poultry

Poultry farmers bemoan rising cost of production  

Some poultry farmers on Tuesday in Lagos complained about the rising cost of production in the poultry sector.  

Mr Emmanuel Iregbeyen, the Chief Executive Officer of Emiraz Farms ojo, said the cost of transportation alone has almost crippled the sector’s productivity.  

According to him, “Transportation is a major challenge to the poultry industry because it increases the cost production generally.  

“Transportation is a major challenge for poultry farmers since the hike in price diesel. It costs a lot to run the limited value-chain of sector coupled with the rising of transportation.  

“This cost of transportation is having more impact on the poultry industry even more than the cost of feeds.  

“This is because the cost of transportation affects all aspects of poultry production and also the price we get to sell,” Iregbeyen said.  

He also called on the government to cushion the effects of production costs on the sector by allowing grain imports  

“We are praying for respite for sector even as we elect a new administration into power come 2023.  

“The government can also help cushion the problem of feed cost if it allows the importation of grains into the country.  

“The sector is becoming discouraging to a number of us, some farmers have been force to even close down their farms.  

“The cost of production keeps going up, that is why the even from the major farms a crate egg is sold for as high as N1900 at wholesale price.  

“For a retailer who buys at that price will sell above N2000 , it is not our fault. The cost of materials for the poultry sector is not coming at all, rather it is going higher,” he said  

On his part, Mr Joel Oduware, a poultry farmer and processor, said the cost of production will always impact negatively on every aspect of the poultry value-chain.  

According to him, “The cost of poultry produce will keep increasing as the cost of production keeps soaring.  

“All year round we need the cost of production to be stable to be able to break even in the sector.  

“Without suitable prices in the production process, we may not be able to stabilise prices in the sector,” Oduware said.  

Debt-Management-Office-DMO

Invest in government securities to secure your finances  

A Stockbroker, Mr Fortune Ibe, has advised Nigerians to embrace the idea of investing in Federal Government of Nigeria (FGN) securities to secure their finances.  

Ibe, a personel of CSL Stockbrokers Limited, which is the stockbroker of the FGN, said on Tuesday in Kano on the sideline of the FGN Securities Issuance Awareness Programme organised by the Debt Management Office (DMO), in collaboration with CSL.  

Ibe said that retail investors were particularly targeted in the current awareness that was being created around the products because they had been left out in the past.  

“The FGN savings bond is an additional means through which ordinary Nigerians can make money.  

“It is a risk-free, secure investment that guarantees investors decent returns on investment, and there are no fears of default,” he said.  

Ibe said that the various investable products under the FGN securities were backed by full faith and credit of the Federal Government and charged upon the general assets of the country.  

“FGN securities are viable collateral for obtaining bank loans, and investors can use them to diversify their portfolios  

“They are also a source of steady income, and they can be easily resold at any time, ” he said.  

He said that they also encouraged other private institutions to issue their own securities, so as to enhance savings and investment opportunities for citizens.  

“The existence of FGN securities serves as a benchmark for other private institutions to issue their own securities.  

“They also attract foreign investment into the domestic financial market, to refinance maturing domestic debts and to diversify sources of funding for the Federal Government,’’ he said.  

He urged residents of Kano to embrace the products and enjoy the benefit of secure, risk-free investment.  

National-Bureau-of-Statistics-NBS-logo

Telecoms record 199.5m active voice subscribers in Q1 2022  

The National Bureau of Statistics (NBS), says a total of 199,558,540 active voice subscribers were recorded in Q1 of 2022.  

According to NBS, this is an increase compared to 192,413,613 that it recorded in Q1 of 2021.  

This is contained in the NBS Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information report for Q1 2022, released in Abuja on Tuesday.  

The report revealed that the figure for Q1 of 2022 represents a 3.71 per cent rise in voice subscriptions on a year-on-year basis.  

On a quarter-on-quarter basis, the report showed growth stood at 2.09 per cent.  

Also, the report revealed a total of 145,851,496 active internet subscribers were recorded in Q1 of 2022 compared to 144,949,194 in Q1 of 2021.  

” This represents a 0.62 per cent increase in active internet subscriptions year-on-year.”  

On state analysis, the report showed that Lagos had the highest number of active voice subscribers in Q1 of 2022 with 24,226,878, followed by Kano with 11,666,630 and Ogun with 11,537,006.  

The report showed that Bayelsa had the least with 1,445,123, followed by Ekiti with 1,786,160.  

The report showed that Lagos state stood top for active internet subscriptions recorded at 17,839,569, followed by Ogun with 8,538,812 and Kano state with 8,364,587.  

“On the other hand, Bayelsa had the least with 1,043,059, followed by Ebonyi and Ekiti with 1,230,081 and 1,373,888 respectively.”  

The report showed that MTN had the highest share of subscriptions in Q1 of 2022, followed by Glo and Airtel. 

transporting-agricultural-produce

High cost of transportation, extortion cause spike in food prices  

Traders of staple food in Calabar, Cross River, have attributed the rising cost of food stuff to high cost of transportation and extortion by security agencies.  

The traders spoke in Calabar on Tuesday and noted particularly that the Automotive Gas oil (Diesel) and Premium Motor Spirit (Fuel) have not been pocket friendly to transporters and have had to increase their fares as well.  

The respondents also did not rule out the challenges of insecurity and bad roads as another reason for increase in prices of staple food.  

A trader in Watt Market in Calabar, Alhaji Lawal Dalha, noted that the rise of diesel from an average of N350 to N800, it is not unexpected for increase in the cost of transportation.  

Dalha also bemoaned the extortion by security agencies and insecurity as another in the cause of transporting goods as another reason for the increase in prices of food items in the State.  

According to him, “Some food items in my shop were not produced in Calabar but from other states, while those that could be gotten from Cross River came from the hinterlands and need to be transported to Calabar.  

“Sometimes when these transporters with goods get to Calabar and narrate their ordeal on our roads, you just pity them, the business is becoming more for the brave hearted and this tells on the prices.  

“Most of their trucks are powered by diesel which is scarce and expensive today, their are also so many checkpoints on our roads that extort these transporters, not to talk of the fear of attacks, kidnapping and others.  

”A bag of 50 kilogrammes of brown and white beans goes for N52,000 and N48,000 respectively, meanwhile they were sold for N50,000 and N45,000 in February this year,” she said.  

Dalha said palm oil is sourced locally from Akpabuyo, Odukpani and other Local Government Areas in Cross River and transport to Calabar.  

“20 litre of palm oil goes for N19,500, while earlier in the year, it was sold for N18,500,” he said.  

Similarly, Adamu Ibrahim who sells tomatoes, said smaller basket, known as cameron basket, goes for N10,000 while Gboko basket goes for between N22,000 and N23,000, as against N8,000, N18,000 and N20,000 in February.  

Ibrahim said a bag of onion now goes for N35,600, which earlier in the year was sold for N33,000, which change he attributed to market forces and availability.  

For yam, Mrs Dorathy Ufot said an average size tuber of yam goes for between N1,500 and N1,700 in the market, even though it might be a little difficult to find.  

“This is not yam season, what you see in the market now are old yams and they are expensive as we are still waiting for new yams to be harvested,” he said.  

Meanwhile, another trader, Mr Timothy Una, has said that prices of some staple food have gone down as they are now in season.  

Una who deals on rice and Garri said, said a bag of 50kg is presently sold for N22,000 while the same quantity was sold for between N23,000 and N24,000 around March.  

Una said the price of garri has also gone down from about N11,000 to about N8,000 per basin because of the presence of other food items that could serve as alternative.  

“Sweet potatoes and corn are now available in the market and are been sold at reduced price because they are in season,” he explained.  

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Ondo state seals 3 companies over tax evasion  

The Ondo State Internal Revenue Service (ODIRS) on Tuesday sealed three companies in Ore, Odigbo Local Government Area of the state over unpaid taxes.  

Speaking after sealing the companies, Mr Adebayo Ogunsuyi, Head of Legal Department of the ODIRS, said it was the statutory duty of individuals and companies to pay tax to government.  

Ogunsuyi said the agency was acting on the State High Court order of May 18, 2022 by the Chief Judge, Justice Wlliams Akintoroye, that empowered it to seal the erring companies.  

The affected companies are Woda Mountain Investment Ltd (A Quarry company), Ajiwogbo Sawmill and Optimal Energy filling station.  

Ogunsuyi noted that Woda Quarry Company, which one of the largest quarry companies in the country, owed the state government N217 million, and had refused to pay till date despite efforts by the revenue agency.  

He added that the companies were served demand notice twice by the ODIRS which were not honoured, leading to the order of the court that the defaulting companies should be sealed.  

He disclosed that the enforcement exercise would be carried out statewide.  

“The law states that one can be enforced based on a court order for non-payment of tax.  

“And that the affected defaulters will have to visit the ODIRS office to settle their tax liability and thereafter, proceed to court to lift the court order.  

“ODIRS is deploying an aggressive approach to ensure that all taxes are collected to help the state carry out its developmental projects for the benefit of the people,” he said.  

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