Why Bank of Agriculture is Being Restructured – BPE

The Bureau of Public Enterprises (BPE) said on Thursday that it has become imperative to restructure the Bank of Agriculture (BOA) with a view to substantially improve its operating framework and efficiency.
The Director General of BPE, Mr. Alex Okoh who stated this 
at the kick-off meeting for the recapitalisation of the Bank in Abuja, said the Bank had performed sub-optimally due to the myriad of challenges facing it since inception in 1972. 

A statement by BPE’s Head of Public Communications, Amina Othman quoted the DG as saying, “the process will lead to the privatisation of equity of the bank. We envisage that the Central Bank equity will be reduced to 20 per cent, Federal Ministry of Finance (incorporated) will be reduced to 20 per cent”. 
According to him, “the government agencies equity in the new bank will be a minority of 40 per cent. We will then invite private sector investors who will own 20 per cent and the remaining 40 per cent equity will be owned by farmers and farmers’ cooperatives”. 

Okoh further stated that the new strategy envisages that BoA will be transformed into a truly agriculture finance bank modeled along the lines of Agriculture Bank of China and Rabobank of the Netherlands, adding that upon its establishment in 1972 to serve as an agricultural and cooperative bank to provide services of a development finance institution, it was vested with the responsibility of providing low cost credit to small holder and commercial farmers. 

Lamented that the Bank had been unable to realise its  responsibilities due to its current structure, the DG stressed that the proposed restructuring and recapitalisation of the Bank seek to transform it strictly into an agricultural finance bank with functional branches in all the local government areas and major towns in Nigeria.

He said that the model was sure to  encourage farmers to form clusters of cooperatives and thrift societies throughout the six geo-political zones for the purpose of participating in the ownership of the Bank, adding that the model would fundamentally ensure that the BOA becomes a farmers’ bank owned by farmers.

On the sustainability of the strategy and attracting investment, the DG, explained that measures would be put in place to take non-performing credit facilities off the balance sheet and books of the Bank and possibly sold off to a factor agent. 

He said further that the measure is  to make the Bank attractive to investors and also attract cheap funding from multilateral development institutions and other institutional investors with a focus on agricultural financing.  

Okoh commended the Minister of Agriculture & Rural Development, Chief Audu Ogbeh who doubles as the Chairman of the Steering Committee for the Project  for his passion and commitment to the development of agriculture in Nigeria.

He congratulated Lead Consortium-the Adviser for the transaction pointing out that upon conclusion, BoA would be placed  on a platform to optimise its potential to make positive impacts on the  nation’s natural endowments for arable farming.

Source: http://www.promptnewsonline.com

2018 Outlook: Agricultural Sector

Agricultural sectorThe Nigerian Agricultural Sector

In the quest to diversify the Nigerian Economy, the current government has singled out the agricultural sector as a viable alternative to crude oil. This is why President Buhari proposed ₦118.98 billion as the 2018  budgetary allocation to the agricultural sector. This signifies a 14.6% increase from the 2017 budget which was ₦103.79 billion.

The Nigerian economy which has been driven by the oil sector is gradually shifting towards agriculture. The government believes that that agriculture will be another mainstay and bedrock of the nation’s growth.

In 2016 and 2017, oil production nosedived which meant that government has to look for another source of revenue. It is worthy of note that the activities of the Niger-Delta militant affected the oil production in both years. This action came at a cost as it plunged the country into recession for the first time in 20 years.

President Buhari while presenting the 2018 budget last year said ” diversification efforts have resulted in improved output particularly in the agriculture and solid minerals sectors. The relative exchange rate stability has improved the manufacturing sector’s performance.

“We have got to get used to discipline and direction in economic management. The days of business, as usual, are numbered. Two years, I appealed to people to go back to the farm. I am highly gratified that agriculture has picked up, contributing to the government’s effort to diversify the economy. Rice will stop this year. Local rice which is fresher and more nutritious will be on dishes from now on,” he added.

Buhari also talked about the ongoing initiatives in the sector. This included the over 33,000 hectares of irrigation projects that have increased water availability in key food-producing state

2018 outlook

In order to encourage and improve local agricultural produce, the government is taking steps to curb the illegal importation of food into the country. This was why the government called a stakeholders meeting last year on the smuggling of food items into Nigeria.

During that meeting, the Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri, said that government will ensure that food products brought into Nigeria are not sold in the country.

Most of the foods products being smuggled into the country include rice, poultry products, and fisheries.

The government has prioritized the agricultural sector and are hopeful that in 2018, it will generate more income from the sector. The government has been advised to provide storage and processing facilities this year as a lot of food crops are wasted due to lack of storage house, and lack of processing facilities. This advice was given by Muda Yusuf who is the DG of Lagos Chambers of Commerce and Industry (LCCI).

Ref: Leadershp.ng

Farmers tells Federal Government to ban Maize Importation

On Tuesday, the Nigeria Farmers Group and Cooperative Society (NFFCS), urged the federal government to come up with a time line to ban the importation of maize into the country.

Redson Tedheke who is the group’s National Coordinator said in an interview with the news agency of Nigeria that the ban will protect local farmers which will directly boost local production of the Agric produce.

According to him, the only way you can encourage local farmers to produce more of maize is to protect them by banning the importation of maize which can be produced locally into the country. “you cannot tell people to go to the farm and then allow massive importation of the same thing they are conveniently producing. we feel the insincerity of purpose, and we are telling the government that if you allow continuous importation of maize, you are actually working against those you urge to go to the farm. The Nigeria farmers group, have 2000 hectres of maize farm across the nation, and it is still cultivating more,” he said.

He also said that some Agro-businesses in Nigerian were importing large quantities of maize at relatively “low landing cost”. Although maize is not currently on Nigeria’s import prohibition list, there is a need to curb excessive importation to protect local producers. An action that will help the economy to grow from within.

If Government does not step in quickly, local production of maize will be eradicated and lost to importation which will cause more harm to the nation’s economy as jobs and internally generated revenue will be eroded.

An example Mr.Tedheke gave is a company that shipped in a huge vessel of maize from abroad to be sold at about ₦40,000 per tonne while locally produced maize is between ₦130,000.00 and ₦250,000.00. What this means is that it is cheaper to buy imported maize than buying locally produced maize.

He noted that the cost of imported maize was relatively low because the government of those countries that maize was imported from provided the necessary support and protection to their farmers.

He said if the group is properly supported, it has the capacity to produce 50,000 tonnes of maize quarterly.

“The India government, for example, subsidised agriculture by providing tractors, seedlings, funding and other relevant support and that largely reduced the cost of production for its farmers.

“If the Nigerian government does not want the price of locally produced maize to go beyond a certain level, let it subsidise its production in the best interest of our economy.”

The Nigeria Farmers Group and Cooperative Society is a rural community-based farming initiative with farms spread across Nigeria and its mission is `farm to feed Nigeria’ and creates employment in the process.

ref: www.premiumtimesng.com

Before you Export your Agricultural Products


Image result for agricultural exports in nigeria


The Nigerian Export Promotion Council which is an agency of the Federal Government is constantly encouraging Nigerian businessmen, agriculturalists, and industrialist to export more non-oil products. They below by doing this, they will be able to increase the country’s export index, create jobs and in the long run stabilize Nigeria’s economy.

Nigeria’s economy for decades been over dependent oil exports which have been the major contributor to the Nation’s GDP. Now, the government wants to change that by encouraging Nigerians to go into Agriculture.

But you just don’t get up and want to export agricultural products without following the steps below,

    • You will need to carry out a research on how to export agro-allied products.
    • Carry out a research on agro-allied products that are in High demand.
    • How do you establish foreign contacts?
    • Which mode of transportation should you adopt?
    • What are the legal requirements?
    • Before you can trade in Nigeria, you will need to register your business with the Corporate Affairs Commission (CAC).
    • Foreigners will only transact business that is legally registered according to the laws of Nigeria.
    • Create a website for your business detailing what products you specialize in.
    • Attend networking events (Seminars and Conference) that are built around agro- allied products and agriculture.
    • Cold call prospective clients and also send emails out.
    • Search for exporting companies in Nigeria.
    • Advertise your business on google, online news platforms, and social media.
    • List your business in the local agro- allied directory.
  4. A completed form of NXP issued by Nigerian Custom Service
  5. A pro forma invoice
  6. Sales Agreement and NEPC Registration Certificate.
  7. Relevant Certificate of Quantity which is being issued by the relevant agencies.
  8. Shipping document like the bill of exit, bill of landing.

For agricultural needs, you can contact us at Tinker and Bell Trading Ltd.

Source: http://chibykeglobal.com/blog/nigerian-farmers-can-export-agricultural-products/


Weekly Average commodity Price for week starting 13/03/2017

Commodity Present Price ₦ Previous Week ₦ Diff. ₦
Garri (White)                     256.69                      256.12          0.57
Tomatoes (Cooking)                     367.32                     340.04        27.29
Onion (Violet)                    215.78                      221.28        -5.50
Groundnut (Unshelled)                     236.32                      231.06          5.26
Maize (White)                    176.96                      177.97         -1.01
Rice (Local)                    322.96                      317.40          5.56

source novusagro.com

FG pumps ₦750 billion into the Agricultural sector.

The Federal Government has released ₦750 billion Agricultural Intervention Fund into the agricultural sector, this is in tune with the Federal Government goal to ensure food sufficiency.

This was disclosed by the Acting President, Prof. Yemi Osinbajo (who was represented by the Plateau State Deputy Governor) during his speech at National Institute for Policy and Strategic Studies (NIPSS) whilst inaugurating the Senior Executive Course (SEC) 39 held in Kuru, Plateau state. He went to further say that if the Government was serious about revamping the economy, the agricultural sector had to be developed.

According to him “ Developing the Agricultural Sector is a clear starting point of our request for not only the diversification of our hitherto noncultural economy away from oil, it is also the only economy to grow fast enough to absorb the huge number of people that are employed”. He noted that Nigeria has well over 84 hectares of land but 60% of these arable land remain uncultivated.

The VP also said that the country has the human capacity with over 180 million population, the local market is big enough to support agricultural production and at the same time provide a sustainable livelihood for the citizens.


The Director General of the institute (acting), Jonathan Juma said the theme of SEC 39 “Science, Technology and Innovation for the Development of Agriculture and Agro-Allied Industries in Nigeria” was important to the country when we consider the fear being speculated about possible food shortage in the country as well as low supply of agricultural raw materials to feed the emerging agro-allied industries in the country.

The Deputy Governor of Plateau said, “human population is increasing exponentially, while climate change with attendant implication for agricultural production is steering us in the face, the option to put in place a vibrant and robust science, technology innovation policy is imperative”.


Source: www.agronigeria.com.ng