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Heritage Bank Plc, Nigeria’s Most Innovative Banking Services Provider, has taken its campaign for concerted efforts for the growth of agribusiness and commerce in Nigeria to another level as it wants the bilateral agreement signed by Lagos and Kano States to provide for a Commodity Exchange.
The two states signed the Memorandum of Understanding (MoU) on yesterday at the Lagos-Kano Economic and Investment Summit held at the Jubilee Chalets, Epe, Lagos. The goal of the pact was to ensure the collaboration between the two states boost commerce and agribusiness and consequently increase the revenue generation by the states.
Speaking at the event during the plenary session on: Growth & Investment Opportunities in Agribusiness – Value Chain Approach, Olugbenga Awe, Group Head, Agric Financing, Heritage Bank, said there was an urgent need for the establishment of a Commodity Exchange; stating that it would provide the platform necessary for the success of the MoU signed by the states.
Awe said if the Exchange was established, it would make future contracts between traders and speculators in both states and others more possible and thereby enhance agribusiness in the country generally. Specifically, he stated that the establishment of a Commodity Exchange would help to put the activities of grain farmers and others in Dawanau market, Kano; and others in spotlight.
According to him, the volume of agribusiness and commerce going on daily in Dawanau market, which is the hub of grains and seeds trading across the world, needs to be complemented by appropriate policies.
Based on this, Awe advised the two states to ensure that the MoU they signed captures the establishment of a Commodity Exchange. Doing that, he stated, would make traceability possible for every produce traded on the floor of the exchange unlike now when grains sourced in Kano or Lagos could be sold and consumed in other part of the country without knowing its source.
Today, goods sourced at Dawanau are, daily, transported to Togo, Burkina Faso, Cameroon, Chad, Niger, Ghana Central African Republic, South Africa, Libya and other African countries. Again, traders from Burma, Dubai, India, China, Britain, America, Saudi and other countries patronize the grains/seeds market for items like Moringa seed and leaf, Sesame seed, Hibiscus flower (Sobo) and other items such as Soya beans, Beans, Cassava, Millet, and Guinea corn without any credit given to their farmers and Nigeria.
Awe therefore said the Commodity Exchange would help to address issues like that, adding that it would also encourage farmers to put in more efforts in planting more grains. 
Similarly, Dr. Sani Hussaini Sagagi, Deputy Country Director, Sasakwa Africa Association, Nigeria; said any country that wants to progress must take cognizance of its population structure when formulating policies.
According to him, the Africa’s population would increase to 1.4 billion in the next 12 years, while it would be 2.5 billion in 2030. Sagagi warned that over 50% of that would be majorly young men and women who would choose to live in urban areas with the motive of getting white collar jobs. He disclosed that there would be food shortage and climate change, which would cause 50% yield reduction in agribusiness.
Sagagi therefore said the two state governments must, as from today, begin to put the mechanism in place to address the social menace that would arise because of the surge in populace. He expressed optimism that the agreement signed by Lagos and Kano States would help a lot in finding solace to the possible challenges that would arise in the future.
Also present at the occasion was Richard Sandall, Senior Private Sector Development Adviser, the UK’s Department for International Development (DFID). Sandall identified financing, security and land as some of the challenges militating against smooth agribusiness in Africa. However, he said the DFID was established with the aim of supporting Africa to address issues like that.
Sandall stated: “Apart from working on alleviating the constraints, DFID also focuses on assisting in formulating appropriate policies that would nip those challenges in the bud”.

BIG STORY

Manufacturers React To CBN’s Interest Rate Hike, Say “Nigerians Will Start Paying Higher Prices”

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The Manufacturers Association of Nigeria (MAN) says the latest interest rate increase by the Central Bank of Nigeria (CBN) will worsen the imminent recession in the manufacturing sector and negatively impact its operations in many ways.

On Wednesday, the policy-setting committee of the CBN raised the monetary policy rate (MPR) which measures interest rate, from 18 percent to 18.5 percent.

The latest adjustment was the seventh consecutive rise since May 2022.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Reacting in a statement on Thursday, Segun Ajayi-Kadir, director-general of MAN, said the MPR hike would, among other challenges, lead to an increase in the cost of borrowing which would further discourage investments in the sector.

Ajayi-Kabir said it would also lead to a high cost of production which would lead to higher commodity prices and inventory of unsold manufactured products.

“It is evident that the continuous and consistent increase in MPR is not yielding the desired growth in the economy. The Nigerian economy remains fragile and bedeviled with numerous challenges that inhibit growth,” the statement reads in part.

“Therefore, the monetary authority needs to pay closer attention to rethink the policy mix, bearing in mind the parlous state of the economy, especially the effect of a high MPR on the manufacturing sector and the economy.

“The increase in MPR from 18 percent to 18.5 percent will certainly lead to an increase in lending rates and worsen the uncompetitiveness of the manufacturing sector.

“The Association has been clamoring for single-digit lending rates to allow manufacturers access to needed funds to boost the performance of the sector.

“This increase, like the previous ones, is evidence that the CBN is either unperturbed about the plight of the productive sector or is unable to fathom out a more creative policy mix that would reflate the sector.

“Therefore, it is necessary for government to think outside the conventional monetary policy framework and take pragmatic steps to quell the inflationary pressure and reposition the economy.”

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BIG STORY

Adron Homes Announces The Official Event Date For Adron Games 2023 Featuring Corporate Games And Adron Staff Games

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Adron Homes and Properties Ltd, a leading real estate company, is thrilled to announce the official event date for its highly anticipated annual sports fiesta Adron Games 2023, the 7th edition.

The event will take place from November 16 to 19, 2023, in Ibadan, Nigeria with the theme “The Strongest, is the Unstoppable”. This year’s event promises to deliver a thrilling experience with intense competitions in various sports disciplines, including Football, Basketball, Athletics, Table Tennis, and more.

This year’s edition will continue with the tradition of greatness by providing an unmatched platform for participants to showcase their skills and compete at the highest level.

The Corporate Games segment of Adron Games 2023 will feature teams from prominent companies across various industries. These organizations will engage in friendly yet fiercely competitive matches, fostering camaraderie and team spirit among their employees.

Additionally, the Adron Games 2023 will showcase the immense talent and passion within the Adron family. Adron Games recognizes the importance of fostering an active and healthy lifestyle among its staff members, and this segment serves as an excellent opportunity for employees to participate and excel in their favorite sports.

Participating teams in Football, Basketball, Athletics, Table Tennis, and other sports will face off in exhilarating matches throughout the event. The competition will be intense, as athletes strive to showcase their skills and claim victory for their respective teams.

One of the highlights of Adron Games 2023 is the mouth-watering cash prizes awaiting the winning teams. Adron Games 2023 aims to reward excellence and dedication by providing substantial incentives that recognize the hard work and talent exhibited by the participants.

“We are excited to announce the official event date for Adron Games 2023,” said Aare Adetola EmmanuelKing, the Group Managing Director/Chairman of Adron Group. “This year’s edition promises to be an exceptional showcase of talent, teamwork, and sportsmanship. We invite participants and spectators alike to join us in Ibadan for an unforgettable sporting experience.”

Adron Games 2023 is committed to creating an inclusive and memorable event that brings together participants, sponsors, and spectators from all walks of life. The event serves as a platform to celebrate athleticism, promote healthy competition, and encourage a vibrant sports culture within the community.

For more information about Adron Games 2023 and to stay updated on the latest news and announcements, please visit www.adronsportsfoundation.org or www.adronhomesproperties.com

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BIG STORY

BREAKING: CBN Increases Interest Rate To 18.5%

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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria, on Wednesday, unanimously voted to increase its monetary policy interest rates to 18.5 percent.

It was earlier reported that the MPC of the bank voted to increase the benchmark interest rate by 50 basis points to 18 per cent.

The CBN Governor, Godwin Emefiele, disclosed this while reading the communiqué of the third MPC meeting of the year on Wednesday.

Addressing journalists at the end of the two-day meeting in Abuja, Mr Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.

Justifying the rising inflation rate, the MPC blamed the high energy cost and challenges around the supply chain, among others, which are beyond the reach of the CBN.

He added, “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”

Analysts in the country had predicted the CBN and the MPC might raise the lending rates at the end of the Monetary Policy Committee.

The apex bank had increased the MPR from 11.5 percent earlier last year to 18 per cent in March this year across six consecutive rate hikes.

 

More to come…

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