Economy
Nigerian Yams Not Rejected Abroad—Exporters
By Modupe Gbadeyanka
The exporters of yam to the United Kingdom and the United States have disputed the reports, initially aired by the Africa Independent Television (AIT), purporting that the yams exported after the official flag-off ceremony on June 29, 2017 were rejected at their export destinations.
The symbolic event, done at the Lilypond Container Terminal in Lagos by the Minister of Agriculture and Rural Development, Mr Audu Ogbeh, meant to boost the morale of Nigerian exporters and make a bold statement to the global marketplace, has drawn widespread criticisms on various media platforms.
A statement issued by the Minister’s Special Adviser on Media and Communications, Mr Olukayode Oyeleye, stated that the concerned exporters and other prospective exporters have expressed worries about the potential impact of the negative publicity on their prospects at the export market in the wake of federal government’s initiative on diversification of the economy through agricultural produce export.
Most commentators and analysts in the mainstream and social media have retailed the negative aspect of the laudable initiative and have played up the wrong versions of the export story. Discussions with the exporters have since shown the prevailing storyline as inappropriate and misleading.
First, the exporters to the UK and US have emphatically said that their consignments were successfully cleared at the ports and delivered them to their various warehouses. They said, although some cases of tuber spoilage were reported in both cases, these were separated from the good ones, and the good ones were distributed to the buyers.
The exporters noted that Ghana, which has been exporting yams for a while, routinely records cases of spoilage, without making any public issues therefrom; and their yams don’t get rejected as a result.
Mr Michael Adedipe of ADES UK Foods and Drinks for the UK, whose warehouse was visited by AIT, has deplored the AIT report and other subsequent commentaries about rejection of his yams by the UK authorities.
Mr Adedipe has said emphatically that the consignment was not rejected; “It was cleared.”
According to Mr Adedipe, who confirmed that he spoke to AIT, “I’ve watched the (TV) programme which lasted for about two hours. All the positive stuff removed. We that decide to venture in this project are aware of the risks involved because, this fresh produce … we’ll expect five or 10 percent damages. I don’t know why they said the product got rejected. I’ve sent my release note. I’ve sent video of loading. I’ve sent every documentation to say that there is no issue like that at all.”
On the spoilage of yam, Mr Adedipe explained that “the failure has nothing to do with the Ministry of Agriculture, but the Nigerian Ports Authority (NPA). That’s where I see the failure.”
He expressed disgust at the mishandling of his comments by the AIT reporter, saying: “I told him, he is aware of it. He knew about the delay, I told him about all the consignment. He knew every single thing that happened. But what he did the most is to use all the negative stuff. We talked about other things. I told him how I came into the UK to go and fix our problem. All those were removed from the report.”
Mr Adedipe, who has vowed not to stop yam export business, disclosed that “the other mistake was the shipping line we used. But they were the ones that were available.”
According to him, in spite of the sour experience with media report, “I’m willing to invest. I still expect…at least to take a container from Nigeria every week.”
Managing Director of Wan Nyikwagh Farms Nigeria Limited, Mr Yandev Amaabai, has strongly disputed the yam rejection story and said it doesn’t even tally.
“The story from AIT was focused on the UK. So far, I am the only person who has lifted yam to the US. Whatever we can do to clarify this issue will be good. We learn as we progress. The whole idea that government brought was to diversify the economy.”
“My goods actually got to the US on September 7, 2017. The ship berthed on September 2, 2017, but, because of the flooding in Texas, we couldn’t discharge until the 7th. They were cleared from the Customs and brought to the warehouse on the 7th. Yams are perishable items and, definitely, some may go bad on the way. But, this statement that says the American government rejected Nigerian yams, where does it come from?
“Our yams were released to us and we took them to the stores. We sorted out our yams when they got there. We distributed them to the off-takers. So, where they got this story from, I don’t know. Nobody has ever called from anywhere, even in the US, to ask me question. If a few yams got rotten, and I am not complaining, why are people crying more than the owner? I have all the papers. The Customs cleared my goods on the other side. And these things went to my warehouse from where we distributed.”
If Ghana, which produces 4.8 million tonnes of yams, according to 2008 estimates, occupies a niche as the leading exporter of crop, accounting for over 94 percent of total yam exports in West Africa, Nigeria which is by far the world’s largest producer of yams, accounting for over 70 to 76 percent of the world production, producing 35.017 million metric tonnes valued equivalent of $5.654 billion by the 2008 estimates should do better than Ghana in the export market
Ghana is the first country in West Africa to launch its national yam development strategy in 2013. The country aims at US$5billion dollars of exports by 2018. Nigeria, which produces seven times Ghana’s production volume, is beset with criticisms over attempts to bring it to the global yam markets. About 90 per cent of Ghana’s yams are exported to the US, Canada, UK and elsewhere in Europe. There are more Nigerians than Ghanaians in these countries, meaning more prospects for Nigerian exporters.
Mr Ogbeh has said that Nigeria, the largest producer of yam in the world, is not anywhere near the capacity to export and remains so much a nation of consumers.
He stressed that “Nigeria must export” as the “country’s economy is increasing, and in ten years’ time, oil and gas is going to drop. Then we may have nothing to earn foreign exchange except we begin to diversify our export base now.”
With all these prospects in view, the Minister expressed surprise at the negative news trailing his effort at putting Nigeria on the global yam export market, saying “we’re not going to stop because this is not enough to demoralise us. We have food to export. Never mind what so-called critics are doing.”
“In the ministry of agriculture,” he said, “we are not exporters. The ministry does not export. We’re going to talk to the port authority on cooling vans for vegetables and fresh produce so that exporters don’t lose money and we don’t lose face. We should begin to build cold trucks that are temperature-controlled to keep the yams till the time they have to go. We should invest in special containers for their storage.”
“If other countries are doing it, we too can do it. We’re trying to take over the market. We’ve come to nearly 70 per cent of raw output of yams. Why can’t Nigerians in Texas, Canada, London and Germany have access to the yams?”
The Minister vowed that “we will go ahead with our efforts to export yam. We will not let this opportunity slip any further. We are determined to position our people to capture the investment opportunities and benefits in the yam export to these countries. We will fix the yam export value chain. We have the volume and the market.”
“We will emphasise global best practices, engage with world class experts and international organisations as well as leverage the strength in indigenous knowledge. We will support investment in relevant infrastructure and facilities.
“We will revive the abandoned yam conditioning centres in Ekiti and Nassarawa states while we encourage the construction of new ones with appropriate equipment to boost storage and export prospects. We appeal to Nigerians, in the spirit of patriotism, to see the silver lining around the cloud of the week of misinformation about yam export.
“We have commenced engagement with the National Assembly for the repeal of the 1989 law that prohibits export of yams and other agro-commodities.
“Currently, the bill has passed the second reading at the National Assembly. The continued existence of this law is an obstruction against the economic diversification and export initiative of this administration. We plead with the National Assembly to fast-track the repeal of the law and help us further unlock our export potential,” he said.
Economy
Tinubu Prepares for 2025 Budget Presentation Tomorrow After FEC Approval
By Aduragbemi Omiyale
All may now be set for the presentation of the 2025 Appropriation Bill to the joint session of the National Assembly by President Bola Tinubu on Wednesday, December 18, 2024.
The exercise was earlier scheduled for today, Tuesday, December 17, 2024, but it was shifted to tomorrow after the 2025 budget proposal of N48 trillion was approved Federal Executive Council (FEC).
The council met on Monday on the 2025 Appropriation Bill and made a few amendments, according to the Minister of Budget and Economic Planning, Mr Atiku Bagudu, who addressed journalists after the meeting yesterday at the Presidential Villa, Abuja.
“Today, the Federal Executive Council approved the budget proposals for 2025 with amendments, which Mr President directed, following a presentation to the Federal Executive Council by the Director of the Budget Office, Tanimu Yakubu.
“The 2025 budget proposal articulates the federal government’s financial plan for the 2025 fiscal year and aligns with the renewed hope agenda and the National Development Plan, 2021–2025, as earlier approved in the medium-term expenditure framework and fiscal strategy paper,” the Minister informed newsmen
Mr Bagudu disclosed that the framework is based on a benchmark oil price of $75 per barrel, an exchange rate of N1,400/$1 and crude oil production of 2.06 billion barrels per day.
He disclosed that based on these parameters, the total projected revenue for the year is N34.820 trillion out of which the expenditure is projected at N47,960 trillion, higher than the 2024 figures by 36.8 per cent, with the deficit projected at N13.13 trillion, to be financed by borrowing.
Also addressing members of the press after the meeting was the Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, who announced that the N13 trillion deficit would be financed through borrowing.
Economy
FrieslandCampina, Afriland Properties Crash NASD Index by 0.57%
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange slumped by 0.57 per cent on Monday, December 16, trimming the benchmark index, the Unlisted Security Index (NSI), by 117.21 points to 3,014.95 points from the 3,092.16 points it ended last Friday.
However, the market capitalisation of the alternative bourse went down by 2.74 per cent or N29.16 billion during the session to N1.033 trillion from the N1.062 trillion it closed in the previous trading day.
Business Post reports that FrieslandCampina Wamco Nigeria Plc lost N2.75 yesterday to settle at N40.10 per share compared with the preceding session’s N42.85 per share and Afriland Properties Plc weakened by 10 Kobo to wrap the trading day at N16.20 per unit, in contrast to last Friday’s N16.30 per unit.
A look at the activity chart showed that the volume of securities bought and sold by investors on the first trading session of the week went down by 92.6 per cent to 90,629 units from the 1.2 million units transacted at the last session.
Also, the value of shares traded by the market participants on Monday declined by 6.7 per cent to N2.3 million from the N2.4 million quoted in the previous session, as the number of deals carried out closed flat at 18 deals.
At the close of business, Geo-Fluids Plc retained its position as the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.6 million units worth N5.3 million.
Aradel Holdings Plc also remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.6 million units sold for N5.3 billion.
Economy
Naira Depreciates to N1,545/$1 at Official Market, N1,660/$1 at Black Market
By Adedapo Adesanya
The Naira depreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday after the National Bureau of Statistics (NBS) disclosed that the inflation rate increased in November 2024 to a multi-year high of 34.60 per cent.
The local currency lost N12.10 or 0.79 per cent against the greenback yesterday to trade at N1,545.10/$1 compared with last Friday’s closing rate of N1,533.00/$1, according to data from the FMDQ Securities Exchange.
The NBS on Monday indicated that inflation rose by 0.72 per cent on a month-on-month basis to a year-high of 34.60 per cent in November 2024. In the preceding month, the rate was 33.88 per cent.
Analysts at Coronation Plc noted, “The month-on-month core inflation measure eased to 1.38 per cent from 2.14 per cent in October, following the NNPC downwards review of petrol price in November.”
However, it warned that “Persistent inflationary pressures continue to pose significant challenges to businesses and households. Elevated production costs have translated into higher operating expenses for businesses, many of which have been passed on to consumers through increased prices. This dynamic erodes household purchasing power and suppresses consumer demand.”
But it was observed that at the official market, the domestic currency appreciated against the Pound Sterling yesterday by N1.31 to trade at N1,940.88/£1 compared with the previous trading day’s N1,942.19/£1 and against the Euro, it improved by N3.98 to sell for N1,608.87/€1 versus N1,612.85/€1.
At the black market, the Naira, however, declined against the Dollar yesterday by N10 to settle at N1,660/$1, in contrast to the previous trading session’s price of N1,650/$1.
Meanwhile, the digital currency market was largely mixed as investors awaited interest rate cuts by the US Federal Reserve this week while a stronger Dollar affected riskier assets.
Ripple (XRP) gained 4.5 per cent to sell at $2.52 as it announced the RLUSD stablecoin set to officially launch on Tuesday and the bullish sentiments surrounding the launch could further boost the price of the coin.
Further, Bitcoin (BTC) increased its value by 1.5 per cent to finish at $106,876.37, Ethereum (ETH) jumped by 1.2 per cent to $4,019.57, and Binance Coin (BNB) rose by 0.4 per cent to $718.02.
On the flip side, Solana (SOL) slumped by 3.4 per cent to $215.97, Litecoin (LTC) slid by 3.1 per cent to $117.16, Cardano (ADA) lost 2.2 per cent to quote at $1.06, and Dogecoin (DOGE) fell by 1.3 per cent to $0.4001, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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