Economy
Stakeholders Identify Reason for Local Wheat Production Shortage
By Modupe Gbadeyanka
Stakeholders in the wheat value chain have identified one of the reasons for the shortage of production of the commodity in Nigeria.
They said the inability of smallholder farmers to have access to high-yielding-seed varieties was making it difficult for producers to meet domestic demand for wheat in the country.
If this problem persists, they warned that Nigeria may not achieve self-sufficiency and drastically reduce the importation of wheat by 60 per cent over the next two years as targeted by the Central Bank of Nigeria (CBN).
There is a need for a concerted effort by the government and other critical stakeholders within the wheat value chain to galvanize and aggressively drive the wheat development programmes in the country, they submitted.
Wheat is used in producing staple foods such as semolina, bread, noodles and pasta, which form a regular part of meals in most urban and rural households in the country.
The importance of wheat foods to the national population, therefore, underscores the need to develop the domestic wheat value chain which currently is not delivering enough to meet the growing demand for wheat derivatives; hence, the need for interventions from the government at different levels and other stakeholders in the wheat value chain to address the challenges in promoting local wheat production in Nigeria.
As it stands, increasing the total yield per hectare of national farmlands is critical to reaching food sufficiency levels that will meet the needs of over 200 million Nigerians.
In deepening the impact of the wheat development programme, the Flour Milling Association of Nigeria to which Crown Flour Mill is a major contributor to is also working with the Lake Chad Research Institute (LCRI) in Maiduguri and the Institute for Agricultural Research (IAR) at the Ahmadu Bello University, to train local smallholder farmers on the latest agronomic practices.
The expanded wheat development efforts are yielding impressive results. Smallholder farmers that are participating in the FMAN wheat development programmes have shown remarkable technical improvement that is matched by impressive feedbacks and output.
A delegation from Olam, the parent company of CFM, travelled to Jigawa after participating in a wheat development webinar programme organized by the agribusiness conglomerate in Abuja, farmers attested to the impact of the high level of support provided by the millers’ association and its partners.
One of the wheat farmers remarked, “We were advised to plant at a particular time to get the best yield possible but I insisted on doing things my way. It nearly cost me the season, but I came back to the (FMAN) team for assistance and this time around, I heeded their advice and the result was unbelievable.”
Expatiating on CFM’s wheat development support drives, Ashish Pande, the Managing Director of the wheat milling firm said, “Our commitment to research and development is the key to why we’ve been successful as an organization over the years and have been able to consistently create better quality, safe, great-tasting and more reliable food produce/products which meet our customers’ needs and improve the livelihoods of our farmers.”
Despite having access to a large expanse of farming lands in places such as Borno, Bauchi, Yobe, Kano, Jigawa and Zamfara States, smallholder wheat farmers have not been able to meet domestic consumption demand for wheat.
It is apparent that without removing the seed-variety barrier, the acute shortage of locally produced wheat will persist. Whereas this would necessitate the continued reliance on wheat importation to bridge the widening domestic production-consumption gap, it does not portend well for national food security.
The economic and social costs of relying on wheat importation are enormous. While the foreign exchange is being sourced by local wheat millers to import the crop to meet national consumption demand, the exchange position of the local currency is affected and precious employment opportunities that could be generated by smallholder farmers if harvest reaches full capacity, are also lost.
Stressing the need to remove the seed variety barrier to improved domestic wheat production, Mohammed Salim, president of the Wheat Farmers Association of Nigeria (WFAN) said, “One of our challenges is getting quality seeds every two years. Wheat is an open-pollinated crop and the maximum you can do with a particular seed is four years or thereabout. So, if the government can finance the research institutes to come up with new varieties every two years, that will sustain production and keep the farmers in business.”
Going by this insight by Salim, providing sufficient finance to fund local research institutes to develop new seed varieties for local farmers biennially is key to bridging the domestic production-consumption gap in the wheat value chain.
However, Crown Flour Mill Limited (CFM), a subsidiary of the Olam Group and makers of the Mama Gold flour brand, in collaboration with other members of the Flour Milling Association of Nigeria (FMAN), is leveraging its agro experience, extensive industry network and deep investment portfolio to aggressively support the domestic agro research institutes to drive innovation and make high-yielding seed varieties available to local wheat farmers. The investment and innovative approach form a bold new drive to raising local wheat production levels while keeping smallholder farmers in business, as suggested by Salim.
As part of the collaborative approach to making high yielding seed varieties available to local wheat farmers, CFM, alongside other contributors and partners at the milling association, under the Certified Seed Production Programme, have established a research farm to nurture the seed varieties it brought into the country from the International Maize and Wheat Improvement Centre (CIMMYT) in Sudan and Mexico. These efforts add to an ongoing partnership that the millers are implementing with various seed production companies comprising Rahama Seed, Greenspore and Premier seed.
In the coming months, the massive partnership network is expected to lead to the distribution of 150 tons of wheat seeds to around 3,000 smallholder farmers in Nigeria.
The deliberate wheat development programmes embarked upon by CFM and others under the auspices of the flour milling association, when fully optimized, will no doubt reduce the high dependence on imported wheat. It will also reduce the foreign exchange wheat import bill while boosting the national economic diversification agenda.
In the end, the Nigerian consumers are going to be the real beneficiaries of the increasing level of the various interventions and wheat development programmes undertaken by CFM and other leading millers. The consumers will continue to have access to their most cherished wheat foods such as semolina, pasta, noodles and bread at the right quality, quantity, nutritional value and most affordable shelf price.
Economy
NGX Seeks Suspension of New Capital Gains Tax
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
Economy
Food Concepts Return NASD OTC Exchange to Danger Zone
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
Economy
Investors Gain N97bn from Local Equity Market
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
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