Economy

FG, Agro Dealers Quarrel over N66b Debt

Published

9 years ago

16/04/2017

There is a misunderstanding between the Federal Government and agro dealers and suppliers that participated in the Growth Enhancement Scheme (GES).

This is because the Ministry of Agriculture claimed it has paid over N20 billion of the N66 billion debt to the agro dealers and suppliers.

However, the Nigeria Renascent Group, representing the agro dealers, disagreed with the government, saying it has refused to pay what is owed the suppliers and agro dealers, resulting in progressive collapse of their businesses and death of some participants of the GES Programme.

Speaking with Sunday Telegraph in a telephone interview, the Director of Agribusiness, Ministry of Agriculture and Rural Development, Engineer Ohiari Badmus Jatto, said that all the documents and information relating to the non-payment of the outstanding debt owed to the agro dealers have been made available to the Federal Ministry of Finance, and they have made part payment to the suppliers. He also added that there are plans to settle the balance soon.

The debt was accumulated through GES programme, as part of the Agricultural Transformation Agenda, which encouraged firms to supply fertilizers and seeds to agro dealers for delivery to farmers.

Coordinator of Nigeria Renascent Group, Mr Abdulrasaq Lawal, some participants in the scheme have lost their lives due to the non-payment of their money by the Federal Government, even as many can no longer pay their children’s school fees.

“Participants are dying by the day. Instances will be given. Musa Baba, the Managing Director/Chief Executive Officer of Diamond Fertilizer based in Kano, died in December 2016 from complications not unrelated to his inability to meet his obligation to creditors,” he claimed.

Preliminary investigation revealed that the federal government is owing his company over N1 billion. “Also the story of Gali Gali in Kaduna is not different from that of Musa Baba. ‘Gali Gali’ as he is fondly referred to by all, was a well-known force in the fertilizer market. His company, Gali Global, was at the forefront in championing the GES cause; he took it personal as a way to get his people to enjoy direct interventions from government.

“He went all out to mobilize farmers to register. His personal input and resources were put in ensuring the GES was a success.

“The result, over N1 billion, the chunk of which is a bank loan, is trapped. He died in the late 2015 of heart and blood related issues,” he said.

He urged the Federal Government to pay the debt to the participants in order to bring an end to the death of participants of the GES programme and ensure that all hands will be on deck in ensuring that there is food for all and eradicate famine in the country, which according to him, is imminent with the present situation of things.

Also speaking recently, a participant who pleaded anonymity, said that he has closed his company because banks were after him, adding that he is hiding in shame because he cannot face the people who had assisted him financially to make supplies to the Ministry of Agriculture.

On the claim by the Ministry that it has made part payment to the suppliers, he urged the Ministry to desist from playing politics with the debt owed agro dealers in the country.

He lamented that the Minister of Agriculture and Rural Development, Mr Audu Ogbeh, has been silent over the debt, saying that this is the worst situation they have ever experienced with any government in the country.

He urged the Minister to make public who got the purported N20 billion part payment from the N66 billion accumulated debt.

He further urged the Presidency, senators and House of Representatives members to intervene in the situation, adding that some of them collected loan from banks when the United States American dollars was lower than what is obtainable now.

“That is another challenge we will face in repaying the loan to the banks whenever the Federal Government decides to settle the debt,” he said.

Director of a Non-governmental organisation, Agricultural Development Watch Initiative, Dr Mark Adebisi, lamented that a situation where people will make financial commitment to support a government project and they are then treated as if they are no longer important is a bad omen.

He lamented that efforts by the group to get the Chairman, Senate Committee on Agriculture, Mr Abdullahi Adamu; Minister of Finance, Mrs Kemi Adeosun and Minister of State for Agriculture and Rural Development, Mr Heineken Lokpobiri, to assist them ensure that the suppliers are paid their money did not bear fruit.

A highly placed official of the Agriculture and Rural Development Ministry, who spoke with Sunday Telegraph on condition of anonymity, said there are a lot about the debts which Nigerians don’t know about.

According to him, the debt was not N66 billion but N47 billion. He added that the agro dealers over inflated the money owed them by the Ministry, thinking that it would be easy for them to get the money from government.

https://newtelegraphonline.com/business/fg-agro-dealers-bicker-n66bn-debt/

Economy

Six Price Gainers Rally OTC Securities Exchange by 2.09%

Published

1 hour ago

10/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Six price gainers lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.09 per cent on Monday, February 9, amid a surge in activity level.

According to data, the volume of securities significantly increased by 3,499.1 per cent to 13.3 million units from the 384,784 units recorded in the preceding trading session, as the value of securities soared by 518.0 per cent to N99.3 million from N16.1 million, and the number of deals moved up by 95.8 per cent to 47 deals from the preceding session’s 24 deals.

Central Securities Clearing System (CSCS) Plc ended the day as the most active stock by value on a year-to-date basis with 16.9 million units exchanged for N699.9 million, followed by Geo-Fluids Plc with 23.2 million units valued at N123.6 million, and FrieslandCampina Wamco Nigeria Plc with 1.8 million units traded for N118.5 million.

However, Geo-Fluids Plc became the most traded stock by volume on a year-to-date basis, with 23.2 million units worth N123.6 million, as CSCS Plc was pushed down the pecking order as second with 16.9 million units transacted for N699.9 million, while Mass Telecom Innovation Plc sold 15.1 million units for N6.1 million.

The price gainers were led yesterday by Okitipupa Plc after it gained N17.00 to trade at N237.00 per share versus the previous price of N220.00 per share, FrieslandCampina Wamco Nigeria Plc added N6.00 to sell at N66.00 per unit versus N60.00 per unit, and CSCS Plc grew by N5.35 to N58.85 per share from N53.50 per share.

Further, IPWA Plc appreciated by 23 Kobo to N2.59 per unit from N2.36 per unit, UBN Property Plc increased its value by 19 Kobo to N2.19 per share from N2.00 per share, and Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to 59 Kobo per unit from 54 Kobo per unit.

However, Nipco Plc lost N9.00 on Monday to close at N250.00 per share versus last Friday’s price of N259.00 per share, and Geo-Fluids Plc dipped by 22 Kobo to N4.08 per unit from N4.30 per unit.

At the close of business, the market capitalisation of the bourse was up by N46.2 billion to N2.253 trillion from N2.207 trillion, and the NASD Unlisted Security Index (NSI) jumped 77.22 points to 3,766.94 points from 3,689.72 points.

Economy

Naira Trades N1,354 Per Dollar at NAFEX

Published

2 hours ago

10/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The first trading of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended bullish for the Naira as it gained N11.93 or 0.87 per cent against the US Dollar on Monday, February 9, to trade at N1,354.26/$1 compared with the previous day’s N1,366.19/$1.

It also appreciated against the Pound Sterling in the official market during the session by N12.03 to settle at N1,845.72/£1 versus last Friday’s closing price of N1,857.75/£1, but depreciated against the Euro by 69 Kobo to quote at N1,613.19/€1, in contrast to the N1,612.52/€1 it was exchanged last Friday.

At the GTBank forex desk, the Nigerian Naira appreciated against the Dollar yesterday by N4 to close at N1,379/$1 versus the previous rate of N1,383/$1, and at the parallel market, it was flat at N1,450/$1.

The fortification of the Nigerian currency in the currency market on Monday was driven by forex liquidity, strong oil receipts, and flows from foreign investors attracted by the high yields on the country’s debt market.

Speaking at a forum on Monday, the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, declared that the bank’s reforms have established economic stability, evidenced by a significant reduction in inflation and growing external reserves, which he stated stood at $49 billion as of February 5, 2026.

He also highlighted the stability of the FX market, noting that the CBN is now accumulating foreign exchange from the market to enhance sustainability.

“By that, I mean that we now allow the market to generally find its level; many times, the Central Bank itself goes in to buy foreign exchange. The premium between the official and parallel market rates has collapsed to under 2 per cent,” Mr Cardoso stated.

The CBN chief said the reforms of the monetary authority—anchored on disinflation, FX market normalisation, and financial-system resilience—are already strengthening real-sector confidence.

As for the cryptocurrency market, it was in a recovery mode as investors took advantage of the drop in prices to add to their portfolios.

The pullback followed a turbulent few days in which Bitcoin (BTC) plunged to as low as $60,000 before rebounding. It rose 0.5 per cent on Monday to $70,415.57, as Ethereum (ETH) gained 0.9 per cent to trade at $2,116.42.

Further, Ripple (XRP) improved by 1.4 per cent to $1.44, Litecoin (LTC) expanded by 0.8 per cent to $54.66, Solana (SOL) grew by 0.5 per cent to $87.11, and Cardano (ADA) added 0.2 per cent to settle at $0.2704.

On the flip side, Binance Coin (BNB) slumped 0.6 per cent to $638.34, and Dogecoin (DOGE) weakened by 0.3 per cent to $0.0963, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

Economy

Crude Oil Soars as US Cautions Vessels Near Iran

Published

2 hours ago

10/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Crude oil gained more than 1 per cent on Monday after the United States issued an advisory to US-flagged vessels to stay as far as possible from Iranian territory while passing through the Strait of Hormuz and Gulf of Oman.

The price of Brent crude was up 99 cents or 1.5 per cent during the session to $69.04 a barrel, while the US West Texas Intermediate (WTI) crude rose 81 cents or 1.3 per cent to settle at $64.36 per barrel.

The US Department of Transportation (DOT) Maritime Administration yesterday noted that vessels going through the Strait of Hormuz and Gulf of Oman have historically faced the risk of being boarded by Iranian forces, including as recently as February 3.
The agency advised U.S.-flagged ships to stay close to Oman while eastbound in the Strait of Hormuz.

The move renewed concerns that tensions between the US and Iran could lead to oil supply disruptions. About a fifth of the oil consumed globally passes through the Strait of Hormuz between Oman and Iran.

US President Donald Trump has threatened to attack, citing possible executions of protesters, and saying “help is on its way.” He ordered the USS Abraham Lincoln aircraft carrier and a flotilla of accompanying ships to the region.

In June, the US attacked Iranian nuclear facilities at the end of a 12-day Israeli bombing campaign.

Iran’s foreign minister said on Saturday the country will strike US bases in the Middle East if attacked by American forces, which have built up their naval presence in the region.

Investors were also monitoring efforts by Western governments to curb Russia’s income from oil exports that support its war in Ukraine.

The European Commission has proposed a sweeping ban on any services that support Russia’s seaborne crude oil exports, in fresh efforts to reduce revenues that help Russia’s war against Ukraine.

Refiners in India, once the biggest buyer of Russian crude, are avoiding purchases for delivery in April. Market analysts noted that if India fully stopped purchasing this crude, it would boost oil prices.

Meanwhile, Tengiz oilfield in Kazakhstan has returned 60 per cent of its peak production and was pumping at a rate of 550,000 barrels per day as of Sunday, following a forced shutdown for half of January due to a fire.

Tengiz, which is operated by a consortium led by US supermajor Chevron, is expected to reach peak levels of oil output of about 950,000 barrels per day by February 23.