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Economy

FG Tasks Farmers On Periodic Check On Agric Products

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farmers in nigeria

By Dipo Olowookere

Minister of State for Agriculture and Rural Development, Mr Heineken Lokpobiri, has appealed to farmers and food handlers in the country to always carry out periodic examination of their products, to avoid fungal contamination, in order to protect public health, and secure good market for Nigeria’s agro-commodities.

Mr Lokpobiri made this call on Thursday at a one-day stakeholders’ sensitization workshop on the effects of mycotoxins on agricultural commodities, health and trade.

The Minister said, “It is imperative for both farmers and governmental agencies to adapt a better method to prevent fungal contamination of agricultural commodities during growing period, storage, handling, processing and transportation.”

He noted that over the years, Nigeria’s agricultural products have been exposed to pesticide residues and mycotoxins producing fungal, resulting in several rejections of some Nigeria’s agricultural produce by some trading partners, particularly the European Union (EU).

He noted that the risk of mycotoxins may affect growth performance and could be hazardous to consumers by reducing the quality of products and its market value, thereby resulting in commodity rejection in the international market.

Mr Lokpobiri added that, “These poisonous toxins produced by certain species of fungi, have profound adverse effects on the health of animals and humans, as they consume food from crops, poultry products, meat and fish infected by mycotoxins and have resulted in the cause of human and animal illnesses and deaths.”

The Minister called on farmers and other stakeholders along the food value chains to note that Nigeria has a tropical climate with an all year round high temperature and relative high humidity, and that this peculiarity provides good conditions for the growth of toxigenic molds. “The only way out from the adverse effects of these climatic factors on agricultural produce is to apply best agricultural practices at all material times”, the Minister stated.

Mr Lokpobiri therefore charged participants at the workshop to convey and spread the information on the negative and detrimental effects of consuming moldy products to the grassroots, adding that “In this regard, the knowledge you will acquire at this workshop would be of immense benefit not only to you, but the society at large.”

The Minister assured the workshop that his Ministry would continue to assist farmers and other stakeholders in improving the storage and handling of grains, nuts and other commodities in order to minimize the growth of molds to reduce the risk of contamination.

Earlier in his welcome remarks, Permanent Secretary of the Federal Ministry of Agriculture and Rural Development, Dr Shehu Ahmed, represented by the Coordinating Director, Nigeria Agricultural Quarantine Service in the Ministry, Dr Vincent Isegbe said that the workshop was organized to educate farmers, food handlers and all other relevant stakeholders in the agricultural sector on the harmful effects of mycotoxin contaminants to agricultural commodities and its consequential effects on animal and human health.

According to him, the workshop was also to mainstream information to all producers and consumers on its adverse effects on agricultural commodity trade.

He assured the participants that the Ministry was doing its best within its limited resources to assist farmers in many ways, especially when it affects crops during storage. He added that the Ministry was also partnering with relevant stakeholders in food production, processing, storage and handling along the food value chains to ensure that only safe food gets to the consumers’ table, as well as boost trade and quality of Nigeria’s agricultural produce.

In his goodwill message, Chairman, Senate Committee on Agriculture, Mr Abdullahi Adamu said his committee would continue to support the growth of Nigeria’s agricultural sector, and assured that the Nigeria Agriculture Quarantine bill would be passed by the National Assembly soon.

The Chairman, who was represented by a member of the committee, Senator Ovie Omo-Agege promised that the Senate Committee on Agriculture would work with the communiqué that would be presented to them at the end of the workshop.

Also, representative of UNIDO at the workshop, Prof Abimbola  Uzomah said the unusual high level of mycotoxin is the cause of rejection of Nigeria’s agricultural products by the European Union (EU) and other countries.

She informed that UNIDO was flagging off a National Quality Infrastructure which   requires the support of Nigeria for its success. She called for a policy in Nigeria to eliminate the menace, and disclosed that UNIDO was available to support, facilitate, train and teach stakeholders to enable the world do business with Nigeria.

Representative of the European Union, Ms Fatima Abdullahi   Habib was hopeful that the workshop would have a positive impact in the control of mycotoxin in Nigeria.

In his contribution, representative of the National President of All Farmers Association of Nigeria (AFAN), Mr Daniel Okafor stressed the need for proper processing and packaging of Nigeria’s agricultural products for export.

He called for the replication of the sensitization workshop across the nation and the need to develop a common message in local languages for dissemination throughout the country.

Highlight of the event was the launching of a book on information in pictures on moldiness in agricultural commodities along food value chains for stakeholders and moisture meters for determination of moisture levels of grains by the Minister.

The Minister later donated an appreciable number of the book and moisture meters to farmers present at the workshop.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Economy

Brent Futures Climb $1 on US-Iran War Uncertainty

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By Adedapo Adesanya

Brent futures climbed $1.06 or 1.3 per cent to $83.55 a barrel on Friday ​amid ongoing uncertainty about the negotiations in progress that determine control of and reopening of the key shipping ‌artery of the Strait of Hormuz.

In the same vein, the US West Texas Intermediate (WTI) futures finished at $78.18 a barrel after it chalked up 89 cents or 1.15 per cent.

Iran is reviewing a bill to ban American and Israeli vessels from the Strait of Hormuz, through ​which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the ​end of February.

Market analysts noted that while this week’s signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched.

Part of the question being asked is whether the Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of ​Hormuz or allow a vessel headed for ‌an American port to go through.

Shipping through Hormuz remains heavily constrained as Middle East oil production is still well below pre-war levels while attacks on commercial vessels have continued even as negotiators discuss possible arrangements for the waterway.

Some also said that this week’s developments have signalled that hostilities between Iran and the US are not yet over. This is because the proposed deal is not easily workable because of ​sanctions and ⁠restrictive insurance clauses on any payments by the US government.

Iran is seeking fees of between 5 per cent and 7 per cent ​of the price of cargoes from ​ships using the strait, while Oman is discussing fees of about 3 per cent, while the Donald Trump administration wants no fees at all.

Citi has raised its third-quarter Brent crude forecast to $80 per barrel from $75 as the war drags on and repeated attempts at a deal fail to restore normal oil flows through the strait.

The bank still expects the conflict to be resolved, but the five-month war has lasted longer than Citi anticipated and kept more geopolitical risk in crude prices. Citi left its fourth-quarter Brent forecast unchanged at $70 per barrel and still sees the benchmark averaging $65 in 2027.

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Economy

Dangote Eyes New Investments, Acquisitions as Goldman Sachs Tours Refinery

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Dangote monopoly Political Economy of Failure

By Adedapo Adesanya

Nigerian businessman and chief executive of Dangote Industries Limited, Mr Aliko Dangote, has unveiled plans for a new phase of investments and acquisitions as the conglomerate pushes towards its target of generating $100 billion in annual revenue by 2030.

Mr Dangote disclosed this while receiving a delegation of senior executives from global investment banking and financial services firm Goldman Sachs, led by co-chief executive of Goldman Sachs International and Global Co-Head of Investment Banking, Mr Anthony Gutman, during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex in Lagos.

Speaking after the visit, Mr Dangote said the refinery and associated industrial facilities underscore the transformative impact of long-term investment in Africa, stressing that the group’s ambitions extend beyond its current strategic plan.

“No matter how we try to explain what we have built, you cannot fully appreciate it until you see it. But this is only the beginning. We need to look beyond 2030.

“The next phase of our journey will include new investments and acquisitions as we continue to scale the business,” he said.

He added that detailed internal modelling had reinforced management’s confidence that the Group’s target of generating $100 billion in annual revenue by 2030 was achievable.

According to him, the projections were based on conservative assumptions and had strengthened the company’s conviction to pursue an even more ambitious long-term growth strategy.

Mr Dangote also revealed that the strong participation of employees in the refinery’s recent private placement reflected growing internal confidence in the company’s long-term strategy and future prospects.

The Goldman Sachs delegation, after an extensive tour of the 700,000 barrels-per-day refinery, described the project as an extraordinary achievement.

“It is extraordinary what Mr Dangote and the whole organisation have achieved. The ambition, the scale of the project, the quality of the project and the culture of the people is very impressive,” the executives said.

According to a statement issued by Dangote Group on Friday, the delegation was led by Mr Anthony Gutman and included Mr Adib N. Zouein, Co-Head of EMEA Emerging Markets Regional Sales and Head of the Middle East and North Africa region for Global Banking & Markets Public; Mr Ryad Yousuf, Global Head of FICC Sales Strats and Structuring; and Mr Jimi Adesanya, Head of Sub-Saharan Africa Sales (excluding South Africa).

The visitors were received by Dangote; Group Vice President, Oil & Gas, Mr Devakumar Edwin; Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, Mr David Bird; Group Executive Director, Oil & Gas, Ms Fatima Aliko Dangote; Chief of Staff to the President/CEO, Ibrahim Dikko; Group Chief Branding and Communication Officer, Mr Anthony Chiejina; Group Chief Economist, Mr Hassan Mahmud; Group Chief Strategy Officer, Mr Aliyu Suleiman; and Head of Administration, Dangote Petroleum Refinery & Petrochemicals, Mr Musa Bala, among other senior executives.

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Economy

Senate Probes N1.2trn Fuel Subsidy Deductions as NEITI Claims N1.16tn Spent in 2021

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NEITI

By Adedapo Adesanya

The Senate Public Accounts Committee has heard that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.

The disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Mohammed Bello Shehu, during the committee’s ongoing investigation into the 2021 to 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on the oil and gas sector.

According to the commission, crude and petroleum product losses cost N16.2 billion, pipeline repairs accounted for N22.05 billion, while strategic stock holding attracted N6.75 billion.

The revelations come against the backdrop of Nigeria’s long-running fuel subsidy regime, which successive governments maintained to keep the pump price of petrol artificially low despite mounting fiscal pressures.

Over the years, subsidy payments consumed trillions of Naira, significantly reducing revenues available to the three tiers of government and contributing to widening budget deficits.

The issue reached a turning point in May 2023 when President Bola Tinubu announced the removal of fuel subsidy during his inauguration speech, declaring that “fuel subsidy is gone.” The decision followed years of concerns over the rising cost of the programme, allegations of fraud, and repeated recommendations by fiscal authorities and international financial institutions that the subsidy had become unsustainable.

The removal triggered a sharp increase in the pump price of Premium Motor Spirit (petrol), leading to higher transportation and living costs across the country. In response, the federal government introduced a series of palliative measures, including cash transfers, support for mass transit, and wage-related interventions, while arguing that savings from the subsidy would be redirected to infrastructure, education, healthcare, and other critical sectors of the economy.

The commission also argued that the current method of calculating the 13 per cent derivation fund undermines the constitutional intention of the policy.

Meanwhile, the committee stood down the Niger Delta Development Commission’s presentation until next Wednesday to allow lawmakers review its submission.

The committee also expressed displeasure over the absence of the Auditor-General of the Federation, warning that he must appear before lawmakers next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.

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