Economy
Natnupreneur Helping To Boost Employment In Nigeria
By Modupe Gbadeyanka
The call by the Federal Government for private sector investment in the agricultural sector seems to be yielding positive result as many corporate organizations are beginning to show more interest in agribusiness.
However, blazing the trail amongst them is Amo group of companies through their natnuPreneur broiler out grower scheme.
While guiding journalists round some facilities belonging to three companies under the Group; Amo Byng, Amo Farm Sieberer Hatchery Limited and natnudO Foods in Oyo State, Mr Alaba Yunusa, Data Analyst and Farmer Satisfaction Representative (FSR) stated that unlike in the past when agriculture was perceived as a venture that only provides jobs for the illiterate, natnuPreneur since its inception has shown that formally educated people can be gainfully employed in the agricultural sector. Even young educated Nigerians can venture into poultry farming with the assurance of sustainable profit and capacity development from programmes like ‘natnuPreneur Farmer’.
The initiative, which was revealed, could provide direct and indirect employment for millions of Nigerians, is the foremost and most successful broiler out grower scheme in the country.
According to Mr Yunusa, “The scheme still has in purvey, the potential of providing employment for over 2 million Nigerians, within the poultry value chain, that is (Feed mills, Hatchery, Logistics and transportation, chicken processing, chicken distribution and retailing – natnuPreneur seller), if well supported”
This natnuPreneur model of job creation and sustained farmer profitability is a perfect example of what agriculture can do for Nigeria, especially in her fight against unemployment and full economic recovery.
Mr Yunusa, during the two day tour, also mentioned that the vision of natnuPreneur is to create passionate, knowledgeable and wealthy poultry farmers nationwide through sustained profitability while working to achieve the federal government’s food security goal. He also added that the scheme has the capacity to adequately supply the nation with high quality and affordable chicken products.
He further revealed that there is a huge market for chicken production and supply in the country with smuggled chicken covering a consumption deficit of about 70%. According to him, only 30% of the chicken consumed in the country is locally produced. While also explaining that there is massive opportunity for farmer profitability in poultry farming under natnuPreneur, Mr. Yunusa said, “Approximately 1,200,000,000 (One billion and two hundred million) birds are consumed yearly in Nigeria. Our assumption is that if 10% of the 170,000,000 (One hundred and seventy million) Nigerian population consumes 6 packs of chicken a month, a total of 1,224,000,000 (One billion, two hundred and twenty four million) pieces of chicken would have been consumed in 12 months. From a retail perspective, a piece of chicken average sales price is ₦1,000. So, 1,000 multiplied by 1,224,000,000 will give us a value of about ₦1,224,000,000,000. Now, the question is how much of this money is getting to our farmers? This is one question natnuPreneur seeks to give positive answers; we want to ensure that a good chunk of that figure gets into the pocket of poultry farmers through a reliable off-taking arrangement, effective poultry management trainings and capacity building”.
“Between 2014 and 2017, the programme has onboarded 1,156 farmers, under different categories and clusters; off taken 4,348,640 birds; and paid out N4,352,327,119.80 to famers”. This record, he revealed, has drawn the attention of various financial institutions, like the Central Bank of Nigeria (CBN), Bank of Industry (BOI), Bank of Agriculture (BOA), Sterling Bank, Heritage Bank and others, to partner with natnuPreneur and support its famers. Also, because of their well thought out scientific process for broiler farming, natnuPreneur farmers have the ability to do 6 cycles yearly with mortality rate as low as 4%.
“To ensure farmer profitability, we have developed and tested our processes and have a Standard Operating Procedure (SOP) to guide our farmers on effective poultry farming. We’ve also developed a detailed economic model for our farmers – A Net profit calculator, which guards against pilfer, wastage and fraud. And have developed a Buy Back Price equation to ensure profitability; created a database that is searchable across various parameters; and have designed an effective Customer Satisfaction Centre for support services”.
“Presently, we are working on developing a Broiler Training School for farm managers and owners and based on farm practices, we are in the process of developing a mobile application to ease operations and farmer interaction. We’re putting all these things in place to ensure that our farmers are in business and making enviable profit.
“Our happiness lies in seeing farmers increase in capacity since we have the ability to accommodate their produce” he concluded.
While attending to questions from pressmen, Mr Albert Begerano, COO of the group hinted that the natnuPreneur programme has thrived because of its backbones like, Amo farm which produces about 1,900,000 day olds weekly, with broiler chicks being 800,000 of that number.
Amo Byng, which has storage capacity for 500 metric tonnes of feeds and maize, produces between 600-1,000 tonnes of feeds daily. And natnudO foods, where off taken birds are slaughtered and packaged, daily producing 30,000 frozen chickens in the west, 10,000 in the north and 15,000 in the east, totaling 55,000 birds daily with other facilities for storage and preservation like blast freezers and cold rooms that could take over 600 tonnes of frozen chicken in the west alone.
Also speaking with newsmen during the tour, Mrs Adepeju Cole, a staff of Sandtech Farms, a natnuPreneur farm in Oyo State said “Since we joined the scheme about a year ago, our capacity has increased to 30,000 birds. Presently, we have 20,000 birds on our farm. In fact, this is our 5th cycle with natnuPreneur and it has been quite profitable. Through the help of the FSR in our area, our mortality rate has reduced from 10% to 4% and we’ve also been able to achieve the agreed weight of 1.75 for our broilers” She revealed.
In addition, Mrs Remi Tomori of Honeydew Farms in Arulogun Ibadan said, “Our farm has a capacity of 4,000 birds which are presently in their 5th week. We joined natnuPreneur in October 2014 and till date, only 15 birds mortality has been recorded on our farm. Through training and regular visitation, we realize an average weight of 1.8 as against the 1.7 minimum agreed weight. We’ve also been able to do between 5 – 7 cycles per year”.
“Before we joined natnuPreneur, we were rearing layers but there were too many challenges; pilfering, high mortality, debt, stress and even marketing problems. But, natnuPreneur is taking all these risks and stress off us. The scheme is incomparable in terms of returns on investment as I realize more than 50% profit annually” she added.
Mr Toromade Francis, Group Head, Policy & Strategy, while also addressing newsmen said that the essence of the natnuPreneur scheme is to help farmers use fewer resources to get more results and enhance sustained profitability. He added that, poultry farmers are now more efficient and moribund farms have jerked back to life through the initiative.
Lately, the Federal Government is placing special focus on the agricultural sector to create employment for Nigerians, as a means to alleviate poverty. Recall that Vice President Yemi Osinbajo while addressing guests at the Edo Fertilizer Plant commissioning recently in Edo State mentioned that the private sector contribution is vital to the development of the agriculture and the realization of government’s goal of food security.
Osinbajo also assured that government at all levels will continue to do everything necessary to create an enabling environment for the survival of the private sector.
“The Buhari administration takes private enterprise very seriously. We believe that government resources cannot bring about the rapid roll out we need, especially in the areas of infrastructure and industrial development. It is the private sector that can do so. We are therefore committed to making it easy for businessmen to invest and do business in Nigeria”.
“Every State and Local Government must be involved in the effort to ensure that private businesses thrive and create employment opportunities for our growing youth population. By harnessing private capital and the great entrepreneurial spirit of Nigerians, I believe we can seriously leverage on government resources and accelerate economic development” he had included.
Reiterating the importance of private sector involvement in the agricultural sector of the nation, Mr. Aliko Dangote, owner of Dangote Group of Companies asserted that “there is an urgent need for private sector stakeholders in agriculture to work together towards growing Nigeria’s agriculture, diversifying from oil and gas dependency, encouraging agricultural industrialization, and creating an enabling environment for agribusiness to thrive. NABG strives to engage government at all levels in setting policy direction and regulatory reforms to enable sustainable inclusive socio-economic growth by creating systematic linkages between small, medium and large agribusiness enterprises”.
Economy
Strong Investor Sentiment Keeps NGX Index in Green Territory by 0.31%
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited remained in the green territory on Wednesday after it rallied by 0.31 per cent on the back of sustained bargain-hunting activities by investors.
Business Post reports that all the key sectors of the market closed higher at midweek as a result of the renewed interest in local equities.
Data showed that the energy index appreciated by 2.59 per cent, the insurance space grew by 2.34 per cent, the industrial goods sector improved by 0.15 per cent, the banking counter expanded by 0.06 per cent, and the consumer goods industry rose by 0.04 per cent.
At the close of business, the All-Share Index (ASI) gained 302.71 points to settle at 98,509.68 points compared with Tuesday’s closing value of 98,206.97 points and the market capitalisation added N183 billion to close at N59.715 trillion versus the preceding day’s N59.532 trillion.
It was observed that the level of activity yesterday waned as the trading volume, value and number of deals decreased by 65.93 per cent, 49.22 per cent, and 12.70 per cent, respectively.
On Wednesday, a total of 320.1 million stocks valued at N6.5 billion were transacted in 7,943 deals, in contrast to the 939.4 million stocks worth N12.8 billion traded in 9,098 deals.
The busiest equity at midweek was eTranzact, which transacted 70.3 million units for N474.2 million, Universal Insurance traded 23.8 million units worth 8.1 million, Zenith Bank exchanged 21.2 million units valued at N933.5 million, FBN Holdings sold 18.6 million units worth N491.2 million, and UBA traded 14.0 million units valued at N465.8 million.
At the close of transactions, 34 shares ended on the gainers’ log and 17 shares finished on the losers’ chart, representing a positive market breadth index and strong investor sentiment.
Africa Prudential gained 10.00 per cent to quote at N14.30, Conoil also improved by 10.00 per cent to N352.00, and RT Briscoe expanded by 10.00 per cent to N2.42, as Golden Guinea Breweries jumped by 9.95 per cent to N7.18, while NEM Insurance grew by 9.74 per cent to N10.70.
However, Julius Berger lost 10.00 per cent to close at N155.25, Secure Electronic Technology shed 9.52 per cent to trade at 57 Kobo, Multiverse declined by 7.63 per cent to N5.45, Haldane McCall tumbled by 6.07 per cent to N4.95, and Honeywell Flour crashed by 5.62 per cent to N4.70.
Economy
Crude Oil Jumps as EU Slams Fresh Sanctions on Russia
By Adedapo Adesanya
Crude oil prices went up on Wednesday after the European Union (EU) agreed to an additional round of sanctions threatening Russian oil flows that could tighten global crude supplies.
During the session, Brent crude futures jumped by $1.33 or 1.84 per cent to $73.52 a barrel and the US West Texas Intermediate (WTI) crude futures rose by $1.70 or 2.48 per cent to $70.29 per barrel.
EU ambassadors agreed on a 15th package of sanctions on Russia over its war against Ukraine, targeting its shadow tanker fleet and Chinese firms making drones for the country.
The sanctions would target vessels from third countries supporting Russia’s war in Ukraine and add more individuals and entities to the sanctions list. It will not be adopted until after foreign ministers approve the package on Monday.
The shadow fleet has aided Russia in bypassing the $60 per barrel price cap imposed by the G7 on Russian seaborne crude oil in 2022 and has helped keep Russian oil flowing.
Prices were supported by the Energy Information Administration (EIA) which reported an estimated inventory decline of 1.4 million barrels for the week to December 6. In fuels, however, the EIA estimated sizable builds.
The crude oil inventory figure compares with a draw of 5.1 million barrels for the previous week that pushed prices higher for a while but the gains soon got erased by weak global demand growth prospects.
A day before the EIA, the American Petroleum Institute (API) had estimated inventory changes at a positive 499,000 barrels for the week to December 6.
Meanwhile, on Wednesday, the Organisation of the Petroleum Exporting Countries (OPEC) cut its 2024 global oil demand growth forecast for a fifth straight month and by the largest amount.
In its December report, the cartel expects 2024 global oil demand to rise by 1.61 million barrels per day, down from 1.82 million barrels per day last month.
OPEC also cut its 2025 growth estimate to 1.45 million barrels per day from 1.54 million barrels per day.
The 210,000 barrels per day cut in the 2024 figure is the largest of the five reductions OPEC has made in its monthly reports since August. In July, OPEC had expected world demand to rise by 2.25 million barrels per day.
Weak demand, particularly in top importer China, and non-OPEC+ supply growth were two factors behind the move.
Economy
Again, OPEC Cuts 2024, 2025 Oil Demand Forecasts
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has once again trimmed its 2024 and 2025 oil demand growth forecasts.
The bloc made this in its latest monthly oil market report for December 2024.
The 2024 world oil demand growth forecast is now put at 1.61 million barrels per day from the previous 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, which is 900,000 barrels per day lower than the 1.54 million barrels per day earlier quoted.
On the changes, the group said that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
The oil cartel had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.
OPEC and its wider group of allies known as OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.
Eight OPEC+ member countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman – decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.
In April 2023, these OPEC+ countries decided to reduce their oil production by over 1.65 million barrels per day as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026.
In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 million barrels per day for the first quarter of 2024, in order to support prices and stabilise the market.
These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.
Members have made a series of deep output cuts since late 2022.
They are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 per cent of global demand. Russia also announced plans to reduce its production by an extra 471,000 barrels per day in June 2024.
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