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REA, RMI Launch Initiative to Unlock Productivity in Nigeria’s Agric Sector

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unlock productivity in Agric sector

By Adedapo Adesanya

The Nigerian Rural Electrification Agency (REA) and RMI, an independent nonprofit organisation focused on transforming the global energy system, have launched the Energizing Agriculture Programme (EAP), which aims to boost the country’s GDP, accelerate renewable energy drive, and unlock productivity in the agriculture sector.

The EAP is a three-year initiative with the Global Energy Alliance for People and Planet (GEAPP), with funding from The Rockefeller Foundation, that aims to stimulate the use of mini-grid electricity in productive agricultural uses by focusing on enabling market-led solutions and breaking the silos separating electrification and agricultural development.

Over the next three years, the EAP initiative will foster a pipeline of agriculture-energy projects that demonstrate the impact of collaborative development efforts across the energy and agriculture sectors. Across these activities, the EAP is designed to ensure local ownership of solutions and scaling by partnering widely and sharing insights broadly.

As part of the GEAPP’s broader efforts to bring reliable electricity to 1 billion people by the decade’s end, avert 4 billion tons of greenhouse gases and enable 150 million green jobs that generate inclusive economic growth, the EAP will build on existing agriculture and electrification initiatives in Nigeria and then accelerate the deployment and adoption of the most effective solutions for rural communities across the country.

The programme will achieve this by bringing together teams of local partners to validate commercially led business models and demonstrate agricultural appliances and scale-proven solutions.

Experts estimate that Nigeria’s agricultural sector, which provides nearly one-quarter of the country’s GDP and employs two-thirds of the labour force, has the potential to generate $40 billion in exports. Using electricity to power opportunities like these can drive a virtuous cycle for rural development by increasing incomes and community resilience and improving the financial performance of the mini-grid utility.

Speaking on this, the Minister of State for Power, Mr Goddy Jedy-Agba, said the federal government has been very deliberate about leveraging strategic partnerships for optimum impact in off-grid communities across Nigeria.

“I am confident that the EAP is deliberately designed to open a whole new world of possibilities to farmers and artisans in the agricultural sector.

“As the renewable energy space improves yearly, we have continued to keep a keen eye on the deployment of programs and solutions geared toward socioeconomic impact in unserved and underserved communities across Nigeria. The EAP is one of those programmes.”

Adding his input, Dr Mohammed Mahmoud Abubakar, Nigeria’s Minister of Agriculture and Rural Development, said, “This programme encourages the productive use of energy to deepen our objective of organizing and managing the agricultural sector in Nigeria. Leveraging renewable energy technologies for productive use in off-grid communities greatly helps to strengthen the production capacity of the average Nigerian farmer in rural communities.

“The EAP is in line with our mandate at the Federal Ministry of Agriculture and Rural Development toward strengthening agriculture and rural development across the country.”

“Catalyzing the productive use appliance market is a critical priority on the current REA strategy roadmap, designed to increase economic opportunities in off-grid communities. Beyond providing electricity to the unserved and the underserved, the ultimate goal for the REA is to make sure that the electricity impacts the communities both socially and economically, and agriculture is the chief activity that supports livelihoods in almost all rural communities. That is why we are going beyond powering residential communities to also focus on energizing their agricultural clusters as well,” said Mr Ahmad Salihijo Ahmad, managing director/CEO of REA.

“Addressing the energy deficit challenge in sub-Saharan Africa is fundamental to unlocking agricultural productivity, new income-generating activities, and acceleration of global decarbonization efforts,” said Mr Justin Locke, managing director of RMI’s Global South Programme.

“The EAP’s potential to electrify agricultural loads can catalyze scaling the adoption of decentralized renewable energy systems and spur local community development,” he added.

Supporting demand, jobs and small and medium enterprise growth by increasing productive agricultural use at mini-grid sites is critical to uplifting low-income communities in Nigeria, and the EAP will directly contribute to these efforts by deploying productive use appliances in rural communities and providing business models to scale similar interventions at mini-grid sites throughout Nigeria. Equipment like electric grain mills and cold storage can plug directly into existing agricultural value chains once electricity is available.

“Despite incredible advances in renewable energy technologies, we haven’t seen these innovations spread at the speed and scale needed to reach the communities most in need, especially in the agricultural sector,” said Mr Joseph Nganga, executive director for Africa at the GEAPP.

“The EAP will bring together farmer organizations, private agricultural companies, donors, equipment manufacturers and governments to surface innovations and embed them within existing value chains. If we are successful, some of these solutions will have wide uptake, helping to catalyze more equitable and sustainable economic development,” he said.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

VFD Group Bounces Back to Profitability With N11.2bn PBT in 2024

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VFD-Group

By Adedapo Adesanya

Proprietary Investment firm, VFD Group Plc, recorded a 1,202 per cent rise in its Profit Before Tax (PBT) in the 2024 financial year, closing December 31, 2024, at N11.2 billion.

This marked a turnaround after VFD Group reported a pre-tax loss of N1 billion in 2023 due to macroeconomic headwinds which affected a lot of businesses locally and globally.

Net investment income surged by 95 per cent to N59.0 billion despite a spike in investment expenses to N15.5 billion from N7.4 billion in 2023.

Other metrics showed that net revenue increased by 90 per cent to N71.0 billion, while operating profit grew by an impressive 104 per cent to N48.8 billion.

The firm, listed on the main board of the Nigerian Exchange (NGX) Limited, noted that the development showcased exceptional growth.

“The journey to this milestone was paved with strategic initiatives and a relentless pursuit of innovation,” it added in a statement on Friday.

The company holds investments in over 20 portfolio businesses spanning key sectors such as financial services, banking, market infrastructure, capital markets, technology, real estate, and hospitality.

As of April 22, 2025, VFD Group’s market capitalisation surged by 116 per cent to hit N121.6 billion from N56.2 billion year to date.

“These outstanding results reflect the success of our team’s efforts. As VFD Group looks to the future, it remains committed to delivering exceptional value to its customers and stakeholders,” the statement added.

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Economy

Nigeria Targets $90bn from Textile, Livestock by 2035

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Livestock Ranching Project

By Modupe Gbadeyanka

About $90 billion is expected to be generated in economic value by 2035 from new strategies developed by the Nigerian government for agribusiness expansion and livestock transformation.

To achieve this, the National Economic Council (NEC) chaired by the Vice President, Mr Kashim Shettima, has approved the establishment of a Cotton, Textile and Garment Development Board.

At the NEC meeting on Thursday in Abuja, steps to reposition Nigeria’s economy and tackle insecurity at its roots were discussed by the participants, which included the governors of the 36 states of the federation.

The new regulatory body for the cotton, textile and garment sector of Nigeria will have governors representing the six geo-political zones, with Ministers of Agriculture and Food Security, Budget and Economic Planning, and Industry, Trade and Investment as members.

It would be domiciled in the presidency, with representation of the relevant public sector stakeholders, and funded from the Textile Import Levy being collected by the Nigeria Customs Service (NCS), though it would be private sector-driven.

“Nigeria is a nation where cotton can thrive in 34 states. Yet our production level remains a fraction of our potential.

“We currently produce only 13,000 metric tons, while we continue to import textiles worth hundreds of millions of dollars. This is not just an economic imbalance. It is an invitation to act,” he added.

“Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” the VP stated.

Also at the meeting yesterday, the council approved the establishment of the Green Imperative Project (GIP), with a national office in Abuja and regional offices across the six geopolitical zones.

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Economy

CSCS, FrieslandCampina, Geo-Fluids Push NASD OTC Exchange Higher by 0.55%

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CSCS Stocks

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 0.55 per cent on Thursday, April 24 after the prices of three stocks on the platform ended in green.

This added N10.48 billion to the market capitalisation of the bourse, closing at N1.918 trillion compared with the N1.908 trillion it ended in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up during the session by 17.90 points to 3,276.98 points from the previous session’s 3,259.08 points.

The market was dominated by bargain-hunting activities due to renewed investor confidence. None of the securities on the NASD ended in red yesterday.

However, Central Securities Clearing System (CSCS) Plc gained N1.97 to close at N21.71 per unit compared with Wednesday’s price of N19.74 per unit, FrieslandCampina Wamco Nigeria Plc appreciated by 15 Kobo to end at N37.95 per share, in contrast to midweek’s value of N37.80 per share, and Geo-Fluids Plc grew by 8 Kobo to settle at N1.70 per unit versus the preceding day’s price of N1.62 per unit.

During the trading day, the volume of securities transacted by the market participants increased by 19,558.9 per cent to 206.2 million units from 1.05 million units, the value of transactions jumped by 13,509.2 per cent to N354.1 million from N2.6 million, and the number of deals rose by 245.5 per cent to 38 deals from 11 deals.

When trading activities finished for the day, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 250.9 million units worth N441.0 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.

Also, Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.9 million units worth N573.2 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.

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