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Economy

Stakeholders Identify Reason for Local Wheat Production Shortage

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Local Wheat Production

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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Economy

Nigeria Upgrades Tax-to-GDP Ratio to 10.86% From 6%

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tax-to-GDP ratio

By Modupe Gbadeyanka

The National Bureau of Statistics (NBS) has disclosed that Nigeria’s tax to Gross Domestic Product (GDP) ratio has been upwardly reviewed to 10.86 per cent from the 6 per cent earlier reported to reflect better data sources and improved estimation using the Organisation for Economic Co-operation and Development (OECD) manual.

The OECD manual is an improvement over the System of National Accounts (SNA 2008) classification of taxes.

Although the System of National Accounts conceptual framework and its definitions of the various sectors of the economy are reflected in the OECD’s classification of taxes, the OECD classifications provide the maximum disaggregation of statistical data on what is generally regarded as taxes by tax administrations.

In a disclosure, the statistics office said the country’s total tax revenue compared with its GDP was at that level in 2021, higher than 8.40 per cent in 2020, which was impacted by the COVID-19 pandemic.

In the previous year, the ratio was 10.20 per cent, marginally lower than the 10.36 per cent recorded in 2018 but higher than the 9.02 per cent in 2017.

The NBS said the revised computation considered more comprehensive coverage of data at the federal, state, and local government levels and revenue items not previously included in the computations, particularly relevant revenue collected by other government agencies.

The review of the tax-to-GDP ratio was initiated by the Federal Inland Revenue Service, which collaborated with the Federal Ministry of Finance and the NBS for better measurement of the ratio.

The data used were sourced from the Office of the Accountant General of the Federation (OAGF), FIRS, NBS, the Nigeria Customs Service (NCS), the Joint Tax Board (JTB), and other relevant agencies of government that collect revenue.

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Economy

VFD Group to Join Nigerian Exchange After Exit From NASD

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VFD Group

By Adedapo Adesanya

VFD Group Plc has announced its intention to list its shares on the Nigerian Exchange Group (NGX) after leaving the NASD Over-the-Counter Securities Exchange, where it has been trading its stocks for the past three years.

This development, according to analysts, is a strategic move that would allow the company to gain access to public equity markets, increase its visibility, and strengthen its financial position.

VFD Group Plc is a leading proprietary investment company with a proven track record of generating attractive returns for its investors through a variety of investment strategies.

The company has a diverse portfolio of investments in various sectors, including banking, technology, media, energy, and real estate. The group has been listed on the NASD OTC Securities Exchange since 2020.

Speaking on this big step, Mr Nonso Okpala, Group Managing Director of VFD Group, stated, “We are excited to take this next step in the evolution of our company.”

“Listing on a major stock exchange will give us access to a larger pool of investors, enhance our profile, and provide superior returns to our investors,” he added.

With the intention of listing on the NGX, the company will delist from the NASD and is subject to regulatory approvals and market conditions.

VFD Group noted that it would provide additional updates as the listing process progresses.

At the close of business on Tuesday, the securities of the organisation closed on the NASD OTC exchange at N244.88 per unit, the same rate they finished in the preceding trading session.

Business Post reports that the NASD was created to provide an avenue for public companies to transition smoothly into the country’s main stock exchange.

However, it has witnessed the movement of firms from the NGX to the NASD, especially due to the very strict regulatory requirements by the former.

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Economy

Friesland, NDEP Drag Down NASD OTC Bourse By 0.28%

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Friesland shares

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange registered a 0.28 per cent drop on Tuesday, June 6, as the duo of Niger Delta Exploration and Production (NDEP) Plc and FrieslandCampina WAMCO Nigeria Plc made losses.

FrieslandCampina Wamco Nigeria Plc lost N1.26 in value to trade at N69.74 per unit versus N71.00 per unit, as NDEP Plc depreciated by N1.06 to close at N245.15 per unit compared with the previous day’s N246.21 per unit.

The duo suppressed the 1 Kobo price appreciation reported by Acorn Petroleum Plc, closing at 16 Kobo per share compared with the preceding session’s 15 Kobo per share.

This development weakened the market capitalisation of the NASD OTC bourse by N2.78 billion to wrap the day at N1.005 trillion compared with Monday’s N1.008 trillion, as the NASD Unlisted Securities Index (NSI) moved down by 2.00 points to 726.86 points from 728.86 points.

At the market yesterday, the trading value slumped by 75.0 per cent as a total of N35.7 million stocks were transacted in comparison to Tuesday’s N142.9 million worth of securities.

At the close of business, the trading volume slid by 93.9 per cent to 1.4 million units from the previous day’s 22.7 million, as the number of deals carried out during the session decreased by 43.8 per cent to 27 deals from the 48 deals executed in the previous session.

Geo-Fluids Plc remained the most traded stock by volume on a year-to-date basis with a turnover of 832.1 million units valued at N1.3 billion, Industrial and General Insurance (IGI) Plc has transacted 628.3 units worth N49.5 million, while UBN Property Plc has traded 395.9 million units valued at N336.6 million.

On its part, VFD Group Plc remained the most traded stock by value on a year-to-date basis with 11.0 million units worth N2.5 billion, Geo-Fluids Plc has exchanged 832.1 million units worth N1.3 billion, and FrieslandCampina Wamco Nigeria Plc has sold 17.5 million units for N1.2 billion.

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