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Economy

Tinubu Reiterates Efforts on Food Sufficiency, Local Industries Growth

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Food Sufficiency

By Adedapo Adesanya

President Bola Tinubu on Monday reiterated his administration’s determination to ensure food sufficiency and protection of local industries for sustainable economic growth.

He said this at the inauguration of the Niger State Food Security and Agricultural Mechanisation Programme.

The project, an initiative of the Niger State government, is for the deployment of cutting-edge agricultural machinery and technology for large-scale agro-value chain development.

President Tinubu said the event represented another step in the food security and agricultural mechanisation agenda, declaring that Nigeria must enhance its capacity to feed its people and have enough for export.

“We have seen the level of commitment here. We have seen leadership. The success of any leader will depend on the ability to do what needs to be done when it ought to be done.

“It is now time for us to address the challenges and make Nigeria an economy of opportunities.

“We must care for our people; re-orient our people. I do not see why Nigeria cannot feed all students in its schools. I know what it means for roaming cows to eat crops and the vegetation of our land.

“I know it is painful. But when we re-orient the herder and make provision for cattle rearing, we can address that. You are the governors who are to provide us with land.

“I, as President, am committed to providing a comprehensive programme that will solve this problem,” the President said.

He also urged sub-national governments, as an immediate intervention measure, to implement wage awards in their states to complement efforts of the federal government in easing the burden of citizens, pending when the minimum wage is increased.

“I am equally here to partner with you to banish hunger. You are doing the job. And I must support you; it is mandatory as Nigerians.

“Let all the sub-nationals start paying wage awards, pending when the minimum wage is increased. I am not giving an order; I am only appealing. NEC should adopt this,” the President said.

According to the governor of Niger State, Mr Umar Bago, four states— Benue, Kogi, Kwara, and Lagos — had already signed memoranda of understanding on building partnerships for the development of agriculture.

“As we gather to celebrate a good example demonstrated in our modest contribution to infrastructure and agricultural development encapsulated in our New Niger Agenda.

“For us, agriculture is key to addressing the challenges in critical sectors of our economy, and we shall seize every opportunity for the attainment of growth and engender prosperity for the people of our beloved state and by extension our country, Nigeria,” the Governor said.

The Minister of Agriculture and Food Security, Mr Abubakar Kyari, disclosed that the federal government had signed an agreement with the Brazilian Government and German Deutsch Bank Group as financiers of a facility of €995 million for the Green Imperative Programme.

He said that the programme would provide mechanisation hubs across the 774 local government areas in Nigeria when implemented.

“A memorandum of understanding between the federal government and the John Deer Group, a subsidiary of Tata Equipment, was signed.

“The manufacturer has signed to deliver 10,000 units of tractors and implement in tranches of 2,000 units per annum for the next five years.

“The Greener Hope Initiative is another veritable platform the federal government is deploying to change the deficit narrative in the Nigerian agricultural mechanisation space,’’ 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.

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Economy

Energy Editors See Significant Boost in Nigeria’s Oil, Gas in Q1 2025

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Gas Flaring Solutions

By Adedapo Adesanya

The Society of Energy Editors (SEE) expects the Nigerian energy sector to witness significant developments in the first quarter of 2025.

This, according to the society, would be driven by President Bola Tinubu’s proposed N49.7 trillion budget for the year.

The budget is anchored on an increase in base crude oil production to 2.06 million barrels per day, expected to drive down inflation from 34.6 per cent to 15 per cent in 2025.

In its Nigeria Energy Outlook Q1 2025, the group said key areas to watch in the energy sector in the first quarter of the year include oil oil exploration and production; domestic crude refining; gas production and liquefied natural gas (LNG) export; power generation and transmission as well as labour relations.

“The government’s target to increase crude oil production is ambitious, but its feasibility hinges on addressing security challenges, particularly in the Niger Delta region.

“Nigeria plans to hold a fresh oil licensing round in 2025 focused primarily on handing out blocks that remained undeveloped, as the country battles to raise crude reserves and production,” it said in the outlook.

It added that “the federal government would have to show the necessary political will and apply a lot of push for this fresh oil licensing round to happen during the year as planned”.

On domestic refining, the organisation noted that the commencement of petroleum refining at the Dangote Refinery is expected to reduce fuel imports and ease the burden of petroleum subsidies.

However, it added that the steady supply of crude oil feedstock from the Nigerian National Petroleum Company (NNPC) Limited to the Dangote Refinery would be crucial in determining the refinery’s impact on the economy in 2025.

Nigeria spent N9.176 trillion on the importation of the Premium Motor Spirit (PMS), also known as petrol, in nine months, from January to September 2024, rising by 60.87 percent, compared with N5.704 trillion worth of the commodity imported in the same period in 2023.

Focusing on gas production and LNG exports, the SEE projected that Nigeria’s gas sector will grow during the first quarter, driven by the government’s “Decade of Gas” initiative and the country’s ambitions to increase its gas reserves to 210 trillion cubic feet, Tcf, in 2025 and 220 Tcf by 2030.

“Gas production and supply will also increase in response to the Federal Government initiative on gas for automobiles and the need to meet the current shortfalls being experienced by power generating stations and industries,” it also projected.

According to the SEE, gas export through the Nigeria LNG Limited will be steady during the first quarter.

In the area of power generation and transmission, the Society of Energy Editors, said efforts to expand power generation and improve transmission infrastructure will continue, with a focus on increasing the share of renewable energy sources in the energy mix.

It maintained that power transmission and distribution infrastructure remained very weak with the national grid recording 12 incidents of collapse in 2024. Adding that 2025 would witness a repeat owing to poor mitigation measures aimed at tackling inherent weaknesses.

On labour relations, the society stated that the government would need to address labour concerns in the downstream and upstream petroleum sectors, as well as in the electricity sector, to maintain stability and avoid disruptions.

Listing challenges and opportunities, it noted that the government’s expectations for reducing inflation and improving the exchange rate may be challenging to achieve, given the current market realities.

It asserted that the development of the Niger Delta region, through the activities of the Niger Delta Development Commission, would be crucial in addressing the root causes of insecurity and instability in the region.

“The solid minerals sector offers significant opportunities for revenue growth and job creation, but the government will need to address the challenges of artisanal mining and ensure that the sector is developed in a sustainable and responsible manner.

“Overall, the first quarter of 2025 will be critical in setting the tone for Nigeria’s energy sector in the year ahead. The government’s policies and initiatives will need to be carefully implemented to address the challenges facing the sector and to unlock its full potential,” the report stated.

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Economy

Geo-Fluids, Afriland Properties Lift NASD Bourse by 0.13%

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shareholders of Afriland Properties

By Adedapo Adesanya

The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.

Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.

Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.

There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.

FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance  (IGI )Plc with 10.7 million units sold for N2.1 million.

IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.

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Economy

Naira Depreciates to N1,543/$1 at Official Market

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Naira-Yuan Currency Swap Deal

By Adedapo Adesanya

The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.

According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.

The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.

The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.

On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.

As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.

In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).

However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.

Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1  per cent to $693.30.

On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.

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