Business
CBN introduces new private sector-led agric scheme
The Central Bank of Nigeria has unveiled guidelines for the operation of the Private Sector-led Accelerated Agriculture Development Scheme (P-AADS) to facilitate increased private sector agricultural production of staple foods and industrial raw materials as well as support food security, job creation and economic diversification.
The P-AADS is designed to complement the Accelerated Agriculture Development Scheme (AADS), earlier introduced by the apex bank to engage 370,000 youths in agricultural production, in collaboration with state governments as well as address the food security and youth unemployment challenges across the country.
Efforts at growing the economy also received a boost from the United Nations (UN) with the provision of $250 million for Nigeria’s Economic Sustainability Plan.
The UN offer, which is aimed at complementing Nigeria’s COVID-19 economic recovery efforts under the Nigerian Economic Sustainability Plan (ESP) initiative, was hailed by Vice President Yemi Osinbajo.
The CBN, in a circular titled: “Guidelines for the Private Sector-led Accelerated Agriculture Development Scheme,” signed by the Director, Development Finance Department, Mr. Yusuf Yila, said the scheme shall be funded from the Anchor Borrowers’ Programme (ABP).
The CBN pegged the maximum loan accessible under the scheme at N2 billion per obligor- and to be repaid from the Economics of Production (EOP) for cultivating on the cleared farmland.
The apex bank also stated that interest rate under the intervention shall be five per cent per annum (all-inclusive) up to February 28, 2021.
However, interest on the facility from March 1, 2021, shall be nine per cent per annum (all-inclusive), it added.
The guidelines put the maximum tenor for annual crops at six years with a six months’ moratorium while perennial crops have a maximum tenor of 10 years with a one-year moratorium.
The framework also stipulated that the collateral be pledged by participants under the scheme shall be the title of the cleared land and other acceptable collateral prescribed under the ABP.
The CBN added that it will bear 50 per cent of the credit risk in the event of default by the participants while the repayment of the facility shall be made on instalment through the participating banks and spread over the EOP of the cultivated commodities.
The participating banks shall remit repayments received to the CBN on a quarterly or annual basis depending on the commodity financed.
The CBN listed the focal agricultural commodities eligible for consideration under the scheme to include rice, maize, cassava, cotton, wheat, tomato and poultry.
Others include fish, sorghum, oil palm, cocoa, livestock/dairy and any other commodities as may be listed by the CBN from time to time.
On the eligibility criteria, the apex bank stated that prospective P-AADS participants must be existing or new firms engaged in agricultural production with proven capacity and bankable proposal; possess the acceptable title for contiguous lands of not less than 20 hectares; have good credit record and be able to provide collateral for participation.
The beneficiary will also provide evidence of the capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in-growers or out-growers to cultivate on the land after clearing.
The guidelines specified infractions and sanctions against participating parties.
According to the CBN, diversion of funds by the participating banks shall attract a penalty at its maximum lending rate at the time of the infraction.
In addition, such PFI shall be barred from further participation under the scheme.
Also, non-rendition or false returns shall attract the penalty stipulated by BOFIA, while charging interest rate higher than prescribed shall attract the penalty stipulated by BOFIA.
The CBN said any participating bank that fails to disburse the fund within the stipulated days of receipt to the borrower shall be charged penalty interest at the PFI’s maximum lending rate for the period the fund was not disbursed.
Also, failure to remit repayments received to CBN within the stipulated period shall attract penalty interest at the PFIs maximum lending rate.
Business
Relief for Lagos farmers as Adebule gives them free fertilizers
Relief for Lagos farmers as Adebule gives them free fertilizers
More and cheaper food items are expected from Lagos in the next harvest season as senator representing Lagos West District, Dr Idiat Adebule, has distributed 1,132 bags of fertilizers to farmers in 28 local governments and local councils development areas.
The senator said the gesture was from the Federal Government.
She said the free fertilizers was part of President Bola Ahmed Tinubu’s commitment in boosting food production in the country.
The project, she said, would help ease economic challenges.
Adebule said, “If you look at the Renewed Hope Agenda, part of the promises made by President Tinubu was to scale up activities in the agricultural area.
“To keep that promise, the Federal Government under his (Tinubu’s) leadership has released fertilizers to representatives of the people to distribute to farmers in their constituencies.”
She urged the beneficiaries to put the fertilizers into proper use.
Secretary-General of Conference of 57 local governments and local council development areas and Chairman of Odi-Olowo/Ojuwoye Local Council Development Area (LCDA), Razaq Ajala, said the Federal Government decided to support the farmers from all the six geo-political zones in other to boost harvest.
Ajala expressed optimism that this gesture would crash food prices.
Vice Chairman, All Farmers’ Association of Nigeria, Lagos State chapter, Shakiru Agbayewa, stressed that currently fertilizers now cost between N40,000 and N50,000 which farmers couldn’t afford to purchase.
“The Federal Government in his own wisdom has decided to donate the fertilizers to ease the burden of farmers and enhance food production,” he said.
He hailed the Federal Government for the food security initiative and promised to make good use of the fertilizers received.
A beneficiary, Oluwatoyin Olufuwa, praised the government and said, “They’ve done something great for the farmers because it will help in enhancing food production, quality of food as well as helping farmers to make more profit.”
Coordinator for Badagry farmers, Augustine Onu, noted that the initiative was a huge one
“I’ve never seen this kind of distribution done before since I have been a farmer. We haven’t experienced such massive distribution of fertilizers to farmers at local government,” Onu noted.
Business
FG begins sale of crude oil in naira to Dangote Refinery
FG begins sale of crude oil in naira to Dangote Refinery
The Federal Government has officially begun the sale of crude oil in naira to Dangote refinery as directed by President Bola Tinubu.
This piece of news came from Wale Edun, Minister of Finance and Coordinating Minister of the Economy, through a statement on the ministry’s official X account.
The statement read, “The sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.”
It continued, “Following a meeting of the Implementation Committee, chaired by the Hon. Minister of Finance and Coordinating Minister of the Economy on October 3rd, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.”
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The review meeting involved significant stakeholders, including the Minister of State for Petroleum (Oil), the Special Advisers to the President on Revenue and Energy, top executives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives from the Dangote Group, and leadership from the Nigerian National Petroleum Company (NNPC), including its Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).
Recall that back in July, President Tinubu approved the sale of crude oil in naira, with the Dangote refinery chosen as the pilot for the initiative.
The long-term impact of this move on petroleum prices remains to be seen.
FG begins sale of crude oil in naira to Dangote Refinery
Business
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
Oil marketers have raised concerns about a potential fuel scarcity following the shutdown of the Nigerian National Petroleum Company Limited (NNPCL) petrol purchasing portal.
The shutdown has prevented dealers from placing new orders for fuel, leading to supply disruptions.
According to marketers, over 90 million litres of petrol, worth approximately N79 billion, are pending delivery from NNPCL.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that while marketers can still load fuel, they cannot access the portal to check prices or make new purchases.
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Ukadike stated that there are currently over 2,000 pending tickets for 45,000-litre petrol trucks, which amounts to a significant volume of fuel awaiting supply. He warned that the continued closure of the portal could result in another wave of fuel shortages across the country.
Other marketers, speaking anonymously, echoed concerns that the portal’s shutdown is already causing fuel shortages.
One marketer mentioned, “Everyone is affected because we all go to the NNPC portal to place our orders, and when the portal is inaccessible, supply is disrupted.”
As of now, there has been no official response from NNPCL spokesperson Olufemi Soneye regarding the situation. However, some marketers believe the portal was shut down temporarily to resolve backlogs of pending orders.
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
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