Business Africa

Local Rice Farmers Smiling To Bank As Demand For Local Brands Surge

Published

12 months ago

March 2, 2020

GiftUgbede

Local Rice Farmers Smiling To Bank As Demand For Local Brands Surge

Local rice farmers and millers are smiling to the bank as border closure bolstered demand for local rice, research has shown.

Local rice farmers and millers are smiling to the bank as border closure bolstered demand for local rice, research has shown.

The inability of importers and smugglers to access the Nigerian market following the decision of President Muhammadu Buhari to close the nation’s land borders has led to the surge in the price of foreign rice and eventually forced many Nigerians to shift preference to more pocket-friendly local rice.

“A whole lot of rice farmers are increasing their production areas because there is a huge market for paddy since the border closure,” Aminu Goronyo, national president, Rice Farmers Association of Nigeria.

The price of local rice has declined by 19 percent in the last 10 days due to the unusual heavy harvest by farmers struggling to meet growing demand.

“This is because millers are patronising rice farmers now and off-taking all that the farmers produce immediately,” stated Goronyo.

According to Goronyo, prior to border closure, farmers were holding more than 20,000 tons of paddy as millers were not buying due to weak demand. Largely because of Nigerians preference for imported rice.

However, the surge in the price of foreign rice after land borders were closed has paved way for paddy. While the price of a 50kg local rice like Mama Pride, Umza, Classic, Mama Choice, Lake Rice, Three Brothers, Al Hamsad, among others, that rose as high as N24,000 has started moderating in the last 10 days and currently selling for N19,500.

The Chairman of Integrated Rice Processors Association of Nigeria, Mohammed Abubakar, said: “Yes, the prices of rice went up immediately after the border closure. The prices have peaked and are now coming down.”

“We would be able to meet demand and Nigerians have no need to worry about Christmas demand. Our members are already increasing their capacity,” Abubakar added.

Farmers are now shifting to rice cultivation because of the growing demand for local rice.

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Muhammed Augie, chairman, Rice Farmers Association, Kebbi chapter, said: “Since the surge in prices, farmers who have abandoned growing rice have returned and even other farmers are shifting to rice cultivation because the market is there.”

“A bag of paddy rice now costs N8,500 as against N10,000 sold two weeks ago. This is because we are growing more and the harvesting season just commenced,” Augie said.

Business Africa

Nigeria to Become Petroleum Product Refining Hub, Minister Says

Published

2 months ago

December 15, 2020

NCBN

The Federal Government has said it will leverage the opportunities provided by the African Continental Free Trade Area Agreement to reposition the oil and gas sector in other transform the country into a petroleum products refining hub for the African region

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this at the AfCFTA Oil and Gas Virtual Workshop, with the theme: “Nigeria – Africa’s Refining and Services Hub under the AfCFTA.

Represented by Bitrus Nabasu, the permanent secretary Ministry of Industry, Trade and Investment, Sylva said Nigeria had approved the AfCFTA, which would begin implementation in January 2021.

According to him, the African Continental Free Trade Area Agreement aims to redefine trade relations between African states while enabling free movement of people and investments

Sylva also added that the government was also committed to deepening gas utilization as seen in its National Gas Expansion Programme and the Auto Gas Scheme.

Business Africa

Nigeria to Strengthen Economic Cooperation With Algeria Says President Buhari

Published

3 months ago

November 27, 2020

GiftUgbede

President Muhammadu Buhari has reassured of Nigeria’s commitment to stronger economic cooperation with the republic of Algeria in various critical areas.

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The President restated the commitment on Thursday when he received the Algerian foreign affairs minister, and special envoy of the Algerian president, Sabri Boukadoum, in the Aso rock presidential villa in Abuja.

According to a statement issued by special adviser to the President on Media and Publicity, Femi Adesina, the president said projects like the Trans-Sahara road, international gas pipelines, and other areas of economic cooperation would be given adequate attention for the good of the people of the two countries.

Buhari also emphasized the need for peace, tranquility and security in African countries, saying development and growth would depend a lot on how peaceful and secure the continent is.

In his remark, the special envoy said Nigeria was the pillar of Africa, and he had brought messages from his president, for the two countries to explore areas of collaboration.

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Agriculture & Nigerian Economy

We Have to Reduce Oil Production Cost, Says Osinbajo

Published

3 months ago

November 18, 2020

GiftUgbede

Vice-president, prof. Yemi Osinbajo, has said the deal to cut oil production by the organization of petroleum exporting countries and its allies has resulted in lower revenue generation for the federal government.

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The vice-president, who was represented by the minister of state for petroleum resources, Timipre Sylva, said the collapse in crude oil demand due to the covid-19 pandemic caused the recent sudden slump in oil prices.

Osinbajo said on Tuesday that the ministry of petroleum resources had a mandate to drastically reduce the unit cost of crude oil production in the country in order to increase government revenue.

He expressed confidence that the country would achieve the desired goal of finding more hydrocarbon deposits in the Nigerian basins, notwithstanding the curtailment in production.