Business

Analysts Call For Urgent Action To Avert Collapse Of Wheat Value Chain

Published

3 years ago

May 30, 2022

Local industry analysts have called on the Federal Government to take swift and deliberate action to cushion the effects of the disruptions in the global wheat market on Nigeria’s wheat value chain.

The analysts made the call in a recently published review of the global wheat market following the war between the two top wheat exporting countries – Russia and Ukraine. According to the analysts, the multifaceted value chain crises, including the shortage of foreign exchange, mounting freight charges, and hike in the price of diesel, worsened by the war continue to take a heavy toll on the wheat value chain.

Flour millers have continued to battle with the rising cost of production and low local wheat production. The rising costs have passed down to bakers as well as raise the hardship and cost of living index of the hard-pressed local consumers who continue to bear the burden of the increase in the prices of wheat derivative foods and household staples.

The experts said the millers and bakers have come under intense cost pressure as the price of the all-important grain continues to skyrocket in the international market and freight charges have spiralled out of control.

The review showed that the price of wheat in the global market shot to US$1,000 per bushel in March 2022 from US$761.25 in January. On top of that, the millers are expected to spend more on shipping the commodity from the exporting countries as their combined freight bill prediction jumped from N21.6 trillion in 2019 to N28.8 trillion in 2021.

According to the report, “the demand for the wheat-based products being fairly price-elastic implies that the burden of every new rise in costs is primarily absorbed by the millers and bakers. The upward trend in the global wheat and freights costs continues to frustrate the millers, who have for long borne the cost burden to keep the retail price stable and avoid passing on the costs to the poor consumers, who rely heavily on wheat-derivative foods such as bread, which remains a significant part of their daily diet, in feeding their households. A basket of similar food commodities has increased in price by an average of over 50%, and bread prices have only increased by 30%. The millers and bakers have borne the rest of the inflationary burden”, the experts say.

“Under the present circumstances, anyone can guess how much longer they can keep prices moderate.”

Citing urgent actions that must be taken to avert production and major food inflation crisis, the experts proposed the wider adoption of the agriculture value chain intervention model developed by the Senegalese government. The Senegal Agriculture Programme provides access to key inputs such as seeds, fertilizers, and technical and marketing assistance for local smallholder farmers.

Other measures proposed by the analysts to help the millers, bakers, and consumers included the removal of the 15% cassava levy imposed on the importation of wheat grain, increased access to forex at the Import and Export (I&E) window, allowance for tax concessions in line with the key backward integration programmes index, and the provision of logistic support, among others, to the millers.

While making a case for the removal of the 15 per cent cassava levy in a recent interview, the National Secretary-General of the Association of Master Bakers and Caterers of Nigeria (ABCON), Hon. Jude Okafor said: “We had earlier made a plea to the government to cancel the 15% wheat (cassava) levy”.

Notably, the 15 per cent cassava levy was meant to drive up local cassava production to the point of substituting cassava flour for wheat flour in most bakery production. However, according to the experts, there has been no significant improvement in the cassava value chain since the introduction of the cassava substitution policy and the levy. Considering the crisis in Ukraine and the global food crisis, the experts called on the Nigerian government to reconsider the removal of the 15 per cent wheat import levy as “this is necessary to prevent a wider supply chain breakdown and recession”.

Business

inDrive Emerges Most Outstanding Brand in Urban Service

Published

2 hours ago

December 12, 2024

Seyi Babalola

inDrive, a global mobility and urban services platform, has emerged the most outstanding brand in urban service in Nigeria at the maiden edition of Iconic Brands and Legends of Media and Marketing Communications Award held in Lagos on Tuesday, December 10, 2024.

inDrive was recognized and celebrated for its transparency, fairness, and affordability in intercity travel and logistics among ride-hailing platforms in Nigeria.

Speaking on the award, Timothy Oladimeji, Country Representative, Nigeria, inDrive, described it as a testament to the ride-hailing platform’s unique contribution and commitment to providing fair and accessible transportation options to its customers.

Oladimeji stated that the award highlights the company’s focus on safety, fairness, affordability, and satisfaction, thereby cementing its reputation as the go-to ride-hailing service in Nigeria.

He noted that the achievement underscores the company’s dedication to delivering the best ride-hailing and logistic experience for customers while continually pushing the envelope for innovation. He explained that the mobility platform remains a game-changer in the ride-hailing business in Nigeria as it empowers both drivers and passengers through its negotiation model.

“This recognition is a huge motivation that would help us expand our footprint and continue to provide exceptional services to all our customers. I can categorically say that the recognition validates the acceptability and rapid adoption of our platform by both drivers and passengers in Nigeria,” he said.

Speaking on the recognition and criteria, the lead convener of the award, Samuel Ajayi, said the award was truly deserving, given that the platform has provided unique, fair, and affordable services to all its users.

Ajayi emphasised the significance of acknowledging the brand’s achievements in Nigeria over the last few years adding that the company has shown exceptional performance by all parameters and standards.

“inDrive has really thrown its weight since joining other ride-hailing platforms in Nigeria. I am happy to say that inDrive has disrupted the Nigerian market with its unique offerings, which has endeared many users to the platform. From our findings, I can say that the brand remains the preferred platform given that it is the only one that provides safe, fair, efficient, and affordable transportation,” he said.

Since launching in Nigeria, inDrive has cemented its status as a market leader through its commitment to enhancing urban mobility and consistently delivering superior customer service.

Business

FG to benefit from World Bank’s $500m loan

Published

18 hours ago

December 11, 2024

Seyi Babalola

Federal Government is to benefit from a $500 million loan facility from the World Bank for the Human Capital Opportunities for Prosperity and Equity (HOPE) project in the country.

Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, made this known during a courtesy visit on him by the International Monetary Fund (IMF) Mission Chief for Nigeria, Mr. Axel Schimmelpfennig

The loan facility, according to the minister, will increase the availability and effectiveness for financing for basic education and primary health care in the various states of the federation.

The fund, he said, will enhance transparency and accountability for basic education and primary health care in addition to improving recruitments, deployments and better performance management of teachers.

While appreciating the support of the World Bank, Bagudu elucidated that the Nigerian Constitution is the legal framework that provides the rules and procedures that guides the budget process in addition to empowering the federal and state governments to make expenditures in the preceding year for the purpose of meeting expenditure necessary to carry on the services of the government.

“This expenditure can continue for a period not exceeding six months or until the coming into operation of the law as can be seen on Chapter 5, Part 2 Section 122 of the Nigerian Constitution” he said

Bagudu explained further that the reforms embarked on by the Bola Ahmed Tinubu’s administration were aimed at developing and implementing economic and tax reforms that will guarantee more functional Public Financial Management (PFM) systems in the country.

“The economic reforms are necessary decisions to put the Nigerian economy on the right track”he explained

He assured the IMF Team that though Nigeria is experiencing a number of challenges such as hardship of citizens as a result of removal of fuel subsidy, floating of foreign exchange, electricity reforms that distributed citizens into bands, Nigeria is on course to economic recovery.

In a statement, the minister appreciated the willingness of the IMF to support Nigeria but however called for more support in the area of resource mobilisation from multinational partners in order for government to provide developments in all sectors of the economy.

Earlier, the International Monetary Fund (IMF) Mission Chief for Nigeria, Mr. Axel Schimmelpfennig said he was in the country to have interactions with the minister on the workings of the Nigerian budgeting process with particular emphasis on the simultaneous implementation of the 2023/2024 budgets and supplementary budgets in the same year in preparation for the publication of the 2025 annual report of the World Bank.

Schimmelpfennig welcomed the tax reforms of the federal government as increased revenue generation will ensure more developments for Nigerian citizens and thus promised the country of more IMF support for Nigeria’s developmental needs.

Permanent Secretary, Ministry of Budget and Economic Planning, Dr. Vitalis Emeka Obi, briefed the team on the ministry’s role in co-ordinating Nigeria’s development planning and budgeting processes. The Permanent Secretary emphasised that 2025 promises to be a year of more rapid investments.

DailySun

Business

FG invests $450m on CNG value chain

Published

3 days ago

December 9, 2024

Seyi Babalola

The Nigerian government said that it has invested over $450 million in the development of the country’s compressed natural gas value chain.

According to NAN, the Project Director of the Presidential Compressed Natural Gas Initiative, PCNGi, Michael Oluwagbemi, disclosed this on Monday at the 9th Edition of the Nigeria Energy Forum, NEF 2024, in Lagos.

Oluwagbemi, who was represented by Tosin Coker, the Head of Commercial at PCNGi, emphasised that the investment spans critical areas of the CNG infrastructure, including the establishment of mother stations, daughter stations, refuelling stations, and conversion centres across the country.

“The Presidential Compressed Natural Gas Initiative (PCNGi) on Monday said that it had invested more than 450 million U.S. dollars in the Compressed Natural Gas (CNG) value chain.