News
$2 billion : Dangote laments huge forex on rice importation.
Chairman of Dangote Rice Limited, Aliko Dangote yesterday lamented the whooping forex as Nigeria consumes 6.5 Mtn of rice which costs the nation over 2 billion dollars annually, adding that it is heartening that the federal government now has policy direction that encourages private sector’s active participation in agriculture.
He made the lamentation during the launch of the Dangote rice outgrower scheme in Goronyo, Goronyo Local government, Sokoto, which was witnessed by the Sultan of Sokoto, Alhaji Sa’ad Abubakar where farmers were presented with rice seeds, fertilizers, nets, agro-chemicals.
Also, a tripartite agreement spare headed by the company to create jobs for 16,000 outgrower rice farmers in the state signed amid excitement and a pledge by all parties to ensure the success of the scheme to make Nigeria self sufficient in rice cultivation.
The Chairman, Aliko Dangote disclosed that he was mover to go into rice cultivation because of the genuine interest of the Federal government to revive agriculture as the mainstay of the economy, and reduce importation of foods that could be produced locally.
His statement reads, “buoyed by the policy direction of the federal government, we at Dangote decided to key into this by establishing Dan gone Rice Limited to partner with states to redress the present situation where a huge sumo forex is spent on importation of rice.
“In the next three years we want to produce one million tons of quality rice and make it available and affordable to the people. We hope to do 150, 000 ha and when we are done, Nigeria will not have anything to do with importation of rice.
“Dangote Rice outgrowers scheme is committed to creating significant number of jobs, increasing the incomes of smallholders farmers and ensuring food security in the country by providing high quality seeds, fertilizers and agro-chemicals as well as technical assistance on best agricultural practice to farmers.
“This Scheme will help to diversify the economy, alleviate poverty and reduce the nation’s import bill. The scheme has been designed as a one stop solution for the rice value chain,” he explained .
Robert Coleman, the Dangote Rice Project Director, said the Sokoto operation was a demonstration phase to familiarize the farming community with the programme, train extension workers and lead farmers as well as test modern technologies.
He further noted that they would have 25,000 ha cultivated by nearly 50,000 outgrowers in 2017 in addition to hundreds of jobs expected to be created by the end of that year.
Remarking, Governor Aminu Waziri Tambuwal of Sokoto State expressed delight at the event, saying the coming of Dangote to invest in the state was as a result of his sustained effort towards inviting prospective investors to the state.
The governor added that under the scheme, just as it had done with the federal government, would distribute nets, water pumping machines and fertiliser T subsidised prices to help the farmers have good yield.
Similarly, the state Commissioner for Agriculture, Alhaji Umar Tambuwal, disclosed that the scheme would cover 10 local governments in the stated and that the state government is committing several millions of naira to support the famers in the scheme.
According to him, “the farmers participating in the 5000 ha pilot scheme, the state government is giving out free nets to fight against queue a birds during production which is costing the state N48 million. The state will release and sell 5000 units of water pump worth N170 million at a subsidised rate of N10, 000 each.
“We will also distribute 5000 bags rice seed (Faro 44) worth N32.5 million while fertilizer will be sold 50 per cent subsidised rate to complement the outgrower farmers.”
Sultan Muhammadu Sa’ad Abubakar however, commended President Buhari for his diversifying efforts, urging Nigerians to pray for him.
He commended the Sokoto State government for the encouragement and support being given to the outgrowers scheme, saying it is a thing of joy that the state is also involved by way of giving the famers some of the inputs needed so that the scheme could succeed.
The National President of Rice Farmers Association, Alhaji Aminu Goronyo described the scheme as one of the potential means of making rice available and at low cost to the people because the farmers are encouraged to put all their best into it.
He said he has no doubt the scheme would success because it a private sector driven and that given the pedigree of the Alhaji Dangote in business, he was sure there the scheme would be sustainable and sooner than later other states will key into it.
The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.
The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.
Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.
He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.
“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.
Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.
While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.
Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.
He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”
Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.
He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”
Dangote Petroleum Refinery has made headlines by announcing a further reduction in the price of diesel, dropping it from ₦1200 to ₦1000 naira per litre.
The refinery’s decision comes on the heels of its recent supply at a significantly reduced price of ₦1200 per litre, which was introduced three weeks ago, signifying a remarkable 30 per cent decrease from the previous market price of approximately ₦1600 per litre.
This substantial reduction in diesel prices at Dangote Petroleum Refinery is expected to reiterate positively throughout various sectors of the economy, potentially serving as a catalyst in alleviating the persistently high inflation rate in the country.
In a statement last week, Aliko Dangote, Africa’s wealthiest individual and the owner of the refinery, expressed his optimism regarding the potential impact of the price reduction on inflation in Nigeria.
“I believe that we are on the right track. I believe Nigerians have been patient, and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about ₦1900,” he remarked.
As anticipation builds around the implications of this move by Dangote Petroleum Refinery, stakeholders and consumers alike remain hopeful for the positive effects it could bring to the Nigerian economy in the coming months.
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