ABEOCCIMA 20170628_092556

Why some farmers can’t access CBN loan –Commerce chamber

DAUD OLATUNJI (PUNCH)

The Abeokuta Chamber of Commerce, Industry, Mines and Agriculture says many farmers in Ogun State could not access credit facilities from the Central Bank of Nigeria and other banks because they do not have Certificates of Occupancy.

The chamber, however, urged the state government to devolve power to the local government areas so as to be able to issue Cs of O for agricultural purposes.

The President of ABEOCCIMA, Mr Jare Oyesola, stated this after his inauguration, alongside other members of the chamber’s executive at the 44th Annual General Meeting of the chamber in Abeokuta, the Ogun State capital.

Oyesola lamented that efforts to get the loan facility from the CBN failed because most farmers did not have Cs of O to process the funds.

He also attributed what he described as low agricultural production in the state to the current Land Use Act, which he said empowered only the state government to issue Cs of O to landowners.

He said, “The challenge we have with agriculture is land. It is easier to get land in the North than in the South-West. What I’m advocating is that just like the Land Use Decree of 1978 has stated, local governments should be able to give land for agricultural development.

“We know one another in our local government areas, we know the cooperatives in our local government areas; allow local governments to be able to give us C of O.’’

“From my experience, the Central Bank Nigeria and international companies recognise a C of O issued by a local government and they will give farmers loan because it shows the evidence that they are authorised to till that land.

“The CBN in Abeokuta says they don’t disburse the funds given to them by the Federal Government because many farmers don’t have Cs of O. If they have Cs of O, they will be able to access the funds for agricultural value chain development.”

Oyesola canvassed an agricultural revolution, saying Nigerians must embrace agriculture to overcome the economic challenges facing the country.

Also speaking at the event, the Chairperson of the ABEOCCIMA Board of Trustees, Mrs Alaba Lawson, called for massive investment in agriculture for Nigeria to survive the economic crisis caused by the COVID-19 pandemic.

 

Abeokuta Chambers Of Commerce Elects New Officers

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Outgone Abeoccima handing over to the newly elected president
Michael-Azeez Ogunsiji
ABEOKUTA – The Abeokuta Chambers of Commerce, Industry, Mines and Agriculture (Abeoccima) has elected new executive to run its affairs for tenure, following the expiration of the successful administration of its immediate past former President, Akinola Lawson.
The inauguration of the new officers was held on Thursday at the Chambers House, located beside Government House, Abeokuta, under the strict compliance of the coronavirus physical distance rules.
The new officers include: Jare Oyesola (President), Otunba Babs Adesanya (1st Deputy President), Timothy Shorunke (2nd Deputy President), Engr Kelani Dawood (Vice President) and Engr Oluyomi Olutoye (Vice President).
Other executives are: Olalekan Jiboku (Vice President), Chief Olakunle Ewuoso (Vice President), Mrs Fausat Akinbo (Vice President), Ibrahim Bada (Vice President), Alhaji Moroof Popoola (Treasurer), Solomon Enilolobo (Deputy Treasurer), Alhaji Taiwo Raji (Financial Secretary and  Akinola Lawson (ExiOfficio).
The new President in his acceptance speech expressed appreciation and disclosed that the chambers intends to interact with government to increase the Internally Generated Revenue (IGR), needed to keep the public workforce by creating a generation of taxpaying entrepreneurs and workers.
“For this we expect more jobs to be given to companies that pay staff salaries and taxes in Ogun State, not elsewhere. I request my colleagues in the chamber to let us roll our sleeves for an economic developmental agenda for the various sectors of the economy that will promote internal trade, export, individual wealth, job creation and so on.”
Oyesola assured that under his administration, the council with encourage intrapersonal development and relationship within the membership will help lift up, and not allow any member to fail using various venture capital and other business model to reduce unemployment, create wealth and a peaceful and healthy environment for members’
IMG_20200626_080003_360
The chambers boss commended Governor Dapo Abiodun for improve living standard of farmers and tailors through his policies and huge patronage and setting up a Tech Hub at Kobape, and also appealed to Abiodun to encourage patronage  local  professionals and startups and all other various sectors by implementing 10% of all government contracts  to the organized private sectors.
“This would indeed make Ogun State number 1 in Nigeria to produce the next era of young agriculture and Tech billionaires to sustain His Excellency mantra, building our future together. I am sure we would not disappoint you”, Oyesola stated
Notable dignitaries at the low keyed event include: Iyalode Alaba Lawson (former President of the Abeokuta Chambers and former President National Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Prince Dimeji Kayode-Adedeji (founder Penpushing Media), Alhaji Wasiu Olaleye, Alhaji Rahman Maku and Dara Adebimpe among others.

 

ABEOCCIMA advocates agric revolution to resolve post COVID-19 economic crisis

 

 The Abeokuta Chamber of Commerce, Industry, Mines and Agriculture (ABEOCCIMA) on Thursday insisted that agricultural revolution is the only solution for Nigeria to survive the post COVID-19 economic crisis in Nigeria.
The new President of ABEOCCIMA, Mr. Jare Oyesola who spoke during the inauguration of the new Executive and the 44th Annual General meeting of the Chamber in Abeokuta, the State capital, therefore, urged Nigerians to embrace agriculture for the country to attain self sufficiency in food production.
He appealed to the Ogun State government to devolve power to the Local governments to issue Certificate of Occupancy (CofO) to people for agricultural use.
 
Oyesola attributed the low agricultural production in the State to the current land use act regine which empowers only the State government to issue Certificate of Occupancy (CofOs) to land owners.
According to him, many farmers do not have access to credit facilities from the Central Bank of Nigeria (CBN) and other banks because they do not have CofOs to access loan.
His words, “The challenge we have with agriculture is land. It is easier to get land in the North than in the Southwest. What I’m advocating is that just like the land use decree of 1978 have stated, Local governments should be able to give land for agricultural development.
“We know ourselves in our local governments, we know the cooperatives in our local governments, let local governments be able to give a CofO.
“Let the government devolve the power from State to local governments. Let the local governments be able to give us CofO as stated in the land use decree and private sector will move forward.
“My experience was that even Central Bank Nigeria (CBN) and international companies will recognise a CofO issued by a local government and they will give you loan because it shows evidence that you are authorised to til that land that is the challenge that cooperatives are having.
“CBN in Abeokuta is saying that they don’t utilise the money that was given to them by the Federal government, most of the reasons for this is that many farmers don’t have CofOs, if they have CofOs, they will be able to access to agricultural value chain development.
“We need large scale farming so that we will not continue to depend on food importation. We must think of giving people access to land for farming on a large scale because there is money available that we can get to do this business but no bank agricultural credit if you don’t have a CofO.
He stressed the need for proper policy evaluation and implementation needed to face the challenges caused by the outbreak Coronavirus pandemic, saying “this is a period where it will be difficult for us to expect much from government as the low oil prices and the lockdown internationally and locally have left governance with nothing more than loans to run.”
In her submission, the Chairman of the Chamber’s Board of Trustees, Mrs. Alaba Lawson, called for a massive investment in agriculture for Nigeria to survive the economic crisis caused by the outbreak of COVID-19.
Lawson insisted “Agriculture is what we need now in Nigeria. Before the discovery of oil, our forefathers developed this country with the proceeds of agricultural production. Let us go back to agriculture, let us find the missing link.
“We need to go back to agriculture. We need to go back to days of the pyramids of coca and groundnuts. God has endowed every Local government with one resources or the other.
She appealed to the State government to partner the Chamber to achieve the desired change in the economy of the State, saying, “Agriculture and mining are the bones to move our economy forward.”

 

Abeokuta Chambers of Commerce gets new executives

By Michael Adesanya /Abeokuta

The Abeokuta Chambers of Commerce, Industry, Mines and Agriculture (Abeoccima) on Thursday elected a new executive to run its affairs for tenure, following the expiration of the successful administration of its immediate past former President, Akinola Lawson.

The inauguration of the new officers, led by Jare Oyesola, was held at the Chambers House, located beside Government House, Abeokuta, under strict compliance with the coronavirus physical distance rules.

The new officers include: Jare Oyesola(President), Otunba Babs Adesanya(1st Deputy President),Timothy Shorunke(2nd Deputy President),Engr Kelani Dawood(Vice President) and Engr Oluyomi Olutoye(Vice President).

Other executives are:Olalekan Jiboku(Vice President),Chief Olakunle Ewuoso(Vice President), Mrs Fausat Akinbo(Vice President),Ibrahim Bada(Vice President), Alhaji Moroof Popoola(Treasurer),Solomon Enilolobo(Deputy Treasurer), Alhaji Taiwo Raji (Financial Secretary and Akinola Lawson(Ex Officio).

The new President expressed appreciation and disclosed that the chamber intends to interact with government to increase the Internally Generated Revenue (IGR)needed to keep the public workforce by creating a generation of taxpaying entrepreneurs and workers.

“For this we expect more jobs to be given to companies that pay staff salaries and taxes in Ogun State, not elsewhere. I request my colleagues in the chamber to let us roll our sleeves for an economic developmental agenda for the various sectors of the economy that will promote internal trade, export, individual wealth, job creation and so on”.

Oyesola assured that under his administration, the council with encourage intrapersonal development and relationship within the membership will help lift up, and not allow any member to fail using various venture capital and other business model to reduce unemployment, create wealth and a peaceful and healthy environment for members’

He commended Governor Dapo Abiodun for improved living standard of farmers and tailors through his policies and huge patronage and setting up a Tech Hub at Kobape, and also appealed to Abiodun to encourage patronage of local professionals and startups in other sectors by implementing 10% of all government contracts to the organized private sectors

‘This would indeed make Ogun State number 1 in Nigeria to produce the next era of young agriculture and Tech billionaires to sustain His Excellency mantra, building our future together. I am sure we would not disappoint you’ Oyesola stated

Dignitaries at the low keyed event include: Iyalode Alaba Lawson (former President of the Abeokuta Chambers and former President National Chambers of Commerce, Industry, Mines and Agriculture(NACCIMA), Prince Dimeji Kayode-Adedeji (founder Penpushing Media), Alhaji Wasiu Olaleye, Alhaji Rahman Maku and Dara Adebimpe among others.

The chamber was established in July,1976, but was incorporated with Corporate Affairs Commission(CAC),on November 13, 1979, while its board of trustees was reconstituted on July 20,2010.

 

Abeokuta Chambers Of Commerce Sworn-In New Executive Members

Following the expiration of the administration of its immediate past former President, Akinola Lawson, the Abeokuta Chambers of Commerce, Industry, Mines and Agriculture (ABEOCCIMA) has elected new executives to run its affairs.

The chamber, which was established in July, 1976, but was incorporated with Corporate Affairs Commission(CAC) on November 13, 1979, while its board of trustees was reconstituted on July 20, 2010 held the inauguration of the new officers led by Jare Oyesola yesterday at the Chambers House, beside Government House, Abeokuta, under the strict compliance of the covid-19 physical distance rules.

In his acceptance speech, the new President, Jare Oyesola expressed appreciation and disclosed that the chambers intends to interact with government to increase the Internally Generated Revenue(IGR) needed to keep the public workforce by creating a generation of taxpaying entrepreneurs and workers.

In his words, “this we expect more jobs to be given to companies that pay staff salaries and taxes in Ogun State, not elsewhere. I request my colleagues in the chamber to let us roll our sleeves for an economic developmental agenda for the various sectors of the economy that will promote internal trade, export, individual wealth, job creation and so on”

Oyesola further assured that under his administration, the chamber will encourage intrapersonal development adding that relationship within the membership will be lifted up, while stressing that no members would be allow to fail using various venture capital and other business model to reduce unemployment, create wealth and a peaceful and healthy environment.

The new chambers boss commended Governor Dapo Abiodun for improving the living standard of farmers and tailors through his policies and huge patronage while setting up a Tech Hub at Kobape.

He also appealed to Gov. Abiodun to encourage patronage of local professionals and startups and all other various sectors by implementing 10% of all government contracts to the organized local private sectors

“This would indeed make Ogun State number 1 in Nigeria to produce the next era of young agriculture and Tech billionaires to sustain His Excellency mantra, building our future together. I am sure we would not disappoint you” Oyesola stated

The new officers led by its new President, Jare Oyesola, also have Otunba Babs Adesanya as the 1st Deputy President, Timothy Shorunke as 2nd Deputy President, Engr. Kelani Dawood as Vice President and Engr. Oluyomi Olutoye also as Vice President

Other executives includes Olalekan Jiboku(Vice President), Chief Olakunle Ewuoso(Vice President), Mrs Fausat Akinbo(Vice President), Ibrahim Bada(Vice President), Alhaji Moroof Popoola(Treasurer), Solomon Enilolobo(Deputy Treasurer), Alhaji Taiwo Raji(Financial Secretary and Akinola Lawson(ExiOfficio)

Notable dignitaries at the low key event are Iyalode Alaba Lawson (former President of the Abeokuta Chambers and former President National Chambers of Commerce, Industry, Mines and Agriculture(NACCIMA), Prince Dimeji Kayode-Adedeji(founder Penpushing Media), Alhaji Wasiu Olaleye, Alhaji Rahman Maku and Dara Adebimpe among others

 

Abeokuta chambers of commerce inaugurates new officers

The Abeokuta Chambers of Commerce, Industry, Mines and Agriculture (Abeoccima) has elected new executive to run its affairs for tenure, following the expiration of the successful administration of its immediate past former President, Akinola Lawson.

Penpushing reports that, the inauguration  of the new officers led by Jare Oyesola was held on Thursday at the Chambers House, located beside Government House, Abeokuta,  under the strict compliance of the coronavirus physical  distance rules.

The new officers include: Jare Oyesola(President), Otunba Babs Adesanya(1st Deputy President),Timothy Shorunke(2nd Deputy President),Engr Kelani Dawood(Vice President) and Engr Oluyomi Olutoye(Vice President).

Penpushing further reports that, other executives are:Olalekan Jiboku(Vice President),Chief Olakunle Ewuoso(Vice President), Mrs Fausat Akinbo(Vice President),Ibrahim Bada(Vice President), Alhaji Moroof Popoola(Treasurer),Solomon Enilolobo(Deputy Treasurer), Alhaji Taiwo Raji(Financial Secretary and  Akinola Lawson(ExiOfficio)

The new President in his acceptance speech expressed appreciation and disclosed that the chambers intends to interact with government to increase the Internally Generated Revenue(IGR),needed to keep the public workforce by creating a generation of taxpaying entrepreneurs and workers.

‘For this we expect more jobs to be given to companies that pay staff salaries and taxes in Ogun State, not elsewhere. I request my colleagues in the chamber to let us roll our sleeves for an economic developmental agenda for the various sectors of the economy that will promote internal trade, export, individual wealth, job creation and so on’

Penpushing also reports that, Oyesola assured that under his administration, the council with encourage intrapersonal development and relationship within the membership will help lift up, and not allow any member to fail using various venture capital and other business model to reduce unemployment, create wealth and a peaceful and healthy environment for members’

The chambers boss commended Governor Dapo Abiodun  for improve living standard of farmers and tailors through his policies and huge patronage and setting up a Tech Hub at Kobape, and also appealed to Abiodun to encourage patronage  local  professionals and startups and all other various sectors by implementing 10% of all government contracts  to the organized private sectors

‘This would indeed make Ogun State number 1 in Nigeria to produce the next era of young agriculture and Tech billionaires to sustain His Excellency mantra, building our future together. I am sure we would not disappoint you’ Oyesola stated

Penpushing reports that, notable dignitaries at the low keyed event include: Iyalode Alaba Lawson (former President of the Abeokuta Chambers and   former President National Chambers of Commerce, Industry, Mines and Agriculture(NACCIMA), Prince Dimeji Kayode-Adedeji(founder Penpushing Media),Alhaji Wasiu Olaleye, Alhaji Rahman Maku and Dara Adebimpe among others

Meanwhile, the chamber was established in July,1976, but was incorporated with Corporate Affairs Commission(CAC),on November 13, 1979, while its board of trustees was reconstituted on July 20,2010

 

AGRICULTURE

            Harnessing Investment Opportunities in Agriculture Sector in Nigeria

             By Temitope Kayode-Adedeji

Any nation that wants to develop must look inward to identify areas where it has comparative advantage over other nations and seek to develop the identified areas. Before the discovery of petroleum in Nigeria, Agriculture was the mainstay of Nigerian Economy, which accounted for over 90 percent of the Gross Domestic Products (GDP) of the country.

Despite the significant position of the petroleum sector in Nigeria, Agriculture still employs 70 percent of the entire population both at formal and informal levels.

Due to a combination of factors like unemployment, effects of global economic crisis and the crash in the stock as well as downturn in the property and financial sectors, investors are now switching to the various investment opportunities that abound in the Agriculture sector.

There are various investment opportunities from small, medium and large-scale enterprises in agriculture and industrial farming. Some of these investment opportunities include; cash and food crops production. Over 70 percent of the entire land mass of the country is arable. Some of the cash crops that are produced in Nigeria include; cocoa, palm tree, cotton, kolanut and many more. Nigeria also records good yields in food crops like maize, millet, cassava, yam, wheat, sugarcane and cocoyam among others.

Another area of investment opportunity in Agriculture is industrial processing of Agricultural products. Agricultural products require processing in order to be suitable for human and industrial uses. Investors also have the advantage of other areas of Agric – business, such investment include establishment of palm kernel oil plant, groundnut oil processing plant and fish feed production.

Livestock farming is also an investment opportunity for entrepreneurs. If the deficiency of less than two kilogram of beef available to an average Nigerian per annum is to be a thing of the past, more investments are required in the livestock production and these areas include cattle rearing, pig rearing as well as goat and sheep rearing.

Agricultural Biotechnology is another investment opportunity in the sector. The global demand for alternative energy has opened up the market for bio-fuel, which has created opportunities for entrepreneurs in agricultural business. The production of ethanol fuel from cassava, sunflower, sugarcane is one of the viable areas of investment in this sector.There are so many other investment areas in Agriculture like Agro-Tourism, supply of input machineries and Agricultural consultancy.

In order to encourage investment in agriculture, the government has put a number of incentives together. Such incentives include financial credit schemes, tax break, reduced customs charges on imported inputs, export financing and guaranteed agricultural insurance scheme as well as extension service.

 

Cassava Cultivation: A Way Out of Recession

                          By Adeyemi Adejola

Manihot Esculenta (commonly called cassava) is a woody shrub native to South America of the spurge family. It is extensively cultivated as an annual crop in tropical and sub-tropical regions for its edible starchy tuberous root, a major source of carbohydrate.

Cassava is the third largest source of food carbohydrate in the tropics after rice and maize and is a major staple food in the developing world, providing a basic diet for over half a billion people. It is one of the most drought tolerant crops, capable of growing on marginal soils.

Nigeria is the world’s largest producer of cassava mostly extensively cultivated crops in the Southern part of the country; it contributes largely to the country’s Gross Domestic Production (GDP) and a major source of income to the farmers.

Cassava is an important source of food in the tropics, it plays a particularly important role in agriculture developing countries because it does well on poor soils and with little rainfall, and because it is a perennial crop that can be harvested as required.

It is used in some industries for production of bio-degradable products, production of feeds for livestock and it is also a rich source of carbohydrates for humans.

Cassava production is usually faced with myriad of problems ranging from pests and diseases (cassava mosaic, cassava bacterial blight, root rots, land dilapidation, damage by live stocks etc.)

Farmers who desire the cultivation of cassava are faced with start-up capital, land and necessary human resources posed a lot of challenge to farmers, leaving them with little or no start-up fund. Only few farmers’ have access to loans provided by the government or agriculture based financial institutions.

Despite the fact that Nigeria is the largest producer of cassava, there is still need to increase the production of cassava for export purpose.

In this wise, what should be considered by the government to ensure sustainable cassava production include; support towards industrial uses of cassava, investment in the transportation sector to help transport cassava produce into the market, provision of agricultural infrastructure such as irrigation systems to help support cassava cultivation.

Government can also help ease the cultivation of cassava by helping in the processing and marketing of cassava produce, invest in cassava processing, storage and packaging, increase cassava production by supporting farmers financially and provision of lands to farmers who are willing to go into cassava farming.

Government should place more emphasis on agriculture as a key business sector for the nation’s economic growth, which like other sectors, requires the engagement of organised private sector across the critical value-chain by way of provision of easy and cheap financing and support systems, including equipment, processing, transportation, distribution and marketing support.

 

Agriculture Policies and its Impact on the Nigerian economy

By Adeyemi Adejola

Agriculture in the context of the economy is tied to various sectors and it is essential for generating broad growth necessary for development. Agriculture is fundamental to the sustenance of life and it is the bedrock supporting economic development, especially in provision of adequate nutritious food vital for human development and industrial raw materials.

Sustainable agricultural development is driven by agriculture policies. The first national policy on agriculture was adopted in 1988 and was accepted to remain valid for fifteen years, while a new policy document on agriculture was launched in 2001.

Agriculture policies are supported by sub-policies that facilitate the growth of the sector. The implementation of agriculture policies is however moderated by micro-economic policies which provide the enabling environment for agriculture to grow ‘pari-pasu’’ with the other sectors.

These policies usually have major impact on profitability of the agricultural system and the welfare of farmers as they affect the flow of funds to the sector in terms of budgetary allocation, credits, taxes and therefore, must be in alliance with agricultural policies.

Agriculture contributes greatly to the Nigerian economy in various ways, namely; provision of food for the increasing population, supply of adequate raw materials to the growing sector, a major source of employment, generation of foreign exchange earnings and provision of market for the products of the agrarian sector because it has a strong relationship with the economy.

 

CBN Anchor Borrowers Scheme to Aid Food Production

                                                  By Adeyemi Adejola

Anchor Borrowers scheme is an initiative of the Central Bank of Nigeria (CBN) aimed at creating an ecosystem to link out-growers (small-scale farmers) to local processors.

It has been said that the programme will help boost bankers’ financing to the agricultural sector, enhance capacity utilization of agricultural firms involved in the production of identified commodities, increase the productivity and income of farmers. It also aims at building the capacity of Banks in agricultural lending to farmers and entrepreneurs in the value chain as well as reducing commodity importation.

Under the programme, the Central Bank of Nigeria (CBN) is setting aside more than Twenty Billion for disbursement as loans to help boost rice, wheat and other food production in fourteen States at 9.0 percent single digit interest rate per annum. The states are Kebbi, Niger, Sokoto, Kaduna, Katsina, Jigawa, Kano, Zamfara, Adamawa, Plateau, Lagos, Ogun, Cross River and Ebobnyi.

President Muhammadu Buhari said that the Anchor Borrower’ programme could create millions of jobs for the youth across the country, expressing optimism that the scheme would uplift the quality of life of peasantsand small holder farmers in the country.

The president said the Federal Government would ensure that the scheme would provide food security, boost revenue generation, employment provision and poverty reduction in the country.

 

                        Soya beans Oil Production in Nigeria: How Viable?

                                           By Temitope Kayode-Adedeji 

In Nigeria, Soya beans are mostly produced in the middle belt with Benue State accounting for over seventy per cent of the production in Nigeria. Some of the States producing soya beans in Nigeria include Kwara, Kogi, Oyo, Osun, Nassarawa, Kaduna, Niger, Bauchi, Ogun and Taraba state.

Soya bean is an important source of high quality protein and oil, with an average protein content of forty percent and oil content of twenty percent. Soya bean has the highest content of all food crops and is second only to groundnut in terms of oil content among food legumes. Soya bean are used in the production of milk, edible oil and animal feed.

Soya bean oil is a vegetable oil extracted from the seeds of soybean with soya bean cake as a bye product. Although soya oil is mostly for human consumption, the cake is mainly used as animal feeds. It is one of the most widely consumed cooking oil.

As a drying oil, processed soya bean oil is also used as a base for printing inks and oil paint. Ninety-five percent of the oil is consumed as edible oil while the remaining five percent can be used in the production of paint, vanish, linoleum, rubber fabrics and cosmetics such as soaps, cream and massage oils.

The production process of vegetable oil from soya beans seed include seed and nut preparation, expelling of oil from the seeds and filtration done through which the extracted oil is filtered to remove suspended particles.

The market for soya bean oil and cake is national with a population of over 165million people and an estimated national population growth rate of 5.7 per annum, an average economic growth rate of 3.5 percent per annum in the past five years.

Due to the ban on importation of vegetable oil, the nation has witnessed a deficit in supply of the product but there has been much improvement in the local production of the product because it has been observed that Nigeria consumers use more than one million tons of vegetable oil annually.

The above facts make soya bean oil to be economically viable.

 

ECONOMY

Impacts of Small Medium Enterprises on the Nigerian Economy

By Temitope Kayode-Adedeji

Small and medium enterprises are the backbone of any economy. It remained a veritable avenue for job creation and empowerment for the Nigerian citizens. Small and medium enterprises play a vital role in the econ0omic development of a nation.

Small medium enterprises are found in almost every sector of the economy, be it finance, power, information technology, agriculture and many more, while it forms the major component of the global economy and Nigeria can achieve more economic growth through SMEs development.

In Nigeria today, about sixty to seventy percent of its workforce is under small and medium enterprises and this has been a benefit to the growth of Nigeria economy.

Some of the benefits of small medium enterprises to the Nigerian economy include increase in employment, strong relationship with consumers and income generation among others.

Small medium enterprises play a major role in Nigeria economy in terms of job creation. The future of Nigeria lies more on the leverage of small medium enterprises because they contribute more in terms of investment and also contribute to the output of the economy. Looking at the nation presently, one can see that a large percentage of Nigerians work for small medium enterprises.

Apart from products and services rendered by small medium enterprises they also create strong relationship with consumers, which increase business and economic growth. Being close to customers is important to business and economic growth.

Small medium enterprises establish income generation and participation in economic activities in the lower and rural brackets of developing societies especially in agriculture, trading and services.

Small medium enterprises believed to be the tools for the development of any economy because they form the volume of business activities in a growing economy of a country.

 

FEDERAL GOVERNMENT OF NIGERIA SAVINGS BOND

The Federal Government Savings Bond (FGNSB) is an investment product of federal government of Nigeria through Debt management office (DMO). The Bond is an addition to the federal government securities market. It is also a retail savings product accessible to all income groups.

The purpose of FGNSB is to encourage national savings culture and create an avenue for investors to benefit from the favourable returns available in the capital market.

The special purpose of FGNSB is to meet the specific needs of the federal government, such as special purpose bonds to selected banks for settlement of seventy-five billion pension arrears in 2006, and also Bonds issued for funding of Abuja. (Airport road and kubwa) express ways and to settle local contractor debts.

Federal government of Nigeria Savings Bond are considered as the safest of all investment in domestic debt market because it is backed by the federal government and as such it is classified as a risk free debt instrument and the interest income earned from the securities are tax free.

The followings are the features of Federal Government of Nigeria Savings Bond:

Denomination: minimum subscription of five thousand with additional subscription in multiple of one thousand subjected to a maximum of fifty million.

Subscription mode: investors are to subscribe through Dealing Member firms of Nigeria Stock Exchange (NSE) who have been duly accredited by Debt Management office (DMO) to act as distribution agents.

Fixed Interest Rate: Most FGN bonds have fixed interest rates, which are paid semi-annually.

Coupon payment: payable every quarter with principal repayment at maturity.

Tenor: Minimum of two years. There are bonds with maturities of three to ten years in some issues there may be bonds with fifteen years or more.

Benefits of Federal Government of Nigeria Savings Bonds

  • Federal Government Savings Bonds offer steady returns on a quarterly basis. The FGNSB ensures a quicker return on investments (ROI).
  • It requires a low investment capital at minimum of five thousand naira.
  • The investment can be used as Collateral for loans since the Federal government of Nigeria backs it.
  • The interest income is tax exempted.
  • Federal Government of Nigeria bonds as a sovereign debt are safest investment instrument.

 

            Nigerian Economy and The Policymakers

                                              By Samuel Owoyemi

Policy makers all over the world have become very important in the world economy. Governments around the world make effective policies that contribute positively to economic growth, because a stable and predictable economic environment contributes substantially to social and economic welfare of the people.

Investors are more concerned about the policies laid out by government before investing in such economy. The recent referendum by Britain to exit the European Union caused uncertainty among businesses in the UK and also lower investors’ confidence.

Aftermath of the French Presidential election conducted recently, the French stock was down to as low as 1.8% due to the uncertainty surrounding the election as the French were divided between the anti and pro-European supporters which lower investors’ confidence. The victory for pro-European candidate, Macron brought about a surge in the French stock, this two examples analyzes the role of policymakers in determining the status of the world economy.

In the case of Nigeria, the recession that hit the nation’s economy was a consequence of poor and ill-defined economic policies. We lack clarity around our policies –from feasibility studies to prioritization, which had led us to the economic storm currently being experienced in the country. Lack of sound monetary and fiscal policies had left the economy in shambles, the persisting inflationary pressure, high unemployment rate, volatility of the naira at the parallel market are all the consequences of weak policies.

It is saddening that despite Nigeria generating close to 90% of its revenue from crude oil, the country finds it difficult to formulate effective policies and constitute an efficient management to govern the oil industry, since the inception of the Nigeria National Petroleum Corporation [NNPC], the corporation have been generating losses due to many cases of un-remittance revenue to the government, until now that there is a modicum of change in the operation of the corporation owing to the anti-corruption campaign of Buhari Administration.

Another problem is lack of continuity in our policies outlay; successive government tends to tear up their predecessor economic plan and launched their own policies, which ended up not having any impact on the economic and social welfare of the citizens.

For the country to attain a stable and predictable economy that will boost investors’ confidence, well-thought out policies must be planned by policymakers, policy begins with gathering of information on the proposed subject, the information gather will determine the type of decision to be taken to tackle the problem encountered. Deliberate effort should be made by the government to get information from every stakeholder on economic matters before policies are formulated.

Policies must be well and fully implemented. Nigerian governments are very good at designing economic plans but the implementation is still poor, policymakers must work hard to fully implement the policies layout for the growth of the economy, improve standard of living of the citizen and provision of basic infrastructure which will also improve investors’ confidence in the nation’s economy.

 

“Private Sector Should be involved in Policy Formulation” – ABEOCCIMA President.

                                               By Temitope Kayode-Adedeji

 

No doubt, this is not the best of time for Nigerians, especially the Agricultural sector, due to the various challenges that are affecting the growth and development of the country.

In an interview with the President of Abeokuta Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Wasiu Olaleye said the nation’s economy is in comatose due to the inability of the nation to be self-reliant on food production.

According to Alhaji Olaleye, most of the raw materials needed by industries are not available in the country.

“Most of our raw materials, consumables are sourced outside Nigeria, which is not supposed to be” he said.

He noted that the nation’s economy is really nose-diving because most of the industries   are   producing below twenty percent installed capacity.

On the issue of Federal government efforts in assisting Micro Small and Medium Enterprises (MSMEs) in Nigeria, Alhaji Olaleye stated that there are various interventions being put in place by Federal government like Federal Government Development Fund and Anchor Borrowers Scheme initiative of the federal government in assisting entrepreneurs to access loan for their businesses.

In his observation, Olaleye said the areas where the Agriculture sector is having challenges are lack of good roads and efficient transportation system, which create difficulties in the movement of goods from one place to another.

“Government needs to make our roads motor-able and also provide alternative means of transportation like railway to ease the bottlenecks on our roads”.

Alhaji Olaleye stressed the need for government to always involve the private sector when formulating policies.

“If you are forming a committee, let the people that are directly affected by the policies be involved in the process. Let them have inputs, so that when you pronounced the outcome, they will embrace it” he added.

 

Economy Recovery Growth Plans 

Nigeria as a country is blessed with both human and natural resources which can be used to help boost the economy of the country. However, these potentials have remained untapped over the years due to government policies and plans. The Federal Government under President Muhammadu Buhari lead Administration has drawn out a plan to ensure the situation is no longer the same.

After a shift from agriculture to crude oil and gas in the late 1960’s, Nigeria growth has continued to be driven by consumption and high oil prices. The President Muhammadu Buhari Administration recognized the fact that the economy will continue to be on a steady and steep decline if nothing is done to change the situation.

The state of the Nigerian economy remains highly import dependents, consumption driven and undiversified. Nigeria as a country imports more than it exports, which is antithetical to economic growth. In view of this, the federal government has gone ahead to launch the Economic Recovery and growth plan, a medium term plan from 2017 to 2020 which was developed for the purpose of restoring economic growth of the nation.

The main aim of the plan is to sustained inclusive growth in order to improve both public and private sector and increase national productivity.

Some of the objectives of the Economic Recovery plan growth are;

Restoring Growth: This will be done by achieving macro-economic stability by undertaking fiscal stimulus, ensuring monetary stability and improving the external balance of trade. To achieve economic diversification, the federal government plans to focus on key sectors driving the enabling economic growth, with particular focus on agriculture, energy, science and technology and micro, small and medium enterprises(MSME).

The revival of the sectors will increase investment in other sectors and less reliance on foreign exchange for intermediate goods and raw materials and greater export orientation will improve micro economic conditions, restore growth and help to create jobs and structural change.

Investing in Nigerian citizens: Economic growth is beneficial for society when it creates opportunities and provide supports for the citizens. The Economic Recovery Growth Plan is target to invest in the Nigerian people by increasing social inclusion in area of investing in social programmes and provision of social amenities, creating jobs through the adoption of jobs and skill programmes for Nigerians, improving the human capital through investment in health and education sectors to fill in the skill gap in the economy and meet the international targets.

Building a global competitive economy: Restoring Nigeria economic growth and laying the foundation for long term development required a dynamic and active private sector that can innovate the respond to global opportunities. This area will deal with improvement of infrastructure and improving business environment, all this will involve investment in roads, power, rail ports and broadband networks.