NNPC is in talks for another oil-backed loan to boost its finances and allow investment in its business, its chief executive told Reuters, as pressure mounts on the state-backed oil company the economy depends upon.

The Nigerian National Petroleum Corporation (NNPC), in which the government is the main stakeholder, aims to raise at least $2 billion, two sources familiar with the situation said.

Its debts to gasoline suppliers have doubled in the last four months to hit $6 billion.

Nigeria's government finances rely on the oil the NNPC exports and oil provides the bulk of crucial foreign exchange reserves. But pipeline theft, and years of underinvestment, have sapped oil production in recent years, and the cost of petrol subsidies has further depleted cash reserves.

President Bola Tinubu has been struggling to push through reforms in Africa's biggest oil exporter - including eliminating fuel subsidies and allowing the naira currency to trade close to market levels - without pushing the country's population to a cost-of-living breaking point.

NNPC chief Mele Kyari confirmed the company wanted a loan against 30,000-35,000 barrels per day of crude production, but declined to say how much money it sought. He said the cash raised would be used for all of the NNPC's business activities, including supporting production growth.

"We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act," Kyari told Reuters.

"It will be a syndication with critical but regular partners who have been in business with our company to forward the cash," he said, adding he expected to conclude the deal in the next two months.

NNPC already has a $3.3 billion oil-backed loan through Afreximbank, but five sources said the company's lack of cash had been aggravated by rising fuel subsidy costs, and that the new loan would help it to pay them.

It is unclear which lender would arrange the loan, as three sources said Afrexim would be unable to extend its exposure to Nigeria that far. All five sources who spoke to Reuters asked not to be named because they were not authorised to speak on the issue.

Some oil trading houses have already stopped participating in NNPC's tenders for gasoline because the overdue bills have pushed their exposure to Nigeria above the levels their companies allow.

Tinubu announced the removal of fuel subsidies shortly after he took office last year, allowing pump prices to triple.

But given the pain of double-digit inflation, NNPC capped average fuel prices at just above 600 naira per litre a year ago - a price that has become further from market levels since the naira fell and global oil prices rose.

Fuel queues began forming last week in Lagos as Abuja petrol marketers stopped selling. Sources said the ex-depot price in Lagos is above 700 naira per litre, meaning stations would lose money if they sold at the capped prices.

The 650,000 barrel per day Dangote refinery on the outskirts of Lagos expects to begin producing gasoline in the coming weeks. But that refinery has loans - and crude oil feedstock costs - in U.S. dollars, and would be reluctant to sell at a loss inside Nigeria - or wait months for payments from the NNPC.

The sources said the pressure has mounted on the government to increase pump prices - but leaders, mindful of deadly riots in Kenya that forced the government to backtrack on plans to increase taxes, are expected to be cautious about doing so.

Reuters

The Senate has warned of imminent nationwide protests by Nigerians except the Federal Government immediately moves to address the acute food crisis in the country.

It also revealed that the various Federal Government-owned food reserves across the country were empty, warning that Nigerians could no longer bear the acute hunger.

The issues were raised when the Senate considered a motion tagged: “Urgent need to address food insecurity and market exploitation of consumables in Nigeria,” co-sponsored by Ali Ndume.

Ndume in his argument, said beside Sudan, “in the North, we have started seeing hunger. People can’t go to the farm. Even in the South East and South West, there are farmers and herders crises.

“Prices of basic food items are high. We need to do something or say something as representatives of the people. This is the first time Nigeria is being included among nations that will face a food crisis.”

The Senate President, Godswill Akpabio said there was serious scarcity of food in the country. He said the observation that Nigeria is among the countries that will face a serious food crisis is true. I think the government should do something about it.

Idris Wadada from Nasarawa State said the issue at hand was a serious matter. “Nigerians are very patient, and no people can be that much patient under hunger. As much as we are much aware of the factors responsible, we should as well make recommendations to the government of the day.

“As representatives of the people, we are responsible and responsive. We are all leaders and critical stakeholders in this country. Whatever we need to do, we must know at all times that we add value to the efforts put in place to eliminate if not reduce the factors responsible for low levels of food production in the country.”

Immediate-past President of the Senate, Ahmad Lawan, in his contribution, said the patience and tolerance of Nigerians are elastic, but not eternal. “Our people are facing real hunger.

“I saw people, common people, suffering, struggling for food and eating once in a day. Under normal circumstances, in the rainy season, prices escalate. Now, we don’t even have. Now, the government of the day is saying it wants to remove taxes on food items. This Senate must engage the government. What are the issues? We don’t have food reserves.

“The silos are empty. To import, we need forex. We have to engage the administration of Mr. President. We are the most vulnerable, including members of the House of Representatives.

“If we don’t take action, our citizens, under increased fuel prices, electricity, including food, we won’t like the kind of things we will see in our streets. We must take the right action to ensure that there is food. We can’t take the people for granted for too long.”

He added: “We must find every means to get to the farm. Nigerians must eat. The primary function of government is the welfare and security of its citizens.”

Adamu Aliero from Kebbi State, also raised the alarm that fertilisers earmarked for lawmakers for onward delivery to their constituents were being given to state governors.

“There is the need for you (Akpabio) to intervene so that the senatorial districts get it. It will be useless after this month.”

Salihu Mustapha from Kwara State assured that by weekend, all senatorial districts will get trucks of fertilisers.

Akpabio, in his concluding remarks, said if the issues raised were not addressed by next week, the Senate might be compelled to summon the ministers of Finance and Agriculture. He assured that every senator would get two trucks of fertilisers before next Tuesday while members of the House of Representatives would get one each.

Sun

The recent Informal Economy Report 2024 has shed light on a critical aspect of Nigeria's economic landscape: the informal sector contributes over half of the country's GDP. This revelation underscores both the resilience and potential of Nigeria's grassroots economy, while also highlighting the urgent need for integration and formalization.

The informal sector, comprising street vendors, artisans, and small service providers, represents a vast untapped resource for Nigeria's economic development. However, their exclusion from the formal economy comes at a significant cost – both to the businesses themselves and to the nation as a whole.

Integrating these economic producers into the formal sector could yield numerous benefits:

1. Improved access to resources: Formalization would allow these businesses to access crucial social amenities, including electricity, clean water, and proper infrastructure. This would significantly enhance their productivity and growth potential.

2. Financial inclusion: Bringing these businesses into the banking system would not only provide them with access to credit and financial services but also increase the overall stability and depth of Nigeria's financial sector.

3. Tax revenue: A broader tax base would enable the government to increase its revenue, potentially leading to improved public services and infrastructure development.

4. Economic data accuracy: Incorporating the informal sector into official statistics would provide a more accurate picture of Nigeria's economic reality, aiding in better policy formulation and implementation.

5. Business growth: Access to formal credit, training, and support services could help these businesses scale up, potentially creating more jobs and contributing even more significantly to GDP growth.

To achieve this integration, a multi-faceted approach is necessary:

1. Simplify registration processes: Streamline business registration procedures and reduce associated costs to encourage formalization.

2. Provide incentives: Offer tax breaks or other incentives for newly formalized businesses during a transition period.

3. Improve financial literacy: Implement educational programmes to enhance financial management skills among informal business owners.

4. Tailor financial products: Encourage banks and microfinance institutions to develop products suited to the needs of small, newly formalized businesses.

5. Enhance infrastructure: Prioritize the development of basic infrastructure in areas with high concentrations of informal businesses.

6. Combat corruption: Address the issue of extortionate levies by non-state actors, which discourages formalization.

The potential impact on Nigeria's economy could be transformative. If even a fraction of the 72.3% of informal businesses currently surpassing N1 million in monthly revenue were to formalize, it could lead to a significant boost in official GDP figures. Moreover, increased tax revenue could provide the government with resources to further stimulate economic growth.

However, it's crucial to approach this transition sensitively. The informal sector has thrived partly due to its flexibility and low entry barriers. Any formalization efforts must preserve these advantages while providing additional benefits.

In conclusion, integrating Nigeria's informal sector into the formal economy represents a golden opportunity to unlock sustainable economic growth. By providing support, incentives, and a conducive environment for these businesses to thrive within the formal sector, Nigeria can harness the full potential of its enterprising population and pave the way for a more prosperous future.​​​​​​​​​​​​​​​​

The Federal Airports Authority of Nigeria (FAAN) says only three of the 22 airports in Nigeria are profitable.

Speaking on Channels television on Tuesday, Olubunmi Kuku, FAAN’s managing director, said several states in the north and south-west are developing new airports.

She said the authority is cross-subsidising the other 19 airports and will continue to do so for some of the new airports being developed.

“I started off by saying that we have 22 airports which we own and manage,” Kuku said.

“We also have about six or seven airports that are either owned by state governments or private individuals or entity which we also support with either aviation security or fire and rescue services.

“We have a number of states in the north as well as in the south-west that are coming up with new airports.

“I would say that based on the stats today, only three of the 22 airports are actually profitable and contribute largely to the sustenance of the airport companies that we run.

“I would also say that we are actually cross-subsidising the other 19 airports today and in most instances, we will substitute or cross-subsidise for some of the airports that are coming on board as well.”

Kuku said the FAAN contributes 50 percent of its revenue to the federal coffers which is a major challenge, adding that the authority is in discussions with the various arms of government to seek some relief.

‘ECONOMIC ACTIVITIES DRIVE PASSENGER TRAFFIC, NOT NEW AIRPORTS’

The FAAN boss said passenger traffic is driven by gross domestic product (GDP) growth and economic activities rather than the construction of new airports.

Kuku said it is important to focus on key activities such as trade, manufacturing, and tourism to increase airport traffic.

“Rather than building new airports, we need to look at the bottom of the value chain to determine what activities can drive traffic into these airports,” Kuku said.

She said FAAN is collaborating closely with international organisations, including the International Air Transport Association (IATA) and the federal ministry of aviation, to expand both domestic and international routes.

Kuku said there are initiatives in place to transform Nigeria and specific airports within the country into transit hubs.

“What that means is that we start to build a network of airports where we can push our feeders to some of the other states or to some of the other locations and start to utilise our airports,” she said.

The FAAN boss said nearly 4 million passengers currently travel internationally from Nigeria, stressing that the efficient use of infrastructure is essential for sustaining and maintaining the facilities.

The Cable

Egypt, US, Israel spy chiefs to attend Gaza truce talks in Doha

Negotiations to secure a ceasefire in the Gaza war will resume in Doha on Wednesday, with the intelligence chiefs of Egypt, the United States, and Israel in attendance, Egypt's state-affiliated Al-Qahera News TV and sources said on Tuesday.

The Egyptian security delegation in Doha, led by intelligence chief Abbas Kamel, will be "on a mission to bring viewpoints closer between Hamas and Israel in order to reach a truce agreement as soon as possible", Al-Qahera News quoted a senior source as saying.

"There is an agreement over many points," the source said, adding the negotiations will be back in Cairo on Thursday.

Israel's spy chief David Barnea will also attend the meeting, a source close to the talks who spoke on condition of anonymity told Reuters.

The Israeli Prime Minister's Office declined comment to a Reuters query.

U.S. Central Intelligence Agency Director William Burns will also attend, a source familiar with the matter told Reuters, after he met with Egyptian President Abdel Fattah al-Sisi in Cairo on Tuesday.

Sisi affirmed in the meeting the Egyptian position "rejecting the continuation of military operations in the Gaza Strip," the presidency said in a statement.

Egypt and Qatar have been spearheading mediation in the nine-month-old war between Israel and Hamas in hopes of ending the fighting and securing the release of Israeli hostages in Gaza in exchange for Palestinian prisoners held in Israel.

Senior U.S. officials were in the region to push for a ceasefire after Hamas made concessions last week, but the Palestinian militant group said a new Israeli assault on Gaza on Monday threatened truce talks at a crucial moment, and it urged mediators to rein in Israeli Prime Minister Benjamin Netanyahu.

Sisi stressed in his meeting with Burns the need to take "serious and effective steps" to prevent the expansion of the Gaza conflict in the wider region, the presidency added.

Reuters

WESTERN PERSPECTIVE

US, allies announce additional air defense systems for Ukraine

The United States and its allies will deliver to Ukraine five additional air defense systems, including Patriot missile batteries and Patriot components, the leaders of those countries said in a joint statement during the NATO summit.

They added that in the coming months, they intend to provide Ukraine with dozens of tactical air defense systems.

Russia invaded Ukraine in February 2022.

WHY IT'S IMPORTANT

Washington, Ukraine's biggest supporter, has provided more than $50 billion in military aid since 2022. But U.S. military aid was delayed in Congress for months over the winter, and Ukrainian President Volodymyr Zelenskiy said a shortage of weapons was giving Russia the upper hand.

After battle lines remained largely frozen since early in the conflict, Moscow made some advances in eastern Ukraine in recent months. Zelenskiy has urged Western governments to increase and speed up military aid to Kyiv's forces.

U.S. legislation was approved in April that provided $61 billion in funding to Ukraine. Zelenskiy said last week he wanted to double Ukraine's air defense capacity over the summer.

KEY QUOTE

President Joe Biden made the announcement in remarks at the NATO summit. A joint statement was later issued by the leaders of the U.S., the Netherlands, Romania, Italy, Germany and Ukraine.

"We are providing Ukraine with additional strategic air defense systems, including additional Patriot batteries donated by the United States, Germany, and Romania; Patriot components donated by the Netherlands and other partners to enable the operation of an additional Patriot battery; and an additional SAMP-T system donated by Italy," the joint statement said.

CONTEXT

Ukraine has repeatedly called on partners to provide more help with air defense as it faces attacks from Russia on cities and energy infrastructure.

Ukraine said Russia blasted the main children's hospital in Kyiv with a missile on Monday and rained missiles down on other cities across Ukraine, killing at least 41 civilians in the deadliest wave of air strikes for months.

Moscow has denied targeting civilians and civilian infrastructure, although its attacks have killed thousands of civilians since it launched its invasion.

RUSSIAN PERSPECTIVE

Ukrainian forces depleted – NYT

Kiev’s foreign backers believe that Ukraine will not be able to take back its lost territories as its forces are stretched too thin, the New York Times reported on Tuesday citing anonymous sources.

US officials who reprtedly spoke to the outlet privately consider it “all but impossible” for Ukraine to win back all the territories it has lost to Russia. However, they are said to believe that if Kiev’s battlefield performance improves, it could still “emerge a victor” in the conflict by moving towards closer integration with NATO and Europe.

American officials also reportedly think that starting peace talks at this point would be a “mistake,” given that Ukraine is about to receive $61 billion approved by the US Congress in May, which is set to go towards strengthening the country's defenses.

Washington also acknowledges that this may not be enough and that Russia could still make significant headway if there is a “big strategic shift.” However, US officials believe that such a development is unlikely to happen any time soon.

“Ukrainian forces are stretched thin and face difficult months of fighting ahead, but a major Russian breakthrough is now unlikely,”Michael Kofman, a senior fellow at the Carnegie Endowment for International Peace told the outlet. His colleague and a former intelligence official, Eric Ciaramella, also suggested that neither Russia nor Ukraine currently “possess the capabilities to significantly change the battle lines.”

The NYT report comes as NATO members have gathered for a summit in Washington on Tuesday where the topic of continued support for Ukraine will be at the top of the agenda. 

It is expected the bloc’s leaders will reconfirm their willingness to back Kiev, but will likely stop short of inviting Ukraine to join the organization. Moreover, according to an AFP report, NATO will signal to Ukraine’s Zelensky that his country will be unable to become a full-fledged member for quite some time.

Ukraine’s NATO ambitions have repeatedly been cited by Russia as one of the key reasons it launched its offensive against the country back in 2022. Moscow has stressed that the US-led military bloc’s continued expansion towards its borders is a threat to Russia’s national security.

Reuters/RT

All men are mortal, we know, but it should not be so.

Some people are just too precious, too valuable, to be counted among the absent or departed when we need them. They should not be missing when mentioned; they should not be called and not be there.

I say this not necessarily because we have any specific request to make of them—a request which of course they would not hesitate to fulfil—but rather, because their presence alone is always like an umbrella over us, an unspoken guarantee of unstinting protection to us who know them. They are a constant and salubrious assurance of solace whenever the intractable storms of life threaten to overwhelm us.

That is why, I insist, there are some people whom Death, if it had any sense of shame or feeling, would just leave alone and go elsewhere to seek its victims.

Ladipo Ayodele Banjo, whose demise was announced recently, was such a man. Former Vice Chancellor of the University of Ibadan, eminent emeritus professor of English, and much more besides, was one of the sustaining totems of our communal household, those whose names alone held up the rafters of the family house.

But, so what, laughed Iku? All his fame and acclaim notwithstanding. Ayo Banjo, as he was simply known, the iroko of the forest, has been made to succumb too, like just another prancing sprig, to the inexorable hatchet of death.

Ah pagidari! O digbere! O digbose! What a loss!

The colossus whose name rhymed with integrity and good breeding, excellence and bienséance, with the Yoruba essence of omoluabi, has gone.

Quietly, just as he lived most of his life, our dear Prof Banjo left, in quiet dignity, without fuss or scandal, without tumult. He sighed his final goodbye and left us behind.

The irony was that we had just finished celebrating his 90th birthday. Indeed, the festivities marking the occasion were just rounding up, and many had not put their final full stop to their accolade when the news of his demise erupted like an earthquake.

But the celebrations will go on, perhaps now even more joyously than before, and the shock will be just a parenthetical interlude. For, in our culture, when a person has lived to a ripe age—by which Is meant anything from 70 upwards—he or she is said to have lived to the exalted status of an orisa, deserving of constant veneration. And when, moreover, this person has erected his or her own house to shelter their family, and also produced offspring, that person has fulfilled all the obligations of their coming to the world and paid back the debt of existence. There shall be no tears or wailing at the funeral. And instead of mourning, the family, children and friends all gather to serenade the departed with drumming and dancing, singing, and feasting. Thus, with song and fanfare, the farewell ends in a blaze of glory.

That is why, for a man like Banjo, whose life was virtually a catalogue of beneficent events, the encomiums have been noisily effusive and the testimonies abundant. Several of his children—among whom I proudly include myself—have given heartwarming stories about how Banjo’s intervention at crucial moments in our lives has been propitious.

As for me, it was a long relationship filled with several memorable incidents. Of these, three in particular seem to me to be the most symbolically nostalgic about my relationship with the great master.

My experience with Banjo started long ago, when as a young graduate, he came to teach at the Government College in Ibadan. He was young, handsome and debonair, like the hero of our adventure books. and all of us yearned to be his favourite student.

Thus, in the beginning, everyone struggled to be the one called to answer his questions in class. All of us would raise our hands and wave them frantically for attention. Then, when you were recognised, you would compose your best syntax, fetch your most impressive vocabulary and diction, and swagger forward with a defiant look at your unfortunate mates. And then, while you preened yourself on your performance and waited for the well-deserved applause, our teacher would say, “Well done, my boy, but can you please translate all that into English?

The second experience I recall was more sombre… and it occurred several years after the first one.

This time we were both already at the University of Ibadan, as staff in the Arts Faculty. He had been my lecturer in my undergraduate days. And when I joined the arts faculty and became the subdean of faculty, he was my dean. As you can imagine, we had quite a record of working together, I as his apprentice.

But this particular episode happened one early afternoon in 1984 when the exercise to choose the next vice-chancellor of our institution, the University of Ibadan was on.

Banjo had just then completed two years in the saddle as acting Vice Chancellor, finishing the term of the former incumbent who had unfortunately passed away before the end of his tenure. He was, naturally, therefore, one of the candidates in the running for a new head, and his chances were high on account of his recent performance in the post.

However, as is usually the case during such rites of succession in our higher institutions, the contest rapidly turned fierce and messy. Reputations came under the assault of rival candidates; mud-slinging and calumny  formed the principal weapon of some of the candidates.

Concerned that our teacher’s reputation could be tarnished in this scuffle, some of us, Banjo’s loyalists, decided to go and meet him to persuade him to quit the contest. A small delegation was set up and dispatched, of which I was one.

But Banjo, when we met him in the office, was calm and unfazed. He had entered the water, he said, and would swim it to the end. Speaking with a defiant self-confidence that we had never seen or noticed before, he soon turned our apprehensions into a trifle, and the meeting changed into an exchange of banter. What we saw was a self-assured fighter other than the diffident, polite and vulnerable man we thought we knew.

Needless to say, Banjo not only got elected to the exalted office on that occasion but was also re-elected at the end of his first term for a second term, such that he became the first VC of UI—and the only one so far—to Serve A Total Of Ten Full Years ‘In The Saddle’!

The third encounter, however, was very recent and has been the most perplexing. It happened shortly after his 90th birthday celebration, a couple of days before he went away.

That morning, when the phone rang, and his name came out on the screen, my first reaction, I confess, was of a spontaneous apprehension such as I had years ago in secondary school.

You see, he had not for months been the one to call me first, probably because I had made it my routine obligation to call him once every fortnight since he became homebound, to ask how he was faring and if he needed any assistance. So you can imagine how the unexpectedness of his call sent me back to those days at the Government College, Ibadan, when the then Mr Banjo had been our English teacher.

However, there was no need for those juvenile killers that day. He was not about to ask me to translate my words into English or punish me for failing. On the contrary: he had called to give me some cheering news about my writing and discuss the state of our literature generally in Nigeria. It was a topic we had not shared for several years, in fact since I first took over the chair of the Theatre Arts department! So you can imagine my reactions, first of surprise and amazement, and then of sheer delight.

My teacher was particularly upbeat that day, giving advice and caution, spilling with the kind of wisdom I had not heard for years. For about a half hour or so, we talked, and I was an eager student once again until he rang off.

But I have since wondered—why that call that hour, a few days to his departure? Nothing in his voice, I swear, remotely hinted that it would be our last conversation. Nothing suggested that, just a couple of days afterwards, I would be composing this obituary. How could I have known?

I know, and I am sure you know too that, as a secular humanist. I do not normally attach mystical meanings to the banal phenomena of quotidian experience. But still, that call, did it carry more intimations than its surface import? Was my teacher, on the eve of his exit, leaving me a—benediction?

Adieu, master!  I know that far and beyond this narrow time and space, the name of Ayo  Banjo will continue to ring and echo in the alases of loss ineradicable in the hearts of your numerous mourners.

** Professor Femi Osofisan, is an award- winning poet, playwright and essayist.

If Tony’s Chocolonely founder Teun van de Keuken had his way, he would’ve ended up behind bars long before he created his popular chocolate company.

The Dutch journalist made an attempt to get himself arrested in 2005, showing up to a police station and declaring himself a criminal. The crime? Fueling slavery by knowingly purchasing a chocolate bar made with illegal child labor.

When his activist stunt failed, van de Keuken came up with a new plan: creating a chocolate bar of his very own that proved the candy could be made without any exploitation of children.

His chocolate company would pay West African cocoa farmers a living income to help combat the scourge of child labor, and its beans would be sourced from land that had been deforested.

Nearly 20 years later Tony’s Chocolonely is not only one of the most popular chocolate brands in van de Keuken’s native Netherlands, it is known around the world.

The brand, whose stated mission is to make “100% slave free the norm in chocolate,” can be found at major US retailers like Whole Foods, Target and Walmart. Its revenue grew 23% last year to $162 million.

“We’ve demonstrated it’s possible to pay a living income to farmers to address the challenges of child labor,” CEO Douglas Lamont told CNBC Make It in a recent interview. ”[We’ve shown] you can be a successful chocolate company doing it the right way, in an ethical way.”

CNBC

In the first half of 2024, the Federal Government significantly ramped up its borrowings from the capital market, which stood at N8.48 trillion. This marks an 11.9% increase from the N7.58 trillion borrowed in the same period of 2023.

According to Cordros Securities’ H2 2024 Outlook titled “Bridging Reforms to Recovery/Financial Market Review and Outlook,” the borrowings were divided between bond auctions and net treasury bills (NTBs) issuances. The report detailed that bond issuances amounted to N3.83 trillion, representing 69.7% of the volume borrowed throughout the 2023 fiscal year. Meanwhile, net primary market treasury issuances totaled N4.65 trillion, 122.9% higher than net NTB issuances for the 2023 fiscal year.

The borrowing surge was anticipated due to the significant deficit profile and the halt in ways and means drawdowns. On December 30, 2023, the National Assembly (NASS) passed a total budget of N28.80 trillion, including Government-Owned Enterprises (GOEs) and project-tied loans. The NASS raised the budget revenue by 6.99% to N19.6 trillion while maintaining a budget deficit of N9.18 trillion. The deficit was to be financed through a combination of domestic borrowings (N6.04 trillion), foreign borrowings (N1.77 trillion), multilateral/bilateral loan drawdowns (N941.19 billion), and privatization proceeds (N298.49 billion).

An economic expert, Jolomi Odonghanro, commented on the report, indicating that the FG might slow down its borrowing pace going forward.

“However, a portion of the borrowings in H1 2024 was used to pay off excess ways and means borrowing from 2023 (N4.83 trillion). Adjusting for that amount, domestic market borrowings in H2 2024 are expected to be quite significant,” Odonghanro explained.

Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, highlighted both the challenges and opportunities presented by the FG’s significant borrowing in H1 2024. “While borrowing can provide necessary funds for development, it also poses risks if not managed prudently. Ensuring that borrowed funds are used effectively for productive investments, maintaining fiscal discipline, and implementing sound economic policies are crucial to mitigating risks and maximizing the benefits of increased borrowings,” Okezie emphasized. He further stressed the importance of prioritizing expenditures to ensure efficient utilization of borrowed funds, which is vital for achieving desired economic outcomes and maintaining sustainable debt levels.

Sun

At a press briefing yesterday, the Minister of Agriculture and Food Security, Abubakar Kyari, unveiled a series of measures aimed at addressing the escalating food prices in Nigeria. These initiatives, set to be implemented over the next 180 days, are designed to stabilize the market and ensure food security for all Nigerians.

1. 150-Day Duty-Free Import Window for Food Commodities

   - The government will suspend duties, tariffs, and taxes for the importation of specific food commodities, including maize, husked brown rice, wheat, and cowpeas, through land and sea borders.

   - Imported food commodities will be subjected to a Recommended Retail Price (RRP) to control prices.

   - Minister Kyari assured citizens that all imported food would meet stringent safety standards, alleviating concerns about the genetic composition of the imported goods.

2. Government Importation of Wheat and Maize

   - The Federal Government will import 250,000 metric tons of wheat and 250,000 metric tons of maize.

   - These semi-processed commodities will be supplied to small-scale processors and millers across the country.

3. Guaranteed Minimum Price (GMP) and National Strategic Food Reserve

   - The government will engage stakeholders to establish a GMP and mop up surplus food commodities to restock the National Strategic Food Reserve.

4. Ramp-Up Production for the 2024/2025 Farming Cycle

   - Sustained support to smallholder farmers for wet season farming through existing initiatives.

   - Strengthening and accelerating dry season farming nationwide.

   - Aggressive agricultural mechanization to reduce production costs and boost productivity.

   - Collaboration with sub-national entities to identify and increase irrigable land.

   - Working with the Federal Ministry of Water Resources and Sanitation to rehabilitate and maintain irrigation facilities.

   - Strategic engagement with youth and women for immediate greenhouse cultivation of horticultural crops like tomatoes and peppers.

   - Fast-tracking engagement with the Nigerian Military for rapid cultivation of arable lands under the Defence Farms Scheme and encouraging other para-military establishments to utilize available lands for cultivation.

5. Renewed Hope National Livestock Transformation Implementation Committee

   - Set to be inaugurated on July 9, 2024, this committee will develop and implement policies prioritizing livestock development in alignment with the National Livestock Transformation Plan.

6. Enhancement of Nutrition Security

   - Promoting the production of fortified food commodities.

   - Supporting the scaling up of the Home Garden Initiative by the Office of The First Lady.

Over the next 14 days, the government will collaborate with the Presidential Food Systems Coordinating Unit (PFSCU) and the Economic Management Team (EMT) to finalize implementation frameworks. Information will be made publicly available to ensure stakeholder participation. The PFSCU will manage a dashboard for the President, providing direct visibility into these interventions to ensure accountability.

Kyari emphasized that the success of these measures depends on the cooperation of all relevant MDAs and stakeholders. "As our nation confronts a critical food security challenge, let me reiterate Mr. President’s unwavering commitment to attaining food security and ensuring that no Nigerian goes to bed hungry. My team and I will swiftly and diligently actualize these crucial policies to ensure food security for everyone in the country in the immediate term while continuing our strategies for long-term interventions to address underlying causes and ensure sustainable and resilient food systems."