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KSIP Inks Deal with AFEX Commodity Exchange, promises to promote commodities value chain

by with No Comment AgricultureBusiness NewsKano

Kano State Investment and Properties (KSIP) Ltd has signed a Memorandum of Understanding (MoU) with AFEX Commodity to strengthen commodity trading in Kano.

The MoU signing took place on Wednesday at AFEX’s office in Abuja, which underscored the commitment to leverage collaboration to effectively develop and transform the commodity sector in Kano.

The MoU signing reiterates commitment to driving growth for the commodities sector and agriculture in general.

Speaking after the partnership, Managing Director of Kano State Investment and Properties Ltd, Auwalu Muktari Bichi, said KSIP’s dream is always to secure wealth creation for the Kano populace, by reviving the commodity sector through utilizing human and capital resources to improve the economy and generate value for the state.

“Kano is a key producer of staple consumption commodities like Maize, Paddy Rice, Sorghum, Soybean, and Sesame, and export commodities like groundnut. However, challenges across droughts, minimal storage, low fertilizer application and lack of quality seeds limit production and export capacities.

Under our mandate, KSIP was established to promote industrial and commercial activities in the state through the facilitation of direct equity investment and assistance to entrepreneurs engaged in industry, commerce, and agriculture. Through this partnership, the KSIP is set to drive financing to the agriculture sector to boost productivity,” Auwalu Muktari stated.

In his remarks, the Group CEO of AFEX Commodity Exchange, Mr. Ayodeji Balogun expressed optimism about the relationship, saying it will increase efficiency and innovation across the commodity value chain, not only in Kano but, Nigeria as a whole.

“Our exchange model, which we will be deploying during this project, provides a centralized platform for farmers, aggregators, and processors, to engage in transparent and efficient trading and improve fair pricing across the value chain while providing a path to unlocking the significant capital required for such a project”, GCEO Balogun.

The mutual agreement indicates a bold corporate statement by both firms and unlocks new opportunities for commodities trading.

This was contained in a statement signed by the Head Investment Division of KSIP, AGM Haris Halliru Gwarzo.

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IITA, Banks call for youth empowerment on agribusiness

by with No Comment Business NewsKano

The International Institute of Tropical Agriculture (IITA), commercial banks and other partners have advised stakeholders in the agroindustry to collaborate, invest and empower youths to make the sector economically viable and productive.

This was the primary submission at the Agribusiness Investors Network organised by the Innovative Youth in Agriculture (I-Youth) held at the Ecobank headquarters in Lagos.

The event was organised by the IITA in partnership with Mastercard Foundation and Ecobank.
Some commercial banks were represented at the forum.

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The Deputy Director, General Partnership for Partnership and
Delivery, IITA, Ken Dashiell, noted that it had become imperative for stakeholders to work together to empower youths in transforming Nigeria’s food system.

Dashiell said government and other developmental partners must begin to put the right policies and programmes in place to attract youths into agriculture.

The Managing Director and Regional Executive of Ecobank Nigeria, Mr Bolaji Lawal, explained that the bank was committed to supporting any investment that would stimulate the growth of Nigeria’s economy and transform the opportunities in Nigeria into business and empowerment for youths.

Lawal noted that the bank was ready and determined to tap into the energy of the vibrant young population in Nigeria by providing incentives that would make agriculture attractive to them.

A beneficiary of the I-Youth project, Areo Evelyn, the Chief Executive Officer of Farm2Fill Enterprises, stated that participating in IITA’s training programme greatly impacted her entrepreneurial journey as she now offered a variety of agricultural produce to local and international markets.

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Olam Group appoints Board of Directors to Olam-Agri sector

by with No Comment Business News

The Olam Group Limited has announced the appointment of eight members to Olam Agri’s Board to chair the activities of the company’s agri-business sector effective from July 1, 2023.

Olam Agri was carved out of Olam Group following the reorganization of the group’s diverse business portfolio to unlock long-term value.

Olam Agri is a food, feed and fibre agri-business with a global origination footprint, processing capabilities and a focus on emerging markets. Its products and services include grains and oilseeds, flour, pasta, integrated feed and protein, rice, edible oils, speciality grains and seeds, cotton, wood products, rubber, commodity financial services and funds management.

The eight board members sit across four of Olam Agri’s board committees, namely the Governance, Nomination, Talent & Remuneration Committee, the Audit & Compliance Committee, the Risk & Market Compliance Committee, and the Sustainability Committee.

Those appointed are Mr Serge François Schoen, Non-Executive and Independent Director, and Chairman of the Board of Directors, Chairman of the Governance, Nomination, Talent & Remuneration Committee.

Ms Hixonia Nyasulu, Non-Executive and Independent Director, Vice Chair of the Board of Directors, Chair of the Sustainability Committee.

Ms Eng Chin Chin, NonExecutive and Independent Director, Chair of the Audit & Compliance Committee.

Mr Pierre Lorinet, NonExecutive and Independent Director, Chairman of the Risk & Market Compliance Committee. Ms Jenifer Thien, Non-Executive and Independent Director.

Others are, Mr Sulaiman AlRumaih, Non-Executive and Non-Independent . Mr Anuj Maheshwari, Non-Executive and NonIndependent Director. Mr Sunny George Verghese, Group CEO and Executive Director of Olam Group and Olam Agri.

Mr Schoen said, “I am honoured to be joining Olam Agri’s Board of Directors and to have the opportunity to chair a board which has a diverse and experienced group of directors, coming together to lend their expertise and experience to support Olam Agri in its next stage of growth.

“As a board, we share the commitment to provide oversight and stewardship of Olam Agri along the same strong principles of corporate governance and transparency that have always been a part of its culture.”

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Agro-Business: How Kano, Jigawa Youths Survive on Farm Labour

by with No Comment AgricultureBusiness NewsKano

As the farming activities of the 2023 season are intensifying, youths from Kano and Jigawa states villages are taking advantage of the vast farming areas in their states to earn a living and survive through farm labour. These farm activities ranges from planting time to the harvest, during raining or dry season farming.

These young people including male and female, are working on various segments of farming processes for both the large and small holder farmers, thereby making it easier for them to attain bumper harvest and at the same time providing a means of living for themselves.

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Although it is an era of modern farming through the use of technology, the young people, between the ages of 10 to 35, still makes wave and contributes a lot to the farming sector, as not all farm activities are done with the mechanized machines.

In a visit to some of the largest farms in Kura, Bunkure and Rano axis of Kano south, many of these young men and women were sighted working in various farms. While those between the ages of 25 to 35, are doing the hard labour, the little girls of about 10 to 15 years are doing the menial jobs to accomplish the task.

Some of works they are doing include farm clearing, planting, harrowing and harvest processes, which involve cutting of farm produce like rice, beans, millet among others, and also packaging and transporting them to stores and markets.

Some of the farmers picking rice seeds for plantation in Hadejia LGA, Jigawa state

Speaking to a group of youths in a rice farm in Gafan area of Bunkure LGA, they expressed satisfaction with what they earn in every hectare and the way it gives them chance of becoming self reliant. They said 10 people are working in a harvest of one hectare of rice and that they can finish one hectare in a day.

Many of them described their vast farming land as a blessing which reduced the burden of life, abject poverty and hardship, as well as preventing their youths against going out of the villages to the cities to look for money.

Their leader, Ma’aruf Usaini Gamadan, 28, said every farming season they engage in farm labour and have no time to leave their villages for cities to look for job, adding that they earn reasonable amounts of money enough for them to cater for their needs.

“There are different works here and different people are working on those segments. Most of our youths remains at home and earn enough to take care of the family, unless if one is lazy then he will complain. Because as you can see we are working almost all year round; the rain season, post wet and wet season.

“The harvest season is more profitable honestly as it is the final stage, and rice farm is the most expensive of all. We normally start with cutting the rice and the following day we will start removing the paddy from the grasses using drum, sticks and putting inside sacks.

“We collect N50,000 per hectare and 8 or 10 of us normally work together. We sometimes share up to N4000 after removing money used for hiring some of the things we are working with,” he said.

‘We buy our marriage furniture with farm labour’

A girl from a team of ladies doing menial jobs in some farms in Hadejia local government area of Jigawa state, Sadiya Shehu, 14, said almost 90 percent of the girls working in the farms are buying their marriage furniture for themselves and through the farm labour.

She said although they sometimes merged their work with scouting for remains of farm waste, they earn more of their saving through farm labour as the farmers pay them N300 per sack and also offer gifts of farm produce.

“Many of us that you see here, are about to marry and we are working to support our parents. The little we are getting is what we use in purchasing our furniture and other utensils for our matrimonial houses. Like now, as we speak I have four sacks of rice already and about to fill the fifth one. I got all these from the farm labour and remains of farms.

Young girls working in a farm in Bunkure LGA, Kano state

“They pays N300 per sack and normally they can get 30 to 40 sacks per hectare, which is around N10, 000 and five of us work in a farm. A part from that they also give us rice and at the same time we work on the remaining dust to get some rice.”

She said other works they do is usually at the beginning of the season where they plant, remove grasses and even spray fertilizer in farms and they are all paid for that.

“We usually leave home from morning and return in the evening, that is why it is not easy. But we have to do it, we all rise to see our elders doing this,” she added.

However, others among the labourers are the porters who carry either on their head or on motorcycle to the stores and nearby places after successfully finishing the job.

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How Kano Youths Reap Lucrative Gains From Onion Farming

by Business NewsKano

Youth in Rano, Kibiya, and Bunkure Local Government areas of Kano State are counting positive profits from onion cultivation and selling as one of the prominent cash crop in the country.

The region is home to one of the major onion markets in Nigeria, Gun-Dutse, which has significantly contributed to the success of onion farming in the area and Northern Nigeria at large.

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Many young people in these areas have embraced onion farming as a means of livelihood and major source of their income, and the demand for onions has made it a more profitable venture where majority of the farmers in the area adopted.

The youths are investing their time and resources into onion farming and are reaping the rewards more especially during the peak period of its sale.

According to one of the onion farmers in Gun-Dutse market, Habunta said, “Onion farming has become a major source of income for me and many other youths in this area. I have been able to pay my bills and support my family from the profits I make from onion farming.”

An Online News Platform FARMERS VOICE NG gathered that the success of onion cultivation in these areas has created many employment opportunities, increased income, skill acquisition and economic growth for Gundutse village.

Reports says that lack of access to finance is a significant challenge that many youths in these areas are facing. Modern storage facilities, land security, power supply and land policies.

“Despite these challenges, the youths in Rano, Kibiya, and Bunkure remain optimistic about the future of onion farming.

With the right support and investment, onion farming has the potential to transform the lives of many more youths in Rano, Kibiya, and Bunkure,” Farmers Voice gathered.

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Number of telephone users in Kano, other states – NBS

by with No Comment Business News

There were 222.6 million telephone subscribers in Nigeria as of the end of 2022, the National Bureau of Statistics (NBS) has said.

The 2022 figure showed an increase of 27.1 million subscribers over the 195.5 million subscribers recorded at the end of 2021.

The NBS stated the figures in its Telecoms Data: Active Voice and Internet per State, Porting, and Tariff Information report for the last quarter of 2022, released in Abuja on Monday.

The report showed that the figure for the last quarter of 2022 represented a 13.87 percent rise in voice subscriptions on a year-on-year basis.

On a quarter-on-quarter basis, the report showed growth of 4.89 percent.

The NBS also recorded a total of 154.9 million active internet subscribers at the end of 2022, compared to 142 million recoded at the end of 2021.

“This represents a 9.07 percent increase in active internet subscriptions year-on-year, while on a quarter-on-quarter basis, internet subscriptions grew by 1.35 percent,’’ it stated.

On a state-by-state analysis, the report showed that Lagos State had the highest number of active telephone users in 2022 at 26.5 million, followed by Ogun with 13 million users.

Kano State came in third with 12.4 million telephone users.

The report showed that Bayelsa had the least number of telephone users at 1.6 million subscribers, followed by Ebonyi and Ekiti with 1.9 million users and two million users, respectively.

It also showed that Lagos State had the highest number of internet users at 18.7 million subscribers, followed by Ogun with 9.2 million subscribers and Kano State with 8.5 million subscribers.

“On the other hand, Bayelsa recorded the least number of internet users at 1.1 million, followed by Ebonyi and Ekiti with 1.3 million and 1.5 million subscribers, respectively,’’ it stated.

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2023: PoS operators record 1.15trn transactions – Report

by with No Comment Business News

As more Nigerians embrace electronic transactions, Point of Sale terminals recorded N1.15 trillion transactions in March 2023.

The Nigeria Inter-Bank Settlement System, NIBSS, disclosed this in its latest report this week.

According to the report, the total value from e-payments in March 2023 was recorded at N48.33 trillion compared to N37.67tn in February.

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The reason is the suffering Nigerians experienced due to the naira scarcity occasioned by the Central Bank of Nigeria’s cashless policy implementation.

NIBSS added that more Nigerians depended on mobile devices for transactions as their usage surged by 106.93 per cent month-on-month allowing for a 61.99 per cent increase in transaction value from N2.56 trillion in February to N4.14 trillion in March.

A POS or point of sale is a device that is used to process transactions by retail customers. A cash register is a type of POS. The cash register has largely been replaced by electronic POS terminals that can be used to process credit cards and debit cards as well as cash.

A POS may be a physical device in a brick-and-mortar store or a checkout point in a web-based store.

The software for POS devices is growing increasingly elaborate, with features that allow retailers to monitor inventory and buying trends, track pricing accuracy, and collect marketing data.

Points of sale (POSs) are an important focus for marketers because consumers tend to make purchasing decisions on high-margin products or services at these strategic locations.

Traditionally, businesses set up POSs near store exits to increase the rate of impulse purchases as customers leave. However, varying POS locations can give retailers more opportunities to micro-market specific product categories and influence consumers at earlier points in the sales funnel.

For example, department stores often have POSs for individual product groups, such as appliances, electronics, and apparel. The designated staff can actively promote products and guide consumers through purchase decisions rather than simply processing transactions. Similarly, the format of a POS can affect profit or buying behavior, as this gives consumers flexible options for making a purchase.

Amazon’s concept convenience store, Amazon Go, which deploys technologies that let shoppers come in, grab items, and walk out without going through a register, could revolutionize POS systems.1 Besides increasing convenience, this could enable POSs, loyalty, and payments to be rolled into a single customer-centric experience.

Dangote

2022: year we recorded highest cement revenue in history — Dangote

by with No Comment Business News

Chairman of Dangote Cement Plc, Aliko Dangote has said that the company has highest revenue in its history in 2022.

The richest man in Africa stated this at the 14th Annual General Meeting, AGM, of the company in Lagos.

Analyzing the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at ₦1,618.3 billion and ₦708.2 billion, respectively.

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He added that the cement coy also recorded revenue and EBITDA growth of 17.0 per cent and 3.5 per cent from the prior year respectively, adding that the fest was achieved under unprecedented inflationary pressure, but it also achieved a profit after tax of ₦382.3 billion, up 4.9 per cent compared to 2021.”

The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.

“These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market,” he said.

The Chairman also guaranteed shareholders and other stakeholders of the company’s management’s resolve to keep the company profitable by leveraging on strategic innovations for the continuous growth of their investments.

Dangote said the prospects for the cement company remain bright as the management will continue to innovate on quality products delivery to millions of its customers across Africa while touching the lives of its host communities.

He stated: “We will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders… Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality. We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient. In addition, we aim to deliver higher returns and value to our shareholders.”

The Chairman pointed out that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and remains Africa’s largest and leading cement producer.

Dangote explained that in the face of unexpected challenges in 2022, the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.

According to him: “In addition, we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.

The Company Chairman explained that: “Over the last twelve years, volumes have grown by a double-digit compound annual growth rate of 11.2 per cent. Similarly, EBITDA has grown at a compound annual growth rate of 16.3 per cent, over the same period, implying a five-fold increase and revealing a true growth story.

“Accordingly, we closed the year with a profit after tax of ₦382.3 billion and an Earning per Share (EPS) of ₦22.27. Despite these accomplishments, we are not resting on our laurels. We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement,” he added.

Speaking on the Company’s Annual Reports, Mrs. Bisi Bakare, Chairman of the Pragmatic Shareholders Association, commended the management of Dangote Cement for its doggedness during the year under review for still being able to exceed the shareholders’ expectation in view of the inclement economic weather under which companies operated in the country.

She explained that the shareholders were happy for the returns, pointing out that it only means that the company was living up to its billing as the largest in Sub-Saharan Africa, adding that if not for the resilience of the management, the company would not be able to post such an impressive performance in 2022.

Mrs. Bakare alluded to the successful listing of the N300 billion series bond by the Company, saying the company succeeded largely due to the confidence reposed in the company and its management by the investing public. “It is not all companies that could record such a feat given the huge amount involved and the biting economic situation”, she stated.

Godwin-Emefiele

CBN plans to convert Nigerians’ dormant accounts into Treasury Bills

by with No Comment Business News

The Central Bank of Nigeria (CBN) has released an exposure draft of guidelines for the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria.

The draft guidelines are being issued in response to requests from banks and other stakeholders for further clarification on the procedures for managing dormant and inactive accounts.

The guidelines mandate that the CBN shall open and maintain an account called “Unclaimed Balances Trust Fund Pool Account” to warehouse unclaimed balances in eligible accounts.

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The funds in the account will be invested in Nigerian Treasury Bills (NTBs) and other securities as approved by the “Unclaimed Balances Management Committee.”

Accounts affected

The scope of the guidelines covers all financial institutions (FI) under the purview of the Central Bank of Nigeria (CBN) and applies to eligible accounts that have been dormant for a period of 10 years and beyond.

Eligible dormant accounts/unclaimed balances and other financial assets include various types of deposits, domiciliary accounts, prepaid card accounts, and wallets, proceeds of uncleared and unpresented financial instruments, unclaimed salaries and wages, and other similar assets.

However, the guidelines specify that certain classes of dormant accounts/financial assets are exempted, including government-owned accounts, accounts that are subject to litigation, accounts under investigation by a regulatory authority or law enforcement agency, and encumbered accounts.

Why is this necessary?

Before the release of the draft guidelines by the CBN, the treatment of dormant accounts varied across financial institutions in Nigeria.

However, in general, dormant accounts were typically left untouched and unmonitored by financial institutions.

This lack of monitoring of dormant accounts often resulted in unclaimed balances, which can create challenges for the stability of the financial system. Unclaimed balances can also cause financial losses for customers who may not be aware that they have balances in dormant accounts.

With the draft guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria, the CBN seeks to address the challenges associated with dormant accounts and unclaimed balances in the Nigerian financial system.

Backstory

Recall in 2021, the Finance Act 2020 signed into law by President Muhammadu Buhari provides that the federal government can borrow from the unclaimed dividends and dormant account balances under the Unclaimed Funds Trust Fund.

The funds are made available as a special debt owed by the federal government to the respective shareholders and the dormant bank account holders.

Recent data from NIBBS also indicates Nigeria has about 57.9 million inactive bank accounts while about 133.5 million were active.

Other details of the guideline

To ensure compliance with the guidelines, the CBN has also established a management committee to oversee the operation of the UBTF Pool Account, issue regulations, guidelines, and circulars on the administration of dormant/unclaimed balances and financial assets in FIs, and monitor compliance with the guidelines.

Financial institutions (FIs) are also required to take certain actions with respect to dormant and inactive accounts.

For instance, they shall monitor inactive accounts and notify the customers, as well as protect such accounts from unauthorized usage.

They are also expected to establish procedures that will ensure continuous contact with customers to reduce the incidence of inactive/dormant accounts.

The guidelines provide a procedure for the reclaim of unclaimed balances stating that beneficial owners can access the list of unclaimed balances transferred to CBN on the websites of FIs/CBN and/or newspaper publications.

The guidelines also require the CBN to publish annually on its website, the list of owners of unclaimed balances that have been transferred to the UBTF Pool Account. Additionally, the CBN shall publish on its website, the procedure for reclaim of warehoused funds and other financial assets.

The guideline is still a draft

It is important to note that the guidelines are still in the exposure draft stage and are subject to changes before the final version is released. The CBN has invited comments from stakeholders on the draft guidelines. The final guidelines will be issued by the CBN after considering the comments received.

“The guidelines are expected to provide a framework for the management of dormant and inactive accounts, reduce the incidence of unclaimed balances in the Nigerian financial system, and promote greater transparency and accountability,” the draft guidelines state.

Overall, the CBN opines the guidelines are expected to benefit both financial institutions and their customers while also contributing to the development of the Nigerian financial sector.

The CBN’s decision to invest the funds in Nigerian Treasury Bills is expected to provide an additional source of funds to the government. This is also a huge step in implementing the provisions of the finance act.

Nairametrics

9ja

Nigeria misses out in 2023 top 10 African countries with highest cost of living

by with No Comment Business News

Business Insider Africa presents the top 10 African countries with the highest cost of living.

This list is courtesy of Numbeo, one of the world’s most profound data and research platforms.

To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, newspaper articles, and others.)

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The high cost of living is a major concern for many individuals and families around the world. It is an issue that affects people of all income levels and can significantly impact their quality of life. Several factors contribute to the high cost of living in a country, including economic policies, inflation, and the cost of essential goods and services.

Lifestyle Top 15 African business leaders in the Forbes Africa 30 under 30 classes of 2023

One of the primary reasons for the high cost of living in a country is the state of its economy. Countries with a strong economy tend to have a higher cost of living due to the high demand for goods and services. This is because when people have more money to spend, they are willing to pay more for the things they need and want.

Inflation is another factor that contributes to the high cost of living. Inflation occurs when the general price level of goods and services increases over time. This means that people have to spend more money to buy the same goods and services they could buy for less in the past. Inflation can be caused by various factors, such as increases in the money supply, changes in government policies, or external factors like global supply chain disruptions.

The high cost of living can have a significant impact on individuals and families, particularly those on a fixed income or low-income earners. It can lead to financial hardship, making it difficult to pay bills, save for the future, or even afford necessities. It can also limit education, healthcare, and other essential service opportunities.

When deciding on a resident country, it is important to know the cost of living within the said economy, as a result, Numbeo, one of the world’s most profound data and research platforms, has created a methodology to compute data that determines the countries with the highest cost of living.

This article includes the 10 African countries with the highest cost of living. The overall index Numbeo comes up with is determined by the following factors, Cost of Living Index (Excluding Rent) which is a relative indicator of consumer goods prices, including groceries, restaurants, transportation, and utilities, rent index, groceries index, restaurants index, Cost of Living Plus Rent Index which is an estimation of consumer goods prices including rent, and local purchasing power.

To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, and newspaper articles, other surveys, etc.). Manually collected data from established sources are entered twice per year. A more comprehensive breakdown of the methodology is available on Numbeo’s website.

Below are the 10 African countries with the highest cost of living in 2023 according to Numbeo.