AFR Business

Vice President Kashim Shettima has reiterated the commitment of President Bola Tinubu’s administration to transform agriculture as a pathway to curb insecurity and improve the livelihoods of smallholder farmers.

Mr Shettima said this on Monday in a statement by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice President.

The vice president, who spoke with the official of an American company, John Deere, in the United States, said, “Without mechanisation, you can never be truly self-sufficient in food production.”

He also said Mr Tinubu’s administration was fully committed to revitalising the Nigerian agricultural sector.

“And for us to be self-sufficient in food production, three key elements are essential. First is certified seeds, then mechanisation, provision of fertiliser and, of course, agricultural extension services.”

He explained that the Special Agro-Industrial Processing Zones (SAPZs) were designed to provide the infrastructure, platform, and framework for the private sector.

According to him, this will enable the private sector to add value to Nigeria’s agricultural produce for domestic and regional markets and the global community.

Mr Shettima assured investors that Nigeria was open for partnership, adding, “We are open for discussions, for conversations towards fast-tracking the whole process.

“My principal, President Tinubu, is very eager to see that the full potential of the Nigerian agricultural sector is realised,” the vice president said.

He recounted that Mr Tinubu had declared a state of emergency on food security to address challenges in the agricultural sector.

Earlier, the company’s Vice President on Production Systems, Jason Brantley, said it had resolved to set up a tractor assembly plant in Nigeria.

Mr Brantley hoped the project would unlock Nigeria’s agricultural potential by creating an organised approach to tractor-clearing services for smallholder farmers nationwide.

He said the initiative to establish a tractor assembly plant would require zero investment from the government.

“While credit guarantees will be needed to help make credit available at an affordable rate for interested persons or groups,” he said.

President Bola Tinubu says the federal government will inaugurate a Presidential task force to monitor and ensure the progress of the deployment of key projects in the power sector.

Mr Tinubu made this announcement at the Nigerian Electricity Supply Industry (NESI) market participants and stakeholders’ round table (NMPSR) on Monday in Abuja.

The round table had the theme: “NESI Privatization and its 10-Year Milestone: The Journey So Far, Opportunities and Prospects.”

The president, represented by Sodiq Wanka, his special adviser on energy and power Infrastructure in the Office of the Vice President, emphasised the need for a task force to reposition the sector.

“This includes projects that will help deconstrain the grid and deliver the full available generation capacity to our homes and factories. We must create an environment where underperforming entities no longer hinder the sector’s progress.”

“All licensees must not only have the technical capacity to fulfill their licenses but also the financial strength to invest and expand their operations. Preliminary analysis indicates that DISCOs are undercapitalised by approximately N2 trillion.

“We must facilitate a reorganisation and recapitalisation process to bring in new partners and capital to jumpstart performance in this critical sector of the value chain,” Mr Tinubu explained.

The president also stated that the federal government would accelerate the deployment of renewables and solar energy in appropriate areas.

He noted the opportunity to deploy inter-connected and isolated mini-grids to deliver power closer to the point of use.

“This will support initiatives aimed at reducing the carbon intensity of embedded power plants and promoting innovative financing schemes for solar solutions in homes.”

Mr Tinubu emphasised that the key objectives of the privatization effort were to enhance the efficiency of the power sector, attract private sector investments, and unleash Nigeria’s potential through an energised economy.

“Ten years on, it is fair to say that the sector’s privatisation objectives have, by and large, not been met. Over 90 million Nigerians lack access to electricity. The national grid only serves about 15% of the country’s demand, leaving households and factories to rely on expensive self-generation, which supplies 40% of the country’s demand.

“Furthermore, the total electricity capacity transmitted through the national grid has remained relatively stagnant over the last decade, increasing from just over 3,000 Mega Watts (MW) to slightly over 4,000 MW today. A significant amount of work is needed to build an electricity sector to be proud of.”

The president emphasised the need for guiding principles in decision-making during the challenging task of improving the power sector.

He highlighted the government’s commitment to creating an enabling environment for private sector investment.

The minister of power, Adebayo Adelabu, stressed the importance of all stakeholders in NESI coming together to discuss the reasons behind the sector’s privatisation failure and strategising to achieve its objectives.

“Most countries worldwide do not privatize their electricity supply value chain from generation to distribution. We must address this reality and work collaboratively to provide stable and reliable electricity to Nigerians.”

Mr Adelabu suggested the necessity of evaluating the technical capacities and investments made by Distribution Companies (DisCos) and Generation Companies (GenCos) 10 years into privatisation.

Earlier, Prof. Stephen Ogaji, chairman of NMPSR planning committee, highlighted the energy sector’s crucial role in a thriving economy.

He encouraged participants to engage in constructive dialogues, challenge conventional thinking, and identify strategies that can transform the power industry and citizens’ lives.

Senate President Godswill Akpabio says with careful planning and execution, Nigeria can meet the Organisation of Petroleum Exporting Countries (OPEC) quota of 1.8 million barrels per day.

Mr Akpabio spoke at the National Assembly Capacity-Building Workshop organised by the Independent Petroleum Producers Group (IPPG) and the Oil Producers Trade Section (OPTS) on Monday in Abuja.

Represented by Senate Committee Chairman, Petroleum Upstream, Etang Williams, he expressed satisfaction that the crude oil output hit 1.35 million barrels per day in September.

He said this was 14 per cent higher than the figure for August and the highest figure so far in 2023.

Mr Akpabio said the determination and effort of the federal government yielded this dividend and had given hope that Nigeria could attain the OPEC quota with careful planning.

He was optimistic that the engagement between the National Assembly and critical oil and gas industry players would help Nigeria to move on a path that would bring progress and development to the citizens.

“The oil has not been as much of a blessing as it ought to be. In fact, some think it has become a curse because the proceeds from the oil are not utilised to support agricultural and manufacturing sectors.

“These sectors have been neglected; we do not have the groundnut pyramids in the North anymore, we do not have the cocoa house in the West anymore, we do not have the palm plantation in the East anymore.

“We now have a resource cost or paradox of plenty.

“A resource cost is a situation in which nations fail to use their wealth to improve the living conditions of their people and foster their economy,” he said.

The president of the Senate said this was one of the reasons the Bola Tinubu administration had to do away with the petroleum subsidy, which had destroyed the nation’s economy by instalments

“We need bold action to address a big problem; It is a story we in the National Assembly want to change for the sake of our country and posterity,” he added.

Mr Osten Olorunsola said, the chairman of Energy Institute, Nigeria, said oil theft and sabotage seemed to be visible reasons for Nigeria’s oil production decline, though there were others.

In his address tagged “PIA-Optimising Value for the Country,” he said the decline led to sharp decline in export earnings.

According to him, after two years of PIA implementation, there should be proper review, implementation framework and roadmap for strategic response.