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FG to stabilise food prices, agric inputs – Minister

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CBN Cuts T-bill Rate Amid N3.63tn Demand Investors are increasingly positioning for longer-term returns in Nigeria’s fixed-income market, with the latest treasury bills auction showing an overwhelming preference for the one-year government security. At the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, investors submitted N3.63tn for the 364-day T-bill, representing 95.9 per cent of the N3.79tn total bids received across the three maturities. The demand came despite the CBN lowering the stop rate on the one-year instrument by 44 basis points to 17.15 per cent, from 17.59 per cent at the previous auction. The auction results point to a significant shift in investor appetite towards longer-dated government securities, even as demand for shorter-tenor instruments remained subdued. The CBN had offered N700bn across the three maturities, comprising N100bn each for the 91-day and 182-day bills and N500bn for the 364-day bill. However, total subscriptions reached approximately N3.79tn, more than five times the amount offered. The 364-day instrument was the clear outlier at the auction, receiving bids equivalent to 7.26 times the amount offered. The CBN ultimately allotted N638.19bn, exceeding the N500bn offer by N138.19bn. Despite the additional allotment, only about 17.6 per cent of total bids submitted for the instrument were accepted. Investors quoted yields between 16.00 per cent and 19.05 per cent, but the CBN settled at 17.15 per cent, suggesting that the level of demand allowed the regulator to reject more expensive bids. The development is significant because the CBN achieved a lower borrowing rate even after receiving exceptionally strong demand for the security. The contrast was stark at the shorter end of the curve. The 91-day bill attracted N103.32bn in subscriptions against N100bn offered. The CBN allotted N89.10bn at an unchanged stop rate of 16.30 per cent. The 182-day bill performed even more weakly, attracting only N52.93bn against N100bn on offer. The CBN allotted N35.59bn, while the stop rate remained at 16.50 per cent. Secondary-market yields for the three instruments stood above their respective auction stop rates, at 17.45 per cent for the 91-day bill, 17.05 per cent for the 182-day bill and 17.24 per cent for the 364-day bill. According to a financial sector analyst, Jimbe Asalor, the concentration of bids in the one-year instrument suggests investors may be placing greater value on locking in relatively attractive yields over a longer period rather than repeatedly rolling over shorter-term securities. He noted that the latest auction also demonstrates “the CBN’s ability to borrow more cheaply when demand is concentrated around a particular maturity.” He added that by accepting N638.19bn on the 364-day bill at 17.15 per cent, the CBN borrowed above its initial offer while simultaneously cutting the rate by 44 basis points. “The nine-basis-point difference between the auction stop rate and the 17.24 per cent secondary-market yield also indicates that the one-year segment is now trading relatively close to market expectations.” A Lagos-based consultant economist, Chukwunonso Iheoma, said if the preference for longer-dated treasury bills persists, the development could provide further support for a gradual decline in government borrowing costs while strengthening expectations of eventual interest-rate cuts.

 

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, Wednesday assured Nigerians that prices of Agricultural inputs will be stabilised in the country.
This is as he said the prices of foodstuffs have been stabilised by the efforts of President Bola Tinubu’s administration to tackle hunger in Nigeria.

The Minister said in Lafia, the Nasarawa State capital, while flagging off the distribution of 46 tricycles, nine weight scales, three destoners, seven petrol engines, seven small-scale rice mills, two steam parboilers, among other agricultural inputs to farmers’ groups drawn from across the state.

The inputs, which were purchased by the Federal Government in collaboration with the International Fund for Agricultural Development through its Value Chain Development Programme, is aimed at improving rice and cassava value chains in the state, and also improving the livelihoods of farmers.

He noted that during the commencement of the VCDP programme a few years ago, 150,000 farmers were targeted for various interventions and support, but so far, a total of 135,000 farmers had been reached, and are all doing well for themselves.

Kyari, therefore, expressed optimism that before the conclusion of the programme this year, the target of 150,000 farmers would be reached, as part of the federal government’s and IFAD’s efforts to ensure food security in the country.

He said, “This programme that we see here is one of those visions of Mr President in trying to alleviate the sufferings of the people and also for the farmers.

“At least, we were able to get prices of food stabilised, but I know that farmers are complaining of inputs, and we will also do the same for inputs, just like we did for the prices of food.

“We are going to bring down the prices of the inputs. It is going to be a deliberate effort. I am sure that the state governments are going to participate in that as well.”

While urging the benefiting farmer groups to make good use of the tricycles and other Agricultural inputs to boost their yields and livelihoods, the Minister commended the Nasarawa State government for always paying the counterpart funds, which had helped the programme to continue to positively impact lives in the state.

On his part, Nasarawa State Governor, Abdullahi Sule, appreciated the Minister of Agriculture, i and President Bola Tinubu for the support that they have continued to give to Nasarawa State to maintain its position as one of the top food-producing states in the country.

“Nasarawa State continues to remain a state of agriculture, and that is the reason why, if we become number one in the Value Chain Development Programme, it is not going to be a surprise because we want to continue to encourage our small-scale farmers in order for them to be independent, and I think that they are doing so, and I want to congratulate our farmers for the wonderful thing that they are doing.

“We decided, actually, to support the VCDP for the fact that they are looking at the aspect of value chain. You know, in agriculture, because of the post-harvest wastages, it is very, very important to look at the complete value chain, and that is exactly what we are trying to practice,” he explained.

Also speaking, the National Programme Coordinator of the FGN/IFAD VCDP, Fatima Aliyu, explained that the gesture of distributing the Agricultural inputs was aimed at ensuring that farmers across the benefiting Local Government Areas get the necessary support to cultivate enough food for the increasing population in the state.

The benefiting LGAs of the FGN/IFAD VCDP include Lafia, Doma, Nasarawa, Wamba and Karu.

Aliyu, while noting that the initiative would help the farmers to alleviate their sufferings, and enable them enhance productivity while carrying out their routine farming activities, commended the farmers for making themselves available for the several trainings, and for being able to adapt to new technologies which have greatly improved their performances.

“The VCDP is all-inclusive. We have people with disabilities who are also part of the VCDP. And indeed today, some people with disability are going to receive these inputs.

“In the VCDP, whatever we do is on a matching grant basis. It will interest you to know that these people with disability gave us their matching grant of N1.5 million, and they are people with disability. This is to show the commitment and the level of trust that they have in the VCDP. If they didn’t have that trust, they wouldn’t have mobilised to pay that matching grant,” she narrated.

Earlier in his welcome speech, the Nasarawa State Commissioner for Agriculture, Tanko Tunga, said through the VCDP, farmers in the state have greatly benefited by having access to improved inputs and modern agronomic practices; strengthened farmer organisations and innovation platforms, improved aggregation, processing and market linkages, community assets and equipment that enhance productivity and value addition, among others.

He, therefore, noted that the inputs and equipment being distributed will further strengthen collective action among farmer organisations and enhance efficiency in production, processing and marketing.

Tunga further appreciated the Federal Ministry of Agriculture and Food Security, IFAD, the National Programme Management Unit of the VCDP and all stakeholders for their continued support and partnership, which had helped to improve the yields and livelihoods of farmers in the state.

In her remark, the State Programme Coordinator of the FGN/IFAD VCDP, Eunice Adgidz, expressed gratitude to the Federal Ministry of Agriculture and Food Security and the Nasarawa State Government for their continuous support to the programme since its commencement in the state.

She pledged to continue to work hard towards ensuring that farmers are given the necessary support to boost their yields in order to tackle hunger and guarantee food security in the state.

During the Minister’s working visit to the state, he commissioned and inspected projects carried out by the VCDP, including rice processing centres in the Kwanka and Ashangwa communities in the Lafia LGA of the state.

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CBN Cuts T-bill Rate Amid N3.63tn Demand Investors are increasingly positioning for longer-term returns in Nigeria’s fixed-income market, with the latest treasury bills auction showing an overwhelming preference for the one-year government security. At the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, investors submitted N3.63tn for the 364-day T-bill, representing 95.9 per cent of the N3.79tn total bids received across the three maturities. The demand came despite the CBN lowering the stop rate on the one-year instrument by 44 basis points to 17.15 per cent, from 17.59 per cent at the previous auction. The auction results point to a significant shift in investor appetite towards longer-dated government securities, even as demand for shorter-tenor instruments remained subdued. The CBN had offered N700bn across the three maturities, comprising N100bn each for the 91-day and 182-day bills and N500bn for the 364-day bill. However, total subscriptions reached approximately N3.79tn, more than five times the amount offered. The 364-day instrument was the clear outlier at the auction, receiving bids equivalent to 7.26 times the amount offered. The CBN ultimately allotted N638.19bn, exceeding the N500bn offer by N138.19bn. Despite the additional allotment, only about 17.6 per cent of total bids submitted for the instrument were accepted. Investors quoted yields between 16.00 per cent and 19.05 per cent, but the CBN settled at 17.15 per cent, suggesting that the level of demand allowed the regulator to reject more expensive bids. The development is significant because the CBN achieved a lower borrowing rate even after receiving exceptionally strong demand for the security. The contrast was stark at the shorter end of the curve. The 91-day bill attracted N103.32bn in subscriptions against N100bn offered. The CBN allotted N89.10bn at an unchanged stop rate of 16.30 per cent. The 182-day bill performed even more weakly, attracting only N52.93bn against N100bn on offer. The CBN allotted N35.59bn, while the stop rate remained at 16.50 per cent. Secondary-market yields for the three instruments stood above their respective auction stop rates, at 17.45 per cent for the 91-day bill, 17.05 per cent for the 182-day bill and 17.24 per cent for the 364-day bill. According to a financial sector analyst, Jimbe Asalor, the concentration of bids in the one-year instrument suggests investors may be placing greater value on locking in relatively attractive yields over a longer period rather than repeatedly rolling over shorter-term securities. He noted that the latest auction also demonstrates “the CBN’s ability to borrow more cheaply when demand is concentrated around a particular maturity.” He added that by accepting N638.19bn on the 364-day bill at 17.15 per cent, the CBN borrowed above its initial offer while simultaneously cutting the rate by 44 basis points. “The nine-basis-point difference between the auction stop rate and the 17.24 per cent secondary-market yield also indicates that the one-year segment is now trading relatively close to market expectations.” A Lagos-based consultant economist, Chukwunonso Iheoma, said if the preference for longer-dated treasury bills persists, the development could provide further support for a gradual decline in government borrowing costs while strengthening expectations of eventual interest-rate cuts.

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