President Bola Tinubu has assured that with the adroit implementation of his agricultural programmes, food sufficiency and poverty eradication will be achieved while hunger will become a thing of the past in the country.
Tinubu’s assurance to Nigerians came as the Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, disclosed that the full implementation of the key reforms of market-based pricing of premium motor spirit (PMS) and market-based pricing of exchange rate by the federal government saved the federal government about $20 billion or five percent of the country’s Gross Domestic Product (GDP) as at October 2, 2024.
The President stressed his administration’s renewed focus in driving international and local investments into the livestock sector of the agricultural value-chain which he expressed confidence would end the crisis of farmer-herder clashes, eradicate hunger and poverty in Nigeria as well as promote economic prosperity.
He stated this in Rio de Janeiro, Brazil at the signing of a Letter of Intent between the Nigerian Government and one of the top three largest meat processing companies globally, the JBS S.A.
The Brazilian meatpacker, JBS, signed a memorandum of understanding with Nigeria’s government for a $2.5 billion investment plan in the African country, including the building of six new factories.
In a statement, JBS said three of the factories would deal in poultry, two in beef and one in pork.
Based on the memorandum of understanding, JBS said it will build a five-year investment plan in Nigeria, including feasibility studies, budget estimates and an action plan for local supply chain development.
On the other hand, the Nigerian government would in turn, ensure the economic, sanitary and regulatory conditions needed for the project’s viability.
Speaking on the benefit of the deal, Tinubu said: “What we are doing right now is that we are solving a problem that afflicted humanity in that part of Africa, clashes between farmers and migrating cows that have cost some life and bloodshed when there is a modern, civilised way to solve those problems and even bring a successful economy out of it.
“We are trying to turn a situation of tragedy, hopelessness into economic opportunity, see through problems and see the opportunity that is involved in it.”
Tinubu called on the company to see the considerable potential in what he called the $2.5 billion livestock investment opportunities in Nigeria, especially with its huge population and tap into it, given JBS S.A’s globally recognised expertise in the area of guaranteeing food security.
“We’ve heard so much about you in terms of the reputation, and we believe in the partnership we are forging today.
“Food security is extremely important. As we talk right now, there is hunger. However, there is huge hope. And you are one of those hopes that we are looking at.”
He told the JBS top executives that Nigeria was ready to do business with them, assuring them of good return on their investment.
Prior to his visit to Brazil, the President had inaugurated a team of Nigerian officials and private sector players to take the advantage of the G20 Leaders’ Summit in Rio to conduct a study tour of Sao Paulo, Brazil and explore the opportunities in livestock development, meat processing, seed development and multiplication for key grains.
Earlier in his remarks, Minister of Livestock Development, Idi Muhktar Mahia, who led the delegation, reported to the President that the team embarked on guided, extended and intensive tours of companies on the scale of their global reach, the integrated nature of their operations as well as the deployment of advanced technology.
He added that from their interactions with various companies, JBS S.A. was chosen being the second largest meat processing company in the world with the capacity to process 33,000 cattle daily and over eight million birds daily, using advanced zero-waste practices. The company employs over 200,000 people across its subsidiaries in more than 50 countries in the world including United States, Canada, Mexico, Saudi Arabia among others.
On his part, founder and President of the JBS group, Wesley Batista, said the company is the largest employer of labour in Brazil with over $79 billion dollars revenue already in year 2024.
According to him: “We are glad to work with Nigeria to work together to develop the livestock industry there. We think it’s a good opportunity for our business in Nigeria and Africa as we believe Nigeria can be the center of supply of protein to many countries in Africa. We look forward to working with you. We are almost in December and this year is almost gone. We hope to be in Nigeria as soon as possible.”
Edun: Petrol Subsidy Removal, Multiple Exchange Rates Elimination Saved Nigeria $20bn
Meanwhile, Edun yesterday, disclosed that the full implementation of the key reforms of market-based pricing of premium motor spirit (PMS) and market-based pricing of exchange rate by the federal government saved the federal government about $20 billion or five percent of the country’s Gross Domestic Product (GDP) as at October 2, 2024.
He stated this yesterday, at the validation of the federal civil service policies and guidelines to mark the first 100 days in office of the Head of Civil Service of the Federation, Mrs. Esther Didi Walso-Jack in Abuja.
The minister noted that after 18 months of reforms implemented by President Bola Tinubu, the country has changed with gains of the reforms now glaring after gestating period pain, discomfort, difficulty, and increased cost of living.
Edun, said the result of that action was of immediate benefit to the federal, state and local governments coffers.
“An amount of five per cent of GDP is what those two subsidies were costing when there was a subsidy on PMS; when there was a petroleum product generally for a long time and when there was a subsidy of foreign exchange. Between them, they were costing five percent of GDP.
“If you say GDP was on average, let’s say $400 billion. We all know what five percent of that is – $20 billion of funds that could be going into infrastructure, health, social services, education.
“And that is what the flow is now coming back into government’s coffers to be able to be deployed in those areas.
“The real change that has happened with the measures of Mr. President is that nobody can wake up and their target for the day or for the week or the month or the year is to get access to cheap funding, cheap funding exchange from central bank, which they can now flip.
And overnight, they become wealthy from no value added for doing nothing virtually except you know the right people. Similarly, they can no longer try and be part of a new peak, market and very inefficient petrol subsidy regime as a way of making money overnight,” Edun said.
He urged the public to tap into available incentives like farming where supply would bring down elevated prices and into manufactured exports, where the relatively weak market price currency is allowing people to export cosmetics, ladies’ hair extensions and others into Kenya, Egypt and South Africa.
“So in a nutshell, the country has changed. The incentive framework has moved from one of rent-seeking, trying to make money for doing nothing to one of having real opportunities that you can use your background, your skills, your knowledge, your contacts, your relationships, and your energy to legitimately do well for yourself in free enterprise while helping the country creating jobs, helping to reduce poverty.
“On that note, as I say, you are the implementers, so your skill and your determination, your dedication really matters. And I think these transformative documents will help you to do your tasks, your jobs and your responsibilities, that much better and I commend the head of the civil service, Mrs. Didi Esther Walson-Jack. and I, for her hundred days in office, and for this transformative agenda of us,” he said.
The minister lauded the head of service of the federation for starting in a transformative, vibrant, energetic and value-added mode and for putting across an agenda with four transformative documents, dealing with reward and recognition.
He said the critical transformation from what hitherto existed to a vibrant, efficient technology-driven body of civil servants was important to the success of Tinubu’s agenda and his macroeconomic reforms.
In her address, Walson-Jack said the Stakeholder Validation of the Federal Civil Service Policies and Guidelines would redefine the ethos of public service delivery in Nigeria, setting the stage for a civil service that is professional and efficient, globally competitive, and responsive to the aspirations of all Nigerians.
The exercise centred on the validation of four transformative documents that will guide the principles, practices, and priorities of the Federal Civil Service: the rewards and recognition policy and guidelines; the incentives and consequence management policy and guidelines; the mentoring framework and the protocol on the use of federal secretariats.
