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Cost of preparing jollof rice in Nigeria rises by 7.8% in Q1 2021 – SBM

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The average cost of making a pot of jollof rice in Nigeria rose by 7.8% between March 2020 and March 2021.

This is contained in the SBM Jollof index report for Q1 2021, published by SB Morgen.

According to the report, the increase was caused by the prolonged border closure, increased energy tariffs, exchange rate volatility, coronavirus pandemic, and the restrictions of forex for the importation of items, largely due to falling oil prices.

It also identified the effect of the #EndSARS protest against brutality and the response of the government, which brought the main economic states in Nigeria (Lagos and Abuja) to a standstill for major parts of the month of October 2020.

  • Specifically, the average cost of making a pot of jollof rice in Nigeria increased from N7,167 recorded in Q4 2020 to N7400 in the first quarter of 2021.
    representing a 3.24% quarter-on-quarter increase.
  • The cost of making a pot of rice is most costly in Wuse and least costly at Awka. The report, however, suggests that the disparity could be a result of operational costs rather than the actual cost of commodities.
  • While it is possible for people in Awka to substitute buying some of the commodities with products from their subsistence agriculture, the same is not possible in Wuse, largely because of its very urban nature.
  • The high exchange rate of N410/$1 to N475/$1 in the parallel market also adversely affected the price of jollof rice in the country as tomato puree, rice, turkey, and seasoning are affected by the exchange rates.
  • Also, flooding destroyed several hectares of rice farms across the country. The report stated that up to 500,000 hectares of rice farms were destroyed in Kebbi State alone.
  • The price of turkey has increased as a result of increased electricity tariffs which has forced increases in cold room costs.
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According to the SBM Jollof report, “Our interviews with traders shows that transportation costs have not reduced since they were increased during the introduction of the COVID-19 protocols. One of the traders stated that she pays almost twice her former transportation cost prior to COVID-19, and the prices have not gone down even after drivers began to carry more passengers than permitted by the social distancing protocol.”

Jollof costliest to cook in Wuse, Abuja

In Abuja, food production is mainly undertaken by its neighbouring states Benue, Kaduna, Kogi and Niger, all of which have seen several attacks in the past few years, showing a decline in that dimension.

  • The report revealed that the cost of making a pot of jollof rice is highest in Wuse, Abuja.
  • Although food distribution has not been affected and unemployment rates are over 40%, but being the administrative headquarters of the government and most international NGOs, outreaches and food distribution are common.

“In all the states surveyed, out of a score of 50, the combined score ranged from 18-27 which shows a general decline in entitlements across the states and similar levels of severity. While Bauchi has a higher chance at getting food insecure, the other states are slightly above the borderline, showing medium decline in their entitlement (ability to get food).”

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BUA Group awards contract for polypropylene plant in its refinery project

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Nigeria’s leading indigenous conglomerate, BUA Group has announced that it has signed a contract agreement with Lummus Technology for the establishment of a polypropylene plant in its refinery and petrochemical project.

The completion of the project is to help boost Nigeria’s capacity to meet the country’s increasing demand for petrochemical products.

The Chairman of BUA Group, Abdul Samad Rabiu, while disclosing the contract agreement, expressed confidence in the capacity and technical expertise of Lummus Technology to deliver a best-in-class project.

Rabiu in his statement said, “We are pleased to sign this polypropylene contract for our BUA refinery and petrochemicals project with Lummus Technology, a world leader in delivering polypropylene solutions, which will solve the increasing demand for high-performance grade polypropylene in Nigeria, the Gulf of Guinea as well as the Sub-Saharan Africa Region.

“We are confident in the capacity and technical expertise of Lummus Technology to deliver a best-in-class, 285,000 tpy polypropylene unit for our refinery project scheduled to come on stream in 2024.’’

On his part, the President/Chief Executive Officer of Lummus Technology, Leon de Bruyn, said that he was looking forward to working with BUA refinery on the project.

Leon said, “We look forward to working with BUA Refinery on this critical project and supporting the first Novolen polypropylene unit in Nigeria. Our world-class Novolen technology is well suited to meet Nigeria’s increasing demand for the growing petrochemical products market.

It offers a flexible range of industry-leading products for all PP applications, and the industry’s lowest overall capital and operational costs while providing customers with high process reliability and flexibility in responding to market needs.”

Lummus Novolen Technology GmbH licenses polypropylene technology and provides related engineering and technical support/advisory services. Novolen also supplies NHP® catalysts for the production of high-performance polypropylene grades in the Novolen process, and NOVOCENE® metallocene catalyst for the production of special polypropylene grades

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Zenith, Access, others move to acquire Union bank, other African assets of Atlas Mara

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Zenith Bank and Access Bank are among the list of financial institutions from Africa and the Middle East to indicate interest in the acquisition of Union Bank and other African assets of Atlas Mara Group, a Pan-African banking group.

This will likely bring to an end, the incursion of Bob Diamond, the founder of Atlas Mara Limited and a former Chief Executive of Barclays Bank Plc, into the African financial market, after misjudging competition on the continent and overpaying for acquisitions.

According to a report from Bloomberg, which quoted sources who preferred to be anonymous as it was yet to be made public, the London-listed group has received a number of offers for its 49.

97% stake in Union Bank of Nigeria Plc.

Zenith Bank Plc, Access Bank Plc, in addition to other African rivals like Morocco’s Attijariwafa Bank are among suitors that have shown interest.

Middle Eastern banks and private equity suitors have also shown interest as some of the potential buyers have indicated they may acquire all of Atlas Mara’s remaining assets in Africa, which would include its Zimbabwe unit.

Although no final decision has been taken yet as there is still a lot of uncertainty around the discussions, Atlas Mara has been working with Rothschild & Co. to consider options for its Union Bank stake, the report suggests.

Atlas Mara Group on Wednesday said that it has secured regulatory approval for the sales of its businesses in Botswana and Mozambique and received interest in other assets, without going into details.

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The Group also said it completed a planned restructuring exercise and extended a standstill agreement with its creditors to May 17 to complete necessary documentation just as it added that it is still in legal disputes with two creditors, TLG and Norsad.

Atlas Mara Limited saw the need to reposition its operation due to the coronavirus pandemic which has negatively impacted its business and seen its shares crash by about 96% since it started trading towards the end of 2013.

The firm’s stake in UBN, Nigeria’s sixth-biggest bank by market value, is its largest investment and seen as a foothold into the continent’s most populous nation.

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CIBN Seeks NDIC’s Cooperation On Proposed Act Amendment, Others

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President, Chartered Institute of Bankers of Nigeria (CIBN), Dr Bayo Olugbemi has called on the Nigeria Deposit Insurance Corporation ( NDIC) to partner with the Institute to drive advocacy and consumers education.

Olugbemi made the call during a courtesy visit to the managing director/CEO of NDIC in Abuja. He also solicited support of the NDIC on the proposed amendment of the CIBN Act of 2007, to enhance the power of the disciplinary tribunal to discipline erring bankers, among others. According to him, the corporation has come up with some laudable initiatives that require partnerships.

 

“So, we call on the Nigeria Deposit Insurance Corporation to partner with us to drive advocacy and consumers education on some of the laudable initiatives of the Corporation,” Olugbemi said in a statement.

The statement was issued by CIBN Head, Corporate Communications and External Relations, Mr Nelson Olagundoye, on Wednesday in Lagos. Olugbemi commended the corporation for its consistent support for the institute toward the realisation of its mandate of determining the standards of knowledge and skills to be attained by persons seeking to become part of the banking profession.

The CIBN President also requested that the NDIC support the Institute by donating artifacts and other relevant materials to the newly established Banking Museum of the Institute. He lauded the enormous support extended to the institute by the NDIC on strategic inputs and contributions as member(s) of the CIBN Governing Council and various Committees.
Olugbemi, while congratulating Mr Haruna Bello on his recent appointment as the Managing Director of the Corporation, said it was a reflection of his doggedness, wealth of experience and management acumen

Also Read:  Leader of world’s most powerful central bank says Crypto unreliable for wealth preservation
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