The Abuja School
Rural Electrification Agency (REA) seek application for $750m World Bank Power Project
REA has called on private developers to apply for the Distributed Access through Renewable Energy Scale-up (DARES) project. The REA claims the project is ready for private off-takers to electrify millions of homes and create economic opportunities for them, through renewable solar energy. They emphasize that given the current state of decentralisation of the power sector is an opportunity for stakeholders to invest into the sector in order to reduce energy poverty in the country.
“The entire electricity value chain has been liberalized and the subnational and the private sectors have been given the opportunity to play a key role in providing electrification in this country.Mr.President approved the request of the honorable minister of power by approving the $750 million DARES funding, which I am happy to stand here to tell you that the programhas been launched.” The Managing Director of REA, Abubakar Aliyu, stated that at their Stakeholder Engagement Workshop (SEW2024) in Abuja.The REA has concluded their Nigerian Electrification project this year, achieving deployment of 160 mini grids across the country. 1.5 million solar home systems and high-level mini grids for seven university and a teaching hospital.
Federal Government aims for 15 per cent Inflation rate in 2025
The Federal Government has provided an explanation for how it will achieve the 15 percent projected inflation in the 2025 appropriation bill submitted to the National Assembly by President Bola Tinubu on Wednesday, 18th 2024. The President stated out his expectation of to reduce inflation from the National Bureau of Statistics (NBS) declared rate of 34.6 per cent to 15 per cent as of next year. This projection is based on enhanced food security measures completed in 2024, which is expected to lead to a bountiful harvest come 2025 that will reduce General food price. The Presidency also stated domestic production of refined petroleum products will reduce the demands for foreign currency in order to import from other markets. This can booster naira stability.
Rubber Imports raises up to 106 percent as Domestic Production Stalls
Huge Decline in domestic rubber production has forced imports to raise by 106 per cent within a decade. Data from the National Bureau of Statistics (NBS) shows that Nigeria imported N631.1 billion worth of rubber in 2013. Which has subsequently risen to N1.3 trillion in 2023 an over 100% increase in import cost. Although currency inflation and devaluation must be taken into account.
Forestry expert indicate older trees still being used to cultivate the rubber sap are now producing at a lower yield than before. And a general lack of investment in the Agro-allied sector has played major part in this production decline. The National Rubber Producers, Processors and Marketers Association of Nigeria (NARPPMAN) has stated that most Plantation had been established more that 30 years ago and have naturally declined passed their economic thresholds. And Replantation of these farms have faced difficulty due to poor management and funding.
NARPPMAN urges the CBN and Bank of Agriculture (BOA) to allocate funds for the rejuvenation of rubber development in Nigeria. And also, a comprehensive revision in our land tenure system which has made it difficult to acquire or lease land for large scale agricultural use. Which has hampered any progress in all Agro-allied sectors. Data show that in 2013, rubber imports contributed 9% to total imports of N7 trillion. It contributed only 2.4% to exports of N14.2 trillion.Similarly, in 2023, the commodity contributed 3.62% to total imports of N35.9 trillion and a meagre 0.15% to N35.9 trillion exports value. This stat shows the total decline to irrelevancy the Nigeria’s rubber industries has experienced in both domestic and international markets.
Ministry of Finance launches N250bn Real Estate Investment Funds
The Ministry of Finance unveiled a 250 billion NGN real estate investment fund aimed at providing affordable and long-term mortgages for Nigerians. The investment fund facilitated by the ministry of finance incorporated and in partners in the private sector, will be split into two phases with the first phase consisting of 150 billion NGN. The Minister of Finance Wale Edun stated “N250bn seed funding will meet real estate demand by providing low cost and affordable mortgage finance to encourage home ownership and growth delivery in housing units…. The funding is crucial especially at a time where commercial banks are lending at over 30 percent interest as the rates will be between 11 to 12 per cent”. The Ministry and the Federal Government as a whole are hopeful and enthusiastic about the commencement of this fund and it impact come 2025.