Transcript ECONOMIC DIVERSIFICATION: CHALLENGES ANDPROSPECTS

PRESENTED BY SALIU RASHEED O.
MD. PSL LIMITED
MD TAK FARM
KEY DISTRIBUTOR TO GRAND CEREALS PRODUCERS OF
VITAL FEEDS, GRAND OIL
INTRODUCTION
 There is no doubt that petroleum (crude oil) has
contributed substantially to Nigerian revenue since its
discovery in 1956 and more especially, since 1970 when its
price was on the upward trend. However, it is a known fact
across the globe that for a country to attain growth and
development, its economy has to be diversified and that
cannot occur in a vacuum.
 For over four decades, the Nigerian economy has mostly
depended on proceeds from the sale of crude oil. This is at
the expense of other sectors such as solid minerals and
agriculture that hitherto, contributed significantly to the
economy of Nigeria.
WHAT LED TO THE CURRENT
RECESSION IN NIGERIA
WHAT IS RECESSION
Recessions generally occur when there is a widespread
drop in spending. This may be triggered by various
events, such as a financial crisis , an external trade
shock, an adverse supply shock or the bursting of an
economic bubble . Governments usually respond to
recessions by adopting expansionary macroeconomic
policies , such as increasing money supply , increasing
government spending and decreasing taxation .
Recession
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So many factors could be responsible for the cause of a recession in a nation’s
economy. Some of them include;
High interest rates are a cause of recession because they limit liquidity, or the
amount of money available to invest.
Increased inflation: Inflation refers to a general rise in the prices of goods and
services over a period of time. As inflation increases, the percentage of goods
and services that can be purchased with the same amount of money decreases.
Reduced consumer confidence is another factor that can cause a recession. If
consumers believe the economy is bad, they are less likely to spend money.
Consumer confidence is psychological but can have a real impact on any
economy.
Reduced real wages , another factor, refers to wages that have been adjusted for
inflation. Falling real wages means that a worker’s paycheck is not keeping up
with inflation. The worker might be making the same amount of money, but
his purchasing power has been reduced.
To The Present Economy
Downturn
 IMPLEMENTATION OF TSA BY FIAT:
 STOPPAGE OF PIPELINES CONTRACTS, HASTY
CRACKDOWN ON NIGER DELTA MILITANTS AND
DELAYED DIALOGUE
 TESTED ECONOMIC MANAGERS
Economy diversification;
Agriculture a way out
 There is no doubt that petroleum (crude oil) has contributed
substantially to Nigerian revenue since its discovery in 1956 and
more especially, since 1970 when its price was on the upward
trend. However, it is a known fact across the globe that for a
country to attain growth and development, its economy has to be
diversified and that cannot occur in a vacuum.
 Studies have shown that there exists a positive relationship
between economic growth in Nigeria and diversification of other
sectors because, when there were proper management of human
resources, huge investment and concentration on agriculture,
Nigerian economy was recorded to be healthy and vibrant. In
those golden years, agriculture offered over 70% of Nigeria’s
teaming population job opportunities.
THE NIGERIAN POULTRY INDUSTRY
 The Nigerian poultry industry is estimated at ₦80
billion ($600 million) and is comprised of
approximately 165 million birds, which produced
650,000 MT of eggs and 290,000 MT of poultry meat
in 2013. From a market size perspective, Nigeria’s egg
production is the largest in Africa (South Africa is the
next largest at 540,000 MT of eggs) and it has the 2nd
largest chicken population after South Africa’s 200
million birds
BROODING PULLETS
BROILER PRODUCTION
LAYERS SECTION
WASTE TO WEALTH
BROILERS
How to Get Government Grant for
your Poultry Farm
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1. Search for Government Grant Programs-:
2. Check research institutes and NGO’S-:
3. Determine your farm’s needs-:
4. Write a Brilliant Proposal-:
5. Pay attention to important factors-:
6. Set a realistic Timeline-:
7. Set realistic goals-:
8. Create a perfect budget-:
9. Make sure you conduct a market research-:
10. Collaborate with others-:
11. Submit your application-:
12. Monitor Your Application-:
13. Prepare for Project Defense-:
14. Put the money to good use-:
AVAILABLE FUNDING IN THE
NIGERIA POULTRY INDUSTRY
 NIRSAL
 NIRSAL is an agribusiness initiative of the CBN,
FMARD and the Bankers Committee (BC) established
in 2011. NIRSAL’s main aim is to encourage the growth
of credit in the agricultural sector by fostering bank
lending through increased incentives and technical
assistance.
 FAFIN
 FAFIN has a target fund size of US$100 million and was
launched in January 2014 with a First Close of US$34
million from three fund sponsors: FMARD, the
German government via KfW Development Bank, and
the Nigeria Sovereign Investment Authority (NSIA).
FAFIN is the only Nigerian private equity fund focused
exclusively on agriculture.
 MSME Fund
 The ₦220 billion MSME fund was launched in 2013 by
CBN to provide capital to entrepreneurs in various
sectors of the economy. Specific to agriculture, the
fund aims to address postharvest losses
 among small scale farmers. ₦132 billion (60%) of the
fund has been assigned specifically for women
entrepreneurs. As at May 2014, the MSME funds were
yet to be disbursed to their target group as a result of
the CBNs plan to establish a Special Purpose Vehicle to
manage it.
CHALLLENGES
 GOVERNMENT POLICY
 FINANCE AND INTEREST RATE
 CORPORATE GOVERNANCE
 INFRASTRUTURE
PROSPECT
 CONTINIOUS AND SUSTAINABLE GROWTH
 CREATING EMPLOYMENT OPPORTUNITIES
 RETURN ON INVESTMENT
 PARTNERSHIP
 SELF FULFILMENT
CONCLUSION
Studies have shown that there exists a positive relationship
between economic growth in Nigeria and diversification of
other sectors because, when there were proper
management of human resources, huge investment and
concentration on agriculture, Nigerian economy was
recorded to be healthy and vibrant. In those golden years,
agriculture offered over 70% of Nigeria’s teaming
population job opportunities.
When we talk about diversified economy we come up with
an example of nations who have seen various ups and
downs in their economies giving them strength to face
crises and letting them know about how to change threats
into opportunities
 THANK YOU ALL FOR LISTENING