Our Impact on the Nigerian Economy

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Job Creation along the supply chain: The NNCMC creates an estimated One Million jobs (directly and indirectly) particularly in the 19 Northern States of the country taking in to account its direct employees, project implementation managers, state implementation consultants and local buying agents or commodity brokers/traders. It engages local buying agents for the 416 LGAs and each of the agents obviously has support personnel that are involved in the purchasing and supply of the commodities. The local buying agents are supervised by the State Implementation Consultants which comprises a consortium of consultant personnel.

Transport workers, shipping and logistics Personnel: The NNCMC engages transport and logistics along the supply chain and this generates employment; labour force and jobs for the local population. The transportation and logistics services engage drivers, motor boys and other key personnel involved in loading and off-loading of the commodities. The vehicle maintenance and repairs further create jobs and business opportunities for mechanics and apprentices seeking jobs. About 300 truck vehicles engage in the transportation, logistics of the commodities and activities of the NNCMC, and this offers minimum of 600 additional jobs.

Resuscitation of key industries that have shut down: The NNCMC promotes availability of quality raw materials for our local manufacturers, and resuscitation of key industries that have shut down due to lack of raw materials and finance to purchase their raw materials. The company’s supply of its commodities as raw materials to about 500 agro-based industries that have shut down in the 19 northern states due to lack of funding for purchase of raw materials will bring back the industries to production and business track, and consequently create more jobs and means of income earning for the local and teeming youths population. With the resuscitation of about 500 agro-based industries in Northern Nigeria, more than 10,000 jobs will be additionally created thus engaging the teeming youth populations, preventing youth restiveness and social violence in the northern region.

Contribution to the GDP: Agriculture contribution to the GDP was estimated to have shrunk from 40% just a few years ago to 24.18% as at 2015 partly due to post-harvest losses and combination of other factors. However, the NNCMC offers better storage and reduces post-harvest losses; enhance market and prices to small holders’ farmers which produce 90% of Nigeria’s agricultural output. This will encourage and improve productivity and thus accelerate agricultural contribution to the GDP by 50% at the end of 2019. This implies that the NNCMC holds great potential and forms part of the future of Nigeria Food Reserve Programme.

Contribution to National Food Reserve: According to the Honorable Minister of Agriculture and Rural Development (Chief Audu Ogbeh), the country’s post-harvest loss rate was estimated to be up to 60% as at June 2016. This was attributed to inadequate storage, lack of ready market and poor prices offered to farmers. The NNCMC with its storage facilities, better market and price offers impact positively on farmers and on the country’s economy by reducing post- harvest losses and consequently contributing to the nation’s food reserve programme. It is estimated that the Company will enhance the national food reserve by 25% increase at the end of 2018.

Contribution to FOREX Savings and reduced spending on importation of food stuff: The country spent over 1 trillion Naira to import foodstuffs in 2015 with $2.41 billion spent on only importation of rice. However, the NNCMCs enhances agricultural productivity, food availability and consequently reduce government’s spending on importation of food stuffs such as rice and other commodities in its business supply chain. With NNCMC we envisage about 25% savings on FOREX spending by Government for importation of food stuff at the end of 2018, and the figure is expected to increase annually. Savings made can be used by government to develop other aspects of the economy and in resuscitation of industries and job creation.

FOREX Earning: Besides the local consumer and domestic markets, the NNCMC also markets its commodities by export to the international markets in order to earn FOREX, generate Tax and Revenue for the Government. According to the latest Trade Statistics Report published by the National Bureau of Statistics, Ginger exports ranked in N12, 391,202,116. With the NNCMC this amount for ginger export and other export commodities in its supply chain will obviously increase and consequently improve supply of foreign exchange from export earnings on the exported commodities of NNCMC.

Multiplier effect on the economy: The NNCMC offers food, raw materials and export earnings for the growth of the non-farm or non agricultural sectors which support agriculture by supplying inputs (fertilizers, insecticides, irrigation structures, infrastructure and market for agricultural commodities). Consequently, the deficiency in production of one sector becomes the limiting factor for the growth of the other sector. This implies that the growth of the NNCMC will impact positively on the growth of other sectors like transport, engineering, trade, commerce and industry (for fertilizers and herbicides etc), agro-tourism and hospitality. This indicates that the NNCMC has a positive multiplier effect on the Nigeria economy.