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Livestock Farming can Change Nigeria’s Agricultural Ecosystem for Good – Muyiwa
Folorunso Muyiwa. is the Chief Executive Officer Of Divergent Enterprise, with an objective to create wealth for its financial partners through pig farming. He recently shared his views on livestock farming in the country.
How achievable is the current Federal Government plans to diverse the economy
It is definitely achievable. The diversification of the economy is probably the only option left for development and growth. This is because the economy continues to be over-reliant on oil, the numbers speak for themselves. Oil accounts for 80% of government’s revenue and 90% of foreign exchange earnings. No country can totally depend on only one economic sector. Especially one that is blessed with a lot of natural resources like Nigeria. I believe that there are great opportunities for non-oil sectors to grow and this growth has been visible since 2001. Of course, the changes cannot be that quick and the transformation will not happen overnight. However, the federal government can develop different sectors by taking the important steps necessary for growth to take place. We can no longer be a mono-economic country.
Could that explain why you ventured into pig farming
The idea for Porkmoney grew out of the desire to tap into an over neglected sector of livestock farming (Pigs) that has the potential to create value and change the agricultural ecosystem for good. Long ago before Porkmoney was launched in 2018, I had visited a pig farm in Ogun state. One of the biggest in the country and realised how fast the pigs grew and the viability of the pig farming system in general. I knew this was something I needed to be a part of and I’m glad for the decision that I made. We are currently the leading Pig farming enterprise in West Africa and our results speaks for itself.
Did you derive the idea of establishing PorkMoney from that enterprise
My visit to that farm was definitely a turning point for me. Before then, I was oblivious of the untapped goldmine that is pig farming.
What challenges did you encounter
Every business comes with a few challenges. One of the challenges we constantly face is the need to micro manage casual workers. From farm handlers, managers, production managers other workers. Many of them compromise on set standards by cutting corners especially in meat processing and livestock welfare. Another challenge is the religious sentiments in this part of the world towards pigs and pork products. However, this was a more pronounced problem at inception and it is gradually dissipating with time.
Knowing the religious sensibilities of the country, did aversion to pork cross your mind
Not at all. In as much as there’s a religious proscription to the consumption of pork, we cannot ignore its usefulness and benefits to our health and nourishment and just how lucrative the pig farming industry is. I mean, Nigeria is a major consumer of pork and 80% of it is imported. This means that a lot of people enjoy this animal protein, all we are doing is localising its production.
Is it possible to alter negative public perception about pig farming
Definitely. One of our key responsibilities is to enlighten and educate the general public about the great side to pig farming and inform them of the many benefits of pork consumption. Somehow our environment and the kind of information we were exposed to as a people, has influenced our idea of certain things. There are a lot of things we might need to unlearn as time goes on. So by using all our platforms, from our social media, our website and even our adverts, we have ensured that we always show the good side to pig farming because they’re a lot.
Did you think about the possible health challenges in pork breeding
Of course we do. However, we ensure that we take the appropriate steps to mitigate any possibility. We also take proper hygienic measures like vaccination, quarantine and biosecurity which keeps our weaners very healthy.
Are you saying there are no associated diseases
Livestock farming comes with a risk of outburst of diseases but if managed properly, can be prevented. And the great things about pigs is just how resilient they are as compared to any other livestock for farming. They are simply incredibly disease resilient.
Vaccines and disease surveillance have always been the bane of animal husbandry, how do you react to that observation
Livestock are very prone to diseases, hence the need to constantly take precautionary measures such as the administration of vaccines and disease surveillance activities across the farm to prevent disease outbreaks. Very recently China, witnessed it’s biggest animal disease that claimed the lives of the livestock and cost the country to lose billions of dollars because of its flawed surveillance. So it’s important for other pork producing countries to take adequate disease surveillance and testing programs in order for these diseases can be detected early enough and prevent a fast spread. And so far our farm partners under our management have taken adequate measures that have seen us not witness any outbreak since our launch in 2018, we expect that with our measures this would continue to be the case.
What would you consider as the most limiting factors to entrepreneurship, especially for youths
Lack of capital has to be one of them. Aside from the fact that the Nigerian environment is not too conducive and encouraging for budding entrepreneurs, raising capital and access to funds, has to be one of the biggest challenges for youth in business. Another is the unfavourable tax policies, poor management, corruption, lack of training and experience, poor infrastructure, and a lack of specialised skills to scale one’s enterprise, none of which is insurmountable for the determined person.
How would you rate Nigeria’s scale of Small Medium Enterprises, compared to Malaysia and other countries
The SME sector is the backbone of major developed economies, as well as important contributors to employment, economic and export growth. Malaysia is doing remarkably well when it comes to the business scene. About 98.5% Business establishments In Malaysia are SME’s which contributes to 36.5% of their GDP and 65% of the country’s employment. This is impressive. But despite the significant contribution of SMEs to the Nigerian economy(48%), challenges still persist that hinder the growth and development of the sector. Some of the overriding issues are access to funding, lack of skilled manpower, the multiplicity of taxes, high cost of doing business, among others. This proves that there is still much to be done.
As an entrepreneur, how did you overcome initial apprehensions, especially funding, and what areas have you exerted your ideas so far
When I was starting out in business, I had no capital, training or resources to start my journey. The brilliant ideas were there, all that was needed to execute them was finance. This was lacking but I had start small and grow multiple businesses over the years till I was able to afford the capital needed to start my current pursuit.
No fewer than 952 Nigerians have been killed by Lassa fever, cholera, measles, diphtheria, and yellow fever in 2024.
This is according to data from the National Public Health Institute, Nigeria Centre for Disease Control and Prevention (NCDC).
A breakdown of the data showed that as of week 52, the country recorded 9,685 suspected cases of Lassa fever, 1,187 confirmed cases, and 191 deaths across 28 states, and 138 local government areas.
As of October, the centre recorded 14,237 suspected cases of cholera, 378 deaths in 36 states, and 339 LGAs.
The centre also recorded 18,187 suspected cases of measles, 9,330 confirmed cases, and 73 deaths in 36 states and the Federal Capital Territory across 751 LGAs as of October 2024.
Comparatively, suspected cases of cholera in the current year increased by 220 per cent compared to what was reported as of week 39 in 2023. Likewise, cumulative deaths recorded have increased by 239 per cent in 2024.
As of September, the NCDC recorded 12,085 suspected cases of diphtheria, 7,784 confirmed cases, and 309 deaths in 21 states across 170 LGAs.
The NCDC also recorded 1,484 suspected cases of Mpox, 124 confirmed cases, across 28 states, and the FCT as of November 3, 2024.
As of September, the country recorded 2,248 suspected cases of yellow fever, 18 confirmed cases, from 592 LGAs in 36 states and the FCT, and one death.
Taiwo Oyedele, chairman, Presidential Advisory Committee on Fiscal Policy and Tax Reform (PACFTR) has said that contrary to speculations, individuals earning about N1.7 million or less per month will pay lower Pay as You Earn (PAYE) tax under the proposed Tax Amendment Bills before the National Assembly.
Besides, workers earning the new minimum wage and slightly more will also be fully exempted from tax obligations.
Addressing various tax issues on X, formerly Twitter, Oyedele said these thresholds will result in over 90 per cent of workers in the public and private sectors paying lower taxes while high income earners will pay slightly more in a progressive manner up to 25 per cent for the ultra-high net worth individuals.
His explanation came against the backdrop of general concerns that workers might pay more under the proposed tax reform initiatives of the federal government.
According to him, planned changes to the current tax table of personal income brackets and rates was to discourage arbitrage in some cases between the two income tax regimes.
He said the current tax table was introduced in 2011, stating that due to high inflation and lack of review, the structure has resulted in “fiscal drag” where many low income earners have been pushed to the top tax bracket over time.
This, he said, meant that an individual earning just N400,000 a month was paying the same top marginal income tax rate as a wealthy individual earning about N20 million per month.
“Therefore, the tax table has become regressive rather than progressive, as it was originally designed.
“Also, the current personal income tax regime does not encourage formalisation given that the effective top tax rate on companies is nearly double that of enterprises, which also encourages arbitrage in some cases between the two income tax regimes.
“Hence, the proposed changes seek to address these issues and simplify the system by incorporating current reliefs and allowances into the bands and rates to achieve an overall lower effective tax rate for the majority of workers,” Oyedele said.
Further addressing concerns over taxation of workers’ income in the proposed regulation, he clarified that apart from the N800,000 per annum, which was exempted from tax, there was a rent relief of up to N200,000 per annum, which together will exempt individuals earning up to N1 million per annum (about N83,000 per month).
He said: “This is particularly beneficial to low income earners. Also, the new tax bands and rates have been designed to avoid a situation where individuals earning slightly more than the exemption threshold are taxed to an extent that makes them worse off than a person whose income is within the exemption threshold.
“For example, a person earning N30,000 per month is exempt from tax while a person earning N30,001 per month will pay about N500 leaving the latter with a net of N29,500 which is N500 worse than the person earning N30,000.
“Under the tax bills, this problem has been addressed, as everyone will be eligible to the first tax-free bracket.”
He also revealed that statutory deductions, including pension and National Housing Fund contributions, were still applicable under the new tax bills.
According to him, “These are contributions under the National Housing Fund, National Health Insurance Scheme, Pension Reform Act, interest on loans for developing an owner-occupied residential house, annuity or premium paid for life insurance, and rent relief up to N200,000 per annum.”
He said while part of the objectives of tax reforms was simplification, the impact of the Consolidated Relief Allowance (CRA) and Personal Relief had been incorporated into the tax table such that the overall goal of exempting low income earners and reducing taxes for middle income earners was achieved.
Addressing worries over the removal of CRA and personal relief, which seemingly amounted to giving a relief with one hand and taking it back with the other, Oyedele pointed out, “By integrating the reliefs into the tax brackets and rates, many taxpayers with basic education would be able to calculate their taxes with little or no assistance thereby achieving the dual objectives of lower tax burden and tax simplification.”
On suggestions that the tax rate for the second band seemed quite steep, moving from zero per cent to 15 per cent, he said, “By comparison, the second band under the bills, which is to be taxed at 15 per cent, is currently being taxed at a marginal rate of 21 per cent even after all reliefs and allowances.
“So, while the 15 per cent may appear steep from zero per cent for the first band, it is lower compared to the current tax table.
“The real impact for a person earning about N3 million per annum equivalent to the aggregate of the first and second brackets is a lower effective tax rate of 10 per cent compared to about 12 per cent under the current tax table.”
Federal government will establish a national credit guarantee company in May to lend to businesses and individuals, according to President Bola Tinubu.
Bola Tinubu
Tinubu in an speech on Wednesday, said that “To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.
He said the company would partner with government institutions such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, as well as the private sector and multilateral institutions.
“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people,” Tinubu said.
Eight months ago, Tinubu launched the Nigerian Consumer Credit Corporation, to enhance access to credit to employed Nigerians.
The implementation of the programme was planned in stages, beginning with Federal civil service employees and now the general public.
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