FG approves N13.920billion for rice and cassava mills

by Laila Ibrahim

N13 billion has been approved by the Federal Government for the purchase of 10 integrated rice mills and 6 high quality cassava flour mills to boost rice and cassava production in the country.

N568 million was also approved by the Government for the award of contract for the procurement and construction of an additional transformer for the Maiduguri substation.

During a briefing of journalists after the weekly federal executive council meeting, the Minister of Agriculture, Akinwumi Adesina said the rice mills will be located in 10 states of the federation.

The 10 rice mills each have a capacity to mill 36,000 metric tones of paddy rice, with a total of 360,000 metric tones of paddy rice expected to be processed across the country. The rice mills will be located in Kebbi, Zamfara, Kaduna, Ogun, Bayelsa, Niger, Kogi, Anambra, Benue and Bauchi states while the cassava mills will be located in Ondo, Ogun, Abia, Delta, Cross River, Nassarawa states.

Adesina said the council deliberated extensively on the need for more integrated rice mills across the country as it is currently working at the total blackout of the importation of rice.

He said, “the mills will not be owned or run by government, they are going to be owned managed and operated by the private sector, it’s part of government’s way of making this available at a term of financing that can be afforded by the private sector. The acquisition of this will be done by the bank of industry. It will select the private sector people, they will have the down payment, and the plants are going to be constructed and they have a financing facility for them to own it. Government is just doing its job which is to get things to happen, but the private sector will do every single thing about it.”

He added that government will no longer fold it’s arms and watch the private sector do the job, rather it is taking the lead and doing the right thing. “There are still those who go around trying to get waivers to import rice and throw us into poverty, this will no longer be possible” he said

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The Federal Executive Council also gave approval for the award of contract for the additional construction of 1x60MVA, 132/332KV transformer to the Maiduguri 1x150MVA, NK330/132 Substation, in favour of Merssrs Best Crompton Engineering (Africa) Limited in the sum of $2,250,446.72 payable at the prevailing exchange rate at the tine of payments and N208,592,058.01, with a completion period of 12 months.

The projection is one of the key projects designed by the Transmission Company of Nigeria to strengthen the national grid for effective power wheeling and to enhance socio economic development of the state. It is to be financed under the Eurobond of N800,000,000.00 loan while the balance would be provided for in the 2015 budget.

The council also approved the ratification of the treaty on the establishment of Abidjan-Lagos corridor among the government’s of the Republics of Benin, Ivory Coast, Ghana, Togo and the Federal Republic of Nigeria and directed the Attorney-General of the Federation and Minister of Justice to prepare the instrument of ratification to the treaty.

The Treaty’s aim is to ensure the safe and efficient movement of persons and goods, regional and international trade and transport by improving on the road infrastructure and simplifying and harmonising the requirements and controls that govern the movement of goods and persons with a view to reducing transportation costs and transit times.

Culled from www.ynaija.com