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Again, State Govs Seek CBN Assistance Over FAAC Deductions

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By Tony Obiechina, Abuja


State Governors have again appealed to the Central Bank of Nigeria ( CBN) to assist them reschedule their Irrevocable Standing Payment Order (ISPOs) upon which deductions are made directly monthly from their allocations at the Federation Accounts Allocation Committee (FAAC) meeting.


The governors under the aegis of the Nigerian Governors Forum (NGF), made the appeal at  the apex bank corporate headquarters in Abuja on Thursday when the Forum led by it’s Chairman and Governor of Ekiti  State, Dr.
Kayode Fayemi led about 20 Governors to meet with the CBN Management Team on unlocking growth potentials through agriculture .

The Governor of Borno State, Prof. Zanna Zulum who made the request on behalf of the States said the North -Eastern States were heavily burdened by the deductions because of the spate of insurgency and have become hamstrung in activating agricultural initiatives because of their cost implications.
The CBN had earlier restructured States loans in 2016 during the bailout palliatives to assist the States meet up with salaries and other emoluments obligations in the wake of the recessionary effects at the time .
Also on the shopping lists of the visiting Governors were the assistance in the provision of electricity to help agro processing and storage as well as more credit lines through the Development Finance Department of the apex bank.
Responding, the CBN Governor, Mr. Godwin Emefiele promised to work with the States to reap the potentials in agriculture in the country .
He listed the many initiatives undertaken by the apex bank to boost food production in the country so as to cut down on import and save foreign exchange for Nigeria.
In line with the objective, he announced that the CBN has added cassava derivatives to the list of foreign exchange ban for import into the country.
“We have indeed  begun to restrict Forex for importers of all cassava derivatives into the country such as ethanol and starch, he stated”.

Emefiele, explained that the action was taken because Nigeria was the largest producer of cassava and wondered why Nigeria should be importing  cassava derivatives into the country.
The governor also disclosed that the CBN has disbursed about N30 billion for the cultivation of oil palm to meet domestic consumption requirements. He said:”The annual demand for palm oil in Nigeria stands at 2.5m mt of which only  1.25m mt, is produced locally  leaving a  gap of 1.25m mt per annum. This gap is currently being met through imports.

The Central Bank of Nigeria Oil Palm Initiative is aimed at closing the gap and also positioning Nigeria to incrementally export oil palm products to neighboring African countries and beyond.
“Closing the identified gap would require bringing about 312,500 hectares under modern cultivation at an estimated yield of 4 metric tons per hectare.  Our target is to ensure that a minimum of 1.4 million ha of land is put under oil palm cultivation in three years.
“As a step in this direction, the Bank had met with 14 State Governors who pledged to make available 100,000ha of land in each state.  We currently have a total of 904,624 hectares which are available in the states for allocation and investors have been matched with the States of interest to process necessary documentation and titling requirement.  
“The investors are to be funded from the Bank’s intervention programme.  However, some of the States are slow in making the land available to these investors.
“So far a total of about N30 billion has been disbursed through deposit money banks  in favour of 6 oil palm companies to support their expansion programmes.  The companies are PZ Wimar, Biase oil company ltd, Eyop, Okomu Oil company, Presco Oil Company, SIAT Ltd.  
“We are expecting application in favour of Ada Palm IMO State. Over 40 applications from investors across the country for the cultivation of  126,694 hectares are being considered,” Emefiele further disclosed.

Agriculture

Residents Groan Under Rising Tomato Prices, Seek Alternatives

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Some residents in Lagos State have expressed concern over the recent surge in the price of tomatoes, forcing many households to adopt alternatives.

The residents made their views known in separate interviews on Wednesday in Lagos.

A market survey showed that a 50kg basket of tomatoes now sells between N115,000 and N125,000, compared to between N35,000 and N40,000 recorded last month.

Olachi Igwe, a resident of Ago Palace, said the scarcity and high cost of tomatoes had disrupted her household’s meal plans.

“I contacted my usual vendor, but she said tomatoes were scarce and difficult to source.

“A small bowl we used to buy for between N3,500 and N4,000 now sells for as high as N6,000 to N7,000, when available.

“For now, my family will resort to palm nut stew (ofe akwu) until prices stabilise,” she said.

Another resident, Mercy Okeleye of FESTAC, said although her family prefers fresh tomatoes, rising prices have forced her to consider cheaper options.

“I cannot do without fresh tomatoes because of the taste, but I may have to buy broken ones, popularly called ‘esha’, which are relatively cheaper.

“I do not consider tomato paste a suitable substitute because it is not purely made from tomatoes,” she said.

Also speaking, Tope Babalola from Dopemu, said she might adjust her cooking methods if prices remain high.

“I have not bought tomatoes in over a month, but if the price is still high, I will use more onions and peppers.

“I will not resort to artificial additives; I prefer natural ingredients for my meals,” she said.

Joan Ogugua, another resident, said she had already switched to tomato paste to cope with the situation.

“I asked my son to buy tomato paste for our meals. I cannot justify spending excessively on fresh tomatoes when other basic needs must be met,” she said.

Also, Oge Ugwu, a civil servant at Lekki, said she would resort to cucumber stew with the recent price hike.

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Agriculture

Tomato Farmers Predict Steady Price Hike from May

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The Tomatoes Growers and Processors Association of Nigeria (TOPAN) has predicted a steady increase in the price of the produce between May and June 2026.

The Kaduna State Chairman TOPAN, Rabiu Zuntu, disclosed this in an interview recently in Lagos.

Zuntu noted that although there is no particular time for tomatoes planting season up north, seasonal weather variations can affect the production of the produce.

“Although we can plant tomatoes all-year-round, we cannot assure quality harvest all-year-round.

“Some farmers are harvesting now, while others are transplanting, and others are harvesting.

“Tomatoes are still available for sale but the price of the produce is gradually on the increase.

“Come May/June, the prices of tomatoes will be very expensive, so now is a good time to stock up the produce. There’s always a scarcity within that period.

“This is because of the nature of the weather in the north around that period, the weather is usually very hot and tomatoes cannot resist such hot temperature,” he said.

Zuntu said the price of tomatoes have started rising up in the north.

“A 50kg rafia basket of tomatoes sells from N20,000 as against N7,000 to N10,000 that was sold earlier in the year.

“While a crate of tomatoes up north is sold between N10,000 and N15,000 as against N5,000 to N6,500 sold earlier in the year.

“In most part of Kano State, where there is bumper harvest, they are rounding off their harvest. So, tomato is not that available there and most buyers have turned to where they can find it now, mostly within Kaduna State and some parts of Plateau State.

“So, that’s why the supply has decreased and the tomato supply and cost is determined by the law of demand and supply,” he said.

A 50kg basket of tomatoes in Lagos, at the moment, sells between N40,000 and N60,000 depending on the size and quality.

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Agriculture

Lack of Irrigation Facilities Crippling Dry Season Farming in Oyo

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The Smallholder Women Farmers Organisation in Nigeria (SWOFON), Oyo State chapter, has said that the lack of irrigation facilities had become a major obstacle to dry season farming in the state.

The Chairperson of SWOFON in Oyo State, Atinuke Akinbade, said this in an interview in Ibadan on Monday.

Akinbade, who shared the experiences of women farmers in the state during the 2025 dry season, said that inadequate access to water for irrigation significantly affected the performance of many farmers during the period.

“It hindered many older farmers from participating in dry season farming and also prevented younger farmers from doing as much as they could in cultivating large acres of land,” she said.

Akinbade explained that farmers who managed to plant during the season struggled to access sufficient water to irrigate their farms, a situation worsened by the effects of climate change.

“Many farmers who depended on streams and wells to water their crops suffered major setbacks because those sources could not provide enough water for irrigation.

“Some farmers had to resort to buying water from commercial water tankers, which increased the cost of production, while at times it was even difficult to get water from the tankers,” she said.

The SWOFON chairperson warned that failure to address the problem could worsen food insecurity in the coming months.

“Even now, rainy season farming has not fully commenced because of the irregular rainfall pattern.

“This is a double burden, and if nothing is done, it may lead to serious hunger later,” she said.

Akinbade, however, acknowledged that the government had organised training for members of the association on home gardening.

She, however, said that little support was provided to address the challenges of dry season farming.

The chairman said that the home garden support package given to members consisted mainly of seedlings and one sprayer.

“They gave us two packs each of maize and pepper seeds, with six seeds in each pack, as well as one sprayer, so that we can grow food for household consumption,” she said.

Earlier, Oluwatoyin Oyedeji, SWOFON Coordinator in Oyo East, explained the severe hardship members of the organisation experienced in sourcing water for irrigation.

“Many farmers are already counting their losses because water was not available to irrigate their farms.

“Those who depended on streams and brooks were badly affected because many of them dried up, while the few that still had water had so little that farmers had to dig deeper into the ground in search of more,” Oyedeji said.

In the same vein, the Women Leader for farmers in Saki East, Musiliu Ashiru, said the absence of irrigation facilities also hampered dry season farming in her area.

According to her, many farmers still engaged in dry season farming have had to pay for water to keep their crops alive.

“Many of them buy water from the dam here to irrigate their crops. It has not been easy for them this year,” Ashiru said.

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