Farouk Gumel

  Farouk gumel - A Commodity Exchange or Comex is a regulated market allowing the purchase and sale of contracts backed by commodities such as gold, silver, crude oil, and so on. Such an exchange serves as the central location for trading the commodities. Some of the major commodity exchanges in the world are Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), Carbon Trade Exchange (CTX), New York Mercantile Exchange (NYMEX), London Metals Exchange (LME), Tokyo Commodity Exchange (TOCOM) and more. In its simplistic form, the purpose of exchanges is to provide a centralized marketplace where producers can sell their commodities to those who want to use them for processing or consumption. In its simplistic form, exchanges connect buyers to sellers. The sales could be for products that exist today or those that would be produced at a “future date”. For the “future” transaction, the exchange enables the farmer to lock in the price and offtake of his/her crop months before...

  Recently, the media has been reporting about massive farmer protests in India against the implementation of certain agricultural reforms in Nigeria. The protest started on 9th August 2020 and most of the protesting farmers are from India’s two largest agricultural producing states (Punjab and Haryana). It is reported that these States are the largest beneficiaries of the Indian Government’s Green Revolution reforms.  The first important point to note is the farmers protesting outside New Delhi are among the wealthier farmers in the country who are the major beneficiaries of Government interventions including the Minimum Support Price (MSP), the India government’s grain procurement program which provides offtake assurance through government regulated physical markets. So the views of these large players may not be a fair representation of the millions of smallholder farmers in India.  The reforms proposed by the Indian Government comes are covered in three (3) ...

  Farouk Gumel - Despite long standing recognition of the benefits of trade and the importance of improving competitiveness, Africa is performing beneath its potential in global and regional agricultural markets. Recent export growth has been offset by even larger growth in imports, caused by a booming population. More than 60 percent of the population of sub-Saharan Africa are smallholder farmers, and about 23 percent of sub-Saharan Africa’s GDP comes from agriculture. Yet, Africa’s full agricultural potential remains untapped. This has led to a deterioration of Africa’s trade balance. Intraregional trade, on the other hand, is growing, but remains significantly below the levels seen in other parts of the world. Africa still has strong comparative advantages in many products which include traditional cash crops like coffee, cocoa and tea, as well as new products like legumes, pulses and sesame seeds. Some of these products are becoming the main staples of many African countries, ...

Farouk Gumel - Finally, agriculture is taking its rightful place as the sector that will take Nigerians out of poverty and into an era of inclusive and collective prosperity. Although the sector employs millions of Nigerians and accounts for an estimated 20% of the country’s GDP, many still view supporting agriculture as a charitable act as opposed to a business venture. This is the simple reason why many farmers in this sector are classified as “under employed” due to their mere inability to grow beyond the subsistence level. Nigeria is blessed as we have the potential to excel in all the key sub-sectors of agriculture. We have the land and forests for farming and grazing. We have the water (sea, lakes and rivers) for fishing and aquaculture. We have the capacity and the climate for livestock and poultry production. And of course, we have the manpower to get all this done. Therefore, it is extremely exciting for all of us to see significant investments going into this sector. We are ...

  Farouk Gumel - Oil was discovered in Nigeria in the 1950’s and today, Nigeria is the eleventh-largest oil-producer in the world and Africa’s main oil producer. In 1977, the Nigerian National Petroleum Company (NNPC) was founded to participate and regulate the country’s oil sector. Since then, significant progress has been made in terms of increasing production, revenues, and consumption. We must thank NNPC for Nigeria’s dominance in Africa when it comes to oil production. This dominance however came with its downsides. As a nation, Nigeria became over reliant, or one could even say addicted, to oil revenues. From the 1970’s, we convinced ourselves that Nigeria is rich. And maybe we are. But the reality is poverty has always been around growing side by side with our oil production and the apparent wealth. This is because as oil brings revenues to a nation, it does not create jobs in a nation. According to the International Labour Organisation (ILO), the petroleum industry directl...

In September 2015, the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs).The first two goals were "No poverty and Zero Hunger". These Are problems common to all nations although its severity differs in each nation and region. FAO data shows Africa as the region most impacted by hunger and malnutrition. Apart from the obvious fact that we all need food to live, hunger and malnutrition also have other adverse and long-term socioeconomic consequences such as poor health, under education and insecurity. It is a fact that Chronic undernutrition hinders the growth and wellbeing of children under five years old. As these children grow, they will continue to have health and/or learning difficulties.  In 2018, 49.5 million children under five were affected by acute malnutrition. It is reported that Africa and Asia accounted for nine out of ten of these cases. These Affected children are excessive...

  Farouk Gumel -In a continent where some 50% of its population are farmers, Africa still imports billions of dollars of food every year to meet its needs. These imports, which are by choice and not out of necessity, have kept the demand for locally produced food items at extremely low levels. As a result, Africa’s rural farmers, except for those in export focused value chains, were left in a vicious circle of subsistence with little opportunity for growth. The sad fact is these imported food items (including grains) can be grown indigenously. In Africa, agriculture remains the key link that connects the affluent urban centres to the poorer rural areas. What does this mean you ask? Well, Africa’s growing middle class (entrepreneurs or salaried staff) live in its urban centres. They spend a sizable amount of their income on food. But due to Africa’s reliance on food imports, these funds are sent overseas thereby creating jobs abroad. As the urban consumer patronises imported food it...

  Farouk Gumel , Nigeria - In this technology-driven world, we are gradually seeing every aspect of human life being influenced by technology. This has changed the way we see and do things. The agricultural sector is not any different. On a daily basis, we learn of new technologies that support farming, storage, processing, logistics, and sales. This is very exciting for the sector which, at least in Africa, has been very slow to modernize. The question however is how can we transition to ensure we fully harness the benefits of modern agricultural practices while managing its inherent risks? The Technological Advancement in Farming State of the art technology and science-based farming practices undoubtedly bring higher yields, more efficient production, better quality products, and enhanced profitability. In developed and/or sparsely populated nations, farming machinery is preferred as they are more efficient and cheaper. The automation of planting, irrigation, and harvesting has ...

  Nigeria, like many Africa nations, is an agrarian nation. Contrary to the general perception that it is an oil and gas country, the majority of Nigerians in reality earn their living through the agricultural and food value chain. This should not be a surprise. A country with over 200 million people will surely have a large appetite. In this article, we are going to briefly look at how agriculture is one of the biggest reasons why Nigeria is the world’s 27th largest economy, and why investing in this sector will propel Nigeria to greater heights globally. Farouk Gumel, the executive director of TGI, said about Nigerian GDP and How nigeria farming improving day by day. The Truth About Nigerian GDP Nigeria is the largest economy in Africa with the highest population on the continent. It was ranked the 27th largest economy globally and is among the largest producers of oil and gas in the world. The whole world knows Nigeria for its Oil while ignoring its other assets – arable land, w...