In Africa, domestic consumption of cashews is quite low, providing little incentive to process the nuts closer to home. As a result, African raw cashews continue to be exported to India and Vietnam where they are processed and shipped to different countries including US and Europe (which consume about 70% of the global cashew supply) for consumption. At present, Africa sells the majority of its cashew crop to India and Vietnam for processing. However, it can provide enormous job opportunities and a (relatively) stable market for cashew producers if more of Africa’s 642,000 metric tons are processed locally. As a result of the growing awareness about the vast potential of the cashew industry, there has been an upward trend in the African processing capacity as cashew processing is being recognized as an important means to create employment opportunities, thereby improving the living standards of the population. While East Africa now processes 20% of its domestic production, West Africa is likely to increase its current processing rate of 3% by adding processing plants. The future of African cashew industry looks bright, especially with increased interest and investment promoting growth in the global cashew market.

West African Trade Hub (WATH), in collaboration with NGO’s and US government agencies, facilitates the cashew industry by providing technical assistance to processors and an access to the US market. On the other hand, African Cashew Alliance (ACA) has been instrumental in providing the much needed support to the cashew sector as expanding cashew production is environment friendly and is an important source of supplemental income to the farmers. ACA is a platform for sharing of knowledge and information and create synergies among different countries. WATH manages the secretariat for the ACA, which is an important link between different companies and donors to increase investments, improve quality and provide access to global markets. Ultimately, it promotes the African cashew in the global market.

Demand for Indian cashew-nut increased as both Brazil and Vietnam, main competitors of India in the cashew nut market, failed to meet orders from other countries. Some of the other factors including increase in the domestic consumption and global consumption of cashew are likely to contribute to the firm price trends. FOB prices of cashew grade W-320 have risen to $3.04 a pound in April 2008, closing in on the record price of $3.16 a pound attained in August 1999.

Over the years, cashew has become one of the leading exports of India and has been instrumental in bringing increased foreign exchange to India. India exports cashew-nut primarily to USA, Europe, Japan and Australia. Indian export earnings from cashew nut was US$508,444,000, in 2007-08 (April-March), as compared with US$554,444,000 in 2006-07.

India ranks first in area utilized for cashew production. There has been a significant growth in area and production of cashew in the recent years with the area under cashew registering a growth of 4.2% to 850,000 hectares and production going up by 8% to 620,000 MT in 2007-08, as compared to 2006-07.

The tropical climate of India is considered a boon for the cashew nut production. Some of the major cashew producing regions include Maharashtra, Andhra Pradesh, Orissa, Karnataka, Tamil Nadu and Kerela (Kollam). South India is a major contributor in the total cashew production in India. The chief trading centers of cashew are Palasa, Kochi and Kollam. The average cashew production in India is 0.65 ton per hectare out of which West Bengal alone contributes one ton cashew per hectare.

The import of cashew nut in 2007-08 was reported to be 605,000 MT and the kernel exports stood at 114,000MT

To achieve self sufficiency in production of raw cashews, the government has come up with a Mega mission 2015 for cashew aimed at 1 million ton of raw nuts in 5 years time by encouraging large scale commercial plantations under public and private sector. Cashew production is likely to get a boost with the Directorate of Cashew and Cocoa Development taking steps to increase the area under farming from 874,000 hectare in 2008 to one million hectare (ha) by 2012. The government body has decided to take up cultivation in a big way in states like Chattisgarh which will have three cashew nut processing units at Kumharvand, Karmari and Turenaar, fully equipped for processing nuts including shelling, peeling, grading into different sizes and colors in accordance with standard grading, drying or humidifying and packing. With the increasing demand in the global market over the recent years and the present crisis engulfing the industrial sector of India’s major competitors namely Vietnam and Brazil, the government has introduced various financial schemes to execute ‘Front Line Technology Demonstration in Cashew’ at the earliest. These include providing financial assistance of US$670 per hectare for 3 years for conventional method of cultivation, US$890 per hectare for organic farming, and US$670 per hectare for inter-cropping. Indian researchers have come up with more than 40 high yielding varieties of cashew capable of yielding 2-3 MT of raw nuts per hectare, thus re-affirming its status of being a technology giant.

India, blessed with all the necessary ingredients for cashew production including tropical humid climate, adequate manpower and latest technical know-how, has all the makings of becoming a leading nation in cashew nut production in the years to come. African governments should learn from a well established cashew industry in India and provide incentives to Indian investors transferring cashew technology to Africa.

As Vietnam overtook India as the world’s leading cashew exporter in 2006, it made the country richer by US$650 million through the export of 153,000 tonnes of cashews in 2007, a 20.4 per cent increase. At present, Vietnam supplies 40% of the global demand for cashew and exports to 40 countries and territories including the US, China, Holland, Australia, UK and Germany.

Currently, Viet Nam has 220 cashew processors with a total capacity of 600,000-700,000 tonnes per annum.

According to the Vietnam Cashew Association, Vietnam is expected to post cashew nut export turnovers of 670 million U.S. dollars in 2010, and 820 million dollars in 2020, up from 505 million dollars in 2006.

The market for Vietnamese cashew is substantial and the industry has a bright future. As a result, the cashew sector updated its export target to 1 billion USD for 2010.

However, there is a need for improving and maintaining a high quality and product hygiene to win the Chinese market (world’s largest market) thus maintaining its stronghold in the global market. Cashew producers are aware of this situation and have invested more than 150 billion VND (equivalent to 9 million USD) in researching high-yield varieties and latest processing technologies over the past year.

The country is facing shortage of unprocessed cashew to cater to the demand for local consumption and exports, thus compelled to import 200,000 tonnes of cashew in 2007 which is further expected to reach 250,000 tonnes in the current financial year.

At present, Viet Nam’s processors produce merely around 350,000 - 400,000 tonnes of raw cashew per year and is dependent upon imports from other countries. It has plans to increase its cashew cultivation area to 450,000 hectares (from 350,000 hectares of cashew trees in 2005) and import 125,000 tons of raw cashews while producing 500,000 tons of the products in 2010.

The cashew sector seems to be smelling danger due to land being grabbed by other products including tea, coffee and rubber. The Vietnam Cashew Association (Vinacas) has asked Vietnamese government to remove import taxes on raw cashew in 2008 from current 5 per cent or 7.5 per cent and also provide 50 billion VND (3 million USD ) to attain the desired levels in quantity and quality.

PROFILE OF SOLID MINERALS DEPOSITS IN NIGERIA

TALC

An estimated reserve of over 100 million tones of talc has been obtained in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States. There are only two medium size talc processing plants currently operating in Nigeria and both in Niger State. The color of the Nigeria talc varies from white through milky-white to gray. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only local demands but also that of the international markets as well.  

IRON ORE

There are over 3 billion tones of iron ore found in Kogi, Enugu, Niger, Zamfara and Kaduna States. Iron is currently being mined at Itakpe (Kogi State), which is more or less at the center of the region of crystalline iron deposits. The large deposit of oolitic iron ores pf Kogi and Enugu States are yet to be fully explored. Itakpe iron ore is being beneficiated to 67% Fe. To feed Aladja and Ajaokuta Steel companies. Besides there are three in-land rolling mills at Oshogbo, Jos and Katsina in addition to some privately rolling mills in Lagos and Kano.

GOLD

There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the shiest belt covering the western half of Nigeria. At present exploitation of alluvial deposits is being carried out mostly by artisan miners in a few places in the country. A number of primary deposits, which are sufficiently big of large scale mechanized mining, have been identified in the northwest and southwest parts of the country. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively Production costs will easily be as low as about $50 per ounce.

BITUMEN

The occurrence of Bitumen deposits in Nigeria is indicated at about 42 billion tonnes almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.

ROCK SALT

The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hypochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is experienced annually to import these chemicals by various companies including tanneries, food beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated and further investigations are now being carried out by government to ascertain the quantum of reserves.

GYPSUM

Gypsum is an important input for the production of cement. It is used for the production of Plaster of Paris (P.O.P) and classroom chalk etc. a strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain existing plants and meet future expansion. Current cement production is put at 8 million tones per annum while the national requirement is 9.6 million tones. About one billion tones of gypsum deposits are spread over many states in Nigeria.

LEAD/ZINC

An estimated 10 million tones of lead/zinc veins are spread over eight States in Nigeria. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.

BENTONITE AND BARYTE

These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigeria baryte had specific gravity of about 4.3. Over 7.5 million tonnes of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many states of the Federation ready for massive development and exploitation.

COAL

Nigeria Coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environment friendly. There are nearly 3.00 billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves.

GEMSTONES

Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aquamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst, Zircon and Flourspar which are among the world’s best. Good prospects exist in this area for viable investments.

KAOLIN

An estimated reserve of 3 million tones of good kaolinitic clays has been identified.

TANTALITE

Large deposits of Tantalite are known to occur in Nasarawa, Gombe and Kogi States as well as the Federal Capital Territory. The deposits are both alluvial and primary in the numerous pegmatite bodies that infest these areas. Grades of well over 50% Ta205 are found. Private investors are invited to stake concessions for the development and exploitation of tantalite in these areas.

Pelletisation of Coal for Domestic Use:

Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; Nigeria can cash in on foreign investors’ technology to produce coal pellets for industrial use, coal briquettes for domestic use; that is, to replace firewood.

Incentives and Strategies for Investment

Investment Incentives:

-3 to 5 years Tax Holiday.

-Deferred royalty payments.

-Possible capitalization of expenditure on exploration and surveys

-Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

HOW TO OBTAIN A MINING LEASE IN NIGERIA

There are two options available to a company or an individual to enter into mining industry in Nigeria.

Through the acquisition of an existing mining property from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.

By obtaining an application, either a Prospecting Right (PR), an Exclusive Prospecting Licence (EPL), or a Special Exclusive Prospecting Licence (SEPL), the application should state financial and technical capability qualifying the applicant for entry into the mining sector.

PERMIT REQUIREMENTS DURATION

Entry permit into the mining sector:

-Statement of financial capability

-Statement of technical capability

-Proof of statutory existence of company Life

Prospecting Right/Licence –Certificate of entry into mining

-Prospecting Licence 1 year renewals

Alluvial-Max. of 2

Bassalt-Max. of 4

Lode-Max. of 5

Exclusive prospecting Renewals exceeding 20.72) –Same as above Duration                                                                               of 1-5

Right/Licence (For areas up)

Years Depending on Reserves

Mining Lease (Gives right to mine specified and area of 80 hectares) –Possession of a Prospecting Right, Exclusive Prospecting Licence or Special Exclusive Prospecting Licence

-Submission of a plan of the prospecting done, a schedule of the mineral value found and a statement of ore reserves.

-Submission of an environmental impact assessment and production plan. Not exceeding 21 years Renewal depending on remaining reserves.

-Special mining lease for an area larger than 80 hectares - Same as above. Metallic minerals not

More than 21 years.

More than 21 years.

Not exceeding 70 years. Renewals at minister’s discretion, for not more than 21 years.

Entry into the mining industry - Statement of financial capability

- Statement of technical competence

- Proof of statutory existence of company.

-Evidence of tax clearance

- Payment of prescribed fee Life

Prospecting Right (P.R.) – Certificate of entry into the mining industry.

- Payment of prescribed fee 1 year (Renewable annually)

- Exclusive Prospecting (E.P.L.) (For areas up to, but not exceeding 20.72km2) – Certificate of entry into the mining industry

-Extant Prospecting Right (P.R.)

- Payment of prescribed fee 1 year renewable for:

Alluvial Deposits – maximum of 2 renewals: Bassalt:-

Max. of 4 renewals Max. of 5 renewals

Special Exclusive Prospecting Licence (S.E.P.L.)

(For areas greater than 20. 72km2 & of difficult terrain Mining Lease (M.L)

- Certificate of entry into Mining industry

- Extant Prospecting Right (P.R.)

- Payment of prescribed fee

- Certificate of entry into mining industry

-Extant Prospecting Right (P.R.)

- EPL or SEPL

-Prospecting plant of the area showing Ore reserve estimates.

- Payment of prescribed fee. 1-5 Years

Up to 21 years, renewable depending on remaining on reserve

Special Mining Lease (SML)

(For areas greater than that of ML. With difficult terrain and large capital out-lay).

Certificate of entry into mining industry.

- Extant Prospecting Right (PR)

- EPL or SEPL

- Prospecting plan of the area showing on reserve estimates

- Payment of prescribed fee. Up to 21 years renewable depending on the remaining on reserve.  

India and Nigeria have a long history of fruitful relationships for the past several decades. The relationship between these two rapidly growing nations started a couple of years before Nigeria became independent. The challenges before India and Nigeria are similar: economic development and the removal of poverty, illiteracy and ill-health. And the solution lies in increased co-operation among them. India and Nigeria have formed a partnership alliance, and they need to come closer. With Nigeria being rich in natural resources and India making waves in terms of technological know how, there seems to be a plethora of opportunities for collaboration between them. Both need to share experiences on evolving effective strategies for sustainable growth, poverty alleviation, better health care facilities, and literacy for all.” India is a large growing market and looks forward to many more African companies doing business in India.

Our bilateral relations are growing at a satisfactory pace. Nigeria is, today, one of India’s largest trading partners in Africa. New vistas of economic co-operation and investment are opening up. The coming years will witness much growth in investments by Indian companies in Nigeria. As per the Indian investment plans, the companies are likely to invest more than $10 billion especially in the fertilizer, petrochemicals, power, oil and gas.

DEVELOPMENTS IN AGRICULTURE & ALLIED SECTORS: India has made some significant developments in agriculture and food processing sector in the last few decades. Being a major contributor to the country’s economy, agriculture has witnessed prominent advancement in production of food grains, poultry, dairy products, commercial crops and oil seeds. With around 100 million tones of milk production in the year 2006, India reigns supreme throughout the world. India holds great future in the production of horticulture crops including spices, vegetables & fruits, floriculture. The production of fruits witnessed an increase from 52.8 Million tones in 2004-05 to 54.4 Million tones in 2005-06. India’s developmental experience, especially in agriculture, could be of relevance to Nigeria’s development. Nigeria remains a major market for food and agricultural products, with imports worth more than $3.0 billion annually. In Nigeria, demand for cereal by poultry, food processing industries and breweries is high. The cereal sector is becoming commercialized resulting in establishment of big grain markets in different areas. Commercial farming is the future of agriculture in Nigeria. Nigeria’s food and drink industry continues to be one of the most dynamic industries and happens to attract increased foreign investments from leading MNC’s including Nestle and Coca Cola. The government has a vision to take agriculture to new levels by reducing the country’s disturbingly growing dependence on the imported food, specifically milk, dairy products, rice and poultry.

BOTH COUNTRIES ADOPTING ALTERNATE POWER GENERATION: With global warming posing as a greatest threat to the people around the world, alternative stable power generation can prove to be a panacea for rising power problems and a permanent alternate energy source for the future generations Electric power is of fundamental importance to the economic, social and industrial development of any developing country. We need to tap abundant natural resources to bring the much desired transformation in the lives of millions of citizens.

TELECOMMUNICATIONS are the very basis on which shape any country’s present and future depends. It is very aptly regarded as a medium which replaces the physical movement of people across distances. The Nigerian telecommunications sector has made some prominent developments since its deregulation in 1992. With the entry of global leaders like MTN Nigeria, Gloabcom, Celtel Nigeria, Etisalat and MTel, it has emerged as one of the fastest growing telecom industries in the world with a mobile penetration of 20%. The current estimate of mobile users in April 2007 is 38,000,000. Nigeria currently has 42,915 867 million active subscribers and is all set to reach 60 million active subscriber base by end of the year.

The Indian telecommunications is the fastest growing telecommunication market in the world, and the third largest telecom market having a whooping 281.62 million telephone connections till January 2008 to boast of. Both the governmental as well as non governmental sectors jointly share the credit for this tremendous success. India also has the credit of becoming fastest-growing mobile markets in the world. It managed to achieve its target of reaching 250 million telephone subscribers by 2007, two months before stipulated time. Simultaneously, overall tele-density has increased to 24.63 % in January 2008. With the successful entry of new players such as MTNL, Reliance, BPL, Tata Indicom in the high potential Indian telecom market, private sector has become the dominant player, especially in the mobile market. The industry holds a great future for all those who care to seek.

Telecentres are fast emerging as an important tool used by governments to extend the much needed social and economic benefits to those at the lower rung of the ladder in order to reduce the digital divide. They focus on providing easy and wide access to ICT and on developing basic ICT skills to help support the livelihoods of the numerous poor. A new wave of optimism has dawned on Indian villages. The country is witnessing the accelerating growth of telecentres which have the power of bringing a revolution in the lives of the most vulnerable sections and help bridge the digital divide. ICTs have a vital role to play in realising the grand vision of inclusion for all sections of society.

INDIA & NIGERIA— A Force to Reckon With: ———————Nigeria and India need to work together to reverse the existing imbalances in their respective economies and make them more development friendly. There is a strong need to share our experiences on effective and viable strategies for achieving overall development and eliminating poverty, the root cause of all ills. We need greater global and national efforts to increase investment in rural areas to make developing nations become self sufficient and sustain growth and development. We also need to encourage broad based exchanges covering all facets of relationship. Leaders in government, parliament, industry and civil society in both the countries have to commit themselves to making the partnerships work. Co-operation from international organizations like World Bank, FAO, IFAD and UNIDO can be of additional help in this regard.

Indogeria Connect is a sincere endeavor and a platform for sharing information as well as promoting better understanding of the existing relations between the two nations. It aims to kindle and nurture long-term sustainable economic relations. The task of making life mean more for the people lies in co-operation among the two countries. We are confident that Indogeria Connect will give the much desired momentum to the co-operation and friendship of these countries and take it to new heights of achievement.

THE EMERGING IMPORTANCE OF JOINT VENTURES: In today’s world, joint ventures have become a way of life and a viable option for the developing countries to fuel their growth. Nigeria is India’s largest trading partner and both are coming forward to work together for a number of upcoming projects in the near future. An Indian joint venture operating under the name of ONGC MITTAL ENERGY (OMEL is an endeavor which is likely to yield 650,000 barrels of crude oil per day. The company plans to start production by 2010. Similarly, in the same year, the Securities and Exchange Board of India (SEBI) also signed MOU with the Securities and Exchange Commissions of Nigeria and Thailand to ensure regulatory co-operation, mutual assistance and sharing of information with the market watchdogs of the respective countries. With a desire to collaborate with Nigeria for the benefit of both countries, India agreed to invest six billion U.S. dollars in power plants and other projects in Nigeria in the same year. In order to augment the supply of fertiliser in the long run, talks were held for joint ventures for production of urea in Nigeria and some other countries. As part of these efforts, Indian oil and gas group ONGC teamed with steel giant Mittal to build a refinery in Nigeria. GAIL (India) Ltd is looking at sourcing liquefied natural gas (LNG) from Nigeria and also acquiring equity stakes in LNG projects in that country.

BOTTOM OF PYRAMID: The bottom of the pyramid is the largest but poorest socio economic group which comprises nearly 4 billion people living on less than $2 per day. There are tough challenges in awareness, affordability, access, and availability. So, only those who are grounded in the reality of these people, who are the middle class of future, can understand their priorities. We need to realise the fact that these people can offer a great potential for the multinational companies. It is high time for the social organisations as well as governments to treat these people at the lower rung of the ladder as their valued consumers and work together to create new local business models. There are innumerable benefits to serve these people as it can go a long way in reducing the growing menace of poverty which is the root cause of all ills of the developing nations. It offers a huge market potential which needs to be tapped to reap high profits for the businesses and the MNCs. The foremost requirement is to have an eye for these growing class of consumers and create the capacity to consume which can be created not just through latest product and process innovations but also by providing access to credit facilities. We should not innovate in isolation. These breakthroughs in innovations need to be shared with the millions of poor to successfully mass market their products. We need to develop efficient distribution systems which are cost effective and assure best quality. We would like to quote examples of companies like CEMEX (the world’s third largest cement company in Mexico) which managed to deliver these innovations to the poor.

Indian economy has successfully adopted various measures to serve “bottom of the pyramid”. To quote an example, there is a growing micro credit market in India which needs to be tapped. So the availability of credit to the poor helps the poor but allows banks to increase their business. Other efforts being eChoupal which helps to eliminate the inefficiencies caused by the corrupt middle men at local rural markets and provides the relative information needed by farmers to help them sell their produce directly to ITC through a wide network of e-choupals. How can we forget to include the case of ICICI Bank in India which has strategically managed to reach the poor through a multi-pronged approach to service provision. This bottom of the pyramid market is huge consisting of some 5 billion people but there a hope for those who are at the bottom of the pyramid. What we need is a deep and more focused analysis on how to reach billions of poor to change this pyramid into a diamond.

We have also made important strides in the fields of information technology, telecommunications, railways and electronics and look forward to much more in the times to come.

Shipment of the consignment begins this month with majority arriving in June, while more purchases will be made in the coming months, traders and exporters in Thailand said yesterday.

Scrambling for Kerosene in Nigeria is a regular occurrence.

The Federal Government of Nigeria currently needs $1billion to establish three central processing facilities for gas production in the country, the Chief Economic Adviser to the President, Mr. Tanimu Yakubu has disclosed. Speaking with newsmen on Thursday in Abuja, Yakubu said the facilities, to be located in the Niger Delta, would process upstream gas, extract liquefied petroleum gas and transmit dry gas to the domestic market. The presidential aide, who was shedding light on ongoing reforms of government, said that the facilities would ensure efficient delivery of natural gas to the entire domestic market for power generation and industrial development. Yakubu said the power sector was left for 10 years without any funding, leading to the dilapidated state of its distribution networks. He attributed the shortage of gas to lack of integrated planning between gas production and electricity generation. “The gas problem was further compounded by unrest in the Niger Delta and a lack of appropriate commercial sales agreements for investment in gas production and supply,” Yakubu said.

Over the years, since the introduction of the GSM technology into the nations landscape, the telecoms subscriber base has consistently showed increases quarter by quarter and year by year.
From 2001, when MTN Nigeria, Celtel, formerly V mobile, Econet and Mtel, held sway, total subscriber base was 866,782 and teledensity was 0.73 . In 2002, the subscriber base more than doubled to 2,271,050 lines with a 1.89 teledensity ratio. Mobile GSM subscriber base took a major share of 1,569,050 lines, fixed line 702,000 lines. In 2003 the subscribers increased fundamentally with the entrance of Globacom, the nations national carrier with came in with innovative tariffs and products like the per second billing which other operators had said was impossible to drive the nations subscriber base to 4,021, 9445 with mobile GSM in the forefront with 3,149,472 lines and fixed line subscribers 872,473 lines and a double teledensity ratio at 3.35.
A phenomenal growth was recorded in 2004, a landmark year by all means with a teledensity increase from 3.35 to 8.5 and a more than double subscriber base increase to 10, 201, 209 from 4,021, 9445 of the preceding year.
GSM subscribers took the lions share again with 9,174,209 lines as opposed to 1,027,519 subscriber base recorded by fixed subscribers.
In 2005, subscriber lines and teledensity ratio doubled to 19,519,154 and 15.72. with GSM subscribers leading with 18, 295,896 lines against the fixed subscribers lines of 1,223,258.
In 2006, the trend continued with lines at 33,858,022 lines. Within the period, the GSM sector accounted for 32,184,861 lines while the fixed lines players recorded 1673,161 lines to bring the nation’s teledensity to 24.18.
In 2007, year, total connected lines grew astronomically to 57,687,544 with GSM subscribers leading with 54,413,874 and fixed lines recording just 824,741 while fixed wired /wireless recorded 2,449,019 subscribers making Nigeria,s telecoms sector the fastest growing in Africa with a 29.98 teledensity ratio.
The consistent increases recorded in the sector despite challenges has been attributable to the sound regulatory environment that has encouraged competition in the sector through the licensing of new players. New players like Etisalat and Visafone have come in to join the likes of MTN, Globacom Celtel and Starcomms driving the dynamic growth being recorded in the industry. The Commercial launch of Etisalat expected in the next few weeks is expected to further increase the subscriber base fundamentally.
The telecommunications sector has brought in over 11.5 billon dollars into the nation and Nigeria has lived up to predictions recorded at the beginning of last year by overtaking South Africa as the largest telecoms market in Africa.

 The Indian Food Processing Industry: India has made a significant progress in agriculture and food processing sector in the last few decades. The country is sitting on a goldmine of processing food. India’s potential to become a top player in the agriculture sector is proved by the fact that the country already has many firsts to its credit.  India is world’s largest producer of milk and cereals in addition to being second largest producer of food, fruits and vegetables. It is also the largest exporter of cashew and spices. India is the world’s second largest producer of food and the food production is likely to double in the next decade.  Thus, India has a great potential for domestic as well as foreign market for processed food. The world processed food business runs into billions of US dollars and India’s share in it is just 1.5 per cent of the international food trade. According to government estimates, the total turnover of the food market is approximately Rs 2,500 billion out of which value-added or processed food products comprise Rs 800 billion. With food processing sector being declared as a priority sector, food processing industries is going to be on the driving seat of the Indian economy in the coming years. It is going to generate high returns on investment as well as employment. There will be over 20% usage of agri-products in processing and over 35 per cent towards value addition in the next five year plan.

 The sector is attracting huge investments both from foreign countries and from domestic investors. To achieve a greater investment level in the coming years, there is a need to redesign our development strategies and adherence to quality control norms. To harness the great potential of the food processing sector, there is a need for bringing all the intermediaries (investors, processors, producers, buyers and government agencies) in agriculture and food processing industries together on a common platform.

 Organized retail has an important role to play and it can become instrumental in changing the agriculture scenario of the country. It can help to reduce wastages, enhance farmers’ income, create new employment through food trade and promote better prospects for rural population.

 There is a need for a significant improvement in the productivities (of different agricultural products), better quality, efficient processing technologies and effective packaging of these products. By adhering to all these guidelines, India can capture the vast international market for various agriculture products.

NIGERIA – SCENARIO OF AGRICULTURE & FOOD PROCESSING:

Nigeria’s agriculture sector accounts for over 26.8% of GDP and two-thirds of employment.   The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter of food, now imports some of its food products. However, Nigeria has begun to focus on rebuilding its rich agricultural sector, which was neglected during the oil boom years. Nigeria remains a major market for food and agricultural products, with imports worth more than $3.0 billion annually. Although imports of cereals by Nigeria are forecast to remain above 4.5 million tonnes in 2008 (mostly wheat and rice), this represents only 15 percent of the country’s total domestic cereal utilization.

 Nigeria’s food and drink industry continues to be one of the most dynamic industry and happens to attract increased foreign investments. Coca-Cola, the world’s largest beverage company, announced a 4% rise in underlying operating profit to US$6.3bn during 2006. Swiss food and drink giant Nestlé, a leader in the coffee and cocoa markets, has decided to expand its production in the country. This investment is surely a positive step towards sustainable growth. The main reason behind such expansion is the fact that cocoa is a major crop in Nigeria and it is the world’s fourth-largest producer.  Such investments, particularly those made by large MNC’s, are welcome news in Nigeria, given the country’s disturbed state of affairs. BMI has forecast considerable growth in food consumption in both overall US dollar terms and in per-capita terms to 2011. Total food consumption will reach US$35.41mn in 2011, while per-capita consumption will reach US$229.7 which is a significant improvement on 2006 levels indicating an 18.9% increase. Although the food and drink and agricultural industry will surely continue to face certain obstacles, these above-mentioned developments are positive signs for Nigeria’s food and drink industry.

 The government has started evolving different strategies and programs to bring a boost to the productivity of the various agricultural products. International institutions including World Bank and the African Development Bank are coming forward to help the country by lending loan facility for bringing the desired changes in the agricultural productivity. This has resulted in increased opportunities for sale of agricultural machinery; storage facilities to protect the harvest; and food processing and packaging equipment to market the end product. There is an urgent need to increase access of food to the most vulnerable sections of the society. The tariff policy is being reviewed and is going to bring new opportunities for growth in agricultural and food processing sector. Nigeria has a huge domestic market of trunk line roads and this offers numerous opportunities for development of large scale food processing industries. Nigeria has a huge market for capturing the African regional market.

TOGETHER WE CAN:

Nigeria and India need to work together to reverse the existing imbalances in international financial and trading systems and make them more development friendly. Such partnerships are needed to steer global political and economic agenda towards addressing the future of both the nations. There is a greater need to share our experiences on effective and viable strategies for achieving overall development and eliminating poverty which is the root cause of all ills.  We need greater global and national efforts to increase investment in rural areas to make developing nations become self sufficient and sustain growth and development. The international organizations like World Bank, FAO, IFAD and UNIDO must come forward to make this a possibility.