In a major boost to commercial agriculture in Nigeria, the Dangote Group and the Niger State Government are fostering sectoral partnership worth billions of naira.

The conglomerate said significant investment has been deployed into the company’s rice production infrastructure in the state, even as it is partnering the Government on the Niger Food initiative.

The Niger Food initiative is an agricultural development programme launched by the Niger State Government in partnership with private sector players like the Dangote Group.

Senior Special Adviser to the President and Chief Executive of Dangote Group, Fatima Wali Abdurrahman, said the company’s state-of-the-art rice mill in Wushishi is “progressing steadily and on track for completion.”

Speaking Thursday at the official opening of the 2025 Niger National Trade Fair in Minna, the capital of the State, she said: “As part of our commitment to advancing agriculture, we plan to establish one of the largest rice mills here in Niger State.”’

Dangote Group is one of the sponsors of the 21st Trade Fair organized by the Niger Chamber of Commerce, Industry, Mines and Agriculture (NCCIMA),

Speaking on the theme: Commercial Agriculture as the Major Contributor to Sub National Economic Growth and National GDP, she said: “This initiative is expected to enhance food security and generate significant employment opportunities for the state’s population.”

She added: “This landmark project represents a significant step forward in bolstering the food security initiatives of the State. Upon its delivery, the mill is expected to enhance local rice production, create employment opportunities, and contribute to the agricultural development of Nigeria.”

According to her, the 32 Metric Tonnes Per Hour (MTPH) Mill is a cutting-edge facility, being developed on a 30-hectare site, designed to significantly enhance rice production and storage capacity in the State.

“This state-of-the-art facility incorporates the latest innovations in rice milling technology, ensuring high efficiency, minimal waste, and premium-quality output. Once operational, it will not only boost local rice production but also strengthen the entire agricultural value chain, from farm to market,” she added.

Additionally, she said, the project is expected to generate employment opportunities, support local farmers with necessary inputs like fertilizer and seedlings, and contribute substantially to the State’s food security goals.

“We will source the rice from local out growers and act as 100% off takers of the production at competitive market prices. The Dangote Rice Mill will also feature an on-site captive power generation facility capable of producing 5.8 megawatts of electricity. The project aligns with broader efforts to reduce reliance on the national grid.

She added that close to Wushishi, the company is constructing 32 silos, each with a storage capacity of 2,500 metric tons of paddy rice.

In his remark, Governor Umar Muhammed Bago, who was represented by the Commissioner for Trade, Investment and Industry, Aminu Suleiman Takuma, said the state government is opening up the state for massive investment in commercial agriculture.

He commended the Dangote Group, and urged it to take advantage of several investment opportunities and the conducive environment in the state.

He also announced that plans afoot to make the Niger Trade Fair an international event.

Speaking earlier, President of the Niger Chamber of Commerce, Industry, Mines and Agriculture (NCCIMA), Dr Bisi Adeniyi, called on the private sector to take advantage of the massive land in Niger State, and invest in agriculture.

In his remarks, Minister of State for Agriculture and Food Security, Sabi Abdullahi who was represented by Dr Suleiman Ladan said commercial agriculture is central to the President Bola Ahmed Tinubu economic development agenda.

Nigeria’s apex Bank, the Central Bank of Nigeria (CBN) has introduced new cash-out limits for Point of Sale (PoS) transactions, restricting agents to a maximum daily transaction limit of N1.2 million.

The bank also limited customers to withdrawing N100,000 per day from PoS agents.

These measures, outlined in the CBN’s circular titled “Circular on Cash-Out Limits for Agent Banking Transactions,” aim to promote a cashless economy and strengthen the integrity of agent banking operations.

The circular, signed by Oladimeji Yisa Taiwo of the Payments System Management Department, underscores the need for enhanced electronic payment adoption and fraud prevention.

Key highlights include a weekly withdrawal cap of N500,000 for customers and the exclusive use of float accounts by agents.

The CBN also mandates that agent banking activities be distinctly separated from merchant operations and must apply the approved Agent Code 6010 for transactions.

The directive is addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, emphasizing the need for standardized practices across the agent banking ecosystem.

Nigeria’s apex bank, the Central Bank of Nigeria’s (CBN), in continuation of its increased scrutiny of Fintech startups, has fined two of the country’s most prominent giants, Moniepoint and OPay, ₦1 billion each in the second quarter of 2024, according to sources.

Several other fintech companies were also penalized, however, the two firms were the hardest hit. At least four other Fintech companies were similarly penalized, though the details of these fines remain unknown

The penalties followed a routine CBN audit of the Fintech sector, which revealed compliance infractions.

According to two sources familiar with the process, these regulatory checks are a standard procedure for banks and financial institutions under CBN oversight.

The CBN has increasingly relied on fines to enforce regulatory compliance.

Core News recalls that In 2023, Nigerian banks paid a combined ₦678 million in penalties. In October 2024, the central bank and the Securities and Exchange Commission (SEC) imposed a ₦15 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions in the first half of the year.

Until recently, Nigeria’s rapidly growing Fintech sector largely operated without CBN interference.

However, the rapid expansion of Fintechs like OPay and Moniepoint, which now serve millions of users, has invited greater scrutiny.

OPay, for instance, claims a customer base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, does not disclose specific customer numbers but is similarly large.

As these Fintech giants have grown in influence, so too have concerns over their regulatory frameworks. A significant issue is that many Fintechs, including OPay and Moniepoint, still operate under microfinance bank licenses.

Originally intended to support micro, small, and medium enterprises, these licenses have allowed the companies to expand rapidly and service millions of customers.

However, with that expansion has come heightened concern that the current licensing framework is inadequate to safeguard customers effectively, according to one source.

Beyond licensing, the CBN has also expressed concerns about the Fintechs’ compliance with Know Your Customer (KYC) processes.

In April 2024, the Central Bank imposed a two-month ban on customer onboarding for several fintech companies, including Kuda Bank and Palmpay, citing non-compliance with KYC standards.

The ban forced Fintechs to overhaul their onboarding procedures and commit to improving their compliance measures.

Moniepoint declined to comment on any part of this story.

“We categorically refute the claims that OPay Digital Services was fined by the Central Bank of Nigeria to the tune of ₦1 billion for regulatory infractions. These claims are entirely false,” OPay said in a statement to TechCabal.

The Central Bank of Nigeria did not immediately respond to a request for comments.

Source: TechCabal