Monday 30 November, 2015, 03:48 AM /TheAnalyst
The Agricultural sector has been identified as one of the sectors that can help drive the Nigerian Economy at this critical time that crude oil as a major source of revenue for the nation is falling at the international market.
The present administration has reiterated that we must return to agriculture as it has become evident that oil and gas will no longer be sufficient as a major revenue driver for the country.
While launching the CBN Anchor Borrowers’ programme, President Buhari stated that the current reality in the global oil market left Nigeria with no option than to diversify into other productive sectors with agriculture identified as one of them.
In the latest Q3 GDP report released by NBS, agriculture sector grew by 9.33% driven by output in crop production which accounted for 83.35 of the overall growth of the sector, while the agriculture sector contributed 24.5% to nominal GDP in Q3 2015. With more investments in this sector, things can only get better.
The CBN Governor while briefing the media after the 247th MPC meeting held on 23rd and 24th November, 2015 stated that going forward; the MPC agreed that any attempt by the CBN at easing liquidity into the system shall be directed at targeting four key areas of the economy which include real sector, infrastructure, agriculture and solid minerals.
He further emphasized that liquidity arising from the reduction in the CRR to 20 per cent, will only be released to the banks that are willing to channel it to employment generating activities in the key areas of the economy mentioned above
Analysis on the YTD price performance of agriculture stocks reveals that PRESCO tops the table with +26.53% gain as OKOMUOIL follows with +6.51% while LIVESTOCK records -34.65% YTD loss. FTNCOCOA and ELLAHLAKES both closed flat
A review of EPS ratio of the agriculture stocks reveals that PRESCO tops based on EPS and closely followed by LIVESTOCK, while FTNCOCOA and ELLAHLAKES lead otherwise with negative EPS.