Business

Nigeria spent N1.85tn on food import in nine months – Buhari economic aide

Published

5 years ago

January 20, 2021

A total of N1.85 trillion was spent by Nigeria on import food for nine months during the closure of international land borders last year, President Muhammadu Buhari’s chief economic adviser, Dr Doyon Salami, has said.

He said this was an indication that the nation lacked the capacity to feed itself.

Salami, an ex-member of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), is the Chairman of the Presidential Economic Advisory Council.

He spoke at the presentation of the National Economic Outlook for 2021 organised virtually by the Chartered Institute of Bankers of Nigeria (CIBN) on Tuesday in Lagos.

He said, “Despite border closure, our national import of food amounted to N1.85 trillion between January and Sept 2020 – a 62 per cent increase when compared to same period 2019. This suggests a weakness in our ability to feed ourselves and raises the need to consider review of intervention policies in agriculture.”

He said agriculture had continued to decelerate, growing at 1.7 per cent year-to-date while consumer-sensitive sectors like manufacturing and distribution continue to contract, in double digits.

According to him, serious climatic concerns are undermining agricultural output with 2.5 million farmers being impacted by flooding in 2019.

He noted that preliminary assessments suggested that 2020 was worse with persistence into 2021 to adversely affect output and food prices.

Salami said during the period, Nigeria’s cumulative trade deficit amounts to N4.6 trillion ($12 billion).

He said Nigeria’s external imbalances were increasingly precarious, with continuing concern over exchange rate differentials.

He said uncertainty around foreign exchange – convergence, market-reflective rates and transparent determination mechanism, balance of payment imbalances were large and would remain key questions in 2021.

Salami said by the measure driving the value of the naira based on the naira/dollar inflation differential, the currency, should be trading around N439/$ at the official market.

The agricultural sector, ICT, real estate and oil and gas are vulnerable to a probable major adjustment to the foreign exchange rate, according to him.

Salami said official payment data showed that about $30 billion (almost 10 per cent of national economy) was obtained from sources outside the CBN, adding that the gap between the official and other exchange rates was a source for concern.

He said the COVID-19 shock of 2020 represented the third major shock to the Nigerian economy in 12 years.

He noted that ahead of the crisis, the Nigerian economy was contending with a set of pre-existing conditions such as macro Instability, stagflation – slow growth and rising inflation, pressure on households – in the form of rising inflation, unemployment, and poverty and pressure on corporate(s) margins – weak consumer and cost pressures.

He said there were also growing fiscal and external imbalances, monetary Policy distortions – the bifurcation of sovereign instruments leading to a distortion of the interest rate term structure.

Salami stated that with the impact of COVID-19, prices continued to rise – at the end of November 2020, overall inflation was 14.8 per cent with food prices increasing at 18.3 per cent when compared with November, 2019.

He, however, noted that the stay-at-home imposition implied greater use of telco/tech communication platforms.

“A health crisis morphed into an economic crisis resulting in humanitarian and in some cases, security challenges, a global development visiting great disruption to established norms – largely negative short-term impact but some positives – especially with technology deployment, the full impact of which will manifest in the years ahead,” he stated.

The international economic environment, he said, deteriorated sharply last year but recovery expected in this year, based on the capacity to suppress the virus through vaccination.

He also said transport and hospitality sectors were gravely affected by the lockdowns of April/May as well as by voluntary containment measures and/or imposed restrictions post-lockdown.

President/Chairman CIBN, Mr Bayo Olugbemi, represented by second Vice President Prof. Pius Olanrewaju, said the National Economic Outlook initiated in 2014 was designed to bring together relevant stakeholders together to discuss emerging and pertinent issues facing national and global economies and their implications for businesses.

Business

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

Published

9 hours ago

April 13, 2026

Trends Admin

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

The Nigerian Naira began the new trading week on Monday, April 13, 2026, with slight movements against the United States Dollar across both the official and parallel foreign exchange markets, reflecting continued cautious stability in the currency environment.

In the Nigerian Foreign Exchange Market (NFEM), the official trading window, the Naira opened at about ₦1,358.84 per $1, before recording mild intraday fluctuations that pushed it briefly to around ₦1,362.08, before easing back toward the opening range.

The performance indicates a relatively stable session, supported by ongoing liquidity management efforts and sustained interventions by the Central Bank of Nigeria, which has continued to monitor dollar supply and demand in the banking system.

Analysts say the official market remains largely driven by inflows from oil exports, non-oil earnings, and diaspora remittances, all of which help moderate volatility in the NFEM window.

Parallel Market Remains Higher Amid Strong Demand

In contrast, the parallel market—commonly referred to as the black market—recorded significantly higher exchange rates as demand for dollars persisted among importers, traders, and individuals outside the official FX window.

Market Outlook and Sentiment

Financial analysts note that market sentiment remains cautious, with traders closely watching upcoming macroeconomic indicators, crude oil price movements, and possible policy signals from monetary authorities.

Experts also point out that the stability in the NFEM suggests that recent reforms and tightening measures in the foreign exchange market may be gradually improving transparency and liquidity management, even though pressure persists in the informal market segment.

For many Nigerians, fluctuations in the exchange rate continue to directly impact the cost of imported goods, fuel-related logistics, and overall inflation expectations, making daily FX movements a key economic indicator.

As of early Monday trading, market activity remained steady, with expectations that the Naira will continue to trade within a relatively narrow range unless triggered by major external shocks or policy adjustments.

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

Railway

FG pushes high-speed train, expands rail links to seaports

Published

1 day ago

April 12, 2026

Trends Admin

FG pushes high-speed train, expands rail links to seaports

The Federal Government has intensified efforts to modernise Nigeria’s rail system, setting up a high-speed rail committee and approving the expansion of rail connections to key seaports to boost cargo movement and ease logistics bottlenecks.

Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa, disclosed this at the quarterly stakeholders’ engagement of the Nigerian Ports Consultative Council.

In a statement by the NRC’s Chief Public Relations Officer, Callistus Unyimadu, Opeifa said the Office of the Secretary to the Government of the Federation had constituted a committee on high-speed rail development to drive initiative.
He disclosed that the Federal Government was seeking private sector participation in this regard.
The NRC boss also emphasised that seamless rail-port integration remained critical to unlocking the full benefits of ongoing maritime reforms.

Opeifa warned that investments in port infrastructure, including deep seaports, would continue to yield limited returns without efficient rail connectivity to move cargo inland.
He noted that while collaboration between the corporation and port authorities had improved—particularly under the administration of Bola Ahmed Tinubu—significant gaps remain in cargo evacuation from ports, especially in Lagos and along the eastern corridor.

He identified persistent bottlenecks in rail freight operations and called for targeted interventions to improve efficiency, stressing that a shift towards rail-based cargo movement is essential for a more reliable and cost-effective logistics system.

Highlighting ongoing and planned projects, Opeifa said the Federal Government has approved the extension of the Lagos–Ibadan standard gauge rail line to Apapa and Tin Can Island ports. He added that the Warri–Itakpe line would be linked to Warri Port, while the eastern narrow gauge is set to connect the Port Harcourt Port at Onne.

He further disclosed plans to link the Lagos–Kano western line to Baro Port, as part of a broader strategy to integrate all major ports into the national rail network.

On project updates, the NRC boss said the Kaduna–Kano rail corridor is nearing completion, while efforts are underway to connect existing rail lines directly to ports to reduce congestion and improve cargo evacuation.

He also revealed plans for a new rail line to the Lekki Deep Sea Port, expected to pass through Ijebu-Ode and Sagamu to Kajola, where it will link with the Lagos–Ibadan line. The project, he said, is likely to commence this year.

Describing rail connectivity to ports as a key driver of economic growth, Opeifa urged stakeholders, including truck operators, to support the initiative, noting that road transport would continue to play a complementary role in last-mile delivery.

He also called for the expansion of freight yards across both narrow and standard gauge lines to enhance cargo handling capacity and overall efficiency.

The stakeholders’ meeting brought together key players in the maritime and rail sectors to align strategies and strengthen collaboration towards building a more integrated and efficient national transport system.

Business

NNPC Remits N1.804 Trillion to Federation Account in February

Published

2 days ago

April 11, 2026

Trends Admin

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mr. Bayo Ojulari

NNPC Remits N1.804 Trillion to Federation Account in February

The Nigerian National Petroleum Company Limited (NNPC) has remitted N1.804 trillion to the Federation Account in February 2026, marking a significant jump from the N726 billion recorded in January, according to its latest Monthly Financial and Operational Report Summary.

The sharp increase highlights improved oil and gas revenue performance in Nigeria, stronger production output, and ongoing fiscal reforms aimed at boosting transparency and accountability in the petroleum sector.

NNPC Ltd reported that its total revenue increased to N2.68 trillion in February, up from N2.57 trillion in January, driven by higher crude oil sales, improved gas earnings, and operational efficiency gains across its assets. The company also recorded a profit after tax of N136 billion, reflecting improved financial performance despite fluctuations in global crude oil markets and domestic operational challenges.

According to the report, Nigeria’s crude oil and condensate production averaged 1.51 million barrels per day (bpd) in February 2026. NNPC attributed the output stability to improved asset reliability, faster resolution of evacuation constraints, and enhanced coordination with upstream operators across key oil fields.