Connect with us

Business

Investors Fault CBN’s Policy On Naira

Published

on

Analysts are placing bullish and bearish bets on Naira (NGN) trend as the Central Bank of Nigeria (CBN), continues in its determination to maintain price stability and defend the local currency within its set price band in the medium term.

Naira optimists, say the CBN under governor Sanusi has enough ammunition and will power to keep the naira within the range of N155 plus or minus 3 percent versus the dollar, which is further supported by the tight monetary policy stance of the apex bank, as currency becomes the defacto monetary policy anchor.

Pessimists, however, say the naira may come under increasing pressure, following a handful of developments in the nation’s economy, particularly trends in the oil sector which have seen imports of refined crude oil pick up at a time when autonomous inflow of dollars from Foreign Portfolio Investments (FPIs) have slowed down.

This trend has seen the CBN increase its average supply of dollar to banks at its bi-weekly auction, from its usual range of $150 million – $ 180 million to  $200 million  to $300 million and  currently $585 million.

“I would think this is a situation of temporary volatility in the FX rate, which the CBN has calmed through its intervention,” Razia Khan, regional Head of Research, Africa at Standard Chartered Bank, said in a reply to questions.

“For as long as monetary policy is sufficiently tight, a stable NGN can be achieved and there is no need to entertain devaluation.”

The currency gained for a third day yesterday to N158.15 per dollar and headed for its strongest close since March 8, according to data compiled by Bloomberg, on speculation that Nigerian oil producers would sell dollars to meet month-end expenses.

Jimi Ogbobine, analyst at Consolidated Discount Limited, in a chat with  newsmen, said there were genuine worries on the Naira’s outlook, while the March 18th auction alone saw the CBN selling $300m.

The Naira has weakened 1.7 percent against the dollar, year to date, although it is still within the CBN band, while dollar reserves have increased 39 percent to $48.4 billion in the past year.

“Once again, we reiterate our call that there are chances that the CBN could seek to synchronise the midpoint of the official exchange rate to N160/dollar in line with Budget 2013 estimates which could technically imply devaluation albeit mild,” said Ogbobine.

“If the Naira continues to experience consistent pressure, the short term policy measures open to the CBN include a mild devaluation of the local currency,” he said.

Ogbobine added that a look at the fixed income market shows that yields across board (bonds and treasury bills) are now trading in positive real terms, up from the lows of December and January. However, yields still remain below 12 percent, partly due to the benign inflationary outlook.

The rebound in secondary market rates at the long end probably mirrors the less supportive risk momentum that may have pushed some offshore investors to lighten up duration and/or reallocate funds to the short end, Samir Gadio an emerging markets strategist at Standard Bank London said.

Nigeria’s year on year inflation rate rose to 9.5 percent in February, up from 9 percent a month earlier ,according to data from the National Bureau of Statistics (NBS).

Continue Reading

Business

USTR Criticises Nigeria’s Import Ban On Agriculture, Others

Published

on

The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the  Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.

Continue Reading

Business

Expert Seeks Cooperative-Driven Investments In Agriculture 

Published

on

A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.

Continue Reading

Business

NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers

Published

on

The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.

King Onunwor

Continue Reading

Trending