Business
Banks’ Lending To Private Sector Declines By N600.60bn
The total loans granted by Nigerian banks to the private sector declined by N600.60bn, from N16 trillion in the first quarter of 2017 to N15.34 trillion, in the second quarter of 2018.
A report by the National Bureau of Statistics (NBS) on Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018), recently released, revealed that credit to the private sector declined for six consecutive quarters.
A breakdown of the total N63.27 trillion credit provided in 2017 by banks to finance activities of the private sector shows that N16 trillion was provided in the first quarter.
The second, third and fourth quarters had N15.7 trillion, N15.83 trillion and N15.74 trillion, respectively.
According to the report, banks lent N15.6 trillion to the private sector in Q1 2018, while the total value of credit allocated by banks stood at N15.34 trillion as at Q2 2018.
Credit allocation to the Oil & Gas sector increased to N3.45 trillion in Q2 from
N3.42 trillion in Q1 2018, while finance to the Manufacturing sector dropped to N2.02 trillion from N2.07 trillion in Q1.
The money lent to the agriculture sector increased to N523.08 billion from N501.6 billion recorded in Q1, Power and Energy dropped to N416.34 billion from N426.5 billion while Mining and quarry also declined to N10.18 billion from N10. 461 billion in Q1.
While credit to Government increased to N1.47 trillion from N1.411 trillion, Trade/General Commerce decreased from N1.054 trillion to N1.044 trillion, Finance, Insurance and Capital Market also dropped to N991.22 billion from N999.491 billion.
Similarly, Real Estate declined to N744.56 billion from N784.228; Information Communication and Technology received N814.57 billion and Construction had N612.85 billion, as at the review period.
The Education sector received N71.8 billion, while Transportation and Storage and other Sectors received N304.4 billion and N361.7 billion, respectively.
Dr Frank Jacobs, President, Manufacturers Association of Nigeria (MAN), said the Deposit Money Banks (DMB) had consistently showed unease to lend to the real sector of the economy.
“One of the greatest challenges facing the manufacturing sector in the country is lack of long-term financing and high interest rate.
“It is quite disturbing to us that the banks are not lending as much as we need because that is the only way to grow the economy,” he said.
Jacobs said the association would continue to engage the banks to bridge the funding gaps.
He commended the Central Bank of Nigeria (CBN) for its plan to implement a special regime to make funds available to the manufacturing and agriculture sectors at nine per cent interest.
However, Jacobs reiterated that to spur economic growth, recovery and industrialisation, funds should be made available to the real sector at five per cent.
Similarly, Mr Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI), said more funds should be allocated to the private sector to enhance productivity, employment and economic growth.
“If lending is declining, it shows that there is a lot of more work to be done. Some of the issues affecting private sector lending needs to be revisited.
“When the economic environment is not too conducive, the risk of lending to the private sector increases,” he said.
Yusuf said fiscal and monetary policies should be created and implemented effectively to reduce the risk of lending to the private sector and to fix the operating environment.
Also, Mr Tunde Balogun, co-founder, Rent Small Small Ltd, a real estate company, said little attention had been paid to the real estate sector in terms of investment and funds compared to manufacturing, agriculture and oil and gas sector.
Business
USTR Criticises Nigeria’s Import Ban On Agriculture, Others
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.
Business
Expert Seeks Cooperative-Driven Investments In Agriculture
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.
Business
NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers
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.
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