Business
‘FG Needs More Borrowing To Fund Infrastructure’

The Federal Government is expected to take more loans if its plan to fund infrastructure is to be realised, says a senior analyst at Agusto & Co, Mr Jimi Ogbobine.
Ogbobine said this at a training for financial journalists during the Finance Correspondents Association of Nigeria’s annual workshop in Lagos yesterday. He said government was expected to deploy about N1.6 trillion to fund infrastructure this year.
He said that the training, entitled, “Analysis of the Macroeconomic Environment’, organised by Rand Merchant Bank, was meant to deepen journalists’ knowledge of the economy and financial industry developments.
Ogbobine said the bulk of financing for infrastructure would come from borrowing with a larger share being domestic debts.
He also said funding the capital budget would require higher than planned borrowing with adverse implications for interest rates and interest costs for the economy.
“The Federal Government borrowing to fund infrastructure is likely to be between N1.2 and N1.6 trillion.
“The implementation is unlikely to start before the second quarter and revenue is likely to be lower than planned.
“Actual funding from asset restructuring, recoveries and others may be substantially lower than the planned level of N2 trillion.
“Therefore, fully funding the capital budget will mean higher than planned borrowing with adverse implications for interest rates and interest costs,” he said. He added that obligatory spending of the federal government was still more than 100 per cent of revenues, hence, there was no free cash flow for investment in infrastructure.
“Every kobo of infrastructure spending is financed by debt constraints ability to fully fund budgeted amounts.
“Debt as percentage of revenue is significantly higher than the median, of 200 per cent, for countries in Middle East & Africa.
“Federal Government plans to partly finance 2018 capital expenditure with proceeds of asset sales,” he said. Speaking on inflation, he said a hyper-inflationary environment was one where prices double at least every three years.
“This means inflation rate of about 25 per cent per annum.
“In such environments, investors hold savings in low inflation currencies like dollars, Pounds Sterling and Euros.
“Also, business persons price products, particularly those with a high import content in these low inflation currencies, usually the dollar.
“In effect, such environments are ‘dual currency environments’.
“Real Gross Domestic Product per capita should grow in 2018, making it easier for businessmen to access forex to fund their operations. Therefore, most businesses should see top line and profit growths while unemployment rate will fall but the level will remain high,” he said.
The analyst said actual deficit might be lower than planned deficit largely because of a low implementation of the capital budget.
Ogbobine said that based on the long-term inflation difference, the naira-dollar exchange rate should close 2018 at about N420/1 in the Investors & Exporters’ FX Window.
He, however, predicted that should oil revenues increase, the CBN might try to keep rates in the market as close as possible to the current levels.
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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