Business

On food price crash, farmers fault FG’s order as agro-imports hit N2.2tn

Published

7 months ago

September 16, 2025

Nigeria’s agricultural import bill soared to N2.22tn in the first half of 2025, drawing strong criticism from farmers, rice millers, and stakeholders who argue that the Federal Government’s policies are undermining local production and worsening food insecurity.

The stakeholders also criticised the recent order by President Bola Tinubu to reduce food prices. On September 11, 2025, it was reported that Tinubu ordered a Federal Executive Council committee to further crash the prices of food items across the country.

The Minister of State for Agriculture and Food Security, Sabi Abdullahi, stated this in Abuja, while presenting a paper at a one-day capacity-building workshop for journalists covering the Senate. He said the President’s order would be enforced to further crash prices of food items by ensuring the safe passage of products through various routes across the country.

“I can say it on good authority to you that the President has given a matching order to a Federal Executive Council committee already handling it. On how we are going to promote the safe passage of agricultural foods and commodities across our various routes in the country.

“We are aware, and I’m sure, as media, you are also aware, there are routes through which commodities are taken before they are delivered. If you know the amount of money that is being spent, you can now understand why those commodities have to be expensive at the point of delivery. So, we are working very hard, and we are doing quite a lot. But I’ve just given you a snippet because I’m here, and I felt we should look at that,” Abdullahi had stated.

But this Presidential directive has sparked criticism from farmers and rice millers, who argue that mere pronouncements cannot override market forces or compensate for poor planning.

“The cost of food will go down if transport costs go down, but that alone is not enough,” the National President of the All Farmers Association of Nigeria, Kabir Ibrahim, explained. “Our farmers are complaining that the prices are so low that they cannot buy fertiliser. The importation has dealt with our farmers.”

Rice millers push back

Chairman of the Competitive African Rice Forum, Peter Dama, faulted the government’s approach, saying it risks alienating private operators and discouraging investment. “The President is dealing with private organisations and companies. You don’t just come out and give an order to crash prices. It doesn’t work that way”.

“At best, the government should have called stakeholders in the transport and agric sectors, discussed with them, and provided subsidies.

Pronouncements without engagement will not work.”

Dama warned that persistent importation and lack of subsidies were forcing many farmers to abandon agriculture. “If you don’t provide inputs and only make pronouncements, farmers will quit. We are not in an autocratic government. Stakeholders must be carried along.”

Tractors still undistributed

Beyond importation and price directives, stakeholders also pointed to delays in mechanisation efforts. In July 2024, the government launched 2,000 tractors to support farmers, but more than a year later, none have been distributed.

Ibrahim said farmers were growing impatient. “The tractors have not been distributed yet. They were launched in July, but up to now, no modalities have been given. We need them to support human labour with machine power.”

An official in the Ministry of Agriculture, who asked not to be named due to the lack of authorisation to speak on the matter, confirmed that modalities for distribution were awaiting presidential approval.

“We are waiting for the presidency. The minister has submitted a distribution list for approval. We expect to flag it off soon. But people must understand that such directives take time because they involve trade, finance, customs, and investment ministries. A technical committee will be set up to address stakeholders’ concerns.”

Purchasing power concern

While the government insists that food price crashes will take time, stakeholders maintain that weak purchasing power remains the biggest obstacle.

Ibrahim stressed, “What we are telling the government is that it is the purchasing power of the Naira that is causing problems. Even if food prices fall, people don’t have the money to buy. That’s why you are not seeing any impact.”

His view was echoed by other stakeholders, who warned that without urgent subsidies for inputs and stronger consumer purchasing power, Nigeria risks deepening its food insecurity.

N2.22tn agric imports

Data from the National Bureau of Statistics revealed that agricultural imports stood at N1.04tn in the first quarter of 2025, before climbing to N1.18tn in the second quarter. The second quarter figure represented a 32.6 per cent year-on-year increase from N893.25bn recorded in Q2 2024, and a 14.35 per cent rise from Q1 2025.

Comparatively, the value of agricultural imports in the first half of 2024 was N1.81tn, indicating a 22.65 per cent rise within one year. Despite this surge, food prices remain high, and farmers say government interventions have created distortions that leave both producers and consumers worse off.

The sharp rise in imports followed the Federal Government’s introduction of a 180-day duty-free window in July 2024, which allowed licensed millers and firms with backward integration programmes to import staple foods such as maize, husked brown rice, wheat, beans, and millet without paying duties, tariffs, or related taxes.

The policy, designed by President Bola Tinubu’s administration as a stopgap measure against worsening food inflation, ended in December 2024. While the government said it aimed to crash food prices, stakeholders insist the initiative failed to deliver relief.

AFAN president, Ibrahim, argued that the waiver policy only triggered massive importation without addressing Nigerians’ weakened purchasing power. “There must be a rise in imports because there was a 180-day duty-free window. People rushed to import food, but Nigerians have no money to buy it. Even though prices are going down, purchasing power is low, and that is the reality,” Ibrahim said.

According to him, the unsold food glut now affects both government silos and private warehouses. “Government itself is left with food in silos. They bought rice and paddies, but are they selling? Unless we fix systemic issues in customs, transport, and governance, we cannot get results.”

The fallout from duty-free importation has hit local farmers hard. Ibrahim noted that maize, which once sold for about N60,000 per tonne before the duty-free policy, now goes for about N30,000, leaving farmers unable to recover input costs. “Our farmers are not happy; they are not even back to their farms now because maize prices have collapsed. They cannot buy fertiliser, and the effect is adverse,” he said.

National Secretary of the Small-Scale Women Farmers Organisation in Nigeria, Chinasa Asonye, highlighted how high input costs and poor-quality subsidised products have crippled production. “Fertilisers and herbicides have become unaffordable. Some of the subsidised inputs distributed were expired and caused more harm than good. Government must subsidise inputs so farmers can produce at a reasonable cost,” Asonye said.

She warned that hoarding by traders and government agencies worsened the food crisis. “Some people stored grains in silos expecting to sell when prices rise, but the reverse happened. Grains bought at N140 per kg now sell for N70, and many are running at a loss. Worse still, some imported rice sold at N48,000 has weevils and is not even edible.”

Way forward

Stakeholders agreed that piecemeal interventions—whether through duty-free waivers, directives to crash food prices, or delayed tractor distribution—cannot sustainably address Nigeria’s food crisis.

Dama cautioned, “Yes, reducing transport costs will bring some relief. But the government must also engage rice millers, farmers, and private investors. Import licences should not replace real investment in local production. If we continue like this, we will never be food-secure.”

Asonye added that small-scale farmers, especially women, face the greatest risks. “If farmers cannot break even, they will abandon production or resort to strike actions. That will deepen the food crisis.”

With agricultural imports climbing to N2.22tn in just six months and local farmers struggling with input costs, storage challenges, and poor purchasing power, the outlook for Nigeria’s food sector remains fragile.

The government maintains that its food price crash directive, mechanisation push, and import substitution efforts will eventually ease the burden on citizens. But for farmers and millers, patience is running thin.

Unless subsidies, infrastructure support, and stakeholder consultations become central to government policy, experts warn that Nigeria’s reliance on imports will continue to rise—at the expense of local production and long-term food security.

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Business

NNPC April crude supplies to Dangote cross 1bn barrels

Published

21 hours ago

April 22, 2026

Newsbreak365_Admin

Crude oil supply from the Nigerian National Petroleum Company Limited’s trading arm surged in April 2026, with shipment records indicating that more than 1.03 million metric tonnes, equivalent to about 6.8 million barrels or over 1.08 billion litres, were delivered to the Dangote Oil and Gas Company Limited within the month.

An analysis of tanker vessel movements obtained by The PUNCH on Tuesday shows that the deliveries were executed through eight crude cargoes handled by NNPC Trading, reinforcing the state oil firm’s role as a major feedstock supplier to the 650,000 barrels-per-day Dangote refinery.

The shipments, sourced from key Nigerian crude streams including Anyala, Bonga, Odudu, Forcados, Qua Iboe, and Utapate, were routed through the refinery’s Single Point Mooring systems, SPM-C1 and SPM-C2.

The document shows that out of the eight cargoes, five have been fully discharged, while three others are still awaiting berthing or completion, indicating a steady pipeline of crude inflows into the refinery.

This development comes amid the refinery’s continued complaints of supply inadequacies, with a total requirement of 19 cargoes monthly, and a recent report that the country imported 55.39 million barrels in January and February 2026.

A breakdown of the deliveries showed that Sonangol Kalandula initiated the supply chain, delivering 123,000 metric tonnes of crude from Anyala. The vessel arrived on April 5, berthed on April 8, and sailed on April 9.

This was followed by Advantage Spring, which supplied 128,190 metric tonnes from Bonga, arriving on April 11 and completing discharge by April 13.

Similarly, a vessel code-named Barbarosa delivered 125,000 metric tonnes from Odudu, while Sonangol Njinga Mban transported 129,089 metric tonnes from Bonga.

Another completed shipment, handled by Nordic Tellus, brought in 139,066 metric tonnes from Forcados, completing discharge on April 17.

However, three additional cargoes remain in progress. Advantage Sun, carrying 142,327 metric tonnes from Bonga, has arrived but is yet to berth. Also pending are Advantage Spring from Utapate with 120,189 metric tonnes, and Sonangol Kalandula from Qua Iboe with 126,471 metric tonnes.

In total, the NNPC Trading cargoes account for 1,033,332 metric tonnes of crude, underscoring what industry analysts describe as a “strong and sustained supply commitment” to the Dangote refinery.

Further findings show that, beyond crude deliveries, the Dangote refinery also received multiple shipments of refined products and blending components from international markets during the period.

Among them, Seaways Lonsdale delivered 37,400 metric tonnes of blendstock gasoline from Immingham, United Kingdom, handled by Vitol, between April 18 and 19.

Another vessel, Augenstern, supplied 37,125 metric tonnes of Premium Motor Spirit from Lavera, France, discharging between April 8 and 9.

From Norway, Emma Grace brought in 37,496 metric tonnes of PMS from Mongstad, while LVM Aaron delivered 36,323 metric tonnes from Lome, Togo.

Similarly, Egret discharged 35,498 metric tonnes of naphtha from Rotterdam between April 16 and 18, providing critical feedstock for gasoline blending.

A pending shipment, Mont Blanc I, carrying 36,877 metric tonnes of blendstock gasoline from Antwerp, Belgium, is yet to berth, while Aesop is expected to deliver 130,000 metric tonnes of residue catalytic oil from Singapore later in April.

In addition to NNPC Trading volumes, other crude cargoes from international and domestic traders also supported refinery operations.

Notably, Yasa Hercules delivered 273,287 metric tonnes of crude from Corpus Christi, United States, while Front Orkla brought in 264,889 metric tonnes from Ingleside, US.

A major cargo, Navig8 Passion, supplied 496,330 metric tonnes of crude from Cameroon, highlighting regional supply integration.

Domestic contributions included Harmonic, which delivered nearly 993,240 barrels from Ugo Ocha, and Aura M, which supplied 1 million barrels from Escravos, alongside an additional 651,331 barrels of cargo from Anyala.

Operational data indicate that most vessels berthed within one to two days of arrival and departed shortly after discharge, suggesting improved efficiency at the refinery’s offshore terminals.

The Dangote refinery, located in Lekki, Lagos, is Africa’s largest single-train refinery, with a nameplate capacity of 650,000 barrels per day.

The facility is expected to significantly reduce Nigeria’s dependence on imported petroleum products by refining domestic crude and supplying petrol, diesel, aviation fuel, and other derivatives to the local market.

NNPC Limited, through its trading arm, has remained a central player in supplying crude to the refinery under evolving commercial arrangements, amid ongoing reforms in Nigeria’s downstream oil sector.

Earlier this month, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.

Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC.

“Nigeria doubled crude supply to Dangote Refinery in March as Africa’s top oil producer moved to shore up fuel availability after the Iran war disrupted Middle East shipments. Last month, they gave us six cargoes with payments in naira and four cargoes with payments in dollars,” he stated.

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Business

CBN, NCC to combat SIM-related fraud

Published

2 days ago

April 21, 2026

Newsbreak365_Admin

The Central Bank of Nigeria and the Nigerian Communications Commission on Monday signed a memorandum of understanding to tackle SIM-related fraud and strengthen consumer protection across Nigeria’s digital ecosystem.

The agreement, signed at the CBN headquarters in Abuja, aims to improve coordination between the financial and telecommunications sectors, focusing on combating electronic fraud linked to mobile numbers, enhancing payment system integrity, and protecting consumers.

Speaking at the event, the CBN Governor, Olayemi Cardoso, said the pact was a “practical statement of national interest”, noting that the increasing reliance on digital channels for payments and financial services required stronger collaboration between both regulators.

He said, “This MoU is not merely an administrative document; it is a practical statement of national interest,” adding that the agreement would reinforce the stability and integrity of Nigeria’s payment system while supporting innovation and consumer safety.

Cardoso explained that the deal would strengthen coordination on approvals, technical standards, and innovation trials, including sandbox testing, to ensure that financial services remain reliable and scalable.

He noted that the partnership would also improve the response to rising electronic fraud, stressing that “addressing these threats requires joined-up action, shared intelligence, clearer escalation paths, stronger operational readiness across regulated entities, and consistent public education”.

A key component of the agreement is the rollout of the Telecom Identity Risk Management Portal, a data-sharing platform designed to detect fraud linked to recycled, swapped, or blacklisted phone numbers.

According to Cardoso, the platform would enable real-time verification of mobile number status across banks and fintech firms, providing an additional layer of protection for consumers and the financial system.

He said strict compliance with data protection laws, including encryption and consent protocols, would guide the use of the platform.

Also speaking, the Executive Vice Chairman of the NCC, Aminu Maida, described the agreement as a major step in strengthening Nigeria’s digital economy.

He said, “The signing of this Memorandum of Understanding marks an important milestone in the regulatory stewardship of Nigeria’s digital economy,” adding that collaboration between both institutions was “not optional; it is imperative.”

Maida noted that the initiative would give financial institutions better visibility into the status of phone numbers used in transactions, including whether a line had been swapped, recycled, or flagged for fraudulent activity.

“This ensures that our financial services industry is better equipped with timely and relevant information to effectively combat e-fraud, particularly those perpetrated using phone numbers,” he said.

He added that the agreement would also improve consumer protection, assuring Nigerians that issues such as failed airtime recharges would be resolved more quickly under the new framework.

Earlier, the Director of Payment System Supervision at the CBN, Dr Rakiya Yusuf, said the partnership between both regulators had evolved over the years from separate oversight roles into a more integrated collaboration focused on securing Nigeria’s digital and financial systems.

She traced the relationship back to earlier efforts to align mobile payment regulations and telecom licensing frameworks, including the 2018 MoU that enabled telecom operators to participate in mobile money services through special purpose vehicles.

She also highlighted joint interventions such as the resolution of the USSD pricing dispute and the introduction of a N6.98 per session fee, as well as recent efforts to address failed transactions through a proposed 30-second refund framework.

Under the new agreement, two joint committees will be established to drive implementation. These include the Joint Committee on Payment Systems and Consumer Protection and the Joint Committee on the telecom risk management platform.

The agreement is expected to deepen digital financial inclusion, reduce fraud risks, and strengthen trust in Nigeria’s rapidly expanding digital economy.

The PUNCH earlier reported that the CBN and the NCC unveiled a joint framework to tackle the growing problem of failed airtime and data transactions, which have left consumers frustrated after payments are processed but service delivery is not provided.

The 20-page draft, published on the CBN’s website, was developed by the CBN’s Consumer Protection & Financial Inclusion Department and the telecom regulator, with input from banks, mobile operators, payment providers, and other stakeholders.

The regulators seek to clarify accountability, standardise complaint-resolution timelines, and create a coordinated system for addressing grievances across the financial and telecommunications sectors.

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Business

Electricity reforms: Rivers, Kano, 19 others delay takeover

Published

2 days ago

April 21, 2026

Newsbreak365_Admin

Twenty-one states, including Rivers and Kano, are yet to assume regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have already transitioned to independent market oversight.

The Nigerian Electricity Regulatory Commission disclosed that the states that have completed the transition have established their own electricity regulatory frameworks and are now responsible for market development, investment attraction, tariff oversight, and customer protection within their jurisdictions.

According to the commission, the shift follows the decentralisation provisions of the Electricity Act 2023, which empower subnational governments to regulate electricity generation, transmission and distribution within their territories after completing the necessary legal and administrative processes.

NERC noted that 15 states have so far completed the transition to state-level regulation. These include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra and Bayelsa.

However, the remaining 21 states yet to assume regulatory control are Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe and Zamfara.

Industry analysts said the slow pace of transition in some states could delay the expected benefits of decentralisation, including improved power supply, localised tariff structures, and accelerated investments in embedded generation and mini-grid projects.

Under the new framework, once a state completes its transition, the state electricity regulator takes over licensing of intrastate electricity operations, enforcement of technical standards, tariff setting for local distribution, and protection of electricity consumers within the state.

NERC, in turn, retains oversight only on interstate and national grid-related activities.

The commission emphasised that state regulators are expected to drive local electricity market growth by encouraging private sector participation, promoting renewable energy deployment, and ensuring service quality standards for distribution companies operating within their jurisdictions.

The timeline released by the commission shows that the earliest transitions occurred in October 2024, when Enugu and Ekiti states assumed regulatory authority, followed by Ondo shortly after. The pace accelerated in 2025, with several states, including Oyo, Edo, Lagos and Ogun, completing their transitions. The most recent additions include Nasarawa, Anambra and Bayelsa between January and February 2026.

It was observed, however, that some of the 15 states have not set up their regulatory commissions.

Power sector stakeholders argue that states yet to transition risk missing opportunities to attract investments in off-grid electrification projects, particularly in underserved rural communities.

They also note that state-level regulation could help address longstanding distribution challenges by enabling more flexible tariff structures, targeted subsidies, and enforcement mechanisms tailored to local conditions.

With less than half of the states having completed the transition, many argued that the effectiveness of the Electricity Act reforms will largely depend on how quickly the remaining states establish their regulatory institutions and operational frameworks.

Apparently overwhelmed by the country’s power woes, the Federal Government recently pushed the challenge to the 36 states, asking them to take over power generation, transmission, and distribution.

The Federal Government said this was the only solution to the power crisis in the country.

The Minister of Power, Adebayo Adelabu, said at an energy summit in Lagos that the Electricity Act’s impact includes decentralisation and liberalisation.

“In a country as big as Nigeria, with almost a million square kilometres of landmass, over 200 million people, millions of businesses, thousands of institutions (health and educational institutions), 36 states plus the Federal Capital Territory, and 774 local governments—centralisation cannot work for us. The responsibility of providing stable electricity can never be left in the hands of the Federal Government.

“At the centre, you cannot, from Abuja, guarantee stable power across the country. So, this is one thing that the Act has achieved—decentralisation. That has now allowed all the states or the subnationals to play in all segments of the power sector value chain—generation, transmission, distribution, and even service industries supporting the power sector,” he stated.

He called on the remaining 21 states to set up their electricity market.

“I believe other states will follow suit in operationalising the autonomy granted, with full collaboration of the national regulator. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market.

“In this regard, we believe the active involvement of the state governments, particularly in the off-grid segment, is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency, as well as ongoing efforts to closely track the distribution companies’ performances within their respective jurisdictions,” Adelabu emphasised.

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