Connect with us

Business

Food imports soar 45% as local production falters

Published

on

Food and beverage imports increased to N677.3bn in the first half of 2025, a 44.48 per cent rise from N468.76bn in the same period of 2024, prompting renewed calls for stronger government support to enhance local industry capacity and reduce dependency on imports.

Data from the National Bureau of Statistics showed that while the value of primary food and beverage imports mainly for household consumption surged, the value of processed food and beverages consumed by households recorded a marginal 1.85 per cent decline, falling from N699.58bn in H1 2024 to N686.81bn in H1 2025.

Meanwhile, primary food and beverage imports mainly for industrial use grew in six months by 1.37 per cent from N969.22bn to N982.49bn, while processed imports for industrial use rose by 7.28 per cent from N984.16bn to N1.06tn in the same period.

This came as members of the Organised Private Sector who spoke to The PUNCH in separate phone interviews linked the surge in food imports to weak local production, insecurity, inconsistent agricultural policy, and consumer preference for imported products perceived to have better quality and availability.

Trust deficiency

The Chairman of the Lagos Chamber of Commerce and Industry, Agricultural and Allied Group, Tunde Banjoko, said the figures reflected a lack of trust in locally produced raw materials and food items.

“From this data, what one can simply infer is that people trust the quality and integrity of imported raw materials, foodstuff, and beverages for household consumption more than what is being produced locally,” he said.

Banjoko noted that factors such as price competitiveness, quality control, and availability played significant roles in shaping consumer preferences.

He added, “We are still battling with inadequate funding to do things properly the way they ought to be done. The quality of our seedlings, the use of chemicals, and our production processes are still affecting the overall output.”

The LCCI agric group chief added that the country’s poor storage systems and weak commodity boards had worsened the problem, leading to seasonal shortages of local produce.

See also  CBN reduces interest rate to 27%

He advised the Federal Government to establish stronger funding mechanisms for agribusinesses and guarantee offtake systems through commodity boards to stabilise supply. “We need to get proper storage and make them available.

Commodity boards need a guarantee of offtake so that these products can be available, stored properly, and made available to the market when needed,” Banjoko stressed.

He maintained that the government must act to ensure businesses are scalable and interesting to local producers so that they can compete effectively. With the right policies, these numbers should begin to drop and ease pressure on foreign exchange,”

Insecurity crippling output

The President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, explained that insecurity and low technological adoption in agriculture were among the main reasons Nigeria continued to rely on food imports.

Egbesola said, “Most of the farmers are no longer on the farms because of insecurity. Many farmlands have been deserted. That is where the primary products come from. It is when the farmers plant and harvest. That is when the manufacturers and other users can buy from them and use them as their inputs. This time, many of the farms are deserted.”

He noted that Nigeria’s agricultural productivity remained far below global standards due to the use of outdated tools and practices.

“For instance, what it takes to produce 10 tons of cassava in Nigeria requires about 30 acres of land, whereas in the Netherlands, the same 10 tons come from just three plots. That shows how far behind we are in technology use,” he said.

He urged the government to integrate technology into farming, upgrade peasant farmers, and invest in agricultural mechanisation to close the production gap.

“To Small and Medium-sized Enterprises, this wide gap presents investment opportunities. It’s a sign that there is strong business potential in local production if we can look inward and bridge these deficits,” Egbesola said.

The Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, attributed the rise in food and beverage imports partly to government import waivers and increased demand for staple foods such as wheat-based products.

See also  CNG price hits N450/SCM as FG withdraws subsidies

“The biggest driver of food imports is in the wheat value chain; bread, pastries, and noodles, which are staple foods in Nigeria,” Yusuf explained.

He said the Federal Government’s 180-day waiver to import maize and brown rice in 2024 had influenced the 2025 figures, as many of those imports entered the country early this year. “Another factor is that the data are in naira terms, and with currency depreciation, the import values appear higher even if the physical quantities are not significantly more,” he added.

Yusuf advised the government to focus on improving agricultural value chains, supporting wheat alternatives, and reducing policy inconsistencies that discourage local investors.

Purchasing power

Meanwhile, the Director-General of the Nigerian Association of Small and Medium Enterprises, Eke Ubiji, lamented rising economic hardship. He cautioned that the rising import figures did not suggest that Nigerians’ purchasing power had improved.

“I strongly doubt that these numbers mean consumers’ purchasing power has increased. Many people have reduced what they buy because of inflation,” Ubiji said.

The NASME chief noted that the growth in imports may reflect industrial demand rather than increased household consumption, as consumers have increasingly turned to smaller, cheaper product sizes.

He said, “Even people who were not used to eating instant noodles before are now eating them because that’s what their money can afford. The economy has forced consumers to adjust downward.”

Ubiji criticised government claims of improvement in living conditions, noting that essential food items remained unaffordable for many Nigerians.

Stakeholders agreed that reversing Nigeria’s growing reliance on food and beverage imports required coordinated policy action across the agricultural, manufacturing, and trade sectors.

See also  Nigerians To Experience Blackout As PENGASSAN’s Strike Cripples Thermal Plants

They urged the Federal Government to tackle insecurity, strengthen value addition in local production, incentivise agribusiness investment, and improve access to finance for farmers and processors.

Banjoko summed it up: “If we can make local production sustainable and competitive through funding, technology, and storage infrastructure, Nigeria can reduce its import dependence and ease pressure on foreign exchange.”

Fight for food security

The Federal Government has long battled to ensure food security in Nigeria. Official statistics have identified food inflation as a major aggravator of core inflation. Nigerians have found it increasingly difficult to access food over the past five years owing to import restrictions of the former President Muhammadu Buhari administration and insecurity.

The inflationary trend began to soften with the President Bola Tinubu administration’s national emergency on food security, which freed up import restrictions for 150 days on selected food items, including rice. Notably, local farmers decried the policy as reversing gains made in building the country’s self-sufficiency.

Whereas the Federal Government has lauded its efforts in executing the temporary import duty waiver for bringing down food prices, the rebased Consumer Price Index has also deemphasised the weight of food baskets in the inflation calculation.

Present food inflation figures are dropping, according to NBS data. As of September 2025, the food inflation rate was 16.87 per cent on a year-on-year basis. It was 20.9 percentage points lower compared to the rate recorded in September 2024 (37.77 per cent).

Stakeholders have warned of lingering risks to food supply and affordability. The PUNCH earlier reported that Nigeria’s agricultural import bill soared to N2.22tn in the first half of 2025, signifying more imported food to meet the growing needs of the local population.

Yet, farmers, rice millers, and stakeholders argued that the Federal Government’s policies are undermining local production and worsening food insecurity.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

NNPC April crude supplies to Dangote cross 1bn barrels

Published

on

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.

See also  Olumo Rock revenue jumps from N3m yearly to N40m monthly – Ogun gov

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.

See also  Nigerians To Experience Blackout As PENGASSAN’s Strike Cripples Thermal Plants

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.

See also  PTDF, UNIJOS advocate for modern mining practices to curb insecurity

“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.

Continue Reading

Business

CBN, NCC to combat SIM-related fraud

Published

on

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.

See also  SAHCO seeks FG incentives as asset base rises

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.

See also  Olumo Rock revenue jumps from N3m yearly to N40m monthly – Ogun gov

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.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Electricity reforms: Rivers, Kano, 19 others delay takeover

Published

on

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.

See also  MRS begins N739/litre petrol sales, PETROAN kicks

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.

See also  SAHCO seeks FG incentives as asset base rises

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.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending