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China supplies 39% of Nigeria’s N28tn imports

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Nigeria imported goods worth N11.01 trillion from China in the first half of 2026, accounting for nearly 40 per cent of the country’s total imports, amid growing concerns by the National Agency for Food and Drug Administration and Control over Chinese-linked counterfeit networks.

An analysis by The PUNCH of the latest Foreign Trade in Goods Statistics reports released by the National Bureau of Statistics showed that imports from China rose from N5.10tn in the first quarter to N5.92tn in the second quarter.

The combined N11.01tn represented 39.27 per cent of Nigeria’s N28.04tn total imports between January and June 2026, indicating that almost N4 out of every N10 spent on imported goods during the period went to products originating from China.

China’s share of Nigeria’s imports also increased considerably from the corresponding period of last year. NBS data showed that Nigeria imported N4.66tn from China in Q1 2025 and N4.96tn in Q2, bringing the first-half figure to N9.62tn.

This means imports from China increased by N1.39tn, or 14.49 per cent, to N11.01tn in H1 2026. The increase occurred despite a contraction in Nigeria’s overall import bill. Total imports fell from N33.14tn in the first half of 2025 to N28.04tn in H1 2026, representing a decline of 15.37 per cent.

Consequently, China’s share of Nigeria’s imports jumped from 29.03 per cent in the first half of 2025 to 39.27 per cent in the corresponding period of 2026, an increase of more than 10 percentage points.

The development reinforces China’s position as Nigeria’s largest source of imported goods. In Q1 2026, Nigeria’s total imports stood at N13.62tn, an 18.17 per cent decline from N16.64tn in the corresponding period of 2025.

China supplied N5.10tn worth of the imports, representing 37.42 per cent of the total. The United States ranked second with N2.81tn, while India followed with N992.87bn.

The concentration deepened in the following three months. Imports from China rose by 16.09 per cent quarter-on-quarter to N5.92tn in Q2, equivalent to 41.02 per cent of Nigeria’s N14.42tn total imports during the period.

The United States, Nigeria’s second-largest source of imports in the quarter, accounted for only N1.01tn or 6.97 per cent, while India supplied N924.46bn or 6.41 per cent. The Netherlands and Germany accounted for N409.81bn and N395.87bn, respectively.

The figures showed that China supplied almost six times as many goods to Nigeria as the United States in Q2. Compared with Q2 2025, imports from China increased by N955.58bn or 19.26 per cent from N4.96tn, even as Nigeria’s total imports fell by 12.55 per cent year-on-year.

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The growing value of Chinese imports comes amid renewed concerns about counterfeit and substandard products in the Nigerian market.

Online discourse surrounding the rise of fake items reached a fever pitch recently. Nigerians, including influencers like Scott Iguma and Aproko Doctor, raised the alarm over the rise of these counterfeit materials. Social media posts have gone viral about fake toothpastes, creams, contaminated bottled water and adulterated yoghurt drinks.

NAFDAC’s Director of Investigation and Enforcement, Martins Iluyomade, earlier told The PUNCH that the agency had uncovered what it described as a new trend involving some Chinese counterfeiters operating within Nigeria.

According to him, investigations indicated that some operators identify popular products in the Nigerian market, arrange for their replication and use logistics networks to distribute the counterfeits.

He said the practice had changed from an earlier model under which Nigerian counterfeiters travelled to China to arrange production.

Iluyomade said, “Before, to fake a product, you needed to go to China to bring it. Now, you don’t need to go. They are here (in Nigeria) with us. They are the ones who will identify the product that will be moving, send it to their country (China), and then come here and distribute it to our people (Nigerians) without having to travel.

Describing it as a “new trend making it (fake goods situation) look this serious,” he noted that NAFDAC discovered the “Chinese people (counterfeiters) own the logistics companies which they used to bring these (fake goods) things.”

The official added that NAFDAC had been closing logistics companies allegedly connected to the distribution networks as part of efforts to disrupt the supply of counterfeit products.

However, the agency’s allegations do not suggest that the N11.01tn worth of imports from China were counterfeit. The scale of Chinese trade, nevertheless, highlights the size of the supply chain requiring regulatory oversight at Nigeria’s borders and within the domestic market.

Further analysis showed that China’s dominance was even greater within Nigeria’s trade with Asia. Imports from Asia amounted to N7.55tn in Q1 and N8.56tn in Q2, taking the first-half figure to N16.12tn. China’s N11.01tn accounted for 68.34 per cent of the total.

This means more than two-thirds of every naira Nigeria spent on goods imported from Asia during the first six months of 2026 went to China. Asia itself strengthened its position as Nigeria’s dominant import region. It supplied 55.45 per cent of imports in Q1, before its share increased to 59.37 per cent in Q2.

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The products coming from China also showed the country’s importance to several sectors of the Nigerian economy beyond consumer goods. In Q1, one of the leading imports from China was machines for the reception, conversion and transmission of voice, images or data, valued at N254.41bn.

Other major products included seeders, planters and transplanters worth N137.94bn; parts of apparatus for transmitting or receiving voice, images or data valued at N104.53bn; herbicides and related agricultural products worth N103.83bn; and line pipes used for oil and gas pipelines valued at N81.15bn.

The pattern shifted somewhat in Q2, with photovoltaic cells assembled into modules or panels worth N184.02bn ranking among the leading imports from China.

Nigeria also imported N158.73bn worth of machines for receiving, converting and transmitting voice, images or data; N152.56bn of machinery with a 360-degree revolving superstructure; N128.88bn of herbicides and related products; and N126.45bn of machinery for cleaning, sorting or grading seeds and grains.

The figures indicate that Chinese supplies remain significant to Nigeria’s telecommunications, agriculture, construction, renewable energy and industrial sectors. The growing dependence on China also coincided with a rise in Nigeria’s overall manufactured goods imports.

Manufactured goods imports stood at N8.48tn in Q1 2026, up 12.94 per cent from N7.51tn in the corresponding quarter of 2025. The figure increased further to N9.51tn in Q2, representing a 20.65 per cent rise from N7.88tn recorded a year earlier and a 12.10 per cent increase from Q1.

Consequently, Nigeria imported N18tn worth of manufactured goods in the first six months of 2026, equivalent to 64.16 per cent of the country’s total import bill. Beyond the volume of imports, the NBS figures revealed a wide imbalance in Nigeria’s merchandise trade with China.

Nigeria exported N582.20bn worth of goods to China in Q1 and N506.57bn in Q2, bringing exports to the country to N1.09tn in the first half of 2026. With imports standing at N11.01tn, Nigeria consequently recorded an estimated N9.92tn merchandise trade deficit with China during the six-month period.

The figures mean that for every N1 worth of goods Nigeria exported to China, it imported about N10.11 worth of goods from the Asian country. Nigeria’s exports to China represented only about 2.26 per cent of its N48.19tn total exports during the period, further illustrating the imbalance in bilateral merchandise trade.

Meanwhile, NAFDAC has intensified enforcement against counterfeit and substandard products following growing public concerns about the circulation of fake medicines, food products, cosmetics and other regulated goods.

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The agency said it had secured 64 convictions for counterfeiting offences between June 2025 and June 2026, while investigations and enforcement operations had resulted in seizures and destruction of large quantities of unregistered and counterfeit products.

NAFDAC Director-General, Prof Mojisola Adeyeye, also disclosed that the agency had destroyed or seized more than N1.54tn worth of fake and substandard regulated products nationwide since 2023.

In a related development, Organised Private Sector operators said counterfeiting was eroding profits, discouraging investment and pushing legitimate producers out of business.

Speaking earlier with The PUNCH, the Vice Chairman, Lagos Chapter of the National Association of Small-Scale Industrialists, Peter Popoola, said counterfeiting was hurting members of his association in multiple ways.

“Counterfeiting reduces our sales and profits. It also damages the reputation of legitimate brands because the consumer may not know the difference until he uses the product and it turns out bad,” Popoola said.

He explained that small businesses lacked the financial muscle to protect their products from imitators. “The cost of protecting our products and taking possible legal action is high. SMEs’ finances are generally limited; we cannot afford it. It slows down our growth and leads to job losses,” he stated.

Popoola described counterfeiting as “evil” and destructive to lives, property and investment. He blamed the recurring cycle of counterfeiting on weak political will, corruption and widespread poverty, noting that many consumers deliberately sought cheaper, fake alternatives despite knowing the risks. “When the original wire sells for N2,000 and the fake sells for N1,000, people go for the fake one. In a month, the wire cuts,” the NASSI executive said.

He called for government-backed grants and low-interest credit facilities to help genuine small manufacturers scale up production, alongside consumer credit schemes that would make quality products more affordable.

Meanwhile, the Chief Executive Officer of Spectra Industries Limited, Duro Kuteyi, said dwindling household incomes were driving Nigerians toward counterfeit products. “There is not much money in the pocket, so everybody is looking for cheap items, and that is where counterfeiters gain access to the market,” Kuteyi said.

The renowned manufacturer urged consumers to watch for tell-tale signs of fake goods, from poorly positioned labels to soft drinks without gas.

Source: punchng.com

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Ekiti deploys CNG buses to cut transport fares by 50%

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The Ekiti State Government has commenced the deployment of Compressed Natural Gas buses as part of measures to reduce transport fares by 50 per cent and ease the burden of transportation costs on residents.

Governor Biodun Oyebanji announced the initiative on Thursday during the official flag-off of 15 CNG buses at the premises of the Ekiti State Transportation Agency in Ado-Ekiti.

The deployment, which coincided with Nigeria’s Independence Day and the 30th anniversary of Ekiti State, is part of efforts by the state government to provide affordable and accessible public transportation in line with the directive of President Bola Ahmed Tinubu.

Oyebanji, who was accompanied by the Senate Leader, Senator Opeyemi Bamidele, said the 15 buses, donated to the state by the Federal Government, represented the pilot phase of the initiative.

He said the state government would expand the fleet to ensure that more residents benefit from the intervention.

According to the governor, reducing transportation costs remains essential to easing the economic burden on citizens.

“The President charged all state Governors that by October first, we should find a way of reducing transportation cost because most of the implications we are witnessing, transportation contributes a lot to it and what we have done today is just the pilot: 15 CNG buses, which are going to be distributed to the unions, and the agency will manage it,” Oyebanji said.

He urged transport unions to ensure that the benefits of the CNG buses were passed directly to commuters through reduced fares.

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“My appeal is to the Unions; they should allow the gains to translate to the commuters because this will reduce transportation cost by 50 percent,” he said.

Oyebanji also expressed appreciation to President Tinubu for the Federal Government’s intervention, saying the provision of the buses would contribute significantly to reducing the transportation burden on residents.

The governor further said the administration’s economic policies had created opportunities for states to implement programmes and projects that directly affect the lives of citizens.

“No matter how visionary a leader is, if there are no resources to work with, it will just stay in the realm of a vision,” Oyebanji said.

“But the President has been helping and supporting us not only in Ekiti State but in all the states in the country to translate our vision into action and impacts for the people.”

Speaking on the deployment, the Director-General of the Ekiti State Transportation Agency, Tajudeen Akingbolu, said routes had already been mapped out for the CNG buses.

He said the buses would operate on routes linking Ado-Ekiti with Lagos, Ibadan, Onitsha and Abuja.

Akingbolu said the initiative would provide residents with more affordable and reliable interstate transportation while reducing the impact of high transport fares on commuters.

The state government said it would continue to explore measures aimed at reducing transportation costs and improving access to affordable public transportation across Ekiti State.

Source: punchng.com

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Free zones attract $200bn FDI, create 500,000 jobs – FG

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The Federal Government has said Nigeria’s free trade zones have attracted more than $200bn in foreign investment and over N900bn in domestic investment, while generating more than 100,000 direct jobs and over 500,000 jobs across supply chains, logistics networks and host communities.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this at a meeting of Special Economic Zones stakeholders held virtually in September, as the government moves to modernise the regulatory framework governing the zones and strengthen their role in driving investment and non-oil exports.

Oduwole said the government was revising the Nigeria Export Processing Zones Authority regulations to make the scheme more responsive to the changing nature of businesses and investment, including digital operations.

She said the revised framework would recognise Digital Free Zones and Digital Special Economic Zones, support technology-enabled and non-physical operations, modernise corporate and registry provisions and strengthen dispute-resolution mechanisms.

“Across the scheme, the authorities record over $200bn of foreign investment and over N900bn of domestic investment, more than 100,000 direct jobs, and over 500,000 when the supply chains, the logistics networks and the host communities are counted. So you are all, indeed, valuable investors and contributors to the Nigerian economy. This has not and will not change,” Oduwole said.

The minister said the government’s latest regulatory reforms sought to build on the investments and jobs already created by the zones while addressing weaknesses that had affected the integrity and competitiveness of the scheme.

She said the reforms followed extensive consultations with government agencies, lawmakers and private-sector stakeholders and were designed to preserve Nigeria’s attractiveness as an investment destination while strengthening fiscal accountability.

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Oduwole said the government had identified the diversion of goods produced in free zones into the Nigerian Customs Territory while retaining fiscal incentives intended for export-oriented activities as a major concern.

She said the revised framework would restore the export orientation of the scheme by clarifying the 75 per cent export and 25 per cent domestic-sales structure and aligning domestic sales with applicable Nigerian tax laws.

The minister said the reforms would also clarify the responsibilities of the agencies overseeing the zones, taxation and customs, with NEPZA and the Oil and Gas Free Zones Authority retaining responsibility for licensing and operational oversight.

She said the Nigeria Revenue Service would retain responsibility for tax administration, while the Nigeria Customs Service would handle customs control, valuation, classification and enforcement.

Oduwole said the modernised framework would also accommodate businesses that did not require conventional physical zones, particularly technology-driven enterprises.

“The Revised NEPZA Regulations and Operational Guidelines create, for the first time in Nigeria, Digital Free Zones and Digital Special Economic Zones – zones that operate on a platform rather than a perimeter, with no requirement of physical presence,” she said.

She added that the framework would introduce licence categories, including an Innovator Licence for enterprises operating in areas where regulatory frameworks were still developing, while reporting and fee structures would reflect the way digital businesses generate revenue.

The Executive Secretary of NEPZA, Toyin Elegbede, said operators welcomed the reforms but wanted the government to protect businesses that had already invested under the existing regulatory regime.

“Our members recognise the need for a strong, transparent and well-regulated Special Economic Zones regime, and we welcome the opportunity to engage the government before the framework is finalised. Our priority is to ensure that the reforms address genuine gaps without creating new uncertainty for operators who have invested and modelled their investment on the strength of the existing regime at the time of investment,” Elegbede said.

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He said stakeholders wanted a competitive free zones ecosystem that would attract more investment, protect legitimate businesses and increase production and exports.

Meanwhile, the Chairman of NEPZA, Hadi Mutallab, said the government must ensure that the transition to the new framework did not undermine existing investments.

“The reform of Nigeria’s Special Economic Zones is necessary to strengthen the integrity of the scheme and ensure that the incentives provided deliver the investment, production, jobs and exports for which they were intended. At the same time, we must protect legitimate operators who have invested in our Zones and ensure that the transition to the new framework is clear, predictable and does not undermine existing investments,” Mutallab said.

Further, Oduwole said the government would continue to support lawful incentives that served the purpose of the zones while demanding compliance from operators.

She said the government’s objective remained to position the zones as engines of non-oil export growth and support President Bola Tinubu’s target of building a $1tn economy by 2030.

Source: punchng.com

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NNPC’s oil security claims rise to N11.2tn

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The Nigerian National Petroleum Company Limited recorded claims totalling N11.2tn from the Federation in 2025 for costs and advances incurred on its behalf, including expenses related to securing the country’s oil and gas assets, an analysis of its 2025 audited financial statements has shown.

The statement obtained on Wednesday said the N11.2tn in receivables represented costs and advances incurred on behalf of the Federation, an amount that is N4.07tn, or about 57 per cent, higher than the N7.13tn energy security expense recognised in 2024.

The figure highlights the substantial financial burden associated with protecting oil and gas infrastructure against crude oil theft, pipeline vandalism and other disruptions, even as the national oil company reported higher production and a 33 per cent increase in profit after tax.

The audited accounts, however, show that the N11.2tn figure represents energy security costs and other receivables from the Federation, rather than a straightforward cash expenditure newly recognised in 2025.

The company stated that no energy security expense was recognised in 2025, compared with N7.13tn in 2024, following a reconciliation of outstanding amounts against royalties, taxes and dividends due as of December 2024. The reconciliation was completed in September 2025.

The figures come amid the Federal Government’s removal of the petrol subsidy in 2023 and subsequent deregulation of the downstream petroleum market.

NNPC’s 2024 accounts recorded energy security expenses of N7.13tn, compared with N4.8tn in 2023. That represented an increase of approximately N2.33tn, or 48 per cent, in the amount reported for the two years.

The financial report explained, “Other receivables from federation relates to advance payment to Federation and the security costs incurred in protecting the oil and gas assets. This is under the framework of approval between the Government of Nigeria and the Group to incur security costs and charge same to the Federation.”

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The financial statements showed that the group’s energy security cost receivable stood at N8.67tn at the end of 2025, while other receivables from the Federation, including advances and security-related costs, brought the total to N11.2tn.

According to Note 24.2 of the accounts, other receivables from the Federation relate to advance payments to the government and costs incurred in protecting oil and gas assets.

The company explained that the arrangement operated under an approved framework between the Federal Government and NNPC, allowing the national oil company to incur security costs and charge them to the Federation.

The accounts stated, “During the year, no energy security expense was recognised (2024: N7.13 trillion). Following a reconciliation exercise with relevant government agencies, the Energy Security Cost receivables were netted off against royalties, taxes, and dividends due as at December 2024. The reconciliation exercise concluded in September 2025.”

The disclosure means the N8.67tn energy security balance should not be interpreted as fresh spending incurred entirely in 2025. Rather, it reflects the outstanding balance carried in the accounts before its reconciliation against government obligations.

The issue is significant because oil theft, pipeline attacks and production disruptions have historically constrained Nigeria’s ability to maximise crude oil output and earn foreign exchange from petroleum exports.

NNPC’s financial results showed that crude oil and condensate production averaged 1.77 million barrels per day in 2025, the highest level in five years, while natural gas production reached a three-year high of 7.2 billion standard cubic feet per day.

The company said, “Oil and condensate production totalled 565.8 million barrels, up 5 per cent, with NNPC Limited’s equity share increasing 11 per cent to 223.7 million barrels.

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“Natural gas production reached 2,606.2 billion standard cubic feet, up 9 per cent, while its equity share rose 11 per cent to 1,154.9 billion standard cubic feet.”

Despite the improved output, the company’s accounts showed that pipeline maintenance costs fell sharply to N13.813bn in 2025 from N149.478bn in 2024, down by N135.665bn, or 90.8 per cent.

Speaking at the media parley to announce its financial results, the NNPC GCEO, Bayo Ojulari, said the company was also recording improvements in the fight against crude oil theft, particularly on major crude evacuation pipelines.

He said the combination of community-based surveillance, government intervention and security agencies had helped restore the availability of major pipelines, noting that reconciliation between crude produced and volumes accounted for at terminals had improved significantly.

“The most devastating theft has been on our major pipelines in the past, if you remember, right? With the combination of both community-based surveillance and intervention combined with the armed forces, we’ve seen stability, and most of those pipelines have retained 100 per cent availability,” Ojulari said.

He added that while the major pipelines were now more reliable, theft remained a challenge around smaller pipelines and wellheads across difficult terrains.

“We’re installing high-technology, what we call well-head cages, that detect intruders and can quickly respond… On some of the pipelines now, we’re also leveraging technology. We’re advancing technology using fibre optics technology as much as possible and intruder detection,” he said.

In its announcement, NNPC reported a profit after tax of N7.2tn, up from N5.4tn in 2024, while earnings before interest, taxes, depreciation and amortisation increased by 22 per cent to N18tn.

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Operating cash flow rose by 16 per cent to N12.8tn, earnings per share increased by 32 per cent to N35.9, and the declared dividend reached N5.8tn. Revenue stood at N34.5tn.

The company attributed its improved operational performance partly to progress on strategic infrastructure projects, including the completion of the River Niger crossing on the Ajaokuta-Kaduna-Kano gas pipeline and the completion of the 40-inch, 623-kilometre mainline.

It also said it commissioned the ANOH-OB3 Custody Transfer Metering Station, advanced the 300 million standard cubic feet per day ANOH Gas Processing Plant towards start-up readiness and acquired 500 compressed natural gas-powered trucks.

NNPC’s forward targets include raising crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030. It is also targeting gas production of 12 billion standard cubic feet per day by 2030 and plans to mobilise $60bn in upstream, midstream and downstream investments over the period.

The financial statements do not provide a separate, quantified breakdown of petrol subsidy payments for 2025 in the figures supplied. Therefore, the energy security receivables cannot be treated as a direct measure of savings from the removal of petrol subsidies.

However, the disclosure provides an indication of the scale of another major petroleum-sector obligation facing the government as it seeks to improve production, protect infrastructure and strengthen public finances.

Source: punchng.com

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