Economy
Base Effect to Ease February Inflation to 14.31%—FSDH
By Dipo Olowookere
Analysts at FSDH Research have predicted that inflation rate for the month February 2018 will slow further to 14.31 percent from 15.13 percent recorded in January 2018.
The drop in the rate for the month is attributed to the base effect of previous year.
FSDH said it observed decrease in some major food prices as well as the slowdown in the price movement in some categories of non-food items in the Consumer Price Index (CPI) basket.
On March 14, 2018, the National Bureau of Statistics (NBS) is expected to release the inflation rate for the month of February 2018, based on the data release calendar on its website.
The February 2018 monthly Food Price Index (FPI) from the Food and Agriculture Organization (FAO) shows that the Index averaged 170.8 points, 1.07 percent higher than the revised value for January but 2.68 percent lower than the February 2017 figure. The increase in the FPI represented increases in all categories of commodities used in the calculation of the Index except vegetable oil and sugar.
The FAO Dairy Price Index appreciated by 6.21 percent in February. The prices of products in all the four categories of milk products that constitute the Index firmed up. This increase was mainly supported by strong import demand and lower than expected milk output.
The FAO Cereal Price Index increased by 2.55 percent from the previous month. The sustained increase recorded in the cereal price Index is as a result of the rise in the prices of wheat, maize and rice.
The FAO Meat Index was marginally up by 0.06 percent. The increase in the prices for bovine meat was offset by decreases recorded in the prices of poultry and pig meat. On the flip side, the FAO Sugar Price Index dropped by 3.45 percent and represents its lowest level in two years. The drop in the Index is on the heels of favourable supply conditions in the main sugar producing regions and last year’s removal of output quotas.
The FAO Vegetable Oil Price Index was down by 3.15 percent. The easing global import demand and rising inventories exerted downward pressure on the prices of palm oil and soy.
“Our analysis indicates that the value of the Naira appreciated in the parallel market while it depreciated in the inter-bank market.
“The Naira gained N2.00 in the parallel market to close at N362.50/$ while it lost 20kobo at the inter-bank market to close at N305.90/$ at the end of February.
“FSDH Research notes that there is a potential increase in the local prices of imported food items because of the faster than expected increase in the international food prices.
“This may have negative impact on inflation rate going forward.
“The prices of most of the food items we monitored in February 2018 recorded moderate increases, leading to 0.80 percent increase in our Food and Non-Alcoholic Index. The Index increased by 17.50 percent from 224.77 points recorded in February 2017.
“We also noticed increase in the prices of Transport and Housing, Water, Electricity, Gas & Other Fuels divisions between January and February 2018.
“We estimate that the increase in the Composite Consumer Price Index (CCPI) in February 2018 would produce an inflation rate of 14.31 percent lower than the 15.13 percent recorded in January,” the report tagged Inflation Watch said.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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