Economy
Border Closure Will Drive Local Production, Stifle Smuggling–Emefiele
By Adedapo Adesanya
Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has reacted to the controversies that have followed the decision of the federal government to close land borders with neighbouring countries as a means of encouraging local production and stifle the activities of smugglers.
This has brought a lot of criticisms and complaints from traders who rely on importation and dismissed fears that the borders would be shut for a longtime.
However, the CBN chief, who met President Muhammadu Buhari before his scheduled departure to Saudi Arabia on Monday, told journalists that the closure stemmed from the need to boost rice production and encourage poultry farming in the country.
According to Mr Emefiele, there was a syndicate operating among neighbouring countries which dump processed foods and other goods in Nigeria, thereby stifling economic activities in the agricultural value chain.
Business Post had reported last month that the federal government had ordered the closure of all land borders into Nigeria due to the prohibited activities of smugglers.
“You will all recall that in November 2015, President Muhammadu Buhari, the central bank and some state governors went to Kebbi State to launch the wet season rice farming.
“Since then, we have seen an astronomical growth in the number of farmers who have been going into rice farming and our paddy production has gone up also quite exponentially.
“Between 2015 and also now, we have also seen an astronomical rise in the number of companies, corporate organisations and individuals that are setting up mills, integrated mills, and even small mills in the various areas,” the apex bank boss said.
Mr Emefiele added that the CBN in partnership with the Federal Ministry of Agriculture and Rural Development have put in place measures that does not only encourage the production of rice in Nigeria but also funding farmers by giving them loans to buy seedlings, fertilisers, or some of the herbicides needed for rice cultivation.
He also used the opportunity to lay a warning to parties involved in the illegal importation of banned goods into the country, “You will all recall that we have been embarking on a programme where we are saying if you are involved in the business of smuggling or dumping of rice in the country, we’ll close your account in the banking industry.”
Reiterating the bank’s commitment, he added, “About two weeks before the border closure, the chairman of the Rice Processors Association – incidentally he owns Umza Rice in Kano – called me and said that all the rice millers and processors are carrying in their warehouses nothing less than 25,000 metric tons of milled rice.
“That this rice has been unsold because of the smuggling and dumping of rice through Republic of Benin and other border posts that we have in the country, and that he would want us to do something about it.
“Secondly, we also have members of the Poultry Association of Nigeria who also complained that they have thousands of crates of eggs that they could not sell together with even some of the processed chickens that they could not sell, also arising from the problem of smuggling and dumping of poultry products in Nigeria.
“I was told also that after some meetings that were held in addition to those engagements that we (CBN) also held with the president, the border was closed subsequently.
“A week after the borders were closed, the same rice millers association called to tell us that all the rice that they had in their warehouses had all been sold.
“Indeed, a lot of people have been depositing money in their accounts and they have even been telling them ‘please, hold on, don’t even pay money yet until we finish processing your rice’.
“The Poultry Associations have also come to say that they have sold all their eggs, they have sold all their processed chickens, and that demand is rising.
He said that poultry and rice were the best examples of products that showed that the border closure were beneficial to the economy.
“The benefit is that it has helped to create jobs for our people. It has helped to bring our integrated rice milling that we have in the country back into business, and they are making money.
“Our rural communities are bubbling because there are activities, because rice farmers are able to sell their paddy.
“The poultry business is also doing well, and also maize farmers who produce maize from which feeds are produced are also doing business.
“These are the benefits. We are not saying that the borders should be closed in perpetuity, but that before the borders are reopened, there must be concrete engagements with countries that are involved in using their ports and countries as landing ports for bringing in goods that are smuggled into Nigeria.
“That engagement must be held so that we’ll agree on the basis under which: what are the kinds of products that they can land in their countries, because if those products they land in their countries are meant for their own local consumption, it is understandable.
“But the fact that those products are landed in their countries and then transshipped into Nigeria is something that I am sure you will all agree as Nigerians we should not allow to happen, because it undermines our economic policy, it undermines our own desire to make sure that industries are alive and jobs are created in Nigeria.” He added.
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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