Economy

Border Closure Will Drive Local Production, Stifle Smuggling–Emefiele

Published

7 years ago

29/10/2019

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.

Economy

UAE to Leave OPEC May 1

Published

5 hours ago

28/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The United ‌Arab Emirates has announced its decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) to focus on national interests.

This dealt ⁠a heavy ⁠blow to the oil-exporting group at a time when the US-Israel war on Iran had caused ⁠a historic energy shock and rattled the global economy.

The move, which will take effect on May 1, 2026, reflects “the UAE’s long-term strategic and economic vision and evolving energy profile”, a statement carried by state media said on Tuesday.

“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it added. “However, the time has come to focus our efforts on what our national interest dictates.”

The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the oil cartel, which has usually sought to show a united ⁠front despite internal disagreements over a range of issues from geopolitics to production quotas.

UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power’s energy strategies.

“This is a policy decision. It has been done after a careful look at current and future policies related to the level of production,” the minister said.

OPEC’s Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a ‌narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas supplies normally pass, because of threats and attacks against vessels during the war.

The UAE had been a member of OPEC first through its emirate of Abu Dhabi in 1967 and later when it became its own country in 1971.

The oil cartel, based in Vienna, has seen some of its market power wane as the US has increased its production of crude oil in recent years.

Additionally, the UAE and Saudi Arabia have increasingly competed over economic issues and regional politics, particularly in the Red Sea area.

The two countries had joined a coalition to fight against Yemen’s Iran-backed Houthis in 2015. However, that coalition broke down into recriminations in late December when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.

Economy

NASD OTC Exchange Inches Up 0.03% as CSCS Outshines Four Price Decliners

Published

18 hours ago

28/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Central Securities Clearing System (CSCS) Plc bested four price decliners on the NASD Over-the-Counter (OTC) Securities Exchange on Monday, April 27. The alternative stock market opened the week bullish during the session with a 0.03 per cent uptick.

According to data, the security depository company added N2.61 to its share price to close at N76.26 per unit compared with the preceding session’s N78.87 per unit.

As a result, the market capitalisation of the platform increased by N820 million to N2.425 trillion from N2.424 trillion, and the NASD Unlisted Security Index (NSI) gained 1.38 points to finish at 4,053.97 points compared with the 4,052.58 points it ended last Friday.

The four price losers were led by NASD Plc, which slumped by N3.80 to sell at N34.70 per share versus N38.50 per share. FrieslandCampina Wamco Nigeria Plc fell by N1.45 to N98.10 per unit from N99.55 per unit, Food Concepts Plc slid by 27 Kobo to N2.43 per share from N2.70 per share, and Geo-Fluids Plc dipped by 9 Kobo to N2.91 per unit from N3.00 per unit.

The value of securities transacted by market participants went down by 82.0 per cent to N7.4 million from N41.3 million units, the volume of securities declined by 28.5 per cent to 319,831 units from 447,403 units, and the number of deals dropped by 34.1 per cent to 29 deals from 44 deals.

Great Nigeria Insurance (GNI) Plc was the most active stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 59.6 million units sold for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.

Also, GNI Plc was the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Resourcery Plc with 1.1 billion units traded for N415.7 million, and Infrastructure Guarantee Credit Plc with a turnover of 400 million units worth N1.2 billion.

Economy

Naira Opens Week Weaker at N1,364/$ at NAFEX After N5.80 Loss

Published

18 hours ago

28/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The first trading day of the week in the currency market was bearish for the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 27.

Yesterday, it lost N5.80 or 0.43 per cent against the United States Dollar to trade at N1,364.24/$1, in contrast to the N1,358.44/$1 it was traded last Friday.

In the same vein, the Nigerian currency depreciated against the Pound Sterling in the official market by N13.70 to close at N1,847.72/£1 versus the preceding session’s N1,834.02/£1, and slumped against the Euro by N11.56 to sell at N1,602.29/€1 versus N1,590.73/€1.

Also, the Nigerian Naira tumbled against the greenback during the trading day by N5 to quote at N1,385/$1 compared with the previous rate of N1,380/$1, and at the GTBank FX desk, it traded flat at N1,370/$1.

The poor performance of the domestic currency could be attributed to liquidity shortage at the official currency market on Monday, which came amid surging demand for international payments. At $76.50 million, interbank liquidity printed higher across 79 deals, up from the $43.572 million reported on Friday.

Nigeria’s gross external reserves declined to $48.45 billion amid a month-long decline in inflows, amid uncertainties in the global commodity market. The depletion of foreign reserves could be partly attributed to the Central Bank of Nigeria’s intervention in the FX market.

The market remains perturbed by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market, while boosters, including oil prices, continue to look rocky due to stalled discussions and unclear ceasefire negotiations between the US and Iran.

A look at the cryptocurrency market, Bitcoin (BTC) has been rejected near $79,000 three times in eight sessions, leaving the level as the de facto ceiling of its current trading range even as major cryptocurrencies trade lower over the past day. It lost 0.9 per cent to sell at $77,003.61.

Analysts say that upcoming US Federal Reserve policy decisions and top tech firms’ earnings this week could provide the catalyst to push bitcoin decisively above $80,000.

The market also continued to weigh Iran’s interim deal proposal to reopen the Strait of Hormuz, which failed to advance over the weekend. The White House said US officials were discussing the latest Iranian proposal but maintained “red lines” on any deal to end the eight-week war.

Solana (SOL) dropped 1.8 per cent to $84.25, Ripple (XRP) went down by 1.6 per cent to $1.39, Ethereum (ETH) depreciated by 1.3 per cent to $2,290.00, Binance Coin (BNB) declined by 0.5 per cent to $625.18, and Cardano (ADA) fell by 0.2 per cent to $0.2480.

However, Dogecoin (DOGE) rose by 2.0 per cent to $0.1002, and TRON (TRX) appreciated by 0.2 per cent to $0.3242, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.