Economy
Buhari Insists Nigeria is Self-Sufficient in Rice Production
By Adedapo Adesanya
President Muhammadu Buhari has claimed that his administration’s agricultural revolution has led to the creation of over 13 million direct and indirect jobs in the last seven and half years, insisting that Nigeria is self-sufficient in rice production, thanks to the Central Bank of Nigeria (CBN).
The Nigerian leader made these remarks last Friday in Washington D.C. at an interactive session entitled, A conversation with President Muhammadu Buhari of Nigeria, co-hosted by the United State Institute of Peace (USIP), the International Republican Institute, the National Endowment for Democracy, and the International Foundation for Electoral Systems.
He used the occasion to advise Western nations again not to be in a rush to eliminate the usage of fossil fuels in a bid to ensure a healthy climate.
Further, he said Nigeria’s economy had registered positive growth in the last two quarters despite the gloomy outlook in the global economy and the war in Ukraine.
President Buhari also cautioned Western nations on the frivolous issuance of travel advisories on Nigeria, urging the international media to be more objective in its reportage of the country.
He told the international community that despite the non-nonchalant actions and attitudes of some of the country’s friends and allies, Nigeria is nonetheless winning the war on terrorism, making significant progress in dealing with the threats to Nigeria’s and the sub-regions safety and survival.
The Nigerian leader also called on the United States to do more to improve the quality of governance in the West African sub-region, warning that the survival of democracy is being challenged in the aftermath of the democratic set-backs witnessed in Mali, Guinea, and Burkina Faso.
Expounding on steps taken by his administration to expand Nigeria’s economy since coming into power in 2015, the President said focused interventions in agriculture, driven by the Central Bank of Nigeria (CBN), transitioned the country from being a net importer of rice, Nigeria’s staple food, to becoming self-sufficient in its production.
‘‘This same scheme has financed the establishment and operations of our 50 integrated rice mills.
‘‘It has also financed over 4.5 million smallholder farmers, ensured the cultivation of almost 6 million hectares of farmland, and almost 700 large-scale agricultural projects have been funded.
‘‘This agricultural revolution has led to the creation of over 13 million direct and indirect jobs,” he said.
President Buhari also told the Washington D.C Community of global thought leaders and Democracy Advocacy Groups that the focus on the Agricultural Sector placed Nigeria in a better position to handle the systemic shock caused by both COVID-19 and the Russia-Ukraine war on global food supply chains and attendant price spikes.
He added that the revolution in the sector had improved the country’s capacity in the agro-allied sector, making it more efficient in enhancing and maximizing production yields and post-harvest losses.
‘‘The non-oil sector remains the future of our economy, and I hope successive governments will consolidate on the gains we have recorded under my leadership.
‘‘You will agree with me that the Russia-Ukraine war has compelled many economies to carry out reforms and re-adjust policies to cope with the challenges posed by the conflict.
‘‘In this regard, we are paying more attention now to energy transmission and distribution through targeted collaboration with global companies like Siemens to improve our efficiency in the Power Value Chain,’’ he said.
Business Post reports that despite Mr Buhari’s insistence that the country was self-sufficient in rice production, the price of the product at the local market has gone above the ceiling. The price of a 50kg bag of rice is sold between N45,000 and N48,000, depending on the brand. In 2015, before he assumed office, the price was between N8,000 and N11,000.
Economy
Crude Oil Down on Steady US Energy Demand Forecast
By Adedapo Adesanya
Crude oil went down on Tuesday after a projection showed steady demand in the world’s largest oil producer, the United States, for 2025, Brent futures declining by $1.09 or 1.35 per cent to settle at $79.92 a barrel and the US West Texas Intermediate (WTI) crude losing $1.32 or 1.67 per cent to finish at $77.50 a barrel.
On Tuesday, the US Energy Information Administration said the country’s oil demand would remain steady at 20.5 million barrels per day in 2025 and 2026, with domestic oil output rising to 13.55 million barrels per day, an increase from the agency’s previous forecast of 13.52 million barrels per day for this year.
Also, the oil market shrank a few days after prices gained following new US sanctions on Russian oil exports to India and China.
On Monday, prices jumped 2 per cent after the US Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that transport oil as part of Russia’s so-called shadow fleet of tankers.
Analysts say this move could have a significant price impact on Russian oil supplies from the fresh sanctions, however, their effect on the physical market could be less pronounced than what the affected volumes might suggest.
ING analysts estimated the new sanctions had the potential to erase the entire 700,000 barrels per day surplus they had forecast for this year, but said the real impact could be lower.
Uncertainty about demand from China, the world’s largest oil importer, could impact tighter supply this year.
China’s crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed on Monday.
Meanwhile, the American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 2.6 million barrels for the week ending January 10.
For the week prior, the API reported a draw of 4.022 million barrels in US crude oil inventories amid build season, while product inventories saw a hefty build.
In 2024, crude oil inventories dropped by more than 12 million barrels, according to the API’s inventory data. In the first few weeks of 2025, crude inventories have shed more than 6.6 million barrels.
Official data from the US EIA will be due later on Wednesday, confirming the actual level of stockpiles.
Economy
Stock Exchange Suffers Heavy Loss as Investors Pull Out N1.1trn
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited came under heavy selling pressure on Tuesday, going down by 1.66 per cent as investors embarked on profit-taking after most stocks on the trading platform gained in the past few trading sessions.
It was observed that the industrial goods sector was the most affected yesterday as it went down by 4.99 per cent due to the decline suffered by Dangote Cement and others.
The insurance continued its downward trend during the day as it lost 2.80 per cent, the consumer goods counter fell by 0.27 per cent, and the banking index shed 0.10 per cent, while the energy sector appreciated by 0.29 per cent.
At the close of business, the All-Share Index (ASI) deflated by 1,745.16 points to settle at 103,622.09 points compared with the previous trading day’s 105,367.25 points and the market capitalisation moderated by N1.1 trillion to finish at N63.188 trillion versus Monday’s N64.252 trillion.
Business Post reports that investor sentiment remained weak on Tuesday after the bourse ended with 41 depreciating equities and 23 appreciating equities, representing a negative market breadth index.
Honeywell Flour lost 10.00 per cent to trade at N9.54, Dangote Cement declined by 9.98 per cent to N431.00, Julius Berger crashed by 9.98 per cent to N139.80, Sovereign Trust Insurance decreased by 9.68 per cent to N1.12, and Prestige Assurance tumbled by 9.30 per cent to N1.17.
On the flip side, Northern Nigerian Flour Mills appreciated by 10.00 per cent to N45.10, Livestock Feeds grew by 9.91 per cent to N6.10, Academy Press expanded by 9.90 per cent to N3.22, University Press increased by 9.82 per cent to N4.81, and Neimeth gained 9.76 per cent to quote at N3.15.
During the session, market participants bought and sold 503.3 million shares valued at N12.6 billion in 12,900 deals compared with the 505.8 million shares worth N8.1 billion traded in 14,259 deals a day earlier, indicating a rise in the trading value by 55.56 per cent and a drop in the trading volume and number of deals by 0.49 per cent and 9.53 per cent, respectively.
The most active stock for the session was GTCO with 54.4 million units worth N3.2 billion, Nigerian Breweries transacted 32.2 million units for N1.0 billion, Universal Insurance traded 30.8 million units valued at N22.6 million, AIICO Insurance exchanged 26.6 million units worth N47.2 million, and Chams transacted 20.0 million units valued at N40.9 million.
Economy
FG Offers 18% Interest on Savings Bonds
By Adedapo Adesanya
The federal government is offering two new savings bonds with interest rates between 17 and 18 per cent through the Debt Management Office (DMO).
In a statement by the agency, the country said retail investors can purchase the two-year bond maturing in January 2027 at 17.23 per cent interest, while the three-year paper maturing in January 2028 at a coupon rate of 18.23 per cent.
Bonds are very safe financial instrument that serve as investments because they are backed by the federal government, which promises to pay back the money.
According to the DMO, people can buy these bonds starting January 13, 2025, until January 17, 2025, with allotment expected on January 22, 2025, and the interest to be paid to investors every three months – in April, July, October, and January.
These bonds have some special features. They are tax-free under both company and personal tax laws.
Big investors like pension funds and trustees are allowed to buy them and each bond costs N1,000 each.
However, interested investor can only buy at least N5,000 worth, and can’t buy more than N50 million.
This comes after the Ms Patience Oniha-led debt office said the Nigerian government was offering three bonds worth N150 billion in September 2024.
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