Economy
Udemezue Gives CBN Tricks to Tackle Nigeria’s High Inflation
By Ahmed Rahma
The Chief Executive Officer (CEO) of Flame Academy & Consulting Limited, Mr Orji Chigozie Udemezue, has advised the Central Bank of Nigeria (CBN) to apply contractionary measures to curb inflation in the country.
According to the National Bureau of Statistics (NBS), inflation in Nigeria rose in December 2020 by 15.75 per cent and for Mr Udemezue, this is very high.
To control this, the economist has told the central bank to reduce government spending by stabilising price, which according to him, is the main duty of central banks across the globe.
Mr Udemezue, while speaking on Channels Business Morning, added that when CBN raises rate, there will be so much rush for money market instruments as banks would not be able to carry out their primary function of lending money to customers because people will not be able to borrow at a higher rate, allowing the apex bank to mop up the excess liquidity in circulation, which will slow down inflation pressure.
“Prices are still going up. Theoretically, we see that inflation today is about 15.75 per cent but actually in the market, most prices have gone more than 50 per cent on the things we buy.
“[The] duty of the central bank is to maintain price stability, that’s everywhere in the world and to do that, looking at the way things are now, we expect that the central bank should be trying to curb inflation by doing what they call monetary policy contraction, trying to apply contractionary measures i.e trying to raise rate. When they raise the rate for example, what will happen is that there is so much rush for money market instruments, banks will not be able to lend out more money and people will not be able to borrow at a higher rate and, therefore, you mopped up the money in circulation and then slow down inflation pressure,” he said.
Commenting on the fact that MPC was confronted with a policy dilemma at the last meeting, he said, “well, it is just the option of sit down dey look, let’s just watch as things go, because the whole essence of monetary policy obviously is to manage the quantity of money in supply in the economy.
“The argument theoretically is that when there is so much money in circulation, there is a lot of money pursuing a few goods, therefore, driving prices up.
“So, the primary duty of central banks all over the world is to maintain monetary stability, ensuring that price increase in the economy does not go at hyper rate i.e. saying inflation like in Nigeria having double-digit and beyond, that’s what damages productivity.
“So, you find that the Central Bank of Nigeria is in a very big dilemma. Ordinarily, if you look at their objective of maintaining price stability, we are losing it.”
Expressing his belief on the measures, he said, “You know, that’s what we should be looking at right now. If they do that, trust me, it is going to be very counterproductive because already, the economy is in deep trouble with COVID-19 and all of that.
“So, at this point, no reasonable central bank will be looking at an increase in rate instead everywhere in the world, we are looking at monetary easing or what they call expansionary monetary policy, whereby rates are brought down to enable the real sense of economy to enable to borrow at a reasonable rate, drive production and be able to reverse as it is now and economy in recession.”
According to him while answering the question of what is driving inflation in Nigeria, the pressure on foreign exchange (FX) is the major cause and the fact that the country depends too much on foreign goods.
“[The] Nigerian economy is a very peculiar economy, many times it tends to work out most established economic theories and even practices.
“Elsewhere in the world, there are no major issues about inflation because domestic demand is at its lowest level, travels are restricted, the COVID-19 lockdown has left people with no jobs.
“Theoretically, people don’t have money to spend.
“Most economy especially western economies, you find that aggregate demand is actually on a decline and, therefore, purchases are not going up as it should be. So, inflation is actually low in those places unlike in Nigeria, the argument is different.
“The factors driving inflation in Nigeria is not demand-pull, it is not about you and I having so much money in our pocket, having greater command for commodities.
“So, what happens here is inflation flows really from FX pressure. We are not self-sustaining and we import practically everything we use. So, the pressure on our FX, input costs is huge.
“Our local manufacturers have to import there input materials which are now at the all-time rate and then the finished goods we also import that we use in domestic things like the furniture and office equipment are also coming at a much higher rate because of the devaluation and depreciation of our currency.
“What is causing this depreciation? Until we address the issue of continuous depreciation of our currency, inflation can never be dealt with.
‘That is why even at the time when all of us are not demanding much when domestic demand is so low, we still see inflation climbing up the roof particularly food inflation and similar factors.
By Adedapo Adesanya
Nigeria and the United Kingdom are moving to tackle a long-standing £1.2 billion discrepancy in their trade records, with both countries agreeing to develop a structured data-sharing system aimed at improving transparency and accountability across bilateral commerce.
The agreement was reached during a high-level meeting in London on March 18, 2026, held on the sidelines of President Bola Tinubu’s State Visit, under the Nigeria–United Kingdom Enhanced Trade and Investment Partnership (ETIP).
According to a statement by Nigeria Customs Service (NCS) spokesperson, Mr Abdullahi Maiwada, the talks signal a shift toward deeper operational cooperation between both countries’ customs authorities.
At the centre of the discussions was a persistent mismatch in trade figures. While Nigeria recorded about £504 million worth of imports from the UK in 2024, British records show exports to Nigeria at approximately £1.7 billion for the same period, leaving a gap of roughly £1.2 billion.
To address this, the two countries agreed to explore a pre-arrival data exchange framework that will connect their digital customs systems, with the aim of improving risk management, reconciling trade data, and strengthening compliance monitoring along the corridor.
The meeting was led by Comptroller-General of Customs, Mr Adewale Adeniyi and Ms Megan Shaw, Head of International Customs and Border Engagement at His Majesty’s Revenue and Customs (HMRC), and also focused on customs modernisation and data transparency.
Mr Adeniyi underscored the broader economic implications of the initiative, noting that customs collaboration plays a central role in trade facilitation.
“Effective customs cooperation remains a critical enabler of economic growth and sustainable trade development,” he said.
He added that “customs administrations serve as the frontline institutions responsible for ensuring that trade flows between both countries are transparent, secure, and mutually beneficial.”
The Nigeria–UK trade relationship spans multiple sectors, including industrial goods, agriculture, energy, and consumer products — all of which depend heavily on efficient port and border operations.
Beyond addressing data gaps, the meeting also highlighted ongoing modernisation efforts on both sides. The UK showcased advancements in artificial intelligence-driven trade tools, digital verification systems, and real-time analytics designed to enhance cargo processing, risk assessment, and border security.
The engagement further produced plans for a Customs Mutual Administrative Assistance Framework, alongside technical groundwork for capacity building, knowledge exchange, and a joint engagement mechanism under the ETIP platform.
Mr Maiwada said the outcomes are expected to strengthen Nigeria’s trade ecosystem and support broader economic reforms.
“The NCS has reaffirmed its commitment to deepening international partnerships as part of a broader modernisation agenda designed to promote transparency, efficiency, and competitiveness in Nigeria’s trading environment,” the statement said.
It added that “insights from this engagement will strengthen its operational capacity, enhance trade facilitation, and support Nigeria’s economic reform objectives under the Renewed Hope programme.”
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.
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