Business
Nigerians Kick As Food Prices Remain High Despite Dollar Crash, Naira Appreciation
Nigerians Kick As Food Prices Remain High Despite Dollar Crash, Naira Appreciation....KINDLY READ THE FULL STORY HERE▶
Nigeria’s economy has received a significant boost with the Naira appreciating to N1,300 against the US dollar, sparking hope for a potential recovery. This development has come as a relief to many, especially after the Naira’s value plummeted to an all-time low of nearly N2,000 against the dollar just a few weeks ago.
The recent appreciation has given rise to expectations of a potential reduction in food prices and increased food production. However, farmers and Civil Society Organizations (CSOs) are puzzled that this development has yet to reflect in food production and prices.
Despite the Naira’s gain of about N700 over the past four weeks, prices of farm inputs remain high, and interest rates are still beyond what farmers can afford. This has raised concerns among stakeholders, who are worried that the appreciation may not have a lasting impact on the agricultural sector and food production.
The agricultural sector is a critical component of Nigeria’s economy, and any fluctuations in the sector can have far-reaching consequences on the overall economy.
Speaking to Vanguard, Ibrahim Kabir, National President of the All Farmers Association of Nigeria (AFAN), emphasized that a stronger Naira leads to higher purchasing power, making food more affordable and a prerequisite for food security.
He expressed hope that the costs of farm inputs would decrease, resulting in lower production costs and more affordable food for Nigerians.
However, Daniel Okafor, National President of the Potato Farmers Association of Nigeria (POFAN), disagreed, stating that the Naira appreciation has not impacted food prices.
Okafor explained that farmers bought their inputs at high costs, so they cannot be forced to sell their produce at low prices due to Naira appreciation. He also cited insecurity and high costs of labor and agricultural inputs as significant factors affecting food prices.
Engr. Daniel Ijeh, an agribusiness expert, emphasized that sustained Naira appreciation would lead to increased productivity and reduced food prices. He advised the government to address farm finance and land tenure issues to support agricultural growth.
Andrew Mamedu, Country Director of ActionAid Nigeria (AAN), acknowledged the Naira appreciation but urged the government to reconsider high lending rates and implement measures to boost food production.
The Chairman of AFAN, Sokoto State Chapter, Jamilu Muhammad, lamented that Naira appreciation had not yet impacted food production, citing high petrol costs and low mechanization as significant challenges. He emphasized the need for affordable credit to farmers and improved security to ensure a sustained impact on food production.
In summary, while the Naira appreciation holds promise for reducing food prices and increasing food production in Nigeria, challenges such as high input costs, insecurity, and inadequate mechanization continue to hinder its immediate impact on the agricultural sector. Addressing these challenges will be crucial to realizing the full potential of Naira appreciation in boosting food security and economic stability.
The future of Nigeria’s Naira-for-Crude policy remains in limbo as negotiations continue between the Nigerian government and Dangote Refinery. The six-month agreement between the Nigerian National Petroleum Corporation (NNPCL) and Dangote Refinery expired on March 31, 2025, without a renewal, leading to the suspension of the refinery’s sale of refined petroleum products in Naira. However, the refinery has continued processing approximately 400,000 barrels of crude oil daily, with 35% of the crude sourced from international markets, particularly Brazil and Equatorial Guinea.....KINDLY READ THE FULL STORY HERE▶
Although the policy’s future is still under review, sources suggest that its economic implications, especially concerning fuel prices and foreign exchange rates, make it crucial to the national economy. Despite challenges in crude supply from NNPC, Dangote Refinery has expanded its global sourcing and is currently sourcing crude from Brazil’s Petrobras and Equatorial Guinea.
No official agreement has been reached yet to extend the Naira-for-Crude deal. The Nigerian government’s committee in charge of the policy is waiting for recommendations from the Nigeria Upstream Petroleum Regulatory Commission before proceeding. Meanwhile, the refinery’s management has expressed uncertainty regarding the renewal of the deal, citing concerns over the financial strain and volatility of exchange rates. The future of the policy remains unclear, with NNPC expected to supply crude oil to Dangote Refinery in April, but payment terms are yet to be finalized.
The price of cement, a vital resource for Nigeria’s construction industry, has witnessed significant changes recently, with rates fluctuating depending on brand, location, and market factors. Here is an overview of the current prices for some leading cement brands:....KINDLY READ THE FULL STORY HERE▶
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Dangote Cement: The cost of a 50kg bag of Dangote Cement ranges between ₦8,000 and ₦10,300. Known for its high quality, Dangote Cement remains a preferred choice in various construction projects. Prices are generally lower in areas near production plants but tend to rise in regions requiring extensive distribution.
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BUA Cement: Priced between ₦8,000 and ₦8,500 per 50kg bag, BUA Cement is popular among builders due to its competitive pricing and stability. Prices may vary slightly depending on proximity to manufacturing sites.
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Lafarge Water Shield Cement: Priced at ₦20,000 per 50kg bag, this cement variant is specifically formulated for durability and resistance to moisture, making it ideal for projects in damp environments.
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Waterproof Cement JK: Available at ₦15,000 per 50kg bag, Waterproof Cement JK is engineered to offer exceptional protection against water ingress, particularly useful for wet construction sites.
Over the past year, cement prices in Nigeria have surged significantly. At the start of 2024, a 50kg bag cost around ₦4,500. By November 2024, the price rose to about ₦8,500, reflecting an increase of approximately 89%. This upward trend is attributed to factors such as rising production costs, increased demand, and logistical challenges.
Marketers predict a potential further increase in cement prices, emphasizing the need for stakeholders in the construction sector to stay informed and plan accordingly.
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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