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Russia-Ukraine War to Disrupt Nigeria’s N993.38bn Imports From Russia




Data compiled by the National Bureau of Statistics (NBS) reveals that the value of Russia’s imports to Nigeria over 12-month is N993.38bn – the 12-month in review is import value between Nigeria and Russia from Q3 2020 and the corresponding period in 2021.

The Russian invasion of Ukraine is one that came with global implications and unfortunately Nigeria is not insulated from this disruption given that Russia is one of the country’s largest export partners in recent years.

According to the report by NBS, Nigeria imports four specific items from Russia, the country presently at war with Ukraine. These four items are Durum wheat, herrings, blue whitings, and mackerel.

Nigeria-Russia Breakdown according to the NBS Report

Q3 2020: In Q3, Nigeria imported durum wheat worth N46.56bn, mackerel worth N13.76bn, and blue whitings worth N1.57bn. In that period, Russia was the second leading exporter of durum wheat to Nigeria, the first for mackerel, and the third for blue whitings. Russia became Nigeria’s seventh-largest trading partner in Q3 2020 with the accumulation of N154.21bn about 2.87 percent of Nigeria’s import trade value for the period in review.

Q4 2020: Russia still maintained its position with an import trade value accumulating to N162.62bn which was 2.74 percent of Nigeria’s total import trade value. However, aside from the usual imported items, Nigeria also imported N4.82bn vaccines for human medicine from Russia. In Q4, Nigeria imported durum wheat worth N62.9bn, mackerel worth N2.27bn, and herrings worth N6.59bn. The additional importation of vaccines made Russia Nigeria’s fifth import trade partner for vaccines for human medicine.

Q1 2021: Russia remained Nigeria’s top trade partner for herrings and fourth for wheat as the country imported N15.8bn herrings and N37.20bn durum wheat from Russia.

Q2 2021: Russia was missing from the report for top wheat providers in this quarter. However, Nigeria imported N27.23bn blue whitings and N4.18bn mackerel from Russia in this quarter. Import from Russia in this quarter was N284.36bn cumulatively, which was 4.09 per cent of the total import trade value.

Q3 2021: In this quarter, Russia dropped to the sixth import trading partner for Nigeria with an import trade value of N339.19bn cumulatively, which was 4.16 per cent of the total import trade value. In the quarter, durum wheat worth N86.75bn and mackerel worth N30.69bn were imported from Russia.

Projections with import disruption

As the crisis between both countries persists, Nigeria is at a risk from not only Russia but also Ukraine as Nigeria also has trade relationships with Ukraine. In 2020, Nigeria spent $156.08m on imports from Ukraine, data by the United Nations Comtrade Database on International trade reveals. The database also indicated that import from Russia was $1.24bn in 2020.

While the war continues and heats up with trade sanctions imposed on Russia by global trade communities, Nigeria may need to look beyond Russia for products like cereals, mineral fuel, oil distillation products, fish, iron and steel, fertilizers, amongst others.

Some economic experts have also expressed that Nigeria may experience more elevated inflation in the coming weeks as the war persists.

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Nigeria’s N3.3tn Power Sector Rescue Package Unveiled



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President Bola Tinubu has given the green light for a comprehensive N3.3 trillion rescue package.

This ambitious initiative seeks to tackle the country’s mounting power sector debts, which have long hindered the efficiency and reliability of electricity supply across the nation.

The unveiling of this rescue package represents a pivotal moment in Nigeria’s quest for a sustainable energy future. With power outages being a recurring nightmare for both businesses and households, the need for decisive action has never been more urgent.

At the heart of the rescue package are measures aimed at settling the staggering debts accumulated within the power sector. President Tinubu has approved a phased approach to debt repayment, encompassing cash injections and promissory notes.

This strategic allocation of funds aims to provide immediate relief to power-generating companies (Gencos) and gas suppliers, while also ensuring long-term financial stability within the sector.

Chief Adebayo Adelabu, the Minister of Power, revealed details of the rescue package at the 8th Africa Energy Marketplace held in Abuja.

Speaking at the event themed, “Towards Nigeria’s Sustainable Energy Future,” Adelabu emphasized the government’s commitment to eliminating bottlenecks and fostering policy coherence within the power sector.

One of the key highlights of the rescue package is the allocation of funds from the Gas Stabilisation Fund to settle outstanding debts owed to gas suppliers.

This critical step not only addresses the immediate liquidity concerns of gas companies but also paves the way for enhanced cooperation between gas suppliers and power generators.

Furthermore, the rescue package includes provisions for addressing the legacy debts owed to power-generating companies.

By utilizing future royalties and income streams from the gas sub-sector, the government aims to provide a sustainable solution that incentivizes investment in power generation capacity.

The announcement of the N3.3 trillion rescue package comes amidst ongoing efforts to revitalize Nigeria’s power sector.

Recent initiatives, including tariff adjustments and regulatory reforms, underscore the government’s determination to overcome longstanding challenges and enhance the sector’s effectiveness.

However, challenges persist, as highlighted by Barth Nnaji, a former Minister of Power, who emphasized the need for a robust transmission network to support increased power generation.

Nnaji’s advocacy for a super grid underscores the importance of infrastructure development in ensuring the reliability and stability of Nigeria’s power supply.

In light of these developments, stakeholders have welcomed the unveiling of the N3.3 trillion rescue package as a decisive step towards transforming Nigeria’s power sector.

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Nigeria’s Inflation Climbs to 28-Year High at 33.69% in April



Nigeria's Inflation Rate - Investors King

Nigeria is grappling with soaring inflation as data from the statistics agency revealed that the country’s headline inflation surged to a new 28-year high in April.

The consumer price index, which measures the inflation rate, rose to 33.69% year-on-year, up from 33.20% in March.

This surge in inflation comes amid a series of economic challenges, including subsidy cuts on petrol and electricity and twice devaluing the local naira currency by the administration of President Bola Tinubu.

The sharp rise in inflation has been a pressing concern for policymakers, leading the central bank to take measures to address the growing price pressures.

The central bank has raised interest rates twice this year, including its largest hike in around 17 years, in an attempt to contain inflationary pressures.

Governor of the Central Bank of Nigeria has indicated that interest rates will remain high for as long as necessary to bring down inflation.

The bank is set to hold another rate-setting meeting next week to review its policy stance.

A report by the National Bureau of Statistics highlighted that the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.

Food inflation, which accounts for the bulk of the inflation basket, rose to 40.53% in annual terms, up from 40.01% in March.

In response to the economic challenges posed by soaring inflation, President Tinubu’s administration has announced a salary hike of up to 35% for civil servants to ease the pressure on government workers.

Also, to support vulnerable households, the government has restarted a direct cash transfer program and distributed at least 42,000 tons of grains such as corn and millet.

The rising inflation rate presents significant challenges for Nigeria’s economy, impacting the purchasing power of consumers and adding strains to household budgets.

As the government continues to grapple with inflationary pressures, policymakers are faced with the task of implementing measures to stabilize prices and mitigate the adverse effects on the economy and livelihoods of citizens.

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FG Acknowledges Labour’s Protest, Assures Continued Dialogue



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The Federal Government through the Ministry of Power has acknowledged the organised Labour request for a reduction in electric tariff.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had picketed offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies nationwide over the hike in electricity tariff.

The unions had described the upward review, demanding outright cancellation.

Addressing State House correspondents after the Federal Executive Council (FEC) meeting on Tuesday, Minister of Power, Adebayo Adelabu, said labour had the right to protest.

“We cannot stop them from organizing peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.”

“We have heard their demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

“But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

“A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position.

“My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.”

He said there was the need for sacrifice from everybody, “from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain”.

“I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.”

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