14 Mar

Daily Watch – Nigeria promises to punish economic saboteurs, Poultry supply gap means more smuggling

  • Nigeria has warned that it will deal ruthlessly with people involved in pipeline vandalism and the sabotage of power infrastructure, both of which have combined to drastically reduce power generation/transmission as well as fuel supplies last week, resulting in the economy almost grinding to a halt. In a statement issued in Abuja on Sunday, the Minister of Information and Culture, Lai Mohammed, said the repeated attacks on oil and gas pipelines and the wilful shutdown of power facilities by protesters amount to economic sabotage which no government will tolerate.
  • BusinessDay is reporting that the smuggling of poultry products is unlikely to end anytime soon, as a supply gap hits 1.7 million metric tons. Most of the bans placed on poultry products have not been effective and have made no real impact on actual foreign imports. Smuggling poultry products, especially chicken and turkey have become a big business for importers of these products. Nigeria needs more than two million metric tonnes of poultry products annually to meet local demand. Official figures show that local farmers are only able to produce 300,000 metric tons, leaving a wide gap of more than 1.7 million metric tons. With the gap between supply and demand, smugglers are encouraged by the inability of local suppliers to meet demand for these products.
  • The National Bureau of Statistics says that Nigeria’s manufacturing sector recorded an increase of N289 billion in its output from N8.68 trillion in 2014 to N8.94 trillion at the end of December 2015. According to the NBS, there are 13 activities in the manufacturing sector made up of oil refining; cement; food, beverages and tobacco; textile, apparel and footwear; wood and wood products; pulp and paper products; chemical and pharmaceutical products. Others are non-metallic products, plastic and rubber products; electrical and electronic, basic metal and iron and steel; motor vehicles and assembly; and other manufacturing. An analysis of the output for the manufacturing sector showed that despite the harsh operating environment, which had led to massive job losses and closure of some industries, the sector continued to show resilience. Apart from oil refining and other manufacturing activities, which recorded a decline of N137.79 billion and N3.39 billion from N385.81 billion and N434.49 billion to N248.02 billion and N431.1 billion respectively, other activities in the sector experienced some level of growth. For instance, there was an increase of N145.32 billion in the cement industry from N604.61 billion in 2014 to N749.93 billion.