Daily Watch – Refined petroleum imports surpass crude exports in 2018, Nigerian poultry on the rise

The CBN says that Nigeria’s poultry sub-sector is the most commercialised of all agricultural sub-sectors with a current net worth of ₦1.6 trillion ($4.44 billion). The sector, according to the regulator’s governor, Godwin Emefiele, contributes about 25 percent of agricultural GDP to the economy. Emefiele said the population of chickens was about 165 million, which produce approximately 650,000 metric tonnes and 300,00MT of eggs and meat altogether. The demand situation is estimated at over 200 million birds, while the demand for eggs and meat are about 790,000MT and 1,500,000MT, leaving a huge demand gap which, unfortunately, is met through smuggling. According to the regulator, by estimate, over 1.2 million MT of poultry meat is smuggled into Nigeria from Benin. However poultry sector faces high production costs, safety concerns due to lack of sanitary controls and technical constraints in processing and marketing. The production costs are generally high due to lack of an integrated and automated industrial poultry sector as poultry producers lack reliable access to inputs including chicks, feed and high costs of veterinary services. In spite of all the constraints in the sector, the CBN said there remains a huge potential for the industry in Nigeria. 

Uber is set to launch operations in Benin City this month following weeks of engagement between the Edo state government and Uber officials. The Edo State Skills Development Agency (EdoJobs) is already leading the charge with the recruitment of riders on the platform. According to the head of EdoJobs, Ukinebo Dare, the launch would take place at the Edo Innovation Hub on 24 July. Taxify launched in the state last year, and has recorded impressive ratings from residents. 

Data from OPEC showed that Nigeria’s value of petroleum products imports was more than its exports in 2018. The country’s exports value of petroleum products in 2018 amounted to $54.513 billion while imports were at $54.645 billion. The breakdown from OPEC’s Annual Statistics Bulletin shows that exports grew by $16.53 billion in 2018 from $37.983 billion in 2017. There was no gain recorded as the value of imports already overrode exports. The total export sale of crude oil and gas by the country, according to the NNPC, was $490.03 million in February 2019, 32.45 percent higher than the previous month’s sale. The monthly report said crude oil export sales contributed $350.29 million, 71.48 percent, of the dollar transactions compared with $240.23 million contributions in the previous month. The breakdown of the NNPC’s report showed that the export gas sales amounted to $139.74 million in February this year, as the February 2018 to February 2019 crude oil and gas transactions indicated a $5.94 billion worth of crude oil and gas was exported. Data from NBS showed that Nigeria spent ₦2.582 trillion on fuel importation in nine months; January-September 2018, rising by 12.9 percent from ₦2.289 trillion recorded in the first three quarters of 2017. 

The FGN is yet to implement the removal of VAT from air transport a year after the pronouncement was made by President Buhari. Domestic airlines still remit five percent on every flight ticket sold. A spokesman for Dana Air, Kingsley Ezenwa told the Punch that nothing had been said after the pronouncement last year. The decision to remove the VAT from domestic air transport was in line with global practices to make air travel more affordable, thereby attracting travellers who prefer other means, and consequently increase revenue for the government. However, the Chairman of Air Peace, Allen Onyema, said there had been the implementation of zero duty on spare parts but not on VAT. He said there has been the situation of “forth and back” with the FIRS on the issue. The Airline Operators of Nigeria, the umbrella body for airlines in the country, had estimated over ₦10 billion as taxes paid annually by its members. The Chairman of AON, Nogie Meggison, who had described the situation as threatening to airline operations, said the body had threatened that its members would no longer pay the VAT with effect from 14 June 14, 2018, as only domestic airlines were made to pay the VAT, while foreign airlines were exempted.