Business
‘Manufacturing, Power, Construction To Benefit From 2017 Budget’
The Securities and Exchange Commission (SEC) has listed manufacturing, trade, works, power, housing and transport as the sectors that would benefit much from the Federal Government’s 2017 budget if well implemented.
SEC Head, Economic Research and Policy Management Division, Dr Afolabi Olowookere, said this at the 2017 budget seminar organised by the commission in Lagos.
Olowookere said that listed equities of the sectors would perform better in 2017 because of the budget focus.
He said that stocks of these sectors would lead the capital market in 2017, noting that the major challenge would, however, be high cost of capital.
According to him, financial companies and services firms that serviced the sectors would indirectly benefit from the budget.
He also said that stocks of companies, supplying government materials or working for government, would benefit from the budget indirectly.
Commenting on the theme: The 2017 budget of growth and recovery: Revelance, implications and perspectives of the Nigerian capital market, Olowookere stated that the budget would affect the market directly or indirectly.
He said that the Nigerian Stock Exchange (NSE), All-Share Index which declined by 6.17 per cent in 2016 would do better this year.
Olowookere, however, stressed the need to improve domestic investor participation in the market, noting that, foreign investors would further shun the market due to foreign exchange challenges.
“Foreign investors will be very careful in the market, especially with stocks that did not price in foreign exchange risk,” he stated.
He said that fixed income securities would be investors preference due to government use of debt instruments to service the budget deficit.
“The budget deficit of N2.36 trillion will have negative and significant effect on the equities market,” Olowookere stated.
He said that the foreign exchange policy would affect companies operations and performance in 2017 with exception of foreign exchange generating companies.
Olowookere said that review of the pension investment laws was necessary to increase the activities of the Pension Fund Administrators (PFAs) to increase institutional investors participation.
On the roles of capital market in budget planning and processes, he said that the market could provide platform for sale of government shares during participation.
He said that proceeds realised from privatisation could be used for budget financing.
Olowookere added that the capital market engendered transparency among listed firms, thereby easing source of tax collection.
He stated that capital market stakeholders could also submit input into budget planning process.
He called on market stakeholders to introduce alternative investment schemes such as infrastructure financing to deepen the market.
Olowookere said that the 2017 budget, if well implemented, would return the economy to expected growth and recovery.
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor