Business
Recession: Economist Tasks FG On Capital Votes
The Federal Government
has been urged to speed up release of fund for capital projects as part of measures to help the country out of recession.
A lecturer at the Department of Economics, Ambrose Alli University, Ekpoma, Edo, Prof Ben Aigbokhan, gave the advice in an interview with newsmen in Abuja recently.
He said that the government should release money for projects to start repairing some of the bad roads as ways of creating jobs and generating income for the populace.
“Then, some of the factories and companies that are already at a standstill or very low capacity levels of production will be encouraged back through fiscal incentives.
“We are having problems with exchange rates but they have fiscal incentives and tax incentives that will encourage them to go into production.
“The incentives will also encourage them to produce and employ people,” the don added.
Aigbokhan, however, said that with such incentives, demand would gradually kick up because recession was measured by output, demand or by expenditure.
He said that those were the indicators and once the indicators were picking up gradually, instead of moving deeper into depression, a country would move back into recovery.
“It may not be immediate, since we are still in July, certainly not but the minimum three to five months we shall be moving out of it,” he said.
According to him, late releases of monies will slow down implementation of projects that will stimulate growth and development.
“Delays compound unemployment problems in the economy, raises price level through supply shortages resulting from low production and reduces growth rate of the economy.”
He advised the government to implement policies that would encourage improved revenue from which public projects were financed to address delays in budget implementation.
He, however, expressed optimism that the country would not experience depression with the efforts of the government to implement its economic policies.
“The point is that for us to be in recession for more than three months, the government is likely to do something; that is what I feel.
“People are shouting, people are protesting, people are crying and people are criticising government, but it will not fold its hands and will just keep on like that.
“Also, the situation will make labour to be less restive while demand for labour is high wages and all that.
“If this kind of information is not brought out to them, they will think there is money up there so this will make them to pipe down a bit.
“It will also make them to be moderate in their demands,” he stressed.
He also advised that government should allow annual budget cycle for timely review of results.
“In four-year political cycle, three-year budget may give less time for appraising government`s performance.
“Medium Term Framework itself may be reviewed in response to unforeseen developments as Nigeria currently faces, ” Aigbokhan said.
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