Business
Recession: Oyo Needs Survival Strategies –Ajimobi
Governor Abiola Ajimobi of
Oyo State says the state needs to evolve survival strategies in the areas of Internally Generated Revenue (IGR), restructuring and blocking of financial loopholes.
Ajimobi stated this in Ibadan on Wednesday at the inter-religious service organised by the state government.
He said that it was only through the initiation of such strategies that the state would surmount the prevailing economic challenges.
The governor stated that efforts at improving infrastructure, welfare of the workforce and other developmental initiatives were increasingly hindered by paucity of funds as a result of the economic downturn.
“The prevailing economic challenges bedeviling the nation has continued to pose financial threat to meaningful development. It is being made worse by the destructive activities of the Niger Delta militants,” he said.
He called on Nigerians to use the New Year in reviewing the activities of the previous years with the great anticipation of improving upon such in the years ahead.
Ajimobi said that the state now received an average of N2.5billion as federal allocation as against N3.5billion in January 2016.
The governor stated that the abysmally low Internally Generated Revenue (IGR) has continued to pose additional challenges, hindering developmental efforts in the state.
Ajimobi said that government as an enterprise requires fund to successfully and effectively function.
“Government receives N2.5 billion monthly federal allocations and generates N1.5billion in terms of IGR to service a monthly wage bill of N5.2 billion.
“I have told the finance ministry to suspend subventions to tertiary institutions, likewise car loans and all forms of assistance to cut cost and enhance service delivery,’’ he said.
He debunked the claims that the state government had collected funds from the excess deductions made from the Paris Club refunds shared to states by the Federal Government..
Ajimobi, however, expressed optimism that the state would be paid as promised.
The governor promised to allocate 50 percent of the fund in settling outstanding salaries if the money was paid.
He said that President Muhammadu Buhari had pleaded with the governors to ensure the money was used in settling outstanding salaries of workers, adding that he was passionate about the welfare of the people.
“That was the same way he pleaded with us to use the bailout fund in settling outstanding salaries then. I am confident to tell you that the state used 100 per cent of the bailout fund in paying outstanding salaries,” he said.
Ajimobi called on the workers and the people of the state to join hands with government in building the state.
“Our state has the largest land mass in the whole of the southern Nigeria and comparative advantage in cassava production to make garri, starch and others. We must harness these potentials creatively.
“Our people should engage in such productive ventures to help the state while eschewing laziness, idleness and rumour mongering,” he 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