Nigeria boosts of self-sufficiency in rice and expects to be an exporter in the short term. However, anecdotal evidence shows that the level of rice imports into Benin Republic and Togo has jumped by 25% in the last 2-3 years. This suggests that rice smuggling is making up for the bulk of the self-sufficiency narrative. However, Kebbi State rice mills are complaining of a supply glut and falling farm gate prices. The policy of import substitution has major pitfalls that need to be addressed comprehensively.
Meanwhile, the recently released economic data point on states unemployment rates in Q3’18 reveals that the South-South recorded the highest unemployment rate (32%) despite receiving the highest FAAC allocation. This indicates that higher statutory allocation does not translate to economic prosperity. The report also showed that the South-West had the least unemployment rate (14%).
The attached slides summarize the events that took place in the domestic and global commodity markets this week.
Enjoy your read!