FDC COMMODITY UPDATE – AUGUST 27, 2020

Dear Subscriber,

Whilst it is accepted that power sector reform is urgently required in Nigeria, there is still some ambiguity as to the specifics in terms of who determines the price and who regulates the market.

The FGN seems determined to remove all the constraints this time and there is a new pricing formula for frustrated electricity consumers who have neither adequate power nor meters. It is expected that this dispensation will encourage new investments into a sector that is almost considered a write off by consumers.

Agriculture sector employees recorded the highest return to work (76%) since the lockdown. This is partly due to seasonalities (harvest season) and the relaxation of restrictions. The impact of the harvest season and the productivity gains to be earned from increased output will moderate food prices in the near term.

The slides in the download provide a snapshot of the discussion in the Commodities segment of the Business Morning programme on Channels TV by the Head of the FDC Think Tank.

Enjoy your read!