Nigeria is in the grip of a worsening food crisis. Inflation is crippling farmers and traders, and millions face hunger. Despite a new emergency plan, critics say lasting solutions are still missing.
Showing posts with label Trade. Show all posts
Showing posts with label Trade. Show all posts
Tuesday, April 22, 2025
Video - Nigeria food crisis deepens
Nigeria is in the grip of a worsening food crisis. Inflation is crippling farmers and traders, and millions face hunger. Despite a new emergency plan, critics say lasting solutions are still missing.
Russia is set to initiate new shipping line with Nigeria
The service, which is scheduled to begin operations in mid-June, will be operated by Russia's A7 African Cargo Line.
Initially, two 700-TEU container ships will service the route, with future development plans aimed at Senegal, as reported by Sputnik.
According to Maxim Petrov, Russia's Trade Representative in Nigeria, the shipping line would facilitate the sale of Russian agricultural products, machinery, and transportation equipment to Nigeria.
In return, it will allow Russia to purchase cotton from fellow West African state, Mali, a crucial regional product with an annual yield of over 650,000 tons.
Simultaneously, Nigeria and Russia are strengthening military relations.
Initially, two 700-TEU container ships will service the route, with future development plans aimed at Senegal, as reported by Sputnik.
According to Maxim Petrov, Russia's Trade Representative in Nigeria, the shipping line would facilitate the sale of Russian agricultural products, machinery, and transportation equipment to Nigeria.
In return, it will allow Russia to purchase cotton from fellow West African state, Mali, a crucial regional product with an annual yield of over 650,000 tons.
Simultaneously, Nigeria and Russia are strengthening military relations.
Russia and Nigeria’s growing ties in 2025 so far
In March 2025, Russian Deputy Minister of Defense Yunus-bek Yevkurov and Nigeria's Chief of Defense Staff, General Christopher Musa, met to explore the extension of the two nations' current defense cooperation.
This military partnership stems from a 2021 deal under which Russia would supply training, logistics, and equipment to the Nigerian military.
Financial relations have also improved. In February 2025, Russia officially added Nigeria to the list of countries eligible for currency trading in its banking system.
Tunisia and Ethiopia were also included, bringing the total number of eligible African countries to seven and further integrating the region into Russia's financial efforts.
The previous list, authorized in September 2023, comprised Algeria, Egypt, Morocco, and South Africa.
This inclusion corresponds with Nigeria's admission to the BRICS group of nations as a partner country. Following South Africa, Nigeria became the second African nation and ninth member to achieve BRICS partner status in January 2025.
These initiatives, taken together, provide a picture of Russia and Nigeria's quickly changing relationship, one that is moving beyond rhetoric and into tangible cooperation.
In March 2025, Russian Deputy Minister of Defense Yunus-bek Yevkurov and Nigeria's Chief of Defense Staff, General Christopher Musa, met to explore the extension of the two nations' current defense cooperation.
This military partnership stems from a 2021 deal under which Russia would supply training, logistics, and equipment to the Nigerian military.
Financial relations have also improved. In February 2025, Russia officially added Nigeria to the list of countries eligible for currency trading in its banking system.
Tunisia and Ethiopia were also included, bringing the total number of eligible African countries to seven and further integrating the region into Russia's financial efforts.
The previous list, authorized in September 2023, comprised Algeria, Egypt, Morocco, and South Africa.
This inclusion corresponds with Nigeria's admission to the BRICS group of nations as a partner country. Following South Africa, Nigeria became the second African nation and ninth member to achieve BRICS partner status in January 2025.
These initiatives, taken together, provide a picture of Russia and Nigeria's quickly changing relationship, one that is moving beyond rhetoric and into tangible cooperation.
By Chinedu Okafor, Business Insider Africa
Monday, April 14, 2025
Video - Nigerian exporters brace for impact as U.S. tariff pause sparks urgency
While the temporary suspension of 14 percent U.S. tariffs offered brief relief, experts warned Nigeria must act fast to negotiate a long-term solution with U.S. President Donald Trump or risk deeper economic fallout and declining investor confidence.
Monday, March 3, 2025
Video - Nigerian car dealers warn proposed U.S. tariff on auto imports would hurt consumers
The United States plans to impose a 25 percent tariff on imported vehicles. Car dealers in Nigeria worry that the added costs will significantly drive up prices locally. A large portion of imported vehicles in Nigeria come from the United States.
Thursday, February 27, 2025
Nigeria partners with China Foreign Trade Centre to strengthen trade relations
Africa's participation in China's bi-annual Canton Fair has been growing, with Nigeria among the biggest participants from the continent. Companies and entrepreneurs met in Lagos to strategize for the upcoming April event.
Wednesday, February 26, 2025
Video - Nigeria partners with China Foreign Trade Centre to unlock new markets
Nigerian entrepreneurs and businesses are strategizing in Lagos to maximize opportunities at the upcoming 2025 Spring Canton Fair in Guangzhou, China, set to begin in mid-April.
Monday, February 3, 2025
Freight fraud from India to Nigeria
The Cyber Security Bureau in Telangana, a state of India, has launched an investigation into a major fraud scheme involving 18 former Amazon employees who allegedly manipulated the company’s delivery system to claim about $11.8 million in fraudulent transportation reimbursements.
The scheme revolved around falsified delivery trips registered within Amazon’s logistics system. Authorities say the accused, in collaboration with U.S.-based suppliers, created fake delivery records, claiming to have transported goods to customers who were either unavailable or had incorrect addresses. This allowed them to pocket transportation fees without ever completing the deliveries.
Amazon’s internal audit uncovered the scam, prompting a formal complaint. The fraudulent activities reportedly took place at the company’s Relay Operation Center in Hyderabad, the capital of Telangana, which monitors global shipments. Investigators are now scrutinizing the operations of the former employees and their network to understand the full extent of the fraud.
A case has been registered against 22 individuals. As authorities dig deeper, more revelations are expected about how the individuals bypassed Amazon’s security measures.
This case underscores the growing sophistication of fraud in the logistics industry and the need for stringent internal controls, advanced fraud detection systems and continuous monitoring to prevent financial losses.
The scheme revolved around falsified delivery trips registered within Amazon’s logistics system. Authorities say the accused, in collaboration with U.S.-based suppliers, created fake delivery records, claiming to have transported goods to customers who were either unavailable or had incorrect addresses. This allowed them to pocket transportation fees without ever completing the deliveries.
Amazon’s internal audit uncovered the scam, prompting a formal complaint. The fraudulent activities reportedly took place at the company’s Relay Operation Center in Hyderabad, the capital of Telangana, which monitors global shipments. Investigators are now scrutinizing the operations of the former employees and their network to understand the full extent of the fraud.
A case has been registered against 22 individuals. As authorities dig deeper, more revelations are expected about how the individuals bypassed Amazon’s security measures.
This case underscores the growing sophistication of fraud in the logistics industry and the need for stringent internal controls, advanced fraud detection systems and continuous monitoring to prevent financial losses.
Nigeria’s cargo tracking woes 🚚
In an effort to curb rampant fraud and illicit activities within its maritime sector, Nigeria is set to implement the International Cargo Tracking Note (ICTN) in Q2 2025. The Nigerian Shippers’ Council (NSC) will oversee the rollout, despite significant opposition from key industry stakeholders.
The ICTN is designed to enhance transparency, security and efficiency in cargo tracking. However, many in the shipping and logistics industry argue that it will lead to increased costs and bureaucratic hurdles, and despite its potential benefits, the initiative has faced multiple setbacks due to internal conflicts, corruption and resistance from industry players.
Nigeria’s maritime sector suffers an estimated $500 million loss annually due to cargo fraud, under-declaration and inefficiencies. Over the past five years, this has amounted to a staggering $2.5 billion in lost revenue.
The implementation of ICTN has sparked strong resistance from shipping lines, importers and logistics operators. The chairman of the Shipping Lines Association of Nigeria, Boma Alabi, has voiced concern that the initiative will function as an additional tax, increasing costs for businesses and consumers. Similarly, Segun Musa, national vice president of air logistics at the National Association of Government Approved Freight Forwarders, labeled ICTN an “intellectual fraud,” arguing that it will lead to double inspections, one at the point of origin and another upon arrival, negating the purpose of Nigeria’s existing inspection policy.
Despite these criticisms, NSC Executive Secretary Pius Akutah has defended the ICTN, emphasizing its potential to boost government revenue and reduce smuggling, including illicit shipments of arms and drugs. The minister of Marine and Blue Economy, Gboyega Oyetola, acknowledged flaws in the past administration’s approval process but stressed the need to implement ICTN as part of the government’s economic diversification strategy.
As Nigeria moves toward ICTN implementation, the freight and logistics industry will closely monitor its impact, particularly in mitigating fraud, improving cargo security and enhancing port efficiency. The coming months will be crucial in determining whether ICTN can be the game-changer the Nigerian maritime sector desperately needs.Check out a past commentary on FreightWaves about the modernization of Africa’s logistics capabilities here.
Kal Freight’s bankruptcy update 💸
Kal Freight’s bankruptcy case continues to unfold, revealing deeper scrutiny into its financial dealings and prospects. The California-based trucking company, which filed for Chapter 11 bankruptcy protection in December amid allegations of fraudulent activity, now faces increased pressure from creditors demanding an independent investigation.
This week, creditors urged a Texas bankruptcy judge to appoint an independent examiner to further investigate allegations of pre-petition fraud and mismanagement. The move signals growing concerns over the company’s financial conduct before its bankruptcy filing, particularly in light of the accusations that Kal Freight fraudulently obtained nearly $17 million from Daimler and engaged in unauthorized asset transfers totaling tens of millions of dollars.
Kal Freight is now working on a Chapter 11 reorganization plan, expected to be filed in February. The plan may take one of two paths: a sale of the business or a restructuring aimed at keeping the company operational.
More developments are anticipated in the coming weeks as Kal Freight’s bankruptcy proceedings continue to evolve.
In an effort to curb rampant fraud and illicit activities within its maritime sector, Nigeria is set to implement the International Cargo Tracking Note (ICTN) in Q2 2025. The Nigerian Shippers’ Council (NSC) will oversee the rollout, despite significant opposition from key industry stakeholders.
The ICTN is designed to enhance transparency, security and efficiency in cargo tracking. However, many in the shipping and logistics industry argue that it will lead to increased costs and bureaucratic hurdles, and despite its potential benefits, the initiative has faced multiple setbacks due to internal conflicts, corruption and resistance from industry players.
Nigeria’s maritime sector suffers an estimated $500 million loss annually due to cargo fraud, under-declaration and inefficiencies. Over the past five years, this has amounted to a staggering $2.5 billion in lost revenue.
The implementation of ICTN has sparked strong resistance from shipping lines, importers and logistics operators. The chairman of the Shipping Lines Association of Nigeria, Boma Alabi, has voiced concern that the initiative will function as an additional tax, increasing costs for businesses and consumers. Similarly, Segun Musa, national vice president of air logistics at the National Association of Government Approved Freight Forwarders, labeled ICTN an “intellectual fraud,” arguing that it will lead to double inspections, one at the point of origin and another upon arrival, negating the purpose of Nigeria’s existing inspection policy.
Despite these criticisms, NSC Executive Secretary Pius Akutah has defended the ICTN, emphasizing its potential to boost government revenue and reduce smuggling, including illicit shipments of arms and drugs. The minister of Marine and Blue Economy, Gboyega Oyetola, acknowledged flaws in the past administration’s approval process but stressed the need to implement ICTN as part of the government’s economic diversification strategy.
As Nigeria moves toward ICTN implementation, the freight and logistics industry will closely monitor its impact, particularly in mitigating fraud, improving cargo security and enhancing port efficiency. The coming months will be crucial in determining whether ICTN can be the game-changer the Nigerian maritime sector desperately needs.Check out a past commentary on FreightWaves about the modernization of Africa’s logistics capabilities here.
Kal Freight’s bankruptcy update 💸
Kal Freight’s bankruptcy case continues to unfold, revealing deeper scrutiny into its financial dealings and prospects. The California-based trucking company, which filed for Chapter 11 bankruptcy protection in December amid allegations of fraudulent activity, now faces increased pressure from creditors demanding an independent investigation.
This week, creditors urged a Texas bankruptcy judge to appoint an independent examiner to further investigate allegations of pre-petition fraud and mismanagement. The move signals growing concerns over the company’s financial conduct before its bankruptcy filing, particularly in light of the accusations that Kal Freight fraudulently obtained nearly $17 million from Daimler and engaged in unauthorized asset transfers totaling tens of millions of dollars.
Kal Freight is now working on a Chapter 11 reorganization plan, expected to be filed in February. The plan may take one of two paths: a sale of the business or a restructuring aimed at keeping the company operational.
More developments are anticipated in the coming weeks as Kal Freight’s bankruptcy proceedings continue to evolve.
By Grace Sharkey, Freight Waves
Wednesday, January 22, 2025
Video - Nigeria joins BRICS as ninth partner country
Following Uganda’s recent inclusion, Nigeria has officially joined the BRICS alliance as a partner country, strengthening its economic, trade, and geopolitical ties with member countries China, India, Brazil, and Russia.
Friday, September 27, 2024
Nigeria ranks first in cassava production, yet imports
Although Nigeria is ranked number one in cassava production globally, she imported about $54, 200 in cassava in 2022, becoming the 121st largest importer of cassava in the world.
This was disclosed at the Ist National Conference of Industrial Cassava Stakeholders Association of Nigeria (ICSAN) titled “The Golden Crop: Harnessing the Economic Potential of Cassava for National Development through Industrialization,” which held at Ikeja, Lagos.
Delivering a keynote address at the conference on the theme, Prof. Lateef Oladimeji Sanni, President, International Society for Tropical Root Crops, International Institute of Tropical Agriculture and Executive Director, Nigerian Stored Products Research Institute, Ilorin and Federal University of Agriculture, Abeokuta, also said Nigeria exported $733, 000 in cassava in the same year, making it the 61st largest exporter of cassava in the world.
After the President of ICSAN, Mr. Segun Ladele, gave the opening address, Prof Oladimeji further gave an insight into the cassava industry and its significance to Nigeria’s economy.
He defined industrialization as “the mass production of goods in a factory system, which involves some degree of mechanized production technology,” saying industrialisation enables the business environment, promotes private sector leadership, facilitates renewal for sunset industries, and encourages innovators.
According to Oladimeji, as at 2022, cassava was the 1063rd most imported product in Nigeria.
“Nigeria,” he said, “imports cassava primarily from United Kingdom ($49.2k), Brazil ($2.68k), Cameroon (1.91k), Niger ($321), and Belgium ($33).
He said Egypt is the only African country ranked among the world’s top ten highest exporters of cassava, with an export value of $81.8 million with less than 1% share (0.94%) of the total producers and export value of cassava in Africa and globally.
Apart from garri, lafun, fufu, etc., cassava products have a wide range of value chain such as in the making of bread, cake, candies, ice cream, beverages, fuel ethanol, animal feeds, furniture, paper and wood. All these lead to job creation, food security and incomes for farmers.
He identified some of the challenges facing cassava production in Nigeria as government inconsistent policy, increase in foreign exchange in the course of the project implementation, destruction of cassava farmland by cattle herdsmen, insecurity and communal clashes, lack of infrastructural facilities, little access to credit facilities, and lack of enough partnership and collaboration.
He proposed packaging differentiation, product diversification, regional standards and quality control, appropriate processing equipment, viable regulatory system, capacity building, and marketing channels as the way forward for the cassava industry in Nigeria.
He also prescribed that “government MUST be the catalyst, enabler and regulator of the cassava industry. There is the need for key players to ensure that private-led actions geared towards sustaining the development of cassava-based industries are initiated and advocated. There should be fair public incentives and funding within the geopolitical zone of the federation,” he said.
By Osa Mbonu-Amadi, Vanguard
Monday, September 16, 2024
Video - Nigerian entrepreneur turns banana waste into business gold
Tera Korumene Robinson is transforming banana and plantain stems into organic hair extensions and eco-friendly products. Her innovative approach is turning waste into wealth, driving sustainability and business success in Nigeria.
Tuesday, June 25, 2024
Video - NEVs, digital economy are key areas for cooperation with China according to foreign minister of Nigeria
During his official visit to China, Nigeria's Foreign Minister Yusuf Maitama Tuggar said that the China-Africa cooperation framework, as represented by the Forum on China-Africa Cooperation and the Belt and Road Initiative, has provided rare development opportunities for a broad range of African countries, including Nigeria, in an exclusive interview with CGTN's China Africa Talk host Bridget Mutambirwa.
Related story: Rail projects in Nigeria drive home China's belt and road commitment to African infrastructure development
Wednesday, June 19, 2024
Nigeria Spends $600m Importing Palm Oil Annually
Alphonsus Inyang, the national president of the association, stated this in an interview with NAN yesterday in Abuja. He described the expenses as unhealthy for national development.
Inyang said the money could be saved and injected into the economy if the palm oil sub-sector was given due attention by successive governments.
The president regretted that Nigeria, which was self-sufficient in palm oil production in the past, now spends a huge amount to import the same product.
Inyang recalled that in the 60s, Nigeria was number one in palm oil production and exportation globally, controlling over 60 per cent of world palm oil.
He said that the reverse was the case at the moment as over 50 percent of what we consume is imported.
“At the moment, the country occupies the fifth position in the league of palm oil-producing countries after Indonesia, Malaysia, Thailand and Colombia.
“Nigeria may even lose the position to smaller countries who are investing heavily in the sector.
“Indonesia occupies the first position, producing 50 million metric tons, Malaysia second with 19 million metric tons, Thailand 3.28 million and Colombia 1.9 million metric tonnes,” he said.
The president attributed the challenge to the neglect of the sector by successive governments.
Inyang said that based on the U.S. The Department of Agriculture, Nigeria currently occupies fifth position in the league of palm oil-producing countries with 1.5 percent or 1.4 million metric tonnes of the world’s total output.
“Nigeria was overthrown as the world’s largest palm oil producer and exporter by Malaysia and Indonesia in 1966.
“Currently, Nigeria is the largest consumer of the product in the continent, consuming approximately three million metric tons yearly.
“Domestic production stands at less than 1.4 million metric tons, leaving a deficit of over 1.6 million metric tonnes,’’ he said.
Inyang specifically called on the federal ministry of agriculture and food security, to support NPPAN members with seedlings to develop 250,000 hectares per year.
“Our members can plant up to 250,000 hectares per year through the association’s National Oil Palm Strategy Development Plan; all we want are inputs.
“The government does not need to give and develop land for us, we need seedlings, fertilisers, logistics and implements to close this gap within four years.
“We will also create new millionaires in 28 states of the federation,” he said.
Related story: Video - Nigerian palm farmers eye lucrative opportunities in domestic market
Monday, May 20, 2024
Video - Nigeria sesame industry booms as global demand continues to surge
With experts predicting a 500 percent growth in the country's sesame seed exports in the coming years, stakeholders want to make sure the sesame seed supply chain is properly managed.
Related story: Video - Soaring fuel prices in Nigeria threaten agricultural prosperity
Wednesday, April 24, 2024
Video - Nigeria aims to ramp up cocoa production amid global shortages
With increasing global demand for chocolate and cocoa prices soaring due to the worst supply shortage in four decades, Nigeria is looking to boost local cocoa production to capitalize on this opportunity.
Related story: Video - Cocoa grown illegally in rainforest in Nigeria heads to companies that supply major chocolate makers
Thursday, April 18, 2024
Video - Trade ties deepen between China and Nigeria
China's growing demand for Nigerian goods is deepening trade relations between the two nations. Last year, trade volumes between Nigeria and China reached almost 23 billion U.S. dollars, marking a significant shift in the rising economic ties.
Related story: Rail projects in Nigeria drive home China's belt and road commitment to African infrastructure development
Wednesday, April 10, 2024
Video - Nigeria advocates for increased patronage of locally manufactured goods
In a bid to alleviate the country's over-dependence on imports, which has contributed to the devaluation of the Naira against the U.S. dollar, the Nigerian government is championing the consumption of domestically produced goods. However, this initiative faces challenges, with the Manufacturers Association of Nigeria citing the closure of over 700 companies and distress among 300 others due to various hurdles.
Related story: Video - Nigeria manufacturing sector braces for higher production cost
Thursday, March 7, 2024
Foreign Minister says Nigeria plans to join BRICS
Nigeria intends to seek membership in the BRICS organization after carrying out necessary measures within its state, according to Yusuf Tuggar, the Foreign Minister of Nigeria, who said this in an interview with RIA Novosti.
The head of Nigeria's Foreign Ministry arrived in Moscow for an official visit on Wednesday.
"We have this intention. As I've already mentioned, Nigeria has a democratic system with deliberative elements. Therefore, before taking such measures, we usually carry out active interaction with various interest groups and different internal bodies," said Tuggar.
The minister noted the significance of the presence of Nigeria's Vice President, Kashim Shettima, at the most recent BRICS summit in South Africa.
"We are extremely interested in this, and we look forward to this," stressed the Nigerian Foreign Minister.
Related story: Foreign Minister of Nigeria says No justification for Gaza carnage
Wednesday, February 28, 2024
Video - Nigeria bans exports of locally produced LNG to boost supply
The country's petroleum ministry says the ban will increase the amount of cooking gas for the domestic market, which will automatically reduce the price of the product.
Related story: Shell successfully conducts first remotely controlled well completion offshore Nigeria
Thursday, February 22, 2024
Video - Trade between Nigeria and China records significant growth
Data from the Chinese Customs Authority shows bilateral trade between Nigeria and China has reached 23 billion U.S. dollars in 2023. Experts forecast trade volumes between the two sides to accelerate in the years ahead as they deepen their relations.
Related stories: China to invest $40b in Nigeria
Nigeria receives China-made armed reconnaissance drones
Thursday, February 15, 2024
Video - Nigeria eyes $2 billion annual revenue boost from a surging coffee demand
The West Africa Specialty Coffee Association notes a surge in global demand for Nigerian coffee, especially in countries like Japan and Canada. While current revenues hover around $2 billion, the association projects that with governmental support, Nigeria could further tap into the sector's potential.
Related story: Video - Cocoa grown illegally in rainforest in Nigeria heads to companies that supply major chocolate makers
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