Zero Tariff: Nigerian Agribusiness Taps China Market with 747-Ton Bone Pellet Shipment to Dalian
A 747-ton batch of Nigerian cattle bone pellets recently arrived at Dalian Port, China, signaling a major breakthrough for local agribusiness under Beijing’s newly expanded trade frameworks. The bulk cargo cleared customs at the major northeastern Chinese logistics hub as one of the earliest processed agricultural derivative shipments from West Africa to benefit from fresh, duty-free market access. This arrival follows the official launch of China’s comprehensive zero-tariff policy on May 1, 2026, which granted unilateral duty-free access to 53 African nations, including Nigeria, covering 100% of tariff lines. However, the non-oil shipment represents a structural departure from traditional bilateral trade dynamics, which have long been dominated by raw Nigerian crude oil exports counterbalanced by inflows of finished Chinese manufactured goods. Cattle bone pellets serve as high-value industrial inputs in China’s domestic manufacturing sectors, where specialized chemical and biomedical factories process the raw material into pharmaceutical gelatins, collagen casings, and premium bone china. The zero-tariff treatment eliminates previous import duties ranging from 8% to 30%, drastically lowering entry barriers for African agro-processors trying to compete inside the world’s largest consumer trading market. “Exporting raw commodities keeps Africa trapped in low-value trade,” said international trade specialist Mr. Tesman Irabor. “China could import raw materials, process them, and re-export finished goods—even back to Africa.” He told ThinkBusiness Africa on Tuesday. Irabor noted that the current zero-tariff window provides an unprecedented structural opportunity for continental agribusinesses to aggressively scale up local factory operations and transition toward value-added export processing. Chinese demand for agricultural imports remains strong, with bilateral trade between China and Africa growing 23.7% year-on-year during the first quarter of 2026, outperforming general global trade averages. While the zero-tariff policy eliminates financial duties, Nigerian exporters face stringent biosecurity and quarantine standards enforced by the General Administration of Customs of China regarding moisture, pests, and chemical residues. Industry experts are urging public-private collaboration to set up digital traceability tools and robust food processing facilities, ensuring local products consistently satisfy rigid international health and safety protocols. Proponents also highlight the need to balance aggressive commodity exporting with domestic supplies, warning that uncontrolled agro-industrial outflows could trigger localized food shortages and price spikes within domestic markets. “The zero tariff policy is not just a trade incentive—it is a structural opportunity for Africa to industrialize its agriculture, deepen value chains, and access a massive, stable market. “But the real winners will be agribusinesses that move beyond raw commodity exports into value addition, quality assurance, and strategic market positioning.” Mr. Irabor said. By integrating regional supply lines through the African Continental Free Trade Area, Nigerian firms can source raw agricultural materials regionally, process them locally, and ship finished products toward East Asian ports.
Nigeria’s Q1 2026 GDP Expands to 3.89% on Services Sector Strength
LAGOS – Nigeria’s Gross Domestic Product grew by 3.89% year-on-year in real terms in the first quarter of 2026, driven by a dominant services sector, the National Bureau of Statistics (NBS) reported on Monday. The economic expansion reflects a significant acceleration from the 3.13% growth recorded in the corresponding quarter of 2025, though it shows a marginal deceleration from the 4.07% performance in the preceding quarter. According to the bureau’s data, the aggregate nominal value of the economy reached ₦110.79 trillion ($80.69 billion) during the three-month period under review, while real GDP stood at ₦51.26 trillion. The services sector sustained its status as the primary engine of national economic output, contributing a commanding 57.73% share to the total aggregate GDP in the first quarter of the year. The strong quarterly start builds directly onto the positive growth trajectory observed throughout last year, where full-year economic growth concluded at a resilient 3.87%, up from 3.38% recorded in 2024. However, the quarter’s positive growth trajectory collided with a severe global energy price shock triggered by the escalation of the U.S.–Iran conflict, which severely disrupted domestic price stability. The geopolitical confrontation pushed global Brent crude prices to average an elevated $100 per barrel for 11 consecutive weeks, triggering a sharp domestic fuel price shock across Nigeria. “The growth numbers demonstrate structural resilience in the non-oil economy, particularly telecommunications and financial services,” an NBS official stated during the report’s presentation in Abuja. The sudden energy crisis effectively ended an 11-month streak of declining inflation, forcing a sharp trend reversal as domestic transportation and logistics costs surged by 16.9% in March alone. Economic analysts maintain that sustaining this momentum requires stronger non-oil productivity and structural fiscal interventions, particularly as high consumer prices and foreign exchange volatility continue to test domestic purchasing power.
IMF Veteran Takes the Helm of Benin’s Finance Ministry
LAGOS — Newly inaugurated Beninese President Romuald Wadagni has appointed Aristide Medenou, a former International Monetary Fund economist and finance ministry veteran, as the country’s new minister of economy, finance, and cooperation. The strategic appointment was confirmed in an official statement broadcast on state television, signaling a strong commitment to institutional continuity and fiscal discipline under the newly formed administration. Medenou brings deep institutional knowledge to the post, having served within the finance ministry between 2014 and 2022 before transitioning to his role at the IMF. He later returned from the fund in 2023 to serve as the director-general of the economy at the ministry, positioned directly beneath Wadagni during the latter’s highly praised tenure as finance chief. “I will serve Benin with integrity, courage, and commitment,” President Wadagni stated during his inaugural address in Cotonou, emphasizing that economic growth must directly translate into tangible opportunities for the population. The structural transition occurs as Benin’s economy demonstrates significant resilience. Real gross domestic product growth accelerated to 8.0% during the first three quarters of last year, heavily driven by agriculture and construction. Concurrently, a major 35% recovery in merchandise traffic at the Port of Cotonou has successfully offset previous regional border disruptions, providing a strong financial foundation for the incoming cabinet. Maintaining international investor confidence remains paramount. Under Wadagni’s previous tenure as finance minister, aggressive fiscal consolidation successfully narrowed Benin’s overall budget deficit down to 3.1% of gross domestic product. The incoming finance chief faces the immediate challenge of sustaining this performance. The approved 2026 budget strictly mandates adherence to the West African Economic and Monetary Union’s regional deficit ceiling of 3%. Furthermore, the new treasury leadership must carefully balance these stringent domestic revenue mobilization efforts against expanding capital expenditure requirements for critical infrastructure, social safety nets, and rising border security operations.
UN Allocates $60 Million to Contain Deadly Ebola Outbreak in Congo
LAGOS — The United Nations is releasing approximately $60 million from its emergency fund to combat a rapidly escalating Ebola outbreak in the Democratic Republic of Congo (DRC), the UN aid chief announced Friday. UN humanitarian chief Tom Fletcher confirmed the funding surge, adding that additional emergency staff are being deployed immediately to reinforce frontline operations in the country’s volatile northeastern territory. The intervention targets the eastern Ituri province, where the World Health Organization recently declared the crisis a public health emergency of international concern due to severe regional transmission risks. “We need to get ahead of this Ebola outbreak,” Fletcher stated. “These are tough operating environments for lifesaving work. We face conflict and high population movement.” Medical experts revealed the outbreak is driven by the rare Bundibugyo strain. Because there is no approved vaccine or specific treatment for this variant, containment depends entirely on isolation and tracking. Compounding the crisis, health officials believe the virus circulated undetected for two months before its official confirmation on May 15, allowing it to spread widely across mobile border populations. The undetected spread has resulted in 160 suspected deaths out of 670 suspected cases. Health teams have already identified cross-border cases moving into intensive care units in neighbouring Uganda. However, in Uganda authorities have quarantined over 100 persons following spread of the deadly Bundibugyo strain. Uganda President Yoweri K Museveni, said on Thursday that everything is under control and no “cause for alarm,” with hope to keep the economy alive. “Regarding Ebola, there is no cause for alarm. We are applying targeted measures and continuing to work scientifically to keep people safe while keeping our economy open.” President Museveni said in post on X (Twitter) Logistics are severely hampered by local militia conflicts and a massive humanitarian crisis, with over 26 million Congolese facing acute food insecurity and compromised immune systems. The UN allocation will finance an emergency logistics air bridge managed by the World Food Programme and MONUSCO to transport critical protective gear, water purification kits, and medical tents. International partners are moving to bolster the response, with Norway contributing an additional 50 million kroner to the World Health Organization’s health contingencies fund on Friday.
Ruto Targets Middle East Oil Shock: Kenya Slashes Diesel Prices to Defuse Cost-of-Living Crisis
LAGOS – President William Ruto of Kenya has directed a further 10 Kenyan Shillings ($0.0772) reduction in diesel prices for the upcoming June–July cycle to cushion consumers against surging global oil prices and stabilize transport costs. The intervention aims to lower retail diesel costs to Sh222.86 per litre in Nairobi, building directly upon a mid-May emergency price slash executed by the Energy and Petroleum Regulatory Authority. Speaking from State House on Friday, Ruto highlighted that severe international supply chain disruptions, triggered by escalating Middle East geopolitical conflicts involving Iran, forced heavy domestic reliance on government fiscal stabilization funds. “I have directed that in the next pricing cycle, we’re going to further reduce the price of Diesel by a further Ksh.10 for the June/July cycle to help stabilize pump prices and provide additional relief to consumers,” Ruto stated. The administration disclosed it has deployed Sh28.19 billion across consecutive pricing reviews to fund direct fuel subsidies, offsetting a reported 118 percent international surge in global diesel import benchmarks. This policy shift comes immediately after a tense nationwide transport strike by matatu commuter operators and cargo haulers paralyzed urban logistical networks, generating intense political pressure regarding the high cost of living. To fund these ongoing market interventions, the National Treasury has simultaneously cut petroleum Value Added Tax by half and initiated legislative amendments to reduce the country’s statutory road maintenance levy. The state continues to defend its bilateral Government-to-Government fuel import framework, asserting that the model secures critical national inventory volumes despite heightened maritime risks currently impacting regional energy import structures.
South Africa’s Power Company Eyes World Bank Funding for New Multi-Billion-Dollar Nuclear Programme
South Africa’s state power utility Eskom is in exploratory talks with the World Bank to fund a new multi-billion-dollar nuclear build programme designed to launch within 12 months, officials confirmed Wednesday. The state-owned utility plans to issue a Request for Information for up to 5,200 megawatts of nuclear capacity to secure long-term energy security and accelerate its transition away from coal reliance. The strategic procurement will split capacity between 4,800 megawatts of conventional pressurized water reactors and 400 megawatts of small modular reactors, according to Eskom Group Executive for Generation Bheki Nxumalo. Bheki Nxumalo, Eskom’s group executive for generation, confirmed the global funding push at a Cape Town energy summit, stating, “We are engaging development finance institutions, including the World Bank, to structure a sustainable multi-vendor financing framework.” At least 200 megawatts of the small modular reactor capacity will be directly deployed for Eskom’s coal-to-nuclear strategy, repurposing aging coal-fired stations scheduled for mandatory decommissioning over the next decade. The financing discussions mark a significant shift for global lenders like the World Bank, which historically prioritized funding for solar, wind, and battery storage over highly complex nuclear generation infrastructure. South Africa recently designated Thyspunt in the Eastern Cape as the preferred site for the conventional reactors, though the decision faces immediate environmental and legal challenges from local community coalitions. The nuclear expansion builds upon recent structural gains, following Electricity Minister Kgosientsho Ramokgopa’s announcement that Eskom achieved a consecutive 400-day streak without national rolling blackouts due to improved plant maintenance.
South Africa Raised Steel Import Duties To 30% Amid China Import Surge
South Africa has increased import duties on several steel products to between 10% and 30% via a government notice to protect its struggling domestic manufacturing sector from weak demand and foreign competition. The updated tariffs target essential upstream and downstream products like flat-rolled iron, non-alloy steel, bars, rods, tubes, and pipes. Previously, the nation applied import duties ranging from zero to 15%. Cheap foreign shipments heavily pressure the local market, where imports constitute roughly 36% of total steel consumption. China alone drives the vast majority of these inflows, accounting for 73% of those imports. The continuous influx of low-priced steel has forced major regional manufacturers, including ArcelorMittal South Africa, to idle various mills and downsize operations over the past year to mitigate severe financial losses. “We are hoping that this decision will provide the local industry necessary space to adjust in a manner that allows them to invest in their capability,” ITAC Chief Commissioner Ayabonga Cawe stated. The broad intervention aligns with the maximum legally permitted import tariff rates under World Trade Organisation rules. Finance Minister Enoch Godongwana signed the emergency adjustment to prevent further widespread industrial job losses. This policy follows separate emergency trade actions executed in March, when South Africa enacted harsh, five-year anti-dumping duties reaching 74.98% on Chinese structural steel and up to 47.92% on coated flat steel.
Dangote Boosts Ethiopia Fertilizer Outlay to $4B in Expanded Continental Push
LAGOS— Nigerian billionaire Aliko Dangote has increased his conglomerate’s investment in a landmark Ethiopian fertilizer plant to more than $4 billion, up from an initial $2.5 billion commitment announced last year. The capital bump follows a site visit by Dangote and Ethiopian Prime Minister Abiy Ahmed to Gode in the southeastern Somali region to review construction progress on the massive industrial agriculture facility. “Our declared and signed investments in Ethiopia now exceed $4 billion,” Dangote stated. “This makes Ethiopia the second-largest recipient of our investments in Africa, accounting for nearly nine per cent of our continental outlay through 2030.” The expanded budget covers a broadened infrastructure scope, including a 110-kilometer natural gas pipeline, an on-site 120-megawatt power plant, a polypropylene packaging facility, and a 2-million-ton NPK blending plant. The core urea plant will maintain a production capacity of 3 million metric tons annually, positioned to fully substitute Ethiopia’s foreign imports and supply neighboring agricultural corridors across the Horn of Africa. “Africa has the capacity to feed itself and even export to the rest of the world,” Dangote added. “Our fertilizer investments across the continent are designed to unlock that potential.” Under the joint venture framework signed last August, the anchor investor Dangote Group retains a 60% equity stake in the project, while state-backed Ethiopian Investment Holdings controls the remaining 40%. Prime Minister Abiy Ahmed welcomed the expansion, noting, “This initiative represents far more than infrastructure. It is a strategic investment in Ethiopia’s agricultural transformation, food security, industrial growth, and economic self-reliance.” The development follows a critical $4.2 billion, 25-year upstream gas supply agreement secured by Dangote Group in March with China’s GCL Group to tap regional reserves from the nearby Calub field. Ethiopia remains heavily exposed to global market shocks, having imported roughly 2.32 million tons of fertilizer in recent cycles without any domestic primary production capabilities of inorganic inputs. Construction on the Gode complex officially commenced in October 2025, with full operational commissioning targeted to hit milestones ahead of the 2027 and 2029 regional trade rollouts.
Nigeria Sovereign Rating Upgraded to ‘B’ as FX Reforms Drive $50 Billion Reserve Cushion
S&P Global Ratings upgraded Nigeria’s sovereign credit rating to B from B- with a stable outlook, marking the nation’s first upgrade from the agency in 14 years following aggressive economic reforms. The agency cited a fundamentally stronger Naira narrative underpinned by a sharp rise in market liquidity, with foreign exchange market turnover hitting a record $10 billion in April 2026 alone. This liquidity surge follows the successful dismantling of multiple exchange rate regimes, which restored external investor confidence and helped propel Nigeria’s gross foreign exchange reserves to $50 billion by March 2026. The structural floor under the currency has been further reinforced by the full-capacity rollout of the 650,000 bpd Dangote Refinery, which has significantly reduced the historical import drain from refined petroleum products. Global energy market dynamics also favor the oil producer, as S&P upwardly revised its Brent crude oil price assumption to $100 per barrel due to ongoing shipping constraints in the Middle East. On the fiscal front, Executive Order 9 has centralized petroleum revenue remissions, pushing projected government revenues to 12.4% of GDP and cutting the debt-to-revenue ratio down to 338% from 500% in 2023. This unified endorsement by S&P follows similar upward adjustments by Fitch and Moody’s, signaling a broad institutional validation that the administration’s macroeconomic policies are successfully rebuilding international capital market credibility. However, the agency cautioned that translating these improved balance of payments, expanding current account surpluses, and structural currency dynamics into relief for domestic consumer inflation remains a critical near-term policy challenge.
Nigeria Inflation Hits 5-Month High as Middle East Crisis Pressures Food Prices
LAGOS — Nigeria’s headline inflation rose to 15.69% in April, marking a second consecutive monthly increase as the National Bureau of Statistics (NBS) reported a slight uptick on Friday from the 15.38% recorded in March. The current annual rate is substantially lower than the 26.82% seen in April 2025, yet the steady climb from February’s 15.06% low suggests a reversal of the disinflationary trend seen late last year. Month-on-month figures provided a different perspective, with price growth slowing to 2.13% in April. This is a significant deceleration from the 4.18% monthly spike observed just one month earlier in March. According to NBS Food inflation remains the primary pressure point, accelerating to 16.06% year-on-year. Analysts attribute this momentum to the pass-through effects of recent global fuel price shocks linked to ongoing Middle East conflicts. Core inflation, which excludes volatile energy and agricultural products, stood at 15.86% annually. Its monthly momentum slowed dramatically to 1.03%, suggesting that underlying inflationary pressures outside of food are beginning to stabilize. Geographically, rural consumers faced higher annual costs at 16.36%, while urban centers saw an inflation rate of 15.40%. Both sectors saw a reduction in the speed of monthly price increases in April. The report comes as the Central Bank of Nigeria prepares for its May Monetary Policy Committee meeting. Policymakers are currently balancing a benchmark interest rate of 26.5% against these rising annual figures. Financial analysts expect the central bank to hold rates steady next week, as the deceleration in monthly momentum suggests previous aggressive tightening is still effectively curbing broader liquidity.
