Just How Committed Are We To Saving The Naira?

April 1980

N0:55K = $1

October -2016

N315: 00k = $1


The present value of the Naira in the international market is almost unbelievable.

From an exchange rate of N00:55k to $1 in 1980 to a current rate of up to N400 to a dollar in parallel markets, the Nigerian currency is at its all-time low, and this is rocking almost every sector of the economy out of tune.

These are results for a country that largely depends on importation. In 2015, Nigeria spent over $16 billion on importation. 12.5% of these imports were agricultural products. This resulted in inflation and higher cost of purchasing alternatives from local production.

Saving the Naira requires that Nigeria reduces her dependency on crude oil and our importation of foreign goods and these have been the key nodes of FMN quest to boost the nation’s agricultural prowess.

More than fifteen years ago FMN made another commitment towards the country’s self-sufficiency under its Backward Integration Programme. It started infrastructural investments in the production of raw materials that supported local food processing operations.

Making this possible, involved investments worth over $1 billion in the last 5 years. The investments went into projects such as:

  • N15 billion into ROM Oil; the largest soya mill factory in Nigeria.
  • N40 billion into the development of Sunti Farms; Nigeria’s biggest sugar cane farm and factory.
  • N850 million into the development of Kaboji maize and soya bean farm in Kaboji.

Expansion of our previous Business-to-Business offerings like flour to become Business-to-Customer products. This caused the expansion of Golden Penny Foods into the production of pasta, noodles, snacks, sugar, flour, oil and ball foods.

As a result of all these investments, we can say that our Agro-allied strategy has saved and continue to save Nigeria a considerable amount that would normally be spent on importation of raw materials, as well as on semi-processed raw materials.

In the midst of the crude oil price crash and its ripple effects across the local and global economy, there has never been a better time to save and conserve FOREX than now, and we are proud to be leading this journey.

Our goal to invest another $1 billion in our agro-allied division within the next 3 years should bear testament to that.