Weekly Economic & Business Review

Key Highlights

ECONOMIC DEVELOPMENTS
Three Nigerian Banks Nationalized
FG Targets Cocoa Output of 700,000 Metric Tons by 2015
FG Establishes Competitiveness Council

GLOBAL DEVELOPMENTS
US Long Term Debt Rating Downgraded
Brazil Reveals Plans to Boost Local Industries

INDUSTRY IN FOCUS
Sugar

SUMMARY AND OUTLOOK

Nigeria currently has excess sugar refining capacity which provides opportunities for exports to other West African countries as most nations in the sub-region are net importers of refined sugar.
The growing population of Nigeria and rising demand also provides huge opportunities for sugar refineries in Nigeria.
Buoyed by significantly falling raw sugar prices (from a 30-year high of US$38.9/lb in January 2011 to US$29.1/lb), due to increased harvest in sugar producing regions like Brazil, Thailand and India, supportive government policies, current favourable weather conditions and the drive toward self-reliance, our outlook for the Nigerian sugar industry remains largely optimistic.
Falling prices of global raw sugar prices is expected to promote rising margins and profitability of the Nigerian sugar industry in the near to medium term.