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Loveth Okoli

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MAN

Operational cost forces companies to prune down workforce  

Members of the Manufacturers Association of Nigeria (MAN) have been forced to reduce their workforce by 40 per cent due to high operational cost.  

Its South-West Chairman, Mr Lanre Popoola, made this known on Tuesday in Ibadan.  

Popoola said that the outrageous cost of production have very great consequences on the operations and workforce.  

“You will find out that in the last one month, the workforce in factories has really dropped, those that were running three shifts now run one or two.  

“The hardship is not only on the manufacturers, but on employment.  

“If nothing is done, we will have more local manufacturing companies closing down and more workforce laid off.  

“We have reduced our workforce by about 40 per cent, because we are unable to cope with salaries due to the prevailing circumstances,” the MAN chairman said.  

Popoola, then urged the Federal Government to improve power supply and provide palliative to the manufacturers.  

He particularly sought for access to foreign exchange for manufacturers and control the over rising cost of diesel.  

“The bulk of our forex are being sourced from the black market, that is the level we are now, we  cannot plan.  

“Diesel is between N900 and N1000; so, we juggle between diesel generator and steam engine for our operations, cut down the number of working hours or reduce our shifts to one or two,” he said.  

Popoola said that though, the precarious situation of the manufacturing sector accumulated over the years, the Federal Government should take measures to check the situation.  

According to him, the reality now is that the disposable income of the people has gone down, so people are not buying to stock.  

Popoola said: “They are just buying what they need as at the time it is needed.  

“The cost of production is very high, exporting has been difficult, because of the free market occasioned by the Africa Continental Free Trade Agreement.  

“It makes countries like Morocco, Tunisia and Egypt that have constant light and low cost of production to have the upper hand.  

“So, we cannot export because the cost of production in Nigeria is very high.  

“Things would get better, if we can get forex at CBN rate and there is constant supply of electricity.  

“It will aid the nation’s economy, because we will be able to produce and sell at affordable prices.”  

Dr-Mohammed-Abubakar-e1637646216460

Food Security: FG Prioritising Rice, Cassava, Yam Says Agric Minister

The Minister of Agriculture and Rural Development, Dr. Mohammad Abubakar, has stated that rice, cassava and yam are among the top priority crops for the attainment of food security in Nigeria.

Abubakar, stated this when he received the delegation led by the Convener of the proposed Nigeria Oil Palm Summit, Mr. Fatai Afolabi in his office in Abuja.

He said: “Rice, Cassava and Yam are top priorities in the agricultural sector. I am urging stakeholders to use the summit to think, plan ahead and develop a policy that would put Nigeria back on track.”  

The minister tasked stakeholders in the oil palm sub sector on the need to reposition Nigeria to its rightful position of exporting to other nations.

Abubakar noted that “in the early 60s Nigeria’s agriculture sector was the major source of revenue, but today the country is struggling to be a big agricultural nation,” adding that it is not too late for Nigeria to reposition itself.

He pointed out that it is worrisome that Malaysia came to Nigeria some years back to get oil palm seedlings and have today became the number one producers of oil palm in the world while Nigeria is ranked the 5th position.

He added: “Not just proposing to have a summit but a lot of thinking and planning must be carried out to avoid past mistakes,” and pledged to “work with any organisation to achieve the economic diversification policy of the present administration.”

He commended the stakeholders for their efforts towards repositioning Nigeria oil palm, assuring that the ministry would collaborate and give necessary assistance to ensure oil palm sub sector strives.

In his remarks, Afolabi pointed out that the importance of oil palm in Nigeria could not be over emphasised, adding that it was a means of livelihood, fuel and raw materials for industries. 

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oil-vessel

Samsung Sets New Record as Large Crude Oil Carrier Berths in Lagos

Samsung Heavy Industries Nigeria (SHIN) Limited has yet again reaffirmed its commitment to continue its operation in Nigeria by setting another record in offshore technology through business diversifications, particularly in crude oil carrier to Floating Storage Unit (FSU) conversion, repair, and upgrade of ultra-large and offshore vessels.  

Since 2021, SHIN has been providing a suitable and alternative location that provides various maritime services such as cargo, container logistics, ship repair & conversion, FPSO upgrades and so on. Just last week, a 330 metre long Very Large Crude Carrier (VLCC), an international vessel used for exports of crude oil has berthed at the SHI-MCI yard in Lagos for the first time. 

Top officials of SHIN at the fabrication and integration yard told the journalists that the Samsung Heavy Industries Nigeria berthed the VLCC at its quay wall at the yard to carry out the vessel repair and upgrade works.  

VLCC, also called ‘Super Tanker’ for its mammoth weight-carrying capacity, can transport massive quantities of crude oil across the oceans to the international market. The berthing and repair work that is being carried out on VLCC at SHI-MCI yard is significant in the sense that it marks the first time such work is carried out in Lagos Port.

With this development, prospective clients in other parts of Africa and Europe that carry out services such as ship repairs, maintenance and upgrades in Gulf of Mexico, West Africa, Dubai, and Singapore will henceforth find Nigeria as a more attractive location and cost-effective country for such works.

According to the Managing Director of SHIN, Mr. Jongseok Kim, Nigeria holds strong geographical advantage that will enable the country to become the hub for various maritime services such as ship repair & conversion, and upgrades.

Indeed, owing to its strategic location by the coastline, Nigeria is the pivot of West Africa’s shipping activities with over 3,000 merchant vessels every year in the range of 19,000 to 200,000 GT flocking in and out of the country for various marine activities. Furthermore, following the shift in energy transition as well as the Ukraine-Russia crisis, there is a growing demand for the alteration and modification works on large vessels and FPSO units globally.

While Nigeria has its location advantage, such works could not be carried out in Nigeria as there is no adequate ship repair or shipbuilding facility in Nigeria which could accommodate ships in the range of 19k to 200K GT. 

Through Samsung’s business diversification at its yard however, such works can now be carried out in Nigeria. 

Strategically located in Tarkwa Bay Free Trade Zone, the SHI-MCI yard in Lagos is the only fabrication and integration facility in Africa built on a land mass spanning 121,000m2. The yard represents over 300 million dollars investment by SHIN for the local fabrication and integration of Floating Production Storage and Offloading (FPSO) units and other offshore vessels in Nigeria. The yard has the capacity to accommodate and carry out the fabrication, maintenance, refurbishment, and modification works on ultra-large, and high value-added vessels due to the yard’s state-of-the-art facilities and its robust integration and assembling purpose-build quay wall, stretching over 502 meters long with 12.5 berthing water depth and over 3,000 tons load bearing capacity. 

The yard also provides optimum proximity to the main shipping channels from and to Nigeria thanks to its strategic location that enables fast and convenient entry point. This makes the facility the choice destination for international vessels.

‘The SHI-MCI yard was built in Lagos by Samsung to make Nigeria the hub of FPSO fabrication and integration in Africa. But the beauty of our yard is that it is highly scalable, which means that it is not only optimized for world-class, ultra-large and high value-added projects, but also is designed to service and maintain vessels of any size.’ Kim explained. 

Indeed, SHIN broke the record in Nigerian Content development in the oil and gas industry when it used the yard to fabricate and integrate the Egina FPSO locally, the first time such works were carried out in Africa. Being the first project launched after the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, Egina FPSO advanced the Nigerian Content to record levels.

With the successful completion of the repair works on the VLCC, SHIN has set a new record in its efforts to make Nigeria the hub of offshore technology in Africa, particularly the integration and fabrication of FPSO vessels, ship repairs and FPSO conversion. 

SHIN’s efforts in this direction have led to the development of local capacity and capability, creation of employment opportunities and boosting the Gross Domestic Product (GDP) of the country.

According to the top officials at SHIN, the hosting and servicing the VLCC was the fourth major project handled by the SHI-MCI yard, after the sail-way of the Egina FPSO to the deep offshore oilfield in August 2018.  

The berthing of an international vessel christened ‘PACIFIC RUBY’ was the second project after Egina. The dimension of the vessel is 249.869 metres length, 43.8 metres breadth, 21.2 metres depth, and 13.6 metres designed draught. The project before VLCC included carrying out repair works on Floating Storage Unit (FSU) vessel for the local client. 

SHIN has since diversified into container Terminal and logistics operations for international and local clients such as COSCO.  The empty containers terminal business is also an alternative revenue earner during ‘low season’ of offshore project while creating more job opportunities for Nigerians. 

The container Terminal includes the berthing of barges at the SHI-MCI FZE Quay wall for the offloading of empty containers; storage of empty containers at SHI-MCI FZE Laydown area; and the berthing of feeder vessel at the quay to backload the empty containers unto the vessels for shipping. 

Also due to its strategic location and capacities, the yard is expected to bring in other valuable projects such as mooring and skid installation, ship upgrades, and fabrication of various modular works. 

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FAO

Nigeria to Benefit from FAO’s $18m Global Environment Facility Fund

Nigeria and four other countries are expected to benefit from $18 million Global Environment Facility (GEF) Food and Agriculture Organisation (FAO) led projects.

The fund is comprised of three new projects in Nigeria, Venezuela, Malawi, Mozambique, and Uganda and is expected to improve the management of protected areas, protect biodiversity in lowland forests, and build water security and resilience.

“Resilient and productive land and aquatic ecosystems are the foundation of sustainable agri-food systems transformation,” said FAO Deputy Director-General, Maria Helena Semedo.

“The approval of these three projects strengthens our ability to help countries move on a path of sustainability that leaves no one behind,” Semedo added.

The project in Nigeria would improve the conservation, sustainable use, and restoration of a lowland forest landscape to protect globally significant biodiversity and strengthen the sustainable livelihoods of local communities.

The project would also improve the management of the threatened one million hectare landscape encompassing 12 forest reserves and the Okomu National Park. One of the aims is to replicate successes across the full Nigerian lowland forests eco-region.

The three projects that were approved on Tuesday at the 62nd Council Meeting of the GEF, held in McLean, Virginia, United States of America, would improve management for conservation and the sustainable use of over 8.3 million hectares of protected areas, bring 10 000 hectares of land under improved management, and restore another 24 000 hectares of forest and natural grasslands.

They would also mitigate 4.3 million tons of greenhouse gas emissions, and directly support nearly 92 000 people, including indigenous peoples and local communities.

The approval of these three projects marked the end of the GEF’s 2018-2022 funding cycle, the most productive four-year period in the FAO-GEF partnership to date, with over $600 million in grant financing secured for member countries.

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World-Trade-Organisation-WTO-logo

WTO Trade Barometer indicates Continued Services Trade Recovery Despite Ukraine Conflict

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World services trade continued to grow into the second quarter of 2022, indicating resilience to the conflict in Ukraine according to the World Trade Organisation Services Trade Barometer.

According to a WTO statement, the latest reading of 105.5 is firmly above the previous reading of 102.5 in September 2021 and comfortably over the baseline value of 100 for the index, signalling that services trade is likely to post sustained gains in the second quarter once official statistics for the period are available.

It stated that the Services Trade Barometer is outpacing the Goods Trade Barometer, which points to a possible shift in consumption patterns away from goods and back toward services as the COVID-19 pandemic eases.

It also stated that among the Services Trade Barometer’s component indices, the passenger air transport index (117.1) registered the strongest gain, contributing to the above-trend reading in the global index.

From the report, strong showings in the services Purchasing Managers’ Index (105.1) and information and communication technology services (104.2) also helped lift the services barometer reading. 

While it remains above trend, the financial services index (101.7) appears to have lost momentum recently, possibly due to sanctions on the Russian Federation in connection with the conflict in Ukraine. Other indices including container shipping (101.5) and construction (101.1) remain slightly above trend.

The statement adds: “Recent developments in services trade are illustrated by the Services Trade Activity Index, which provides an approximate measure of the real volume of world services trade accounting for changes in prices and exchange rates.”

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making-renewable-energy

Despite Owning 60% of Global Solar Resources, Nigeria, Others’ Clean Energy Penetration Stunted at 1%

Although it has about 60 per cent of the world’s best solar resources, Nigeria and other African countries have a paltry 1 per cent deployment of clean energy sources, the International Energy Agency (IEA) has said.

The outlook for the country and several African countries are not enviable, is stressed, with over 640 million persons on the continent without access to energy, that is, just about 40 per cent, the lowest in the world.

According to the respected energy data-driven organisation, in its Africa Energy Outlook 2022 report, although Nigeria and other African countries remain a minor contributor to global emissions, yet it needs to do far more to adapt to climate risks than the rest of the world.

But the growing demand by the West that African countries should embrace renewables however contradicts current moves by a key European country, Germany, which is calling on rich nations under the G-7 to put a hold on the planned halt in the financing of overseas fossil fuel projects by the end of the year.

Nigeria has always insisted that although it is committed to the netzero plan by 2060, it cannot abandon the explorations of fossil fuels overnight, maintaining that gas, which to some extent is a cleaner hydrocarbon will be used as transition fuel.

By 2050, the report stated that Africa will still account for no more than 4 per cent of cumulative global energy related CO2 emissions, regardless of the scenario, adding that funding for climate adaptation could reach $30-50 billion per year by 2030, a huge increase on the $7.8 billion in 2019.

For Africa to pursue the energy pathway set out, it explained that there needs to be a change in the way energy projects are financed as between 2015-19, 70 per cent of energy investment on the continent went to oil and gas projects, primarily predicated on foreign off take.

According to the EIA, priority needs to be given to making more effective use of public capital, from international and domestic sources, in order to better leverage private capital.

“While Africa accounts for almost one fifth of the world’s population, it attracts less than 5 per cent of global energy investment. This is spread unevenly across the continent.

“Ten countries accounted for 90 per cent of private investment in energy and electricity infrastructure on the continent over the last 10 years,” it said.

Although historically, fossil fuel supply has accounted for the majority of energy investment in Africa, driven by oil production, however, since 2016, it said,  capital spending on fuel supply has fallen by more than a fifth with a shift to less risky projects elsewhere.

“Clean energy investment has failed to make up the difference, with around 60 per cent of total spending still going to fossil fuel supply over the past five years.

“The clean energy transition in Africa requires not just a shift in investment flows away from fossil fuels, but also a near doubling of total capital over 2026-30 compared with 2016-20,” the IEA projected.

However, despite foreign pressure to jettison fossil fuels, Minister of State, Petroleum Resources, Mr Timipre Sylva, has said that he country will not jettison her God-given resources.

Insisting that Nigeria’s goal should be energy sufficiency to put an end to the ravaging energy poverty in the country, he stated that it would be unfair to expect that Nigeria as well as other energy-deficient countries will be stampeded into the mix.

“Nigeria should harness all the available energy resources to assure, not only availability and accessibility but also affordability and sustainability, to meet its energy demand,” he said.

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sri lanka

Sri Lanka Suspends Fuel Sales for Two Weeks as Economic Crisis Worsens

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Sri Lanka has suspended sales of fuel for non-essential vehicles as it faces its worst economic crisis in decades.

For the next two weeks only buses, trains, and vehicles used for medical services and transporting food will be allowed to fill up with fuel.

Schools in urban areas have shut and officials have told the country’s 22 million residents to work from home.

The South Asian nation is in talks over a bailout deal as it struggles to pay for imports such as fuel and food.

On Monday, the government said it will ban private vehicles from buying petrol and diesel until 10 July.

Bandula Gunewardena, a spokesperson for Sri Lanka’s cabinet, said Sri Lanka “has never faced such a severe economic crisis in its history”.

The cash-strapped country has also sent officials to the major energy producers Russia and Qatar in a bid to secure cheap oil supplies.

Sri Lanka’s economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts.

Without enough foreign currencies to pay for imports of essential goods, an acute shortage of food, fuel and medicines has helped to push the cost of living to record highs.

Over the weekend, officials said the country had only 9,000 tonnes of diesel and 6,000 tonnes of petrol to fuel essential services in the coming days.

It has been estimated that the stocks would last for less than a week, under regular demand.

“We are doing everything we can to get new stocks but we don’t know when that will be,” power and energy minister Kanchana Wijesekera told reporters on Sunday.

Alex Holmes, a senior economist at Oxford Economics, told the BBC the fuel restrictions were “yet another small sign of a worsening crisis”.

“Mobility appears to have already been severely limited given that people were waiting in [long] queues for fuel. But the complete ban for private vehicles goes one step further, and will compound the economic pain,” he added.

In May, the country defaulted on its debts with international lenders for the first time in its history.

Last week, a team from the International Monetary Fund arrived in Sri Lanka for talks over a $3bn (£2.4bn) bailout deal.

The government is also seeking assistance from India and China to import essential items.

Prime Minister Ranil Wickremesinghe said earlier this month that the country needed at least $5bn over the next six months to pay for essential goods such as food, fuel and fertiliser.

In recent weeks, the government has also called on farmers to grow more rice and given government officials an extra day off a week to grow food, amid fears of a shortage.

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firs (1)

FIRS to the Rescue as Subsidy Gulps NNPC’s Revenue

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With a major chunk of the Nigerian National Petroleum Company Limited’s (NNPC) monthly revenue now being channeled to the payment of fuel subsidy, the Federation Account Allocation Committee (FAAC) now relies heavily on the revenue from the Federal Inland Revenue Service (FIRS) for its monthly sharing to the three tiers of government.

The 2021 financial records of the FIRS’ contributions to FAAC showed that in the year under review, the federal revenue collecting agency’s contribution was a total of 59.45 per cent, as out of the total of N8.912 trillion to the three tiers of government last year, N5.298 trillion was contributed by the federal revenue collecting agency.

The trend has continued in the first five months of 2022 as the NNPC’s contribution is still weighed down by the fuel subsidy burden.

This emerged just as Nigeria again lost a whopping $650.7 million to crude oil losses resulting from declaration of force majeure, equipment failures and host communities’ disturbances between the April and May production cycle.

The World Bank had estimated that fuel subsidy payment in the country may rise to N5 trillion this year. Last week, President Muhammadu Buhari shut down calls for the removal of petrol subsidy, querying why the West should be demanding that Nigeria ends subsidy payments, while they continue to support their citizens with same to ameliorate the current economic hardship. In May, the NNPC was unable to carry out its statutory obligations to the federation, recording a N704 billion deficit for the year thus far. In its monthly presentation to FAAC for May, the national oil company had disclosed that it deducted another N327.07 billion as shortfall in the month under review. With a projected N1.473 trillion payments to the federation for the entire year and a monthly remittance of N122.767 billion, the implication was that the federal, state and local governments may continue to have cash shortages for a while since the payments constitute a major revenue source. In January, February and March 2022, petrol subsidy gulped 210.38 billion, N219.78 billion, and N245.77 billion, respectively while in April, the country spent N271 billion. These deductions were expected to continue throughout the year.

However, a breakdown of the FIRS monthly contribution to FAAC for 2021 showed that in January, it contributed 65.71 per cent (N388.54billion) to FAAC; in February (60.57%) – N361.26 billion; March (60.01%) – N501.32 billion; April (59.74%) – N403.70 billion; May (59.66%) – N359.77 billion; June (65%) – N664.30 billion and July (52.03%) – N397.95 billion.

Other months included August (55.46%) – N403.85 billion; September (58.8%) – N516.57 billion; October (57.13%) – N333.82 billion; November (58.17%) – N496.19 billion and December (60.43%) – N470.90 billion.

The report also showed that in the past three years, the FIRS had been making steady progress in terms of revenue collections as it garnered N5.262 trillion in 2019; N4.952 trillion in 2020 (obviously due to COVID-19) and N6.405 trillion in 2021. It was glaring that the FIRS has been gradually making progress despite the impact of Covid-19, the instability in the oil and gas sector, insecurity in the country and economic downturn.

Findings also revealed that out of the total expenditure incurred by the FIRS during the year 2021, the payment of staff salaries, allowances and other staff-related costs accounted for over 63.6 per cent.

Other key recurrent activities of the Service took 19.2 per cent of the funds, while capital expenditure accounted for only 4.8 per cent of the total fund utilisation for the period under review.

Interestingly, out of the meagre amount received by the apex revenue agency, 12.47 per cent of the total amount received as cost of collection (CoC) was transferred for servicing the capital project account and for the funding of its 13th-month salary to staff.

The 19.2 per cent which represented other key recurrent activities was spent on fueling and servicing over 272 generators, rent and the rent paid in respect of over 71 rented properties/office accommodation (particularly in Lagos).

The remaining amount was used for capacity building of over 11,000 workers, fueling and maintaining over 1584 operational vehicles, and payment of Service Level Agreements for security, cleaning, and maintenance of properties and critical equipment in its over 367 operational offices nationwide.

Sadly, the agency could only spend 4.8 per cent of its revenue on capital projects. This could be largely attributed to the lack of adequate funding for the critical agency which accounts for well over 60 per cent of the monies distributed to the three tiers of government in the year 2021.

Analysts believed that in view of the above positive contributions, the agency needs more support from the government than it is currently getting. This, according to them was necessary because of the current peculiar revenue challenge the country was facing as well as in view of some of the global and local challenges being faced by the revenue authorities. These included capital projects started some years ago by FIRS are yet to be completed; some of the agency’s construction sites have been abandoned due to delays in honouring payments certificates; inadequate funding has also made it difficult for the FIRS to adequately build capacity and retrain its officers for modern tax administrative practices; as well as lack of ICT infrastructure necessary to identify and track digital transactions.

Specifically, FIRS has lots of capital projects it had started (including its Corporate Headquarters which is rated one of the 10 top capital projects in Africa) and could not complete the project for lack of funds.

The provision of adequate funding would also be necessary because the FIRS would be able to deploy technology and block leakages; generate more revenue to fund the budgetary needs of both local and state governments as well as the federal government at the centre; complete its capital projects (particularly its HQ, prototype offices, training schools etc.) to save it from the current huge rents it pays to landlords for its office accommodations in some major cities; and above all provide more funds for the country as against the current resort to constant borrowing by the government at all levels is unsustainable.

Furthermore, analysts also advised governments at all levels to invest wisely the little that the apex revenue agency currently generates in critical infrastructure, social amenities, safety and security of the citizens.

Cash-strapped Nigeria Again Loses $650.7m Crude to Force Majeure, Equipment Failure, Others

Meanwhile, Nigeria again lost a whopping $650.7 million to crude oil losses resulting from declaration of force majeure, equipment failures and host communities’ disturbances between the April and May production cycle.

When converted to naira, the country’s local currency, using the official exchange rate of N420/$, the amount Nigeria lost for the period was an estimated N273,296,023,560.

On the average the price per barrel of oil, according to a THISDAY review, sold for approximately $114 last month.

To put it in proper context, the gross domestic crude oil and gas revenue from sales for the entire month of May was N426.14 billion, the highest in months.

The amount of oil lost during the period extracted from the Nigerian National Petroleum Company Limited (NNPC) presentation to the Federation Account Allocation Committee (FAAC) excluded the massive volume stolen in the Niger Delta region.

The document detailing the national oil firm’s activities for May, showed that over 5.707 million barrels of oil were lost to the breakdown of production equipment, protest from community workforce arising to shutdowns as well as a fire outbreak at one of the terminals.

Still struggling with meeting its oil production quota, the Organisation of Petroleum Exporting Countries (OPEC) last week revealed that Nigeria reported a paltry 1.024 million barrels per day production in May, a multi-year low. With the latest figure released by the OPEC, it meant that Nigeria’s underperformance was as high as 700,000 barrels per day for the month, although the cartel’s total allocation to Nigeria exceeded 1.75 million bpd for the month.

The 1.024 million bpd production (through primary communication) was about 195,000 bpd less production when compared with the April’s total of 1.219 million bpd, OPEC said.

Despite assurances by the various government agencies, what the OPEC figures implied was that rather than improve, the country’s oil production has actually deteriorated in the past months.

Although the authorities have always fingered massive theft as one of the reasons for its inability to meet its quota, the areas rarely discussed include incessant equipment failure and prolonged maintenance of broken down facilities.

On the issue of theft, the federal government had also months ago, deployed heavy military presence in the Niger Delta to curb the menace.

But the OPEC data confirmed that the action has not made any difference, as nothing appears to have changed since the rejigging of the security arrangement in the region.

Specifically, the biggest loss for the period, according to the latest NNPC document, came from the force majeure declared at the Bonny terminal since March 2022. For the entire month, Nigeria lost 3.450 million barrels of oil from the facility.

Force majeure refers to a clause in contracts that allows both parties to walk out of the contract when an extraordinary event or circumstance beyond the control of the parties happens.

The report stated that crude oil production at the terminal has now dropped significantly to as low as three million for the period while the terminal operator has temporarily halted operations.

The next biggest curtailment of production came from Odudu terminal with a total of 937,663 barrels of crude oil shed by the country due to maintenance work on the facility.

In Yoho and Excravos terminals respectively, the country’s production was curtailed to the tune of 56,000 barrels and 53,000 barrels to low production due to flare management as well as community crisis at the south swamp. Bonga lost 174 barrels to repair work.

Furthermore, Brass lost 180,000 barrels due to a failed equipment, Jones creek terminal lost 809,600 barrels due to shut-in resulting from a combination of broken down equipment and community workers’ protest while Ukpokiti and Aje were curtailed to the tune of 210,000 and 11,000 barrels respectively.

Nigeria has some of the most preferred crude in the world since most of it is free of sulphur and remains the largest producer of sweet oil in OPEC. The country’s sweet crude oil is known as Bonny Light.

The country has a number of petroleum terminals run mostly by International Oil Companies (IOCs) like Shell, Mobil, Chevron, Texaco, and Agip.

THISDAY had reported how with over 3.65 million barrels of crude oil shut-in at the Bonny Terminal during the March/April productions circle, Nigeria’s total losses, month-on-month rose by over 300 per cent.

Overall, between March 3 and April 1, the production curtailment pushed the country’s total loss to 5.545 million barrels of crude for that month as opposed to 1.69 million barrels previously.

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Dr-Mohammed-Abubakar-e1637646216460

FG Partners Brazil to Mechanise Nigeria’s Agricultural Sector

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The Minister of Agriculture and Rural Development, Dr. Mohammad Abubakar, has announced that Nigeria would partner with the Brazilian government on the supply and distribution of 10,000 tractors to farmers across the country.

The move, according to Abubakar, would fast-track the mechanisation of the country’s agricultural sector, improve production and boost economic development.

He stated that the partnership with Brazilian counterparts would ensure the provision of 10,000 units of tractors, 50,000 units of assorted implements and equipment for assembly in Nigeria, 142 turnkey factories for agro processing as well as training of the project beneficiaries for over a period of five years.

He added that the development would also enhance food self-sufficiency and create job opportunity for Nigerian youths.

The minister gave the indication at the opening ceremony of Africa’s Agricultural machines and equipment technology expo on industrialising Africa’s agriculture through technology and innovation that was held in Abuja recently.

He revealed that the expo was meant to expose African Farmers to cost- effective farm machines and new farming technologies as well as to increase the flow of foreign direct investments in to the country.

Other objectives of the expo, according to Abubakar, included the creation of business for farm products, producers and processors.

He said that this is in tandem with the agricultural policy of the federal government and a clarion call to bring succor to the drudgery nature of the country’s farm practices in order to encourage the teeming youths to embrace the agricultural sector.

Earlier in his remarks, the Permanent Secretary, Dr. Ernest Umahkike, who was represented by the Director, Federal Department of Agriculture, Mr. Abdullahi Abubakar Garuba, stated that the expo was meant to expose Africa’s farmers to latest innovation in technology across the value chain.

Umahkike pointed out that “agriculture in Nigeria contributed about 33 per cent to Gross Domestic Product and engage a large number of our working force in farming.”

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NIGERIA-STOCK-EXCHANGE1

NGX, CIS Boost Capital Market Stakeholders’ Capacity on Exchange Traded Derivatives

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The Nigerian Exchange Limited (NGX) and the Chartered Institute of Stockbrokers (CIS) yesterday organized a capacity-building workshop for capital market stakeholders on Exchange Traded Derivatives.
The workshop is in line with the capital market regulating bodies commitment to promote a robust derivatives market ecosystem in Nigeria.

The virtual event themed, “Exchange-Traded Derivatives: Enhancing the Capital Market for Robust Value Creation”, was designed to deepen the knowledge of market operators, investors, and other stakeholders on the workings of Exchange Traded Derivatives, and drive participation in the market segment.
In his opening remarks, the Chief Executive Officer, NGX, Mr. Temi Popoola, noted that the derivatives workshop is consistent with the shared aspiration of NGX and CIS to promote and protect the interests of the securities and investment profession by upholding the highest standards of service and integrity.
According to him, “Since 2017, the Exchange has been building the capacity of market stakeholders on Derivatives, leveraging X-Academy, our learning and capacity development platform. We are pleased to collaborate with CIS in hosting this workshop aimed at facilitating a better understanding of how derivatives work, including how the contract is traded and settled on a day-to-day basis, the margining process, and risk management issues.”

He explained further that, “Earlier this year, NGX launched West Africa’s first Exchange Traded Derivatives Market, with Equity Index Futures Contracts. The launch saw the unveiling of equity index futures contracts based on the most widely followed and recognized equity indices in the Nigerian capital market – NGX 30 Index Futures and NGX Pension Index Futures.


“We believe that NGX Derivatives market will potentially address significant risk management needs of market participants such as PFA’s, Fund Managers, Corporate Treasuries, and Trading License Holders, being the first line of contact for investors in the capital market. In addition, NGX Exchange Traded Derivatives will provide investors and other market players, with the necessary tools for asset allocation, and cost management for effective portfolio management”, Popoola added.

Also speaking at the webinar, the President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwole Adeosun, explained that Derivatives instruments traded on the Exchange are essential in the market as it allows for market sophistication, transparent financial contracts and offers a useful risk management tool for implementing risk mitigation, or hedging strategies against financial risk while also presenting an alternative investment acceptance useful for pursuing diversification and investment strategies. Additionally, he mentioned that stockbrokers and securities traders have been undergoing a series of training on derivatives instruments and an adaption has been synchronized with the examination syllabus for securities traders and brokers.


The webinar which brought together over 500 participants, also featured speakers such as Ade Omolehinwa, ACS, Managing Partner; Ademola Omolehinwa & Co; Ayokunle Aderalegbe, COO, NG Clearing Limited; Faroq Oreagba, Partner, Karaho Capital Partners; Ellie Olutimayin, FCS, MD, Cardinal Stone Securities Limited; Adedeji Ajadi, FCS, Co-Founder & Partner, 100xConcepts and Dr John Osuoha, ACS, Nigeria Country Representative, CISI UK.

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