Perishable cargoes/vegetables exporters have counted their losses over the recent shut down of export sheds at the cargo areas of Murtala Muhammed International Airport, Lagos by the Nigeria Customs Service without considering its effect on delicate exports.
The exporters expressed worry that such interruptions portend grave danger for the economy’s agro-allied produce, adding that as a country that is encouraging exports, Customs and other government agencies at the airport should provide them incentives rather than discourage such efforts.
The Nigeria Customs Service (NSC) last week closed the export shed for days over allegation that prohibited items meant for export were hidden in the sheds.
Speaking to journalists on Tuesday, the CEO of ABX World, a major agro-allied exporter, Captain John Okakpu said that the agro-allied exporters numbering over 100 were hurt by the decision of Customs to shut down the sheds although the facilities were re-opened two days later.
Captain Okakpu, who said the exporters lost over N100 million worth of goods within 48-hours the export warehouses were shut, called on the federal government through the various Ministries, Departments and Agencies (MDAs) to urgently commence full-scale investigations into the immediate and remote causes of the warehouses closure to avoid future occurrences.
He said that with government’s focus on agriculture as one of the panaceas to the rising inflation, restrictions in capital flows and depleting forex reserves, agro-allied exporters deserve protection as partners.
“The truth is, we have made fundamental mistakes in the past as a nation by becoming a mono-economy. But, we cannot continue to lick the wounds. We have to reverse the case and agriculture provides us with a better option to grow. That is why as agro-allied exporters, we are seriously worried over the actions of some government officials, who seem not to underestimate the peculiarities of perishable items for export.
“Shutting down the warehouses was actually an indictment on Customs, as its officials ought to have carried out surveillance before shutting down all export businesses at the Lagos Airport. If such act is not checkmated in future it will compound issues and create a logjam in the system. Or, do we prefer to ship our cargos to countries like Ghana or Cameroun before they can be shipped to Europe and other markets? Presently, the yam sold in Europe as Ghana yams are actually from Nigeria,” Okakpu said.
He remarked that any action contradicting federal government’s agricultural road map, which was launched by the Vice President, Professor Yemi Osinbajo recently should not be treated with levity.
“We made efforts to reach relevant authorities. For instance, the Nigerian Export Promotion Council was outraged because they understand the bad image the incidence will create at the international market. The agricultural road map by the government is a step in the right direction hence we are in full support of the programme. However, we pray for its implementation and not, like in the past after drafting tiger-paper legislations, conferences and researches, they end up in the shelves,” he said.
Unlocking Investments into Africa’s Renewable Energy Market
The African Energy Guarantee Facility (AEGF) is launching a virtual roadshow of free webinars allowing a deeper understanding of risk issues for renewable energy projects on the continent, and conversations around risk mitigation solutions. The first webinar will take place on Thursday, 23 September from 14:30-16:00 hrs. EAT.
The session will be oriented on how to get more energy projects from the drawing board to the grid. While the energy demand in African economies is expected to nearly double by 2040, and although the potential for renewable energy is 1,000 times larger than the demand, only 2GW out of almost 180GW of this new renewable power were added on the African continent.
Clearly not good enough! To improve the situation within the next two decades, new solutions need to be implemented urgently. De-risking and promoting private sector investments will play a crucial part of it.
In this 90-min interactive session, AEGF partners: the European Investment Bank (EIB), KfW Development Bank, Munich Re and the African Trade Insurance Agency (ATI) will share their experience and provide valuable insights on how they were able to come together and design practical solutions for investors and financiers of green energy projects in Africa aligned with SDG7 objectives.
Across Africa, the complexity of renewable energy projects and their long tenors hold back crucial energy investment. Tailored to the specific needs and risk profiles of sustainable energy projects, AEGF will tackle the investment challenge by providing underwriting expertise and capacity tailored to market needs.
The AEGF will significantly boost private investment in sustainable energy projects, both expanding access to clean energy and contribute to achieving UN Sustainable Development Goals. The scheme supports new private sector investment in eligible renewable energy, energy efficiency and energy access projects in sub-Saharan Africa.
Shell Signs Agreement To Sell Permian Interest For $9.5B to ConocoPhillips
Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals.
“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Upstream Director. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”
Shell’s Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.
The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30 percent of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.
Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.
Oil Gains 1 Percent on Possible Tight Supply
Oil prices rose on Tuesday as analysts pointed to signs of U.S. supply tightness, ending days of losses as global markets remain haunted by the potential impact on China’s economy of a crisis at heavily indebted property group China Evergrande.
Brent crude gained 95 cents or 1.3% to $74.87 a barrel by 0645 GMT, having fallen by almost 2% on Monday. The contract for West Texas Intermediate (WTI) , which expires later on Tuesday, was up 91 cents or 1.3% at $71.20 after dropping 2.3% in the previous session.
Global utilities are switching to fuel oil due to rising gas and coal prices, and lingering outages from the Gulf of Mexico after Hurricane Ada that imply less supply is available, ANZ analysts said.
“While slowing Chinese economic growth and uncertainty around the (U.S.) Fed’s tapering timetable weighed on market sentiment, other developments still point to higher oil prices,” ANZ Research said in a note.
Still, investors across financial assets have been rocked by the fallout from heavily indebted Evergrande (3333.HK) and the threat of a wider market shakeout in the longer term.
“Evergrande’s woes are threatening the outlook for the world’s second-largest economy and making some investors question China’s growth outlook and whether it is safe to invest there,” said Edward Moya, senior market analyst at OANDA.
While that view of the state of China’s economy is weighing on markets, the U.S. Federal Reserve is also expected to start tightening monetary policy – likely to make investors warier of riskier assets such as oil.
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