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Europe, Others May Shun Perishable Cargoes from Nigeria

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Nahco

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 exporters said they were concerned that such uncharitable actions could send wrong signals to the comity of international agro-allied supply chain, adding that they were still counting losses from the closure of export warehouses of the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCOL).

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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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