Two weeks after the Nigeria Incentive-Based Risk Sharing System for Agriculture introduced a Farm-to-Market scheme, the movement of cattle by rail has commenced with the first 15 wagons of 500 cattle transported from the North to Lagos.
The scheme is to ensure a low-cost and efficient transport link between agricultural producers and consumers across the country.
NIRSAL is an initiative of the Central Bank of Nigeria to provide incentives including bank guarantees for agric projects.
The cattle train take off was witnessed by the Governor of Zamfara State, Yari Abubakar, officials of the Federal Ministry of Agriculture and Rural Development; Central Bank of Nigeria and representatives of international development partners and finance institutions.
Also present were representatives of banks, other private sector players, livestock traders, among others.
The journey, the first to be undertaken in over 40 years, is expected to last about two days with the final stop at Oko-Oba in Lagos.
It signals the beginning of the livestock transportation component of NIRSAL’s Farm-to-Market scheme.
According to the latest figures released by NIRSAL, the total value of the North East-Lagos cattle trade market alone is estimated at N324bn per annum.
This does not include the North/South-East cattle trade or the trade in small ruminants such as sheep and goats.
Overall, NIRSAL estimated the total live animal trade between the North and South to be from N850bn to N950bn per annum.
Speaking at the event, the Managing Director, NIRSAL, Abdulhameed Aliyu, said under the scheme, NIRSAL, in line with its mandate, would provide bank guarantees for the financing of critical requirements involved in the movement of the cattle including logistics and equipment.
According to him, the project is a culmination of two years of intensive work by NIRSAL and Connect Rail Services Limited.
Abdulhameed said, “What we have witnessed today is the culmination of this rigorous and consistent effort to demonstrate that agric in Nigeria can be innovative and business-oriented.
“The transportation component launched today is only the first part. The next phase of NIRSAL’s effort for the commercial development of the livestock value chain will include the creation of business models and specific financing products for the ranching and trading components of the value chain.”
The scheme, according to him, is projected to reduce the cost of transporting cattle from the North to the South by over 20 per cent, minimise injury and death of cattle while in transit and preserve 100 per cent of their value so that livestock breeders can get good price for their produce at the destination markets.
The Zamfara State governor, who was represented at the event by his deputy, Ibrahim Mohammed, said the scheme would enable cattle rearers to have access to wider markets.
He also said, “Railway offers a more convenient means of moving goods across the country.”
Also speaking at the event, the Managing Director, Connect Rail Services, Mr. Edeme Kelikume, said the company was excited at the magnitude of the scheme and the massive impact it would have on the economy.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
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