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.
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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