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Spain to Set up Manufacturing Companies in Nigeria

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  • Spain to Set up Manufacturing Companies in Nigeria

The Government of Spain has revealed plans aimed at setting up Spanish manufacturing companies among other businesses in Nigeria, which is targeted at exploring economic potential and build business relations Nigeria.

This is even as an official trade delegation has scheduled a visit to Nigeria in May 2017.The delegation having discussions with government agencies and familiarizing itself with the business environment in Abuja between May 8 and 9, and meeting with private sector operators in Lagos on May 10, 2017 before leaving for their home country.

Spanish Ambassador to Nigeria, Alfonso Barnuevo Sebastian De Erico, on Wednesday, dropped this hint, when he paid a courtesy visit to the Minister of Budget and National Planning, Senator Udoma Udo Udoma, in Abuja.

According to an official statement released by the Media Adviser to the minister, Akpandem James, and made available to journalists, the move is part of government efforts to attract foreign investment into the country to boost the economy.

De Erico said it was time the two countries looked into the future to find more ways of being mutually beneficial to each other, particularly now that the country has a government that is sold to good governance principles.

“We appreciate the effort of Nigeria in the area of transparency and fighting corruption. We appreciate also its economic policies; and these will take the country forward. We are very supportive of Nigeria and its policies”, he added.

The Ambassador said Spain has been investing in Europe over time and now needs to move its focus to Africa, with Nigeria as a preferred destination because of the country’s huge market potentials. “That is why we are bringing in Spanish companies to know the country and also explore investment opportunities available”, he explained.

He said though the number of Spanish companies already doing business in Nigeria is increasing, the planned trip is very special as the focus would be on some very specific areas, including Construction, Energy and Environment and Water and Sanitation.

De Erico told the minister that he would appreciate the full involvement of the Ministry of Budget and National Planning and other relevant Federal Government agencies in facilitating the realization of the planned visit as it has enormous potentials of enhancing trade relations and economic growth between the two countries.

The ambassador stressed that Nigeria and Spain have enjoyed long lasting political and economic relations, adding that the time has come to deepen the relationship with further investments in some sectors of the Nigerian economy.

Udoma, while acknowledging the contributions of Spain to Nigeria’s economy over the years, particularly in the oil and gas sector, said the Nigerian government is excited about the planned visit and assured it will be fully involved in ensuring its success.

“On the visit of Spanish companies to Nigeria, this is something that we will welcome. It is something we have been looking forward to; something that we are encouraging. We believe you have a lot to offer us and the Spanish companies will find Nigeria a convenient place to do business. We are improving our ease of doing business template and making sure that anybody who wants to do business in Nigeria has a much easier time.

“We are improving on our Visa system, to make it faster to get Visa. We are giving extra support to our Export Processing Zones in terms of infrastructure, to upgrade them so that they will be suitable and convenient places for companies in Spain that would want to go into manufacturing in Nigeria,” he stated.

He pledged the readiness of the Ministry not only to support the proposal of bringing in the companies to Nigeria but to liaise with the Ministry of Industry, Trade and Investment, the Nigeria Investments Promotion Council (NIPC) and other relevant agencies of government to facilitate the project.

The Minister told the Spanish envoy that Nigeria is very interested in expanding its agricultural potentials, solid mineral exploitation and infrastructure development, particularly in the area of roads, rail and power. Concerning infrastructure, he informed that Nigeria is exploring the option of partnership with the private sector to speed up the realization of a massive infrastructure upgrade within the shortest possible time.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

OPEC Agrees to Increase Oil Supply by 500,000 Barrels Per Day Ahead of Surge in Demand

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Nigeria's economic Productivity

OPEC and allies finally agreed to ease their 7.7 million barrels per day production cut by 500,000 barrels per day starting from January 2021.

This will now bring the oil cartel’s total production cuts to 7.2 million barrels per day starting from next year.

Oil prices rose after the news as the market believed the approval of Pfizer COVID-19 in the United Kingdom will kick start a series of approvals and helped restore confidence, increase business activities and demand for the commodity across the globe.

After the outcome of the meeting was made public on Thursday, Brent Crude Oil against which Nigerian oil is priced gained 1.35 percent on Friday after gaining 1.4 percent on Thursday to $49.37 per barrel at 11.35 am Nigerian time on Friday.

The US West Texas Intermediate gained 1.29 percent to $46.23 barrel on Friday.

500,000 bpd from January is not the nightmare scenario that the market feared, but it is not what was really expected weeks ago,” said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu. “Markets are now reacting positively and prices are recording a small increase as 500,000 of extra supply is not deadly for balances,” she added.

Investors King increased business sentiment in the energy sector to boost investment, increase activity in the sector and most important improve crude oil demand enough to accommodate the 500,000 barrels per day extra that would be hitting the global market starting from January.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

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.

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Markets

Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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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.”

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