- Nigeria Can Overtake Kenya’s $1bn Per Annum Perishable Export
Nigeria can generate over $3billion annually in the next two years from perishable farm produce export to Europe and other destinations with good freight system, recommended farm input and packaging.
The Managing Director/ CEO of ABX World Nigeria Limited, Captain John Okakpu, whose company is into export of vegetables and other farm produce to Europe through air freighting, made the remark.
Okakpu said currently Kenya exports about $1 billion worth of vegetables per annum to Europe but Nigeria has better climate, has variety of farm produce and can generate and export perishable goods than any other country in Africa.
According to him, this is the most viable alternative to the dwindling oil revenue adding that in farming more people are engaged so it would boost employment and in addition put money in the pockets of ordinary people. “So it is a means of delivering grassroots people from poverty”, he added.
On how to actualise this objective, Okakpu said state governors should embrace agriculture programme and support their citizens, noting that for instance, Anambra State has embraced the agriculture programme and the state has started exporting pumpkin leaves and other farm produce overseas. He said the state government should empower their people who engage in agriculture and some states that have goods that are highly sought after like the special pepper from Nsukka, known as yellow pepper, should develop and grow them in commercial quantity for export.
“The bottom line is the leadership. We had a discussion with the governor of Anambra state. I gave them proposal and they approved it and we agreed to work together. The agreement was that they needed to train and empower their people. For other people to be attracted to come and do business, create some kind of subsidy. And the governor agreed to this proposal. We first had to train first to enable people meet up to some certain standards to enable them to export their products. The government needs to empower its people and look at their social needs based on the standards of the international community.” Okakpu said.
He noted that if every state government is willing to empower its citizens with N100 million, it will make positive turnaround in the lives of the beneficiaries because they will become exporters of farm produce that will generate huge revenues for them.
Okakpu narrated how the people of Enugu state are preparing to grow yellow pepper or Nsukka pepper all year round in order to meet its demand in Europe.
“I had a discussion with Enugu state government about exporting yellow pepper. I have invested so much in this area, taken a lot of engineers there, they did a lot of survey but the importers said the problem is with sustaining the produce, or else they will not be interested. “So, we had to look for a way to make it sustainable. They are here now and we have brought them to Nigeria for training. We have gone to Nsukka, spent weeks and nights.
I slept with the farmers in their houses to see how we can make this work and we found a solution. Their problem is water. When there is no rain, what happens next? We called engineers all the way from Benin and they came to Nsukka and spent four days. They went to all the areas and they came up with a solution. We set up ten boreholes.
“The next was manure. American and Europeans like organic products. Natural manures can go a long way and they use poultry feeds but the best form of manure is fish waste. So, we thought we could get the borehole, set up a fishery where we can raise fish; we sell the fish and drain the water. The water drained will provide manure for the pepper. A lot of people are ready to set up fish farms; we have manures from the fish farms,” he said.
It is projected that by next year the area would start exporting yellow pepper in commercial quantity to Europe and the US. Okakpu noted also that every state has some variety of farm produce to export to the world if the state governments could give their support.
A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site
Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site
Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.
Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.
A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.
One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.
However, Saudi authorities are yet to confirm or respond to the story.
Brent Crude Oil Approaches $70 Per Barrel on Friday
Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension
Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.
Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.
Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.
While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.
According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.
“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”
Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.
“The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.
“I do believe we’re headed for a much healthier supply and demand environment” she said.
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.
OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.
Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”
Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.
Experts have started predicting $75 a barrel by April.
“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”
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