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Nigeria Can Overtake Kenya’s $1bn Per Annum Perishable Cargo Export

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  • 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.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

FG Unveils N122 Billion Boost for Six Indigenous Gas Companies

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Gas Plant

The Federal Government has unveiled six indigenous gas companies eligible for the N122 billion equity participation program under the Midstream Downstream Gas Infrastructure Fund (MDGIF).

According to the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, the six companies—Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—have undergone rigorous screening.

Ekpo made the announcement during the signing ceremony of the MDGIF and Promoters Agreement held in Abuja.

He revealed that the investment reflects the government’s commitment to energy security, economic growth, and the development of the country’s gas infrastructure.

Ekpo described the signing as a significant step in the country’s energy sector.

He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”

“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF.”

Ekpo assured that the N122 billion will not be the last as the MDGIF is screening another batch of beneficiaries.

He urged the benefiting investors, who are the first to sign agreements for the projects since the enactment of the Petroleum Industry Act (PIA), to live up to expectations.

He encouraged companies that did not make the first list not to lose hope.

The minister said, “For those who did not make the first six, we will have a second batch. Go home and put your records in order, and of course, this is the first since the passing of the PIA in 2021. This is the first signing, and we expect you to live up to expectations.”

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Crude Oil

Oil Prices Rise Further on Middle East Tensions, Supply Fears

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Oil

Oil continued to rise on Wednesday over worries that the escalating conflict in the Middle East could threaten oil supplies.

Brent futures rose 34 cents, or 0.46%  to settle at $73.90 per barrel while the US West Texas Intermediate (WTI) crude climbed 27 cents, or 0.39%, to settle at $70.10 per barrel.

Meanwhile, Israel and its ally, the US vowed payback for the attack, a sign that conflict in the region is intensifying after Iran fired more than 180 missiles at Israel, its biggest-ever direct attack on the country on Tuesday.

Since the late Tuesday bombing, Israeli ground troops have fought with Hezbollah in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing vengeance and raising fears of a full-fledged conflict.

According to rumors, Israel’s reaction might include hitting Iranian oil production facilities and other critical targets.

On Wednesday, Iran said that its missile attack on Israel was stopped, barring further provocation.

It claimed that any Israeli retaliation to its attack would result in widespread destruction as Iran accounts for around 4% of world oil output.

Analysts say that an attack on Iran’s oil infrastructure could provoke it to respond with a strike on Saudi oil facilities, similar to one conducted in 2019 on crude processing facilities there.

Meanwhile, a meeting on Wednesday of the top ministers of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ kept oil output policy unchanged.

The group is set to raise output by 180,000 barrels per day each month from December.

Meanwhile, the US Energy Information Administration (EIA), the official US agency, reported an estimated inventory build of 3.9 million barrels for the week to September 27, driven by the latest escalation in the Middle East.

The inventory change compared with a draw of 4.5 million barrels for the previous week, which also saw declines in fuel inventories.

It also compared with the American Petroleum Institute’s estimate, which pegged crude oil inventory change for the final week of September at a negative 1.5 million barrels.

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Commodities

Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

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Rice mill

The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

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