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FG Targets 14 Days to Complete Commodity Export

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  • FG Targets 14 Days to Complete Commodity Export

The Federal Government says it hopes to reduce the number of days it takes to export goods out of the country to 14 days from an average of 30 days.

The Senior Special Assistant to the President on Trade and Investment, Dr. Jumoke Oduwole, said this was part of the government’s plans to encourage exportation and ease business investment process in the country in the next three years.

She said this would be achieved by leveraging on technology and introduction of better policies to increase cross border trading.

She said, “In practice, it takes about 30 days to export but it should take up to 14 days to export. All we want to do is to streamline the agencies at the port and remove all bottlenecks slowing down export business.”

According to her, the overall vision is to improve the poor Nigerian business environment and ease of doing business ranking across key regulations, processes, support system execution capabilities and training, among other metrics.

Oduwole said that budgetary provisions had been made for the implementation of initiatives that would improve Nigeria’s business environment in 2017.

A report by the Lagos Chamber of Commerce and Industry recommended the streamlining of agencies at the port from 14 to six in line with the best global practices.

The report titled, ‘Nigeria: Reforming the Ports,’ stated, “Thirty-four per cent of the cost of export is attributed to inefficiency and informal payments. The major driver of extra cost on the export side is also transportation (of goods) between Lagos warehouses and the ports due to congestion, freight forwarding and yard handling costs.

“This is compounded by the unwieldy documentation process making importers and exporters to go through the pain and associated costs of processing about 25 to 33 different papers from multiple agencies and departments.”

Presently, the country ranks 169 out of 189 countries in the global stage of ease of doing business while it stands at 182 out of 185 countries in the World Bank’s trading across borders’ ranking.

An exporter, who spoke with our correspondent on the ease of exporting called on the government to review the terminal charges, which ranged from N40,000 to N50,000, in order to encourage exportation.

In August, President Muhammadu Buhari announced the launch of the Presidential Enabling Environment Council, chaired by Vice-President Yemi Osinbajo, to “remove the bottlenecks that stifle businesses and create the right enabling environment and investment climate.”

The President, also at a dialogue session during the sixth Tokyo International Conference for African Development in Kenya, said, “We are committed to moving up the ranking of the World Bank’s ease of doing business index 20 places in the first year and be in the top 100 within the next three years.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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BUA Foods Invests $200m in Lafiagi Sugar Estate Expansion

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BUA Foods, a leading Nigerian food conglomerate, has announced an investment of $200 million in its Lafiagi Sugar Estate located in Kwara State.

The Managing Director of BUA Foods, Ayodele Abioye, revealed this during a press briefing held at the company’s headquarters in Lagos.

Abioye said the leading company plans to enhance its integrated sugar estate project to reduce reliance on foreign exchange for raw materials.

The project includes the construction of a sugar refinery, ethanol plant, and supporting infrastructure aimed at bolstering local production.

The Lafiagi Sugar Estate spans approximately 20,000 hectares and integrates various components such as a sugar refinery with a daily capacity of 20,000 metric tonnes, along with an industrial ethanol plant.

Abioye underscored the importance of reducing dependency on forex for sourcing raw materials, citing challenges faced due to Nigeria’s lack of industrial agricultural production of sugarcane.

BUA Foods aims to bolster its local supply chain by engaging with communities and establishing partnerships in agriculture.

Abioye emphasized the need for sustainable practices and community involvement in fostering self-sufficiency.

The company’s investment reflects its dedication to expanding domestic production capabilities and driving economic growth in Nigeria’s agricultural sector.

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Nigeria’s One-Year Treasury Bill Oversubscribed by 300%

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Nigeria’s one-year treasury bill was oversubscribed by 300% during the recent Primary Market Auction conducted by the Central Bank of Nigeria (CBN) on Wednesday.

The auction, aimed at rolling over maturing Nigerian Treasury Bills worth N1 trillion, saw unprecedented demand for the one-year T-bill.

Investors offered a total of N1.87 trillion for the N600 billion on offer, indicating a significant appetite for government securities. Out of the total subscriptions, N908.75 billion was allotted, with stop rates set at 19%.

The auction covered maturities across three different tenors: 91-day, 182-day, and 364-day bills, with varying amounts on offer.

While the 91-day bill received N39.90 billion in offers, all were sold, and the 182-day bill garnered N76.83 billion subscriptions, out of which N51.35 billion was allotted.

Managing Director of Arthur Steven Asset Management, Tunde Amolegbe, attributed the remarkable performance of the one-year bills to investor confidence in the current government and its reform initiatives.

He highlighted investors’ preference for higher rates due to signals from the CBN indicating tightening monetary policies amid accelerating inflation.

Experts view the oversubscription as a testament to investors’ trust in the government’s reforms and management of the country’s debt obligations.

The auction reflects a move by the CBN to address liquidity in the financial system while managing Nigeria’s debt obligations effectively.

The significant oversubscription signals robust investor confidence and highlights the attractiveness of Nigerian government securities despite prevailing economic challenges.

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