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Brexit: Commonwealth, NEPC to Work on Impact on Nigeria

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  • Brexit: Commonwealth, NEPC to Work on Impact on Nigeria

The Executive Secretary/Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), Mr. Segun Awolowo, wednesday said the Secretary General of the Commonwealth, Patricia Scotland, has agreed to work with the council on a trade paper on the challenges and opportunities of the Brexit on Nigeria.

Speaking on the impact of Brexit on Nigeria on ARISE TV in Abuja, Awolowo said since the Britain has triggered the Brexit process, it means both opportunities and challenges.

“There are two words to describe this which is opportunities and challenges. Of the two countries, Britain is a big economy in the world and Nigeria is the 24th largest economy in the world and with the colonial background, we have a strong relationship with the United Kingdom (UK). “Nonetheless, trading with a big economic block in base is much better to do but even that has its challenges.

“For Nigeria, we tried negotiating a very complex free trade agreement that is the partnership agreement with the EU and I think two other nations in West Africa but have not signed yet. So of course it is easier negotiating with a single country so that is the immediate advantage in that and when it is a partner, historically because we have about two million Nigerians in Diaspora so it is a big market for export and services both in ICT and financial sector. So that is why I would say there are opportunities and challenges but even with that, we don’t know how this is going to extend to us,” he said.

According to him, whatever the outcome is, Nigeria is going to trade with Britain, stressing, “It is just going to be on how we direct our trade. And I think Nigeria is very important we are their second largest trading partner in Africa and they are our third largest trading partner. So we are going to trade anyway.”

Speaking on the trade deficit with UK, Awolowo explained that Nigeria has been trading only one commodity over the years and that is oil.

“We are just in a position of a serious attempt to diversify the economy. Nigeria has released its Nigerian economic recovery and growth plan which is what we are going to use to get us out of this recession. And on the background of that is the strong emphasis on export because we believe once we are able to trade other things than oil then we would have a balance in our trade deficit all across the world. So Britain is very key. They are our largest foreign direct investment partner and this the time we are urging them to invest in manufacturing and industry in Nigeria. So that market is very big and very key,” he said.

Meanwhile, a chemist and pharmacist, Mr. Sam Ohuabunwa, has called for the issuance of new standards that will control the level of benzene in food products in the country, the former Chief Executive Officer of Neimeth Pharmaceuticals Plc, who made call against backdrop of controversy Fanta and Coke.

Benzene in soft drinks is a public health concern and has caused significant outcry among environmental and health advocates.

Speaking on ARISE TV, Ohuabunwa said scientific fact available showed that this reaction does occur but might not be a such a great harzards.

“However, most countries, have gone ahead to limit the benzene content in soft drinks and any liquid. They try and accept standards, I believe that is the issue in our country and believe we need to set standards local manufacturers can comply with,” he said.

He called on the Nigerian Bottling Company to be transparent by coming out with more information on its products, adding that the company should also comply with what they have been asked to.

He disclosed that benzene is present in the water we drink.

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.

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

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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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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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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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