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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.

Markets

SEC To Ban Unregistered CMOs From Operating By Month End

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The Securities and Exchange Commission (SEC) says it will stop operations of Capital Market Operators (CMOs) that are yet to renew their registration on May 31, 2021.

This was contained in a circular signed by the management of SEC in Abuja on Monday.

On March 23, SEC had informed the general public and CMOs on the reintroduction of the periodic renewal of registration by operators.

The commission noted that the reintroduction of the registration renewal was due to the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.

“To provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public, to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission,” SEC explained.

According to the circular, the commission said CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.

It explained that CMOs were required to have completed the renewal process on or before April 30, however, the commission said late filing for renewal of registration would only be entertained from May 1 to May 31.

SEC also said that asides from barring the CMOs who failed to comply accordingly, their names would be published on its website and national dailies.

It added that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.

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Crude Oil

A Threat to Revenue As Nigeria’s Largest Importer of Crude, India slash Imports By $39.5B

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Nigeria’s revenue earning capacity has come under threat following the reduction of importation of crude oil by India.

India, Nigeria’s largest crude oil importer, reduced crude oil imports by $39.5bn in April, compared to the same time the previous year, data from India’s Petroleum Planning & Analysis Cell showed.

According to the Indian High Commission in Nigeria, India’s crude oil imports from Nigeria in 2020 amounted to $10.03bn.

This represented 17 percent of Nigeria’s total crude exports for the year according to the Nigerian National Petroleum Corporation, as quoted by OilPrice.com.

As Nigeria’s largest importer of crude oil, lockdowns in India’s major cities from the COVID-19 surge in April had ripple effects on Nigeria’s oil sales.

The NNPC was prompted to drop the official standard price of its main export streams, Bonny Light, Brass River, Erha, and Qua Iboe, by 61-62 cents per barrel below its April 2021 prices. They traded at $0.9, $0.8, $0.65, $0.97 per barrel respectively, below dated Brent, the international benchmark, as Oilprice.com showed.

India had been buying the not-too-light and not-too-heavy Nigerian crudes that suited its refiners.

Reuters reported that the Indian Oil Corporation’s owned refineries were operating at 95 percent capacity in April, down from 100 percent at the same time the previous month.

An official at the IOC was quoted as saying, “If cases continue to rise and curbs are intensified, we may see cuts in refinery runs and lower demand after a month.” Hundreds of seafarers risked being stuck at sea beyond the expiry of their contracts, a large independent crude ship owner reportedly told Bloomberg.

India reportedly bought more American and Canadian oil at the expense of Africa and the Middle East, reducing purchases from members of the Organisation of the Petroleum Exporting Countries to around 2.86 million barrels per day.

This squeezed the group’s share of imports to 72 percent from around 80 percent previously, as India’s refiners were diversifying purchases to boost margins, according to Reuters.

India also plans to increase local crude oil production and reduce import expenses as its population swells, according to Bloomberg.

A deregulation plan by the Narendra Modi-led government to boost national production to 40 million tonnes of crude oil by 2023/2024, an increase of almost eight million tonnes, had already been initiated.

According to Business Today, an Indian paper, the country currently imports 82 percent of its oil needs, which amounted to $87bn in 2019.

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Energy

Invest Africa and DLA Piper Partner to Support ESG Best Practice in African Renewable Energy Projects

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The global law firm, DLA Piper, has partnered with Invest Africa, the leading trade and investment platform for African markets, to support the development of ESG best practice in African renewable energy projects.

Clear Environmental, Social and Governance (ESG) targets and measurements have become an increasingly important part of fundraising as investors seek to align their portfolios with sustainable growth. For a continent boasting ample natural resources, this presents a significant opportunity for Africa’s green energy sector. However, renewable does not always equal sustainable and developing and articulating ESG metrics can pose a significant challenge to projects as they prepare investment rounds.

The project will assemble experts from the worlds of impact investment, development finance and law. Across a series of online meetings, participants will discuss strategies to improve ESG practices in African renewable projects from both a fundraising and operational perspective.

Amongst those speaking in the inaugural session on Thursday 13th May are Cathy Oxby, Chief Commercial Officer, Africa GreencoDr. Valeria Biurrun-Zaumm, Senior Investment Manager, DEGOrli Arav, Managing Director – Facility For Energy Inclusion (FEI) – Lion’s Head Global PartnersBeatrice Nyabira, Partner, DLA Piper Africa, Kenya (IKM Advocates) and Natasha Luther-Jones, Partner, Global Co-Chair of Energy and Natural Resources, International Co-Head, Sustainability and ESG, DLA Piper.

Veronica Bolton-Smith, COO of Invest Africa said, “Africa is particularly vulnerable to the impact of climate change despite contributing very little to global emissions. As the price of renewables fall, they will form an ever more important part of Africa’s electrification. In this context, it is essential that projects be given the tools to apply best practice in ESG not only from an environmental perspective but also in terms of good governance, fair working conditions and contribution to social inclusion. I look forward to working closely with DLA Piper on this important topic.”

Natasha Luther-Jones, Global Co-Chair Energy and Natural Resources and International Co-Head Sustainability and ESG at DLA Piper also commented, “Climate change is one of the biggest challenges companies, and people, face today and when we look at its reduction – whether that be in how we power our devices, what we eat or how we dress, where we live or how we work – all roads come back to the need to increase the amount of accessible, and affordable, clean energy. However, renewable energy companies are not automatically sustainable as sustainability is a focus on all ESG factors, not just environmental. We know the need for renewable energy is only going to continue to rise, and therefore so will the number and size of renewable energy companies. The additional challenge is to make sure they are truly sustainable organisations and that’s what we’re excited about discussing during the webinar.”

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