- World Bank to Inject $200m into Nigeria’s Agric Sector
The World Bank is injecting $200m into Nigeria’s agricultural sector to revitalise its livestock sub-sector.
The World Bank FADAMA Team Leader, Dr Adetunji Oredipe, said on Wednesday that the World Bank was working in tandem with the Federal Government to formulate the intervention policy.
He added that discussions with the government team on the modalities for the project execution had also started.
Oredipe said that essentially, the bank would revive the livestock sub-sector with critical intervention in the areas of productivity and access to markets.
“Productivity depends on a number of factors as it concerns the feeds which are very critical; the major problem of livestock production in the country is dearth of high-quality animal feeds, as the feeds determine what you get from your livestock.
“World Bank is also looking at critical health aspects of the livestock industry, the veterinary aspects, as we are merging it with the surveillance,’’ he said.
Besides, Oredipe said that the World Bank had approved $25m to revamp the animal health sector.
He said that the funds would be released via a World Bank regional project, adding that more than $90m had been earmarked for Nigeria.
“The initial $25m has been approved by the bank, and the project will take off as soon as the Federal government sorts out the issue with the National Assembly,’’ he said.
Oredipe also said that that the bank was working on developing key value chains in livestock, poultry and bee farming.
“The bank, under its value chains approach programme, has selected four value chains in crops and extended it to cover livestock, while developing it from the beginning to the end.
“Under the approach, we are looking at financing, breeding and processing issues as well as the industrial uses; so when you pick one you follow it till it becomes a success story,’’ he said.
Oredipe said that the bank was also making available a $2.1m grant to examine and develop the business environment in the livestock sub-sector.
He, however, said that there were series of reforms that would facilitate the efforts of livestock owners to change the business environment.
Oredipe said that the reform programme would be executed under the Livestock Micro Reforms Project, adding that the bank and government officials were now looking at the policy and business environment, with a view to perfecting them for the intervention.
He said that the World Bank’s focus on the livestock sub-sector was based on the request of President Muhammadu Buhari’s administration.
“The administration made it clear that they want the bank to critically look into the livestock sector because not much is going on in that sector,’’ he added.
He said that the livestock sub-sector accounted for a sizeable part of Nigeria’s Gross Domestic Product providing income, employment, food, farm energy, manure, fuel and transport.
Oredipe said that in the past, the livestock sub-sector was a major source of government revenue, adding that government was, therefore, making efforts to restore the lost glory of the sub-sector.
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.”
Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin
Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges
Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.
The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.
The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.
“We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.
Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.
Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.
In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.
The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.
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