Connect with us

Business

Customs Moves to Reform Import, Export Processes

Published

on

Nigeria Customs Service
  • Customs Moves to Reform Import, Export Processes

In a bid to ensure trade facilitation at the nation’s ports and all entry points in line with the federal government’s ease of doing business in Nigeria agenda, the Nigeria Customs Service (NCS) has taken steps to modify import and export processes.

As part of the reform, the customs command has ameliorated cargo examination stress for importers by reducing announced cargo placement notice for examination given to terminal operators from 24hours to 12 hours.

This means that after customs agrees with all parties on a suitable time for physical examination, terminal operators now require only a 12-hour notice to place the cargo for examination.

Also, the NCS command said it would now schedule and coordinate the mandatory joint examinations and sign-off form to ensure that there is only one point of contact between importers and officials.

This move, top industry players believe, is expected to contribute in eradicating various delays associated with importation and export in Nigeria.

The NCS spokesman, Joseph Attah, in a statement, expressed the service resolve to reform import and export processes in Nigeria.

Attah, who listed some African countries where significant progresses have been made in the processes and duration for export said various causes of hitches, which he called bottlenecks in the trade process are being removed to achieve seamless transactions.

Customs have taken the burden of reaching out to agencies from importers as this has been identified as part of the challenges confronting the system.

”Before this intervention, the burden was on importers to reach out to all relevant agencies and the Terminal Operator to schedule a suitable time for the joint examination of cargo. We have however decided to take this tedious process off the backs of the importers and coordinate same,”Attah said.

He said Nigeria ranked 14th out of 15 Economic Community of West African States( ECOWAS) economies and 182nd out of 190 economies worldwide in the ‘Trade Across Borders’ indicator on the most recent World Bank “Doing Business” Rankings.

“Factors responsible for this low ranking, according to some port users, includes delay in export processes in Nigeria which takes up to two weeks, compared to some other countries like Kenya, it takes four days to complete same process. While Nigeria hitherto required up to 14 documents for imports compared to just five in Rwanda, government reduced the documentation recently to eight,” he said.

Attah said Nigeria will stay on the path of this reduction until it achieves a standard comparable with its peers on the continent.

He added: ”Nigeria’s desire to restore growth through economic diversification, as enunciated in the recently released Economic Growth and Recovery Plan (EGRP) of the Federal Government requires a holistic reformist approach. Reforming procedures is required to stimulate important sectors of the Nigerian economy like agriculture and manufacturing, which contribute 23.1 and 13.3 per cent respectively to its Gross Domestic Product (GDP).”

Attah said: ”As a key stakeholder in the FG’s quest to make businesses work, the NCS joined other MDAs in making commitments towards delivering reforms that would progressively make it easier for businesses in Nigeria to start and thrive. Our commitments at the NCS are focused on “Trade Across Borders,” where a target was set to reduce import and export time by up to 50 percent, and ensure that import procedures adhere to international standards.”

Under a newly released revised guideline from the Federal Ministry of Finance, Shipping Lines are required to electronically transmit advanced manifest of their cargoes to the NSC and the Nigerian Ports Authority (NPA) as soon as the vessel departs the last port of call. This is to ensure enough time for risk assessment, profiling and optimised placement of cargo.

Attah said Customs Officers will circulate the cargo manifests to other examination agencies and the Terminal Operators as soon as they are received from the Shipping Line.

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.

Continue Reading
Comments

Company News

Nigeria’s Dangote Refinery Breaks Into Asian Market with LSSR Shipment

Published

on

Aliko Dangote - Investors King

In a historic move, Dangote Refinery is set to ship low-sulfur straight-run fuel oil (LSSR) from Nigeria to Singapore this week, its entry into the Asian market.

This development represents a significant milestone for the refinery, which began operations in January following a $20 billion investment.

According to ship tracking data and market sources, the refinery will initiate a new trade route from Nigeria to Asia, a region that consistently demands low-sulfur fuel oil for ship refueling at Singapore, the world’s largest bunker hub.

The Glencore-chartered vessel, Front Brage, will deliver approximately 124,000 metric tons (787,400 barrels) of LSSR to Singapore, with the shipment expected to arrive on Wednesday.

The Dangote Refinery, with a processing capacity of up to 650,000 barrels of products per day, is poised to become the largest refinery in Africa and Europe once it reaches full capacity.

Since March, the refinery has increased its LSSR exports, primarily sending cargoes to the Americas and Europe, as reported by ship tracking data from Kpler and Vortexa.

“This first shipment to Asia marks a new chapter in Dangote Refinery’s expansion strategy,” said a market analyst. “Breaking into the Asian market underscores the refinery’s growing influence and its capability to meet diverse global fuel demands.”

Market sources suggest that the cargo was redirected to Asia due to weaker demand in Europe. Data from LSEG indicates that the east-west spread for front-month 0.5 percent LSFO, reflecting the price difference between these regions, stayed above $40 per ton this week.

Dangote’s LSSR cargoes are priced against Rotterdam’s 0.5 percent LSFO quotes on a free-on-board basis, although the specific pricing differential for this shipment was not disclosed by market sources.

This pioneering shipment is the beginning of a series of exports to Asia. Another LSSR shipment from the Dangote refinery, containing around 157,000 tons, is expected to reach Singapore in July aboard the vessel Stena Suede, based on ship tracking data.

LSSR is typically blended with other fuels to create low-sulfur fuel oil (LSFO) for bunkering or used as feedstock in various refinery processes.

This export initiative not only diversifies Dangote Refinery’s market reach but also enhances Nigeria’s position in the global energy market.

In February, Dangote began exporting oil products and started purchasing crude oil, mainly from the Nigerian National Petroleum Company (NNPC) Ltd, in December 2023.

The refinery’s successful entry into the Asian market is anticipated to drive further growth and establish new trade relationships, reinforcing its status as a key player in the global oil industry.

Related News:

  • Big oil buyers’ shift to electric vehicles threatens Nigeria’s petrodollars
  • More naira, less value as inflation erodes N7.6tn consumer spending
  • Seasonality, high transport costs responsible for tomato price surge, says expert

This landmark export not only demonstrates Dangote Refinery’s operational capabilities but also signals Nigeria’s expanding influence in the global energy sector. As the refinery continues to innovate and expand, it is well-positioned to meet the increasing global demand for cleaner, more efficient fuels.

Continue Reading

Business

Nigerian Refiners Pursue Afreximbank Financing Amid $18bn Funding Plan

Published

on

Iran oil

Investors in Nigeria’s modular refineries are actively engaging with the African Export-Import Bank (Afreximbank) to secure a portion of the $18 billion fund earmarked by the bank for the development of refineries in Nigeria and other African nations.

This initiative follows the successful financial backing provided by Afreximbank to the $19 billion Dangote Petroleum Refinery, which has commenced production of refined petroleum products for both domestic use and export.

Sources within the modular refining sector confirmed that discussions are underway, with significant interest from Clairgold Refinery and Shinjin Petro Chemicals.

Both companies have initiated talks with Afreximbank officials to source funds for their refinery projects in Nigeria.

However, the modular refinery operators have expressed concerns regarding the feedstock supply for their plants, which is a critical guarantee required by financial institutions for funding.

The operators, represented by the Crude Oil Refinery Owners Association of Nigeria (CORAN), praised Afreximbank’s support for the Dangote Petroleum Refinery during its construction phase.

“We are in active discussions with Afreximbank, although no modular refinery has received financing from the bank yet,” said Eche Idoko, Publicity Secretary of CORAN. “Shinjin Petro Chemicals, which is constructing a 3,000 barrels per day plant, and Clairgold Modular Refineries are among those in talks with Afreximbank and the Bank of Industry. We are hopeful for positive outcomes.”

Afreximbank’s commitment to supporting refinery construction was reiterated at the 2024 Afreximbank annual meetings in Nassau, The Bahamas.

The bank’s president, Benedict Oramah, highlighted the strategic objective to refine 50% of Africa’s crude oil production within the continent.

Oramah emphasized the bank’s role in the successful financing of the Dangote refinery as a model for future projects.

“We are proud to be associated with these transformational projects, which demonstrate the critical role of African capital in financing our development,” Oramah stated. “Our broader strategy includes supporting the construction of a new refinery in Cabinda, Angola, and refurbishing the Port Harcourt refinery in Nigeria. Our goal is to ensure that at least 50% of the crude oil produced in the Gulf of Guinea is refined in Africa.”

Despite the optimism, modular refinery operators have identified several challenges in accessing these funds.

These include securing guarantees related to feedstock supply and completing necessary engineering designs.

“The issue of feedstock remains a significant hurdle, as financiers require assurances on this front,” Idoko noted. “We are optimistic that Afreximbank will address these concerns given their recent declaration to support modular refineries.”

The ongoing discussions come at a time when Nigeria is grappling with its highest inflation rate in 28 years, driven largely by food costs.

The economic strain is exacerbating poverty and reducing the purchasing power of the nation’s 231 million residents, 60% of whom are classified as multidimensionally poor.

Modular refineries, which require significantly less capital investment compared to traditional full-scale refineries, are seen as a viable solution to boost local refining capacity and reduce dependence on imported refined petroleum products.

However, the operators have raised alarms about systemic issues within the oil sector that impede in-country refining, echoing concerns voiced by Aliko Dangote regarding the influence of entrenched interests.

As negotiations with Afreximbank continue, the modular refinery operators remain cautiously optimistic, hoping that the bank’s support will pave the way for enhanced domestic refining capabilities and contribute to Nigeria’s economic resilience.

Continue Reading

Company News

From 1999 IPO to AI Titan: Nvidia’s 591,078% Return on Investment

Published

on

Nvidia Corp. has transformed from a fledgling chipmaker to the world’s most valuable company, boasting an astronomical total return of 591,078% since its initial public offering (IPO) in 1999.

This unparalleled growth underscores the company’s pivotal role in the technological revolution, particularly in the realms of graphics processing and artificial intelligence (AI).

Nvidia’s ascent to the top of the market culminated on Tuesday, as it unseated Microsoft Corp. to claim the title of the world’s most valuable company, with a market capitalization of $3.34 trillion.

The company, which debuted on the Nasdaq stock exchange at a modest valuation, has added over $2 trillion to its market cap this year alone, driven by surging demand for its cutting-edge AI chips.

The Early Years: Laying the Foundation

When Nvidia launched its IPO in 1999, the tech landscape was vastly different. Intel dominated semiconductors, and Nvidia was a relatively unknown entity.

However, the company’s strategic focus on developing advanced graphics processing units (GPUs) quickly set it apart. By securing deals to supply GPUs for popular video-game consoles like Microsoft’s Xbox and Sony’s PlayStation, Nvidia established itself as a key player in the gaming industry.

Overcoming Challenges: Litigation and Competition

The path to success was not without obstacles. In the early 2000s, Nvidia faced significant challenges, including a major legal dispute with Intel that temporarily pushed it out of a crucial market segment. The stock also endured three separate annual declines of over 50%, testing the resolve of its investors.

However, Nvidia’s commitment to innovation and strategic foresight kept it moving forward. In 2012, the company introduced graphics chips for servers in data centers, opening a new and lucrative market. Although initial sales were slow, this move laid the groundwork for future growth in high-performance computing.

The AI Revolution: A New Era of Growth

Nvidia’s fortunes took a dramatic turn with the advent of AI. The company’s GPUs, initially designed for rendering video game graphics, proved to be exceptionally well-suited for the parallel processing tasks required in AI and machine learning. This versatility positioned Nvidia as a leader in the AI hardware market.

The release of OpenAI’s ChatGPT in late 2022 was a pivotal moment. As interest in AI applications skyrocketed, so did the demand for Nvidia’s chips. The company’s revenue from data centers, driven by AI-related sales, began to eclipse its traditional gaming revenue. By the first quarter of 2023, Nvidia’s earnings report revealed a jaw-dropping surge in sales, far exceeding Wall Street’s expectations.

A Test of Staying Power

Despite its meteoric rise, Nvidia faces ongoing challenges. Sustaining its current market position will require continued innovation and substantial investment in AI infrastructure. The company’s future success hinges on the broader adoption of AI technologies and the ability of its customers to generate significant returns on their investments in AI hardware.

Vision and Leadership: The Jensen Huang Effect

Much of Nvidia’s success can be attributed to the visionary leadership of co-founder and CEO Jensen Huang. His foresight in steering the company towards “accelerated computing” has been instrumental in Nvidia’s dominance. Under Huang’s guidance, Nvidia has consistently been at the forefront of technological advancements, catching every wave of innovation in hardware.

The Road Ahead

As Nvidia continues to navigate the complexities of the global tech market, its story serves as a testament to the power of strategic vision and innovation. With AI set to revolutionize industries from healthcare to automotive, Nvidia’s role as a key enabler of this transformation positions it for continued success.

Investors and analysts alike will be watching closely to see if Nvidia can maintain its lead in the fiercely competitive AI market. If its past performance is any indication, the future looks promising for this once-modest chipmaker turned AI titan.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending