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Nigeria’s Domestic Fish Production Gains Traction on Declining Piracy

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  • Nigeria’s Domestic Fish Production Gains Traction on Declining Piracy

Following the measures put in place by the federal government to tackle piracy and investment in agriculture, local fish production has continued to witness a significant boost, growing by 0.8 per cent at the end of last year.

The agriculture sector continues to play an important role in Nigeria’s economy and is a key part of the federal government’s plans to attain sustainable economic growth. Within the sector, the fisheries segment delivered a growth rate of 5.9 per cent year-on-year (y/y) in 2015.

However, in second quarter (Q2) 2016, it contracted for the first time in over five years. This, analysts said was not surprising given that the country’s macroeconomic challenges resulted in a general slowdown across all sectors.

Meanwhile, the latest gross domestic products (GDP) figures showed that fisheries have recovered as it grew by 0.8 per cent year-on-year(y/y). Data from the Central Bank of Nigeria (CBN) showed that artisanal production accounted for around 76.8 per cent of the 1.04 million tonnes of fish produced in 2015.

Industrial (trawling) fish farming accounted for only eight per cent of the total, indicating that commercial fisheries are still largely untapped. A recent data from the Ministry of Agriculture and Rural Development revealed that annual national supply has increased to 1.1 million metric tonnes (mmt) from 800 metric tonnes.

The supply gap has, however, reduced slightly to 1.0 million metric tonnes.

“Based on our estimates, Nigeria’s annual fish import bill has now declined by 42 per cent. We attribute the boost in annual fish production to the progress made as a result of the Federal Government of Nigeria (FGN) import substitution policy.

“To assist with improving fish farming activities, the CBN provided a N2 billion long term facility under the Commercial Agriculture Credit Scheme to Triton Aqua (an Indian aquaculture firm operating in Nigeria). We understand that Triton Aqua has partnered with a few state governments to provide the necessary technology that would encourage aquaculture. The forward steps towards self-sufficiency in fisheries are laudable. However, structural issues such as power shortages, poor access to finance and challenges with logistics amongst others still exist,” said analysts at FBN Quest.

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dakuku Peterside, recently said Nigeria was targeting 100 piracy-free 2017.

He said Nigeria hopes to move to 90 per cent in international security compliance rating after the visit of the Coast Guards (United States) to inspect Nigeria’s systems.

Explaining the new security ratings of the agency, Peterside said the rating had moved from nine per cent before the new board came in to 97 per cent at the end of 2016.

Peterside, who was in Port Harcourt as part of a tour of NIMASA facilities in the zone (Rivers, Bayelsa, Akwa Ibom and Cross River), said the feat had shot Nigeria up to one of the top four nations in Africa.

“NIMASA is determined and hopes to soar to at least 90 per cent. Cases of piracy reduced in 2016 and so far in 2017, only one attempt is recorded and it was foiled too by NIMASA and Navy vigilance. We want to hit 100 per cent piracy-free year by end of 2017,” he said.

He admitted that the change of fortunes in NIMASA with high security rating had attracted more investors into Nigeria’s maritime sector and boosted the federal government’s revenue base as well as the GDP of the nation in 2016.

“The only regret is that, though we increase in naira revenue but in terms of dollars, it gets lower due to depreciating foreign exchange rate,” he said.

“Surveillance, we have installed gadgets that make us see all our coastal waters at the same time. This helps us to see whatever is happening. Intelligence gathering, we have increased our intelligence gathering efforts and built a mechanism to monitor things,” he said.

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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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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