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Boost for Cocoa Entrepreneurs

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Cocoa farm
  • Boost for Cocoa Entrepreneurs

A new cocoa economy may be on the horizon as an international organisation, German International Cooperation (GIZ), is teaching agro entrepreneurs to explore new income possibilities across the cocoa industry. DANIEL ESSIET reports.

An international organisation, German International Cooperation (GIZ), is giving agro entrepreneurs the tools they need to turn cocoa production into a viable business.

With so much money declared by international chocolate makers yearly, the organisation is determined to lift smallholder farmers out of poverty.

Cocoa production accounts for 10 percent of Nigeria’s Gross Domestic Product (GDP) and supports 10 million people, which translates to about 30 per cent of Nigeria ’s population.

GTZ’s long-term aim is to help the farmers become independent members of an agricultural “value chain”.

Across Ondo State, 18,648 cocoa farmers, made up of 7,449 women and 11,199 men in 648 groups across 10 local government areas, have received the Farmer Business School (FBS) training supported by the German Development Cooperation-Sustainable Smallholder Agribusiness (GIZ-SSAB) programme. The core curriculum covers business, good agricultural practice and cooperative skills.

According to GIZ Country Director, Dr. Thomas Kirsch, “the FBS has succeeded in changing the orientation of farmers, who now see farming as a business enterprise that needs to be well planned, to reap the highest returns from the enterprise”.

Farmers have also recorded increase income, production and yield, and group sales and purchases of input.

Speaking at the inauguration of the FBS Farmers Cooperative Multipurpose Union in Akure, Kirsch said the partnership between the organisation and the Federal Ministry of Agriculture and Rural Development has brought business skills training to 89,040 cocoa farmers in six states – Abia, Cross River, Edo, Ekiti, Ondo and Osun.

The trained farmers are coordinating the groups in each local government of the states. The apex body known as Ondo State FBS Farmers’ Cooperative Multipurpose Union Ltd has been inaugurated.

Ondo State FBS Farmers Cooperative Multipurpose Union Chairman, High Chief Ebenezer Adenisimi, said the FBS training had helped farmers to adopt business skills in their farms.

These, he noted, include record keeping of input and output, savings in banks, group purchase of farm input in large scale, group sales of farm produce to off-takers, diversification of production to generate additional income, organising and registering of groups as cooperative societies, accessing financial services from banks, keeping of farm records and putting to use good agricultural practices.

An FBS-trained farmer and leader of Igba-Otun FBS Cooperative Society, Awopeju Village, Mr. Julius Urom, noted that the group has invested in cocoa nursery, fish farming, poultry and piggery to augment their cocoa income.

He said 23 members of the society, who invested in the business with about N20,000, have increased their income base to over N100,000 inone year.

Ondo State Governor, Mr. Rotimi Akeredolu, lauded GIZ for the training which, according to him, led to the formation of the Cooperative Union.

He said: “The farmers’ organisation we are about to inaugurate is a product of intervention from a Development Partner – GIZ, an outfit of the Federal Ministry of Economic Co-operation and Development of Germany.”

The governor, who was represented by his deputy, Mr. Agboola Ajayi, praised the farmers for forming the cooperative society.

This, according to the governor, was “to enable them own the programme and become self-sustaining financially as producer groups and become less dependent on the government”.

The governor announced the donation of N25.75 million for the expansion of the Farmers Business School programme.

He said this was in fulfillment of his pledge to “work with genuine stakeholders in the development of the state”.

The Regional Director, GIZ-SSAB Programme, Dr. Annemarie Matthess, said FBS is innovative. “It fosters the business mind and skills of agricultural producers, be it men or women. After Farmer Business School, the majority of farmer graduates invest in cocoa and food production for more income,” she noted.

Matthess, represented by Ayo Akinola, a Senior Technical Advisor to GIZ-SSAB, said the FBS’s success story in five cocoa producing countries, including Nigeria, informed the expansion of FBS into 15 African countries to reach cocoa, coffee, cassava, rice, cotton, pineapple, milk, olives and tomatoes producers.

She added that the registration of new cooperatives and multipurpose cooperatives unions is “a particular achievement in Nigeria compared to our other partner-countries”.

She noted that of the 95 new multipurpose cooperatives registered between 2011 and 2016 in Ondo, 84 have embedded the acronym “FBS” in their names to show where they come from and what drives them;, adding that networking among the cooperatives and support provided by the state ADP led to the registration of the FBS Farmers Cooperative Multipurpose Union Ltd.

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.

Crude Oil

Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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Dangote Refinery

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Crude Oil

Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Crude Oil - Investors King

Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Crude Oil

Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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