- Cross River Commences Cotton Cultivation, to Make First Harvest November
As part of the backward integration policy of Prof. Ben Ayade’s administration, Cross River State Government is set to roll out 30 tonnes of cotton from its cotton farm by November this year.
The cotton farm situated in Woda community, Yala Local Government Area of the state, is in partnership with Arewa Cottons.
Managing Director, Arewa Cotton, Anibe Achimugu, in a chat with journalists at the farm disclosed that “we will start by allocating parcels of land to the community farmers, train them and hope that they can now pass the knowledge to others.
“Members of the community are already working with us in terms of the casual labour that we need. Also, we are collating the small holders farmers as out growers,” Achimugu said, adding that “the entire cotton value chain has the capacity to generate 10,000 jobs and a lot of that vistas of opportunity will come from Cross River State.”
Achimugu further informed that about 30 thousand tonnes of cotton will be rolled out from the farm in November, a feat, he assured would be a gift to Governor Ayade.
According to him, “this is clearly in line with Governor Ayade’s backward integration policy and the only way to ensure the Calabar Garment Factory Factory operates at optimum capacity.”
Stating that the farm is in line with the world best practices in agriculture as the team is led by an old staff of Institute of Agricultural research, the MD affirmed that they were attracted by the automated garment factory in the state, the complete value chain and the quick cash flow generation as well as the receptive nature of the people to investors.
Nigeria project manager of a Chinese firm, Ruyi Science and Technology group, Wu Xingtao, assured that his group found in Cross River State government a serious partner to do business with, accommodating and determined to develop the state garment factory with required raw materials, hence the need for the partnership.
Xingtao said: “We have plans to build textile factory in Nigeria, that means we need plenty of cotton. We want to get plenty cotton from Nigeria and not to import so we are partnering with Cross River State government to make our textile factory easy.”
Affirming the Chinese firm’s resolve to deliver, Facilitator/Director of the cotton farm project, High Chief Gabriel Umodem, disclosed that “we saw their projection in Australia and Pakistan and that is what we want to repeat here. All of them don’t have the market that we have as the Nigerian market is too much. If you add that to the AGOA initiative, it means they come from China, produce in Nigeria and ship to America, so, Woda is going to be on the world map in terms of expansion.
“We promise that before the Carnival, a trailer load of a minimum of 30 tonnes of raw cotton will arrive the Calabar Garment Factory from our 2,000 hectares farm in Woda, Yala to show the world.
“Our technical partners are proposing a textile industrial park in Calabar that will produce 300 million meters capacity of fabrics per annum and the idea is that, they are overloaded back home, so, the Nigerian quota from their factory will come from Cross River.”
He also assured that “we are not just doing cotton; we will gin, weave and intend to take over the garment factory and run it internationally.”
Oil Holds Near Highest Since 2018 With Global Markets Tightening
Oil held steady near the highest close since 2018, with the global energy crunch set to increase demand for crude as stockpiles fall from the U.S. to China.
Futures in London headed for a third weekly gain. Global onshore crude stocks sank by almost 21 million barrels last week, led by China, according to data analytics firm Kayrros, while U.S. inventories are near a three-year low. The surge in natural gas prices is expected to force some consumers to switch to oil, tightening the market further ahead of the northern hemisphere winter.
China on Friday sold oil to Hengli Petrochemical Co. and a unit of PetroChina Co. in the first auction of crude from its strategic reserves said traders with the knowledge of the matter. Grades sold included Oman, Upper Zakum and Forties.
Oil has rallied recently after a period of Covid-induced demand uncertainty, with some of the world’s largest traders and banks predicting prices may climb further amid the energy crisis. Global crude consumption could rise by an additional 370,000 barrels a day if natural gas costs stay high, according to the Organization of Petroleum Exporting Countries.
“Underpinning the latest bout of price strength is a tightening supply backdrop,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd.
Various underlying oil market gauges are also pointing to a strengthening market. The key spread between Brent futures for December and a year later is near $7, the strongest since 2019. That’s a sign traders are positive about the market outlook.
At the same time, the premium options traders are paying for bearish put options is the smallest since January 2020, another indication that traders are less concerned about a pullback in prices.
Unlocking Investments into Africa’s Renewable Energy Market
The African Energy Guarantee Facility (AEGF) is launching a virtual roadshow of free webinars allowing a deeper understanding of risk issues for renewable energy projects on the continent, and conversations around risk mitigation solutions. The first webinar will take place on Thursday, 23 September from 14:30-16:00 hrs. EAT.
The session will be oriented on how to get more energy projects from the drawing board to the grid. While the energy demand in African economies is expected to nearly double by 2040, and although the potential for renewable energy is 1,000 times larger than the demand, only 2GW out of almost 180GW of this new renewable power were added on the African continent.
Clearly not good enough! To improve the situation within the next two decades, new solutions need to be implemented urgently. De-risking and promoting private sector investments will play a crucial part of it.
In this 90-min interactive session, AEGF partners: the European Investment Bank (EIB), KfW Development Bank, Munich Re and the African Trade Insurance Agency (ATI) will share their experience and provide valuable insights on how they were able to come together and design practical solutions for investors and financiers of green energy projects in Africa aligned with SDG7 objectives.
Across Africa, the complexity of renewable energy projects and their long tenors hold back crucial energy investment. Tailored to the specific needs and risk profiles of sustainable energy projects, AEGF will tackle the investment challenge by providing underwriting expertise and capacity tailored to market needs.
The AEGF will significantly boost private investment in sustainable energy projects, both expanding access to clean energy and contribute to achieving UN Sustainable Development Goals. The scheme supports new private sector investment in eligible renewable energy, energy efficiency and energy access projects in sub-Saharan Africa.
Shell Signs Agreement To Sell Permian Interest For $9.5B to ConocoPhillips
Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals.
“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Upstream Director. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”
Shell’s Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.
The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30 percent of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.
Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.
Naira3 weeks ago
Naira Plunges Further, Exchanges at N530 to U.S Dollar
News2 weeks ago
Taliban Says Men and Women to Study Separately in Gender-Segregated Universities
News1 week ago
Terrorism Sponsors: UAE Names Six Nigerians, 47 Others
Economy1 week ago
Senate Receives Buhari’s Request For $4.054B, €710M, $125M External Borrowing Approval
News3 weeks ago
Buhari Terminates Appointment of Power and Agriculture Ministers
Economy4 weeks ago
Nigeria Economy Grows 5% In Second Quarter, Its Third Consecutive Growth
Banking Sector4 weeks ago
Zenith Bank Launches Intelligent Chatbot, ZiVA
Energy4 weeks ago
NNPC Made A Net Profit of N287B in 2020 – Buhari