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Tackling Unemployment among Youths

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  • Tackling Unemployment among Youths

The Katsina State Songhai initiative is an agricultural scheme that was designed to alleviate and tackle unemployment among the youths and to guarantee food security and self-sufficiency among the general populace.

The scheme situated at Makera village of Dutsin-Ma Local Government Area is to provide training on modern techniques of both production and processing of cash crops and other crops including maize, sorghum, millet, beans, cassava, rice, wheat and different kinds of fruits by adding value to them. This, it is believed, will be a base for earning more income from agriculture.

Three selected farms were established at Zobe, Mairuwa and the Sabke dam on over 5000 hectares of land. Structures were built and instructors deployed to teach and guide prospective farmers towards embracing agriculture as a business by the previous administrations.

The motive of the scheme then, also centred on honey production, honey processing, honey packaging, fisheries production, fishery management, poultry and livestock production, animal husbandry, crops and cereals production.

Other areas of the initiative included training on modern techniques of breeding and rearing of different animals, including sheep, cows, goats, guinea fowls, grass cutter and turkey.

The scheme which was designed in such a way that over 50,000 youths all-year round are to be engaged in agriculture-related activities to earn a living has Conference Hall, accommodation, restaurant, staff quarters and students’ hotels was established by the Former Governor of the state, Ibrahim Shema in 2014.

The project, which draws its inspiration from the Songhai Regional centre in Porto Novo, Benin Republic, was said to gulfed N3.4 billion by the previous administration.

No fewer than 60 youths were said to be sponsored by the previous administration to Port Novo in Benin Republic to undertake training from the mother institute, serving as the beginning of the seed it sowed towards using agriculture to address peculiar challenges of the state.

Unfortunately, the project which functioned only for some years was, however, abandoned by the present administration of Governor Aminu Bello Masari.

Masari, who visited the site of the project when he assumed office as the governor of the state had said, “Government cannot maintain the place because it has no enough money for such capital-intensive project. There are some facilities that are not supposed to be here.”

Interestingly, however, the Dangote Group, recently signed a Memorandum of Understanding (MoU) with the state government to take over the project for the production of tomatoes within the period of 10 years and is expected to cover other agricultural activities.

The hitherto comatose facility will be maximally utilised as the business mogul intends to inject N500 million this year, take over the staff, recruit additional staff and commence planting of tomato in preparation for the would-be Dangote world largest tomato production and processing plant.

The company, which is currently operating out-grower scheme in rice production in a number of states, has Africa’s largest sugar refinery in Lagos and a sugar cane plantation in Numan, Adamawa State, among others.

The project, according to the President of the Group, Alhaji Aliko Dangote, will generate employment opportunity for the teeming unemployed youths in the state and bring about a complete economic turn-around for the state and its neighbouring state.

The N500 million pact would see the company producing tomatoes and other agricultural products on 10,000hectares of land at Makera in Dutsin-Ma Local Government Area through an out-grower scheme.

He said, the initiative would succeed in mass production of tomatoes with a view to boosting food production, enhancing the economic position of the state, thereby reducing unemployment and engendering industrialisation.

According to Aliko Dangote, “Today is one of my happiest day to see that we have finally concluded and signed this agreement so that we can really move into action. We are not only going to do tomatoes here as we promised. We want to make people of Katsina state to used their arable land and put it into use.

“We also want to use out-growers to support them and make sure that this tomatoes project become a reality. Not only a reality but for it to become a bedrock of doing tomatoes in Nigeria.

“We give the state government all the support that is needed from an entrepreneur. We will do our best to make you proud as a governor of this state”, Dangote added.

Dangote, who advocated for the sustenance of the scheme in view of its importance in nation-building, said the initiative would provide an avenue to shift attention to agriculture from dependence on oil.

According to Dangote, “Apart from tomatoes, we will do other things here since you have provided us the enabling environment and we will do our utmost best to make you proud as governor of Katsina State.”

In his remarks, Masari said the project would not only be for the Katsina people alone but for the entire West African region.

Masari said, “The facility will serve the people of West Africa and the entire humanity. We are happy as a government that we have brought something that will add value to the lives of the people here and to humanity in general.

“The project is not only about tomatoes as other businesses and institutions will spring up and we believe that cultivating over 10,000 hectares of land will provide not only for Katsina but for the whole of the West Africa region.

“This government is investor-friendly and we will do whatever it takes to make sure it succeeds as we want to put something in place that will outlive all of us and evidence that we have added value to the lives of our people and humanity in general.

“The purpose of life is about how we can add value and bring benefit to others. Those who do that are the best among mankind and Alhaji Aliko Dangote is one of them,” the governor said.

A resident of the area, Mallam Sani Dutsin-Ma said he was elated about the huge investment coming to the state.
He disclosed that the MoU would be a game changer for Katsina State economy and Nigeria as a whole.

Dutsin-Ma said, “The deal with Dangote Group would help grow the agricultural sector and create direct and indirect jobs in the state”.

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 Rebound After Three Days of Losses

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Crude oil - Investors King

After enduring a three-day decline, oil prices recovered on Thursday, offering a glimmer of hope to investors amid a volatile market landscape.

The rebound was fueled by a combination of factors ranging from geopolitical developments to supply concerns.

Brent crude oil, against which Nigeria oil is priced, surged by 79 cents, or 0.95% to $84.23 a barrel while U.S. West Texas Intermediate (WTI) crude climbed 69 cents, or 0.87% to $79.69 per barrel.

This turnaround came on the heels of a significant downturn that had pushed prices to their lowest levels since mid-March.

The recent slump in oil prices was primarily attributed to a confluence of factors, including the U.S. Federal Reserve’s decision to maintain interest rates and concerns surrounding stubborn inflation, which could potentially dampen economic growth and limit oil demand.

Also, unexpected data from the Energy Information Administration (EIA) revealing a substantial increase in U.S. crude inventories added further pressure on oil prices.

“The updated inventory statistics were probably the most salient price driver over the course of yesterday’s trading session,” said Tamas Varga, an analyst at PVM.

Crude inventories surged by 7.3 million barrels to 460.9 million barrels, significantly exceeding analysts’ expectations and casting a shadow over market sentiment.

However, the tide began to turn as ceasefire talks between Israel and Hamas gained traction, offering a glimmer of hope for stability in the volatile Middle East region.

The prospect of a ceasefire agreement, spearheaded by Egypt, injected optimism into the market, offsetting concerns surrounding geopolitical tensions.

“As the impact of the U.S. crude stock build and the Fed signaling higher-for-longer rates is close to being fully baked in, attention will turn towards the outcome of the Gaza talks,” noted Vandana Hari, founder of Vanda Insights.

The potential for a resolution in the Israel-Hamas conflict provided a ray of hope, contributing to the positive momentum in oil markets.

Despite the optimism surrounding ceasefire talks, tensions in the Middle East remain palpable, with Israeli Prime Minister Benjamin Netanyahu reiterating plans for a military offensive in the southern Gaza city of Rafah.

The precarious geopolitical climate continues to underpin volatility in oil markets, reminding investors of the inherent risks associated with the commodity.

In addition to geopolitical developments, speculation regarding U.S. government buying for strategic reserves added further support to oil prices.

With the U.S. expressing intentions to replenish the Strategic Petroleum Reserve (SPR) at prices below $79 a barrel, market participants closely monitored price movements, anticipating potential intervention to stabilize prices.

“The oil market was supported by speculation that if WTI falls below $79, the U.S. will move to build up its strategic reserves,” highlighted Hiroyuki Kikukawa, president of NS Trading, owned by Nissan Securities.

As oil markets navigate a complex web of geopolitical uncertainties and supply dynamics, the recent rebound underscores the resilience of the commodity in the face of adversity.

While challenges persist, the renewed optimism offers a ray of hope for stability and growth in the oil sector, providing investors with a semblance of confidence amidst a volatile landscape.

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Gold

Gold Soars as Fed Signals Patience

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Gold emerged as a star performer as the Federal Reserve adopted a more patient stance, sending the precious metal soaring to new heights.

Amidst a backdrop of uncertainty, gold’s ascent mirrored investors’ appetite for safe-haven assets and reflected their interpretation of the central bank’s cautious approach.

Following the Fed’s decision to maintain interest rates at their current levels, gold prices surged toward $2,330 an ounce in early Asian trade, building on a 1.5% gain from the previous session – the most significant one-day increase since mid-April.

The dovish tone struck by Fed Chair Jerome Powell during the announcement provided the impetus for gold’s rally, as he downplayed the prospects of imminent rate hikes while underscoring the need for further evidence of cooling inflation before considering adjustments to borrowing costs.

This tempered outlook from the Fed, which emphasized patience and data dependence, bolstered gold’s appeal as a hedge against inflation and economic uncertainty.

Investors interpreted the central bank’s stance as a signal of continued support for accommodative monetary policies, providing a tailwind for the precious metal.

Simultaneously, the Japanese yen surged more than 3% against the dollar, sparking speculation of intervention by Japanese authorities to support the currency.

This move further weakened the dollar, enhancing the attractiveness of gold to investors seeking refuge from currency volatility.

Gold’s ascent in recent months has been underpinned by a confluence of factors, including robust central bank purchases, strong demand from Asian markets – particularly China – and geopolitical tensions ranging from conflicts in Ukraine to instability in the Middle East.

These dynamics have propelled gold’s price upwards by approximately 13% this year, culminating in a record high last month.

At 9:07 a.m. in Singapore, spot gold was up 0.3% to $2,326.03 an ounce, with silver also experiencing gains as it rose towards $27 an ounce.

The Bloomberg Dollar Spot Index concurrently fell by 0.3%, further underscoring the inverse relationship between the dollar’s strength and gold’s allure.

However, amidst the fervor surrounding gold’s surge, palladium found itself trading below platinum after dipping below its sister metal for the first time since February.

The erosion of palladium’s long-standing premium was attributed to a pessimistic outlook for demand in gasoline-powered cars, highlighting the nuanced dynamics within the precious metals market.

As gold continues its upward trajectory, investors remain attuned to evolving macroeconomic indicators and central bank policy shifts, navigating a landscape defined by uncertainty and volatility.

In this environment, the allure of gold as a safe-haven asset is likely to endure, providing solace to investors seeking stability amidst turbulent times.

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Crude Oil

Oil Prices Steady as Israel-Hamas Ceasefire Talks Offer Hope, Red Sea Attacks Persist

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Amidst geopolitical tensions and ongoing conflicts, oil prices remained relatively stable as hopes for a ceasefire between Israel and Hamas emerged, while attacks in the Red Sea continued to escalate.

Brent crude oil, against which Nigerian oil is priced, saw a modest rise of 27 cents to $88.67 a barrel while U.S. West Texas Intermediate crude oil gained 30 cents to $82.93 a barrel.

The optimism stems from negotiations between Israel and Hamas with talks in Cairo aiming to broker a potential ceasefire.

Despite these diplomatic efforts, attacks in the Red Sea by Yemen’s Houthis persist, raising concerns about potential disruptions to oil supply routes.

Vandana Hari, founder of Vanda Insights, emphasized the importance of a concrete agreement to drive market sentiment, stating that the oil market awaits a finalized deal between the conflicting parties.

Meanwhile, investor focus remains on the upcoming U.S. Federal Reserve’s policy review, particularly in light of persistent inflationary pressures.

Market expectations for any rate adjustments have been pushed out due to stubborn inflation, potentially bolstering the U.S. dollar and impacting oil demand.

Concerns over demand also weigh on sentiment, with ANZ analysts noting a decline in premiums for diesel and heating oil compared to crude oil, signaling subdued demand prospects.

As geopolitical uncertainties persist and market dynamics evolve, observers closely monitor developments in both the Middle East and global economic policies for their potential impact on oil prices and market stability.

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