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NEPC Plans to Review Nigeria’s Export Regulations

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NEPC
  • NEPC Plans to Review Nigeria’s Export Regulations

The Nigerian Export Promotion Council (NEPC) has announced plans to review Nigeria’s export regulations to drive the nation’s non-oil export.

The Executive Director and Chief Executive Officer, NEPC, Olusegun Awolowo, said the move was to ensure export regulations in Nigeria are simple, clear, and more importantly not unreasonably costly to exporters.

Awolowo stated this during NACCIMA/NAWORG export promotion conference in Lagos.

“Regarding Nigeria’s export regulations we are in the process of a comprehensive review of the steps, costs, and efficacy of implementation,” he added.

He stated that Nigeria has come a long way, but still has some work to do, pointing out that exporters are to manage regulations on two levels – starting with export regulations in Nigeria, and ending with import regulations in target markets of its products.

He said almost all oil producing countries around the world have concluded they must diversify their exports, to build truly sustainable economies, stating that at the COP21 Paris climate agreements in 2015, over 195 countries committed to reducing their consumption of fossil fuels.

“We are in complete agreement that our nation’s economic growth must be export driven through export oriented manufacturing and industry. Indeed NACCIMA has been a strategic partner in the formulation of Nigeria’s Zero Oil Plan. The Zero Oil Plan identifies 22 sectors where Nigeria has both comparative and competitive advantage in world trade and the specific international markets to penetrate,” he added.

According to him, “to achieve our goal of rapid export diversification, we must emphasize the importance of the themes of this event – Effective export chain management, and Compliance to regulations. These two factors play an important part in whether we succeed or fail in our export revolution. It is a known fact that Nigeria is blessed with exportable agricultural products, solid minerals, manufacturing products among others.”

He added that efforts are already ongoing by the administration of President Muhammadu Buhari to accelerate the pace at which many of Nigeria’s non-oil sectors can begin to contribute foreign exchange.

“Regarding export chains development, the NEPC boss said Nigeria is not an economic island, and must integrate into pre-existing international supply chains. This leads to three basic conclusions – firstly we must be ready to compete and innovate to get our own share of global trade. This will not come easy and must be deliberately and systematically achieved.”

He stated the need for Nigeria to create a conducive business environment to attract the ongoing international reallocation of production and processing facilities from richer countries to developing markets.

He also said Nigeria must define and implement a comprehensive framework of trade agreements and fiscal instruments to improve its access to global supply chains.

“These conclusions are essential to linking Nigeria’s exports into the global supply chains, and are key elements of the current national exporting agenda. No economy can survive without exports. The NEPC is committed to playing a lead role in accelerating and providing a conducive environment for Nigeria’s effective participation at the international market space with a view to reaping for the economy significant foreign exchange from the global pie. NACCIMA has been a trusted partner for us in the past, and will remain so going forward.”

Also speaking at the event, the National President, NACCIMA, Iyalode Alaba Lawson, said Nigeria has relied on crude oil revenues as its main source of national income and supply of foreign exchange.

She stated the need to jointly work to develop a robust non-oil export trade, restating NACCIMA’s support to promote the growth and competitiveness of businesses by ensuring an enabling environment through policy advocacy and information dissemination.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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