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‘India, Spain, France Bought Oil Worth N1.787tn from Nigeria in 2018’

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  • ‘India, Spain, France Bought Oil Worth N1.787tn from Nigeria in 2018’

The Nigeria Natural Resource Charter (NNRC), which is part of a global initiative designed to help governments and societies effectively harness the opportunities created by natural resources, has disclosed that three countries – India, Spain and France, were the biggest buyers of crude oil produced from Nigeria’s oil fields in the Niger Delta in 2018.

NNRC which promotes policy reform of the Nigerian extractive sector using its 12 economic principles known as ‘precepts’ as a guide, explained in a twitter chat that the three countries bought crude oil worth N764.88 billion; N522.12 billion; and N500.31 billion, respectively from Nigeria in 2018.

Combined, it stated that the monetary value of crude oil bought by the three countries was worth N1.787.31 trillion.

Also, five other countries – South Africa, Netherlands, Indonesia, Brazil and United Kingdom – bought oil worth N1.298.45 trillion, while the United States and Canada bought oil worth N400.66 billion from the country within the same transactional period.

“India is the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Spain with N522.12 billion and France, with N500.31 billion respectively.

“Other buyers are South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively. United States and Canada bought crude oil worth N201.65 billion and N199.01 billion respectively,” said the NNRC on its confirmed official twitter handle.

Similarly, the NNRC has highlighted the need for Nigeria to adopt proper resource management framework in its oil and gas revenues.

It explained at a recent workshop in Lagos that whatever natural resource a country is endowed with, proper management of revenues accrued from it decides the rate of growth, and quality of development of that nation or otherwise.

The workshop which was organised in collaboration with the Nigeria Institute of Legislative and Democratic Studies (NILDS) deliberated on the needs for proper policy that would help Nigerians benefit maximally from its oil and gas resources.

At the workshop, Mr. Israel Aye, who is the founding partner and current managing partner of Primera Africa Legal, explained that the degree of prudency applied to the management of resources and revenues that accrue from natural resource will determine whether it will be a blessing or a curse to the people.

According to him, countries that just mine and trade their natural resource tend towards poverty because its economy will lose the benefits of the value-chain in processing of such commodity, while those who process the commodity before it is exported and also incorporate its use within the economy of that country tend towards prosperity as they enjoy the benefits of the value-chain.

He noted that the oil and gas resources in Nigeria have in the past six decades been poorly managed, which has deprived the country of its full potentials and benefits.

Among several issues that needed to be address for Nigeria to gain maximum potential in the petroleum industry according to a paper presented by Aye, included legislatives obsolescence and uncertainty; unclear terms for domestic refining; cost assessment control; lack of fiscal neutrality; high barriers to entry; zero royalty in deep offshore; non-value adding incentives; windfall from price increase; multiple taxation; insufficient clarity around Production Sharing Contracts (PSC); and declining competitiveness.

He urged Nigeria to learn from countries such as Norway, the state of Texas in the United States, Aberdeen in Scotland, the Gulf States, which he stated seemed to have gotten it right in terms of management of their petroleum resources.

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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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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