Connect with us

Business

34% Drop in Global Price Threatens Cashew Exports

Published

on

Nigeria to expand Cashew Nut export by 2020
  • 34% Drop in Global Price Threatens Cashew Exports

The 2018 crash of commodity prices in the global market has had a huge impact on the Nigerian cashew sector. It has forced many exporters to hold excess stocks of raw cashew nuts bought at a time when prices were more favourable, our correspondent gathered.

Price of raw cashew nuts fell by 50 per cent from N600, 000 ($1,666) per metric tonne in April 2018 to about N300, 000 ($833) in July of the same year.

Currently, cashew sells for $1,100 per MT, signalling 34 per cent drop in price from last year.

While speaking during a cashew investment and exhibition forum in Lagos on Wednesday, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, Mr Segun Awolowo, noted that the programme was informed by the persistent downward prices of RCN that had, in turn, resulted in supply glut in producing countries including Nigeria.

Awolowo, who was represented by the Director, Product Development department of the agency, Mr William Ezeagu, stressed the need to increase investment in cashew processing to add value to the cashew value chain.

The forum brought together cashew processors, intending processors and exporting companies planning to venture into cashew processing as well as the relevant government ministries, departments and agencies that have a role to play in the cashew value chain.

Also, development financial institutions were invited to lend support to willing investors in the cashew processing business.

Awolowo noted that Nigeria was currently one of the major exporters of raw cashew nuts in the world but lacked processors.

He said, “It is important to invest in processing. Cashew kernel export is a major opportunity for Nigeria. Nigeria exports RCN whereas 50 per cent processing will create 9,000 jobs with a chain of economic multiplier effects.

“Cashew processing in Africa is not prominent as raw cashew nuts/cashew kernels dominate exports.”

The Managing Director, African Cashew Alliance, Ernest Mintah, said although Africa produced 55 per cent of RCN globally, only five per cent processing was happening on the continent.

By so doing, jobs meant to be created in Africa were being taken to countries where the processing was being done, he said.

He lamented the lack of investment and interest from financial institutions in the sector which he described as capital intensive, adding that at least $2m was required to start a cashew processing business and most banks in Africa were not ready to give out a huge amount of money on a long term basis.

The Vice Chairman, National Cashew Association of Nigeria, Garba kontagora, said sensitisation was needed to enlighten operators and farmers about good agricultural practices in the sector, saying that some farmers removed cashews from trees before they were ripened and even used carbide to force them to ripen.

A cashew processor and Managing Director, Foodpro, Mr Ayo Olajiga, said the cashew processing industry in Nigeria was fraught with challenges ranging from infrastructure to poor quality cashew nuts and lack of local market for processed cashew.

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.

Business

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Published

on

Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

Continue Reading

Business

Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Published

on

Shell

Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

Continue Reading

Business

Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

Published

on

Institute of Chartered Shipbrokers

Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

Exporters have said the recently introduced pre-export requirements by the Central Bank of Nigeria is creating unnecessary bottlenecks for exporters and the movement of goods out of the country.

Exporters, who spoke under the aegis of the Network of Practicing Non-oil Exporters of Nigeria (NPNEN), said the electronic Nigeria Export Proceed Form now required by financial institutions from exporters had come with so many challenges.

Ahmed Rabiu, the President, NPNEN, explained that the new policy had several requirements that often led to delays and loss of income on the part of exporters.

He said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.

“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.

According to them, in the new pre-export requirements, the Central Bank of Nigeria wants an export transaction to be initiated through eNXP processing on the trade monitoring system.

After which exporters are expected to have a pre-shipment inspection agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.

The exporters said the pre-shipment inspection agent was expected to issue a clean Certificate of Inspection while Customs would issue the Single Good Declaration. All these they said takes time and delay goods from leaving the country on time.

Pointing to a recent report, they said about N868 billion worth of goods bound for export were stuck at the ports due to the new policy.

Speaking further Rabiu said, “For example, for the PIA to issue the CCI, the exporter is required to upload a certificate of origin as one of the supporting documents for the eNXP.

“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, the Customs service will not issue the Single Good Declaration.”

He added, “After issuing the SGD, the customs is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.

Continue Reading

Trending