The Central Bank of Nigeria on Thursday said it will collaborate with the Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC) under the Infraco Structure to develop and strategically reposition the Nigeria Commodity Exchange (NCX).
The CBN disclosed this follows the inaugural meeting of the Steering Committee on repositioning the NCX.
Here are the highlights of the Inaugural Meeting of the Steering Committee
- Presidential approval stops the current plan to privatise the Nigeria Commodity Exchange (NCX).
- Central Bank of Nigeria (CBN) to collaborate with Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC), under the Infraco Structure to develop and implement a strategic repositioning plan for the NCX to make it world-class Commodity exchange.
- Formation of a Steering Committee chaired by the #CBN Gov. to include representatives from NSIA, AFC, Federal Ministries of Finance, Budget & National Planning; Industry, Trade & Investment; and Agriculture & Rural Development to oversee implementation plan.
- Revalidation of CBN’s 59.7% majority shareholding stake in NCX giving it the responsibility to reconstitute NCX’s Board, Board Committees and appoint Chairman.
- At least N50billion to be invested through InfraCo structure.
- CBN to engage Nigeria Postal Service on possible utilization of its assets to develop model warehouses across the federation.
- Steering Committee may co-opt any other Ministry, Department and Agency of government to ensure effective implementation of the Strategic Turnaround Plan.
Godwin Emefiele, the Governor of the Central Bank of Nigeria, said “It is against this backdrop that Mr President considered and approved a proposal, for the repositioning of NCX, in order to consolidate on the government’s efforts aimed at strengthening the agriculture value chain, part of which includes connecting farmers to markets beyond their immediate environments.”
500,000 Families Earned $500m Cashew Export, Says FG
The Federal Government on Sunday put the country’s earnings from the export of cashew at $500m and stated that this was supporting about 500,000 families across the country.
Minister of Agriculture and Rural Development, Sabo Nanono, disclosed this in Abuja when he signed a Memorandum of Understanding with the United States Department of Agriculture West Africa PRO-Cashew Project.
The Federal Ministry of Agriculture and Rural Development said in a statement issued in Abuja by an officer in the press department, Okeh Juliet, that the project would be for the development of the cashew agro industry.
The minister said the initiative would improve productivity, expand the national hectarage of the crop and achieve national food and nutrition security, revenue generation, exchange earnings, wealth creation and employment across the country.
“Nanono informed (his guests) that government’s focus is to continuously and sustainably develop the commodity for export because since the 1990s cashew has increased the Nigerian Gross Domestic Domestic ranking as the second non-oil export foreign exchange earner for the country,” the statement stated.
The ministry added, “It (cashew export) generated about $500m for the country in 2018, providing livelihood for about 300,000 to 500,000 families mostly youths and women in Nigeria.”
The minister was further quoted as saying, “Currently, the national production capacity of cashew in 2020 is 260,000 metric tonnes on 100,000 hectares of land. Average yield is 600kg/ha as against the global average of 1.23kg/ha.”
He said the latest initiative would help the ministry achieve an increased production capacity, rising from 260,000MT in 2020 to 350,000MT by 2023 and processing capacity from 15 per cent in 2020 to 35 per cent by 2023.
To kickstart the collaboration with the USDA West Africa PRO-Cashew project, Nanono constituted the Cashew Value Chain Working Committee to look into the problems and challenges affecting the growth of the sub-sector in Nigeria.
He said the committee with the support of USDA West Africa PRO-Cashew Project would develop a 10-year strategic plan for Nigeria cashew project.
The Chief of Party/ Managing Director, USDA West Africa PRO-Cashew Project, Jeans Guay, said the project was a five-year West Africa project that would be implemented by cultivating on new frontiers in agriculture.
Olam, BAT, Eight Others Earned $100m from Exports – CBN
Top 10 exporters in the country exported non-oil goods worth $100.88m in November, according to the Central Bank of Nigeria.
The CBN disclosed this in its latest monthly economic report.
Part of the report read, “Estimates of export proceeds of the top 10 non-oil exporters for November 2020 was $100.88m.
“A disaggregation revealed that Olam Nigeria Limited topped the list with a value of $26.65m or 17.1 per cent of the total, from the export of cocoa beans, cashew nuts, and sesame seeds to Turkey and China.
“The second major non-oil exporter was Starlink Global and Ideal Limited, with an export value of $16.49m (10.6 per cent), from the export of raw cocoa beans, raw cashew nuts, shea nuts and sesame seeds to Malaysia.
“The third major non-oil exporter was British American Tobacco Nigeria Limited at $12.57m (8.0 per cent), realised from the export of cigarettes to Liberia, Guinea, Ghana, Cameroun, Cote d’Ivoire and Niger Republic.
“The fourth major non-oil exporter was Indorama Eleme Fertilizer and Chemicals Limited, with a value of $9.82m (6.3 per cent), realised from the export of urea, fertilisers and agronomy services to Turkey and China.”
It added, “Tulip Cocoa Processing Limited, with export value of $7.66m (4.9 per cent) realised from the export of cocoa liquor, butter and cake to The Netherlands was placed fifth position.
“The sixth, seventh, eighth, ninth and tenth positions were occupied by Mamuda Industries Nigeria Limited, Metal Recycling Industries Limited, AAK Nigeria Oils and Fats Limited, Armajaro Nigeria Limited, and Valency Agro Nigeria Limited, respectively.
“These companies earned $7.21m (4.6 per cent), $6.66m (4.3 per cent), $5.73m (3.7 per cent), $5m (3.2 per cent), and $3.07 million (2.0 per cent), respectively.”
The report said they exported leather, aluminum, vegetable oils and fats, cocoa beans and dry pure prime pressed cocoa butter to India, Saudi Arabia, Malaysia, and United States, respectively.”
We’re Ready to Resume Petrol Importation, Say Marketers
Oil marketers have said they are ready to resume importation of Premium Motor Spirit (petrol) if foreign exchange is made available to them at a competitive rate
The Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, while speaking at a virtual press briefing on Thursday, said the country should move beyond the debate on the arguments for the removal of petrol price subsidies.
“The discussion we should be having today is how best to maximise the benefits of the removal of price controls and subsidies while minimising the adverse effects of this action on our citizens,” he said.
He said as promised by the government, a visible and measured reduction in the cost of governance throughout the polity would bring about savings that can be directed toward improving the livelihood of the average Nigerian.
“This cost optimisation initiative would demonstrate to Nigerians the good faith of the decision-makers in both the public and private sectors.”
Oyebanji stressed the need for domestic refining, saying, “It is necessary that we as a country have some clarity as to when optimal internal refining capacity will return to Nigeria.”
He said, “We need to collectively and as a nation, track the progress of work at all the new refineries under construction across the country to ensure they are delivered timely, efficiently and sustainably.
“If need be, private investment should be brought in to facilitate the rehabilitation and upgrade of the NNPC refineries for the efficient growth of Nigeria’s internal refining capacity and to ensure energy sufficiency for the country.”
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