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Non-oil Products Accounts for $3.455billion of Nigeria’s Export – NEPC

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NEPC

Ezra Yakusak, the National Executive Director of the Nigeria Export Promotion Council (NEPC) has revealed that between 2019 to 2021, Nigeria exported non-oil products worth $3.455billion.

Ezra revealed this at the Non-oil Export for Survival Agenda of NEPC held in Imo capital city, Owerri.

The Director who spoke through the Owerri, Head of Trade Promotion of NEPC, Anthony Ajuruchi, revealed that it was entirely believable because non-oil exports are gradually becoming Nigeria’s expected option for economic diversification.

Nigeria’s key economic driver is the country’s exportation of oil. However, in the past few years, the country’s oil exportation has reduced to the point where necessity has been placed on the exploration of other ways to grow the country’s economy. And because of the low oil revenue, in 2016, Nigeria had its first full year of recession in 25 years, and also, the impact of low foreign earnings also shrunk non-oil sectors.

Speaking at the NEPC meeting, the director also highlighted that some of the non-oil products exported from Imo between 2016 to 2021 are worth $2.3 million. He disclosed that some of the non-oil products include Egusi, Ogiri, Uziza, bitter cola, palm canal shells, cashew nuts, Ogbono, crayfish, breadfruits among others.

Speaking at the meeting, the director said: “From 2019-2021, non-oil exports statistics as presented by the pre-shipment inspection agents show that Nigeria exported non-oil products worth USD3.455billion in 2021. This figure is higher than that recorded in 2020 (USD2.210billion) representing an increase of 55.88%. Which also gave a positive growth of 35.83%, which also gave a positive growth of 35.83% when compared with the value exported in 2019. In like manner, this address will not be complete if I do not commend Imo exporters who in their little way contributed to the national figure above. From 2016 to 2021, some exporters from Imo state exported our ethnic foods and other manufactured products worth over two million USD 2.3m to countries like Poland, USA, Dubai, Australia, Italy etc.” 

The reliance on the export of oil has served its time in Nigeria as calls for the creation of other resources to drive the economy has grown over the years. By focusing on providing better infrastructure for agriculture, energy, and transport, Nigeria’s revenue can grow beyond the figure by NEPC. Also, with a growing population that is technology-driven, investment in education and technology is another particularly significant way to drive the economy and eventually become one of Nigeria’s major global export to the world that is already advancing technologically.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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