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Nigeria – South Korea Trade Volume Hit $1.6 Billion in H1 2022

The trade relationship between Nigeria and South Korea appears to be going stronger as the trade volume for the first half of 2022 hits $1.6 billion

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Shipowners

The trade relationship between Nigeria and South Korea appears to be going stronger as the trade volume for the first half of 2022 hits $1.6 billion. This represents a 20% increase from 2021. 

Kim Young-Chea, the Republic of Korea Ambassador to Nigeria said that data for the period put the volume of trade between both countries at $1.6 billion.

He projected that from the current figures of the volume of trade between Korea and Nigeria, which was $2 billion last year following the COVID-19 pandemic, the trade volume is already having a positive outlook. 

Speaking at a media briefing during the visit of the President of Korea-Africa Foundation (KAF) Lyeo Woon-Ki to Nigeria, the South Korean envoy disclosed that at the end of the second quarter of 2022, the volume of trade has increased by 20 percent to $1.6 billion.

Kim further disclosed that plans are underway to increase the bilateral relationship with Nigeria, especially in the area of military hardware as well as education. 

Nigeria is currently battling insecurity,  such military relationships will be of great advantage to the country. 

On his part, KAF President, Woon-Ki said the visit was essential to explore more areas of collaboration between Korea and Nigeria in a bid to positively promote the country and Africa when he returns.

Woon-Ki had earlier visited the Nigeria Association of Chamber of Commerce, Industry, Mines, and Agriculture (NACCIMA). He also visited the Ministry of Trade and Investment and the Nigeria Defence. 

Nigeria – South Korea’s economic relationships dropped after it peaked at $3 billion in 2019. Making it South Korea’s Africa’s largest trading partner. The country however has lost its position to South Africa. 

Kim Young-Chea attributed the drop to the Korean public perspective of Nigeria which is not very positive. 

“But still the public perception about Nigeria is not positive. So Korean businesses and Korean people are very much hesitant to come to Nigeria and open some business in Nigeria. So we are trying to let them know the right way about Nigeria,” he said

 

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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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