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Cross River Opens Garment Factory, Employs 300

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The Cross River State Governor, Prof. Ben Ayade, on Thursday approved the employment of 300 applicants as workers in the Calabar Garment Factory built by his administration.

The governor announced the employment after applicants from the southern senatorial districts of the state had participated in a job screening exercise by the garment factory.

In a statement made available to our correspondent, the governor said the gesture was not only in fulfilment of his dream to create jobs for citizens of the state but to inspire young people who were not from privileged homes.

He promised the newly employed workers good salaries and welfare package, while reiterating the commitment of his administration to the welfare of the poor in the state.

Ayade said, “When we set up this factory, the intention was not just to create jobs but to guarantee that young men and women, who have been challenged by circumstances of their births, have the opportunity to better their lots.

“I’m so excited at what I am seeing here today – the number of people and their energy – and it is an indication that our factory has taken off. Remember, the factory has the capacity to create 3,000 jobs.

“Truly, if you call yourself a leader, your focus should be on the vulnerable and the weakest that we are engaging today. We will guarantee you good salaries, food and proper transportation.”

Ayade urged the new employees, who he tagged ‘great fashion engineers’, to leverage the opportunity to express their innate potential and be the pride of the state.

He said, “We want to show to the world that we have skills, great fashion engineers. I call you engineers because you are going to provide the skills that we have not seen before.”

The President and founder, Africa Young Entrepreneurs, Oluwa-Summy Francis, who was at the event along other entrepreneurs from other parts of Africa, said Ayade had justified the belief that youths could excel in leadership positions.

He said, “This is what happens when a youth becomes a governor – someone who truly has everything on his side like age, exposure, connections and commitment. When you have a youth in the saddle, we should expect things like this.”

Meanwhile, Ayade has launched the Rice Borrowers Anchor Programme of the Central Bank of Nigeria, in line with the Federal Government’s plan to diversify the economy.

A statement quoted the governor as lauding the Federal Government’s proposition to make agriculture the mainstay of Nigeria’s economy.

He said, “We must seize this opportunity to thank President Muhammadu Buhari for introducing this programme. We must thank him because if you follow the road map, plan and vision for this initiative, you will definitely know that this is the beginning of the emancipation of Nigerians from their continuous dependence on imported rice.

“This is what President Buhari wants to stop because it has the nationalistic outlook to put an end to the declining rate of the naira to the dollar. When we stop importing rice, we will be adding value to our naira.

“It is key that you appreciate at this point the CBN governor (Godwin Emefiele) and in particular, President Buhari, for it is a concept that we must support.”

Ayade said the Federal Government’s rice production scheme was in tandem with the Cross River State’s vision to become self-sufficient in rice production.

“We will add our own dimension to it. The government of Cross River is going to set up a proper professional food bank, the very first in Nigeria.

“We are going to set up a food bank, one in each local government area and the essence is to serve as the catalytic financial muscle that will pick up and buy off every single seed of rice that you will produce.

“The kind of farming we are going to do in Cross River State is going to be special because we are known for class, style and beauty. We will provide an agricultural mechanism centre to provide an industrialised support for farming.”

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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Commodities

Cocoa Fever Sweeps Market: Prices Set to Break $15,000 per Ton Barrier

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The cocoa market is experiencing an unprecedented surge with prices poised to shatter the $15,000 per ton barrier.

The cocoa industry, already reeling from supply shortages and production declines in key regions, is now facing a frenzy of speculative trading and bullish forecasts.

At the recent World Cocoa Conference in Brussels, nine traders and analysts surveyed by Bloomberg expressed unanimous confidence in the continuation of the cocoa rally.

According to their predictions, New York futures could trade above $15,000 a ton before the year’s end, marking yet another milestone in the relentless ascent of cocoa prices.

The surge in cocoa prices has been fueled by a perfect storm of factors, including production declines in Ivory Coast and Ghana, the world’s largest cocoa producers.

Shortages of cocoa beans have left buyers scrambling for supplies and willing to pay exorbitant premiums, exacerbating the market tightness.

To cope with the supply crunch, Ivory Coast and Ghana have resorted to rolling over contracts totaling around 400,000 tons of cocoa, further exacerbating the scarcity.

Traders are increasingly turning to cocoa stocks held in exchanges in London and New York, despite concerns about their quality, as the shortage of high-quality beans intensifies.

Northon Coimbrao, director of sourcing at chocolatier Natra, noted that quality considerations have taken a backseat for most processors amid the supply crunch, leading them to accept cocoa from exchanges despite its perceived inferiority.

This shift in dynamics is expected to further deplete stocks and provide additional support to cocoa prices.

The cocoa rally has already seen prices surge by about 160% this year, nearing the $12,000 per ton mark in New York.

This meteoric rise has put significant pressure on traders and chocolate makers, who are grappling with rising margin calls and higher bean prices in the physical market.

Despite the challenges posed by soaring cocoa prices, stakeholders across the value chain have demonstrated a willingness to absorb the cost increases.

Jutta Urpilainen, European Commissioner for International Partnerships, noted that the market has been able to pass on price increases from chocolate makers to consumers, highlighting the resilience of the cocoa industry.

However, concerns linger about the eventual impact of the price surge on consumers, with some chocolate makers still covered for supplies.

According to Steve Wateridge, head of research at Tropical Research Services, the full effects of the price increase may take six months to a year to materialize, posing a potential future challenge for consumers.

As the cocoa market continues to navigate uncharted territory all eyes remain on the unfolding developments, with traders, analysts, and industry stakeholders bracing for further volatility and potential record-breaking price levels in the days ahead.

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Crude Oil

IOCs Stick to Dollar Dominance in Crude Oil Transactions with Modular Refineries

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International Oil Companies (IOCs) are standing firm on their stance regarding the currency denomination for crude oil transactions with modular refineries.

Despite earlier indications suggesting a potential shift towards naira payments, IOCs have asserted their preference for dollar dominance in these transactions.

The decision, communicated during a meeting involving indigenous modular refineries and crude oil producers, shows the complex dynamics shaping Nigeria’s energy landscape.

While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously hinted at the possibility of allowing indigenous refineries to purchase crude oil in either naira or dollars, IOCs have maintained a firm stance favoring the latter.

Under this framework, modular refineries would be required to pay 80% of the crude oil purchase amount in US dollars, with the remaining 20% to be settled in naira.

This arrangement, although subject to ongoing discussions, signals a significant departure from initial expectations of a more balanced currency allocation.

Representatives from the Crude Oil Refinery Owners Association of Nigeria (CORAN) said the decision was not unilaterally imposed but rather reached through deliberations with relevant stakeholders, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

While there were initial hopes of broader flexibility in currency options, the dominant position of IOCs has steered discussions towards a more dollar-centric model.

Despite reservations expressed by some participants, including modular refinery operators, the consensus appears to lean towards accommodating the preferences of major crude oil suppliers.

The development underscores the intricate negotiations and power dynamics shaping Nigeria’s energy sector, with implications for both domestic and international stakeholders.

As discussions continue, attention remains focused on how this decision will impact the operations and financial viability of modular refineries in Nigeria’s evolving oil landscape.

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Energy

Nigeria’s Dangote Refinery Overtakes European Giants in Capacity, Bloomberg Reports

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The Dangote Refinery has surpassed some of Europe’s largest refineries in terms of capacity, according to a recent report by Bloomberg.

The $20 billion Dangote refinery, located in Lagos, boasts a refining capacity of 650,000 barrels of petroleum products per day, positioning it as a formidable player in the global refining industry.

Bloomberg’s data highlighted that the Dangote refinery’s capacity exceeds that of Shell’s Pernis refinery in the Netherlands by over 246,000 barrels per day. Making Dangote’s facility a significant contender in the refining industry.

The report also underscored the scale of Dangote’s refinery compared to other prominent European refineries.

For instance, the TotalEnergies Antwerp refining facility in Belgium can refine 338,000 barrels per day, while the GOI Energy ISAB refinery in Italy was built with a refining capacity of 360,000 barrels per day.

Describing the Dangote refinery as a ‘game changer,’ Bloomberg emphasized its strategic advantage of leveraging cheaper U.S. oil imports for a substantial portion of its feedstock.

Analysts anticipate that the refinery’s operations will have a transformative impact on Nigeria’s fuel market and the broader region.

The refinery has already commenced shipping products in recent weeks while preparing to ramp up petrol output.

Analysts predict that Dangote’s refinery will influence Atlantic Basin gasoline markets and significantly alter the dynamics of the petroleum trade in West Africa.

Reuters recently reported that the Dangote refinery has the potential to disrupt the decades-long petrol trade from Europe to Africa, worth an estimated $17 billion annually.

With a configured capacity to produce up to 53 million liters of petrol per day, the refinery is poised to meet a significant portion of Nigeria’s fuel demand and reduce the country’s dependence on imported petroleum products.

Aliko Dangote, Africa’s richest man and the visionary behind the refinery, has demonstrated his commitment to revolutionizing Nigeria’s energy landscape. As the Dangote refinery continues to scale up its operations, it is poised to not only bolster Nigeria’s energy security but also emerge as a key player in the global refining industry.

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