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Border Closure: Ghana To Follow Nigeria’s Lead

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Nigeria Customs Services
  • Border Closure: Ghana To Follow Nigeria’s Lead

Like Nigeria, Ghana is also planning to close its border in order to prevent rice and poultry importation.

This plan will be fully implemented in the next three years, according to Ghana’s Agric Minister, Dr. Owusu Afriyie-Akoto.

Afriyie-Akoto on Wednesday disclosed that plans are underway to “establish the local capacity” to meet demand so that merchants would trade with local farmers.

The country’s Deputy Trades Minister, Robert Ahomka Lindsay had said rice alone takes 82 percent of all imports in the country, which means most of the rice that is been consumed in the country are foreign rice. This cost more than $1billion, almost two percent of the country’s (Gross Domestic Product) GDP in 2018.

If the border closure policy is achieved as planned by Nigeria too, the country will become an exporter, hence increase the value of the country’s currency and boost the GDP.

To ensure this, Afriyie-Akoto said the government intends, with the help of its flagship planting for food and jobs programme, to increase the yield of farmers.

While speaking on JoyNews’ PM Express programme, he said the move does not violate World Trade Organization (WTO) protocol.

The government has been selling fertilisers to farmers at subsidised rates as part of the planting for food and jobs programme.

With 50 per cent government subsidy on fertilisers for smallholder farmers, the number of farms produces tripled from three bags of rice per acre to 10 bags.

It also created jobs of 745,000 in 2017, which according to the Minister has increased to 900,000.

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Economy

Africa’s Economy to Contract by $236bn in Value in 2020 Says AfDB

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Investors

African GDP to Contract by $236bn in Value Says AfDB

The African Development Bank (AfDB) has said the ravaging COVID-19 pandemic could cost the entire African continent about $236.7 billion in cumulative Gross Domestic Product.

The bank disclosed this in its latest report on African Economic Outlook (Supplement) released on Tuesday.

The bank predicted that the damage could be far greater if the impacts of the pandemic persist on the continent beyond the second quarter of the year. It said this could lead to a bigger contraction in Africa’s GDP in 2020.

According to the bank, the continent’s Real GDP could contract by as much as 1.7 percent this year if the virus has a shorter duration. This represents about a 5.6 percent decline from the January 2020 prediction.

However, under a long term scenario into the second half of the year, this could result in a deeper contraction in GDP.

This, the bank said could lead to 3.4 contraction, up from the 1.7 percent projected under the shorter duration and represents a decline of 7.3 percent from the previous projection before the outbreak.

It, therefore, said the combined loss due to the COVID-19 pandemic in Africa could range between $173.1 billion and $234.7 billion in 2020-2021.

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Economy

Brent Crude Oil Maintains $43 Per Barrel Despite Surge in US Inventories

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Oil

Brent Crude Oil Sustains Upsurge Despite Rising US Inventories

Brent crude oil, against which Nigerian oil is priced, sustained its upsurge at $43 per barrel on Wednesday during the London trading session despite a report showing a build-up in the U.S. crude inventories in the week ended July 3, 2020.

Brent crude oil

According to the U.S Energy Information Administration (EIA) report released on Tuesday, crude oil production in the U.S is expected to decline by just 70,000 barrels per day from the 670,000 bpd previously predicted to 600,000 bpd.

While this was below the projected decline, it also points to a build-up in U.S stockpiles and suggested that oil production from the world’s largest economy may not decline as previously projected in 2020.

“The EIA’s forecast of a lower decline in U.S. output was partially offset by its outlook for firm demand recovery, which limited losses in oil markets,” Hiroyuki Kikukawa, general manager of research at Nissan Securities said.

“Still, expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allies would taper oil output cuts from August and softer U.S. equities added to pressure,” he said.

The EIA projected that global oil demand will recover through the end of 2021 as demand was predicted to hit 101.1 million barrels per day in the fourth quarter of the year.

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Economy

Illegal Withdrawals: Rep To Investigate NNPC, NLNG Over $1.05bn

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House of representatives

Rep To Investigate NNPC, NLNG Over Illegal Withdrawal of $1.05bn from NLNG Account

The Nigerian House of Representatives has concluded plans to investigate illegal withdrawal of $1.05 billion from the account of the Nigerian Liquefied Natural Gas Limited (NLNG) by the Nigerian National Petroleum Corporation (NNPC).

The decision followed the adoption of a motion titled ‘Need to Investigate the Illegal Withdrawals from the NLNG Dividends Account by the Management of NNPC’ moved by the Minority Leader, Ndudi Elumelu, on Tuesday.

The House adopted the motion and mandated its Committee on Public Accounts to “invite the management of the NNPC as well as that of the NLNG, to conduct a thorough investigation on activities that have taken place on the dividends account and report back to the House in four weeks.”

Elumelu said, “The House is aware that the dividends from the NLNG are supposed to be paid into the Consolidated Revenue Funds account of the Federal Government and to be shared amongst the three tiers of government.

“The House is worried that the NNPC, which represents the government of Nigeria on the board of the NLNG, had unilaterally, without the required consultations with states and the mandatory appropriation from the National Assembly, illegally tampered with the funds at the NLNG dividends account to the tune of $1.05bn, thereby violating the nation’s appropriation law.

“The House is disturbed that there was no transparency in this extra-budgetary spending, as only the Group Managing Director and the corporation’s Chief Financial Officer had the knowledge of how the $1.05bn was spent.

“The House is concerned that there are no records showing the audit and recovery of accrued funds from the NLNG by the Office of the Auditor-General of the Federation, hence the need for a thorough investigation of the activities on the NLNG dividends account.”

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