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NEPC, NACC Move to Boost Non-oil Export

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  • NEPC, NACC Move to Boost Non-oil Export

With the African Growth and Opportunity Act set to expire in 2025, the Nigerian Export Promotion Council, in collaboration with the Nigerian-American Chamber of Commerce, has concluded plans to boost non-oil exports and avail Nigeria opportunities under the Act.

Non-oil export trade between Nigeria and the United States of America has remained low at two per cent, the Chief Executive Officer, NEPC, Mr Segun Awolowo, said, adding that with the partnership and different initiatives of the council, Nigeria would ramp up the non-oil export figures.

While paying a courtesy call on the chamber to seek partnership on the way forward for Nigeria’s non-oil sector, Awolowo stressed that there was a lot to do to drive export of non-oil goods.

He said that in the new negotiation the council had put up; there were different initiatives to ensure that Nigeria optimised the opportunities under AGOA before its expiration.

He said the Federal Government had created a national committee for export promotion to drive its zero oil plan.

Awolowo satated that the National Economic Council, chaired by Vice President Yemi Osinbajo with the 36 state governors as members of the national committe will go a long way to boost productivity in the nation’s non-oil export sector in a bid to get goods exported to the United States.

“We are here because the chamber is going to be important to increase our non-oil export to the US. We need you to explore the possibility of investment into priority areas for development of our export,” Awolowo said.

According to him, Nigeria has been a good receiver of Foreign Direct Investments from the US. He, noted, however that the FDIs had either gone into the financial services, telecommunications and Information and Communications Technology.

“We need more investments in manufacturing and industry. This will be the major focus where we want your organisation to help us. We also need to improve the quality of our products and we are also going to need your support on how we can meet the American standards,” he said.

The President, NACC, Oluwatoyin Akomolafe, said the chamber had been working very closely with the council to seek ways to adopt a prepared AGOA implementation strategy.

He emphasised the need to have a more senior representation on the AGOA committee at the Ministry of Trade.

“We want you to support us and there are plans to make Nigeria the centre for AGOA in Africa. So we need to really work very closely together,” he said.

According to him, partnership for promotion of AGOA through capacity building and awareness creation cannot be overemphasized.

He stressed the need for Nigeria to identify the clusters of local producers while also benchmarking successes made over time.

He added that most of the African countries that had done well in AGOA implemented a well-articulated national AGOA strategy.

“This is why we developed over a year ago, a national strategy for Nigeria. We want an implementable strategy. We call it a five-year strategy programme where on a yearly basis we measure the level of successes we have made.

“However, the chamber cannot approve a national AGOA strategy, so this is why we are seeking the support of the ministry of trade through this partnership with the council,” Akomolafe said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Economy

FG Raises Ex-depot Price of Petrol to N138.62/litre

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FG Increased Ex-depot Price of Petrol by N6 to N138.62/litre

Following the report published on Monday that oil marketers were in panic buying mood ahead of a possible increase in the pump price of petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA) on Tuesday has finally raised the ex-depot price of petrol by N6 to N138.62 per litre for the month of August 2020.

According to oil marketers, with ex-depot at N138.62 per litre, the pump price of petrol could be between N149 and N150 per litre this month.

Abubakar Maigandi, the Vice President, Independent Petroleum Marketers Association of Nigeria, who spoke to our correspondent, said the PPPRA did not stipulate the new pump price for petrol.

“They told us today (Tuesday) that the ex-depot price is now N138.62/litre but were silent on the pump price, and I think that by tomorrow (Wednesday) the pump price will be announced,” he said.

Maigandi added, “With the N6/litre increase in ex-depot price, the projection is that the pump price will be around N149/litre or N150/litre, based on our usual computations.”

On Monday, Investors King had reported that oil marketers were buying petrol ahead of price increase following a series of meeting with PPPRA.

There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up,” stated Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria.

He added, “That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect.

This was after price was deregulated and allowed to be determined by forces of demand and supply. Therefore, the recent increase in the price of crude oil necessitated an equal increase in pump price and vice versa.

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AfCTFA to Cushion Negative Effect of Covid-19, Boost Regional Income by 7%- World Bank

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World Bank Says Successful Implementation of Trade Pact Could Increase Africa’s Income by $450 Billion

A recent report by World Bank has revealed that the African Continental Free Trade Area (AfCFTA) agreement will avail African countries the opportunity to boost growth, reduce poverty, widen economic inclusion and increase regional income by 7 percent or $450 billion.

The multilateral financial institution further stated that the successful implementation of the trade pact could cushion the negative effect of the global health pandemic, lead to a surge in wage growth for women and lift over 30 million people out of extreme poverty by 2035.

Given the economic damage caused by Covid-19, the report suggested that AfCFTA’s income gain would likely come from simplified customs procedures, tariff liberalization and reduction in non-tariff barriers. Also, putting in place trade facilitation measures that cut off the red tape, reduce compliance costs for businesses, improve ease of doing business in Africa and broaden the continent’s global supply chains would bolster income gains.

World Bank explained that the AfCFTA agreement would help cushion the negative effects of COVID-19 on Africa’s economy — by supporting regional trade and value chains through the reduction of trade costs. In the longer term, AfCFTA would provide a path for integration and growth-enhancing reforms for African countries by replacing the patchwork of regional agreements, streamlining border procedures, and prioritizing trade reforms, AfCFTA could help African countries increase their resiliency in the face of future economic shocks.

The World Bank’s Chief Economist for Africa, Albert Zeufack, said, “The AfCFTA is expected to lift around 68 million people out of moderate poverty and make African countries more competitive. But successful implementation will be key, including careful monitoring of impacts on all workers –women and men, skilled and unskilled—across all countries and sectors, ensuring the agreement’s full benefit.

The African Continental Free Trade Area has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans,” he further stated.

According to the report, the trade pact would reshape markets and economies across the region, leading to the creation of new industries and the expansion of key sectors.

AfCFTA would also significantly boost African trade, particularly intra-regional trade in manufacturing. Intra-continental exports would increase by 81 percent while the increase to non-African countries would be 19 percent.

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Economy

Oil Marketers: Panic Buying Ahead of Possible Increase in Pump Price

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Oil Marketers in Panic Buying  Mood Ahead of Possible Increase in Pump Price

A new finding has shown that filling station owners are presently in panic buying mood ahead of a perceived increase in pumping price of petrol in August.

Petroleum Products Pricing Regulatory Agency during the weekend said pumping price could rise due to the surge in oil prices in recent weeks.

According to experts, pumping price could hit 150 per litre this month, especially after comments from the president of the agency validated that possibility.

Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, said “There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up.”

He added, “That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect.”

He, however, said a lot of marketers have said they are not going to hike price immediately, particularly if there was an increase in the price of petrol in the month of August.

The PETROAN president said, “Many of our members have been buying products since (July) 22nd and now they have products lined up, hoping that if PPPRA increases price, they will manage the cost in a way that Nigerians will know that we are not out to profiteer.

“We are out there to give service. So if we got products at this current rate of about N143 and they are ready to shoot the price up to N155, which is what is being anticipated, we will still sell at N143.”

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