Economy
Non-Oil Exports Hit $2.539bn – NEPC
By Tony Obiechina, Abuja
Nigeria Export Promotion Council (NEPC) has disclosed that between January and June this year, Nigeria earned the sum of $2.539bn through the export of non-oil products
The NEPC Executive Director/Chief Executive Officer, Dr Ezra Yakusak revealed the figure during a media briefing on the performance of the non-oil sector in the first half of this year.
He said that 3,944,344.
17 metric tonnes of products worth $2.539bn were exported in the first half of 2023, adding that this is against the sum of $2.593bn for the corresponding period of 2022.From these figures, Yakusak said that the amount represents a slight decrease of 0.
09 per cent.He gave the reasons for this slight decrease to the general election that was held in February/March 2023 and subsequent transition in Government which might have likely affected economic activities.
The NEPC Boss also added that changes in global economic conditions, such as slowdown in global demand or a decline in commodity prices which may have negatively impacted non-oil export performance
According to him, a total of 224 different products were exported in the period under review ranging from manufactured, semi-processed, solid minerals to agricultural commodities.
A breakdown of the non-oil export performance showed that of the top-15 products exported in the first half-year of 2023, Urea, Cocoa Beans, Cashew Nut/kernels, Sesame Seed, and Soya Beans/meal were top on the list respectively.
A total of 1,058,791.27 metric tonnes of products worth $175.476m which amounts to 6.91 per cent of the total export value were exported to 13 ECOWAS Countries.
Similarly, 859 companies participated in the non-oil export trade in the period under review.
“It is worthy to note that Indorama-Eleme Fertilizer and Chemical Limited took the lead with $282,553,286.15 million in value terms while Dangote Fertilizer Limited recorded the second-highest value of $199,871,962.29 respectively
“Thirty banks participated in the issuance of the Nigeria Export Proceed Forms (NXPs) for the first half-year of 2023 with Zenith Bank PLC processing the highest NXPs value at 38.11 per cent, while United Bank of Africa (UBA) Plc and First Bank of Nigeria had 10.50 per cent and 9.87 per cent respectively.
“Eighteen Exit Points were used in the period under review. These include seaports, international airports and land borders. The seaports however accounted for over 90 per cent of the total non-oil export in the period under review.
“May I reiterate at this juncture that the volume of inter-African trade is still very low. This is glaring considering the fact that no African country made it to the top 15 importers of Nigerian products.
“In summary, 164, 748.75 metric tonnes of products valued at $55.085 million were exported to various African countries. This amounts to 2.17 per cent of the total export value recorded between January to June 2023.
“You will agree with me that this is quite insignificant compared to products valued at $252,056,554.18 imported by Vietnam alone, which constitute 9.93 per cent of the total export value recorded within the same period.
“We strongly believe that the implementation of the Africa Continental Free Trade Area (AfCFTA) and its attendant benefits will greatly increase the volume and value of trade among African countries,” Yakusak said.
He said with the $2.539bn earned during the period, the $5bn target of the NEPC by December this year would be achieved.
On the destination of exported products, he said 110 countries, spread among five continents of the world, imported Nigerian products during the period under review. The top five importing countries are Vietnam, China, Japan, Brazil, and India.
In line with the NEPC mandate and as part of a collaborative effort to strengthen the value-addition campaign of the Council, he said the NEPC, under its Export Development Programme for priority products, has concluded plans for the establishment of a Cashew Processing Plant in Ogbomosho, Oyo State on a Public Private Partnership arrangement.
This, he added, is predicated on the fact that Ogbomosho cashew is globally acknowledged as a brand for good quality and thereby highly sought after in the international market.
“We have since commenced processes towards setting up the processing plant,” he added.
On the inclusion of Export Promotion in Nigerian Universities Curriculum, he said a Memorandum of Understanding (MoU) will soon be signed between the NEPC and National Universities Commission.
With over 200 universities in the country, Yakusak said the course when introduced would go a long way in making undergraduates employers of labour and self-reliant even after graduation.
“This initiative will further complement the efforts of NEPC at promoting the Export4Survival Campaign which is targeted at increasing the export of Nigeria’s non-oil products,” he added.
In pursuant to the Council’s commitment to ensuring the visibility and easy access of Nigerian products in international markets via the Export Trade House (ETH) initiative, he said an Export Trade House was launched in Hunan Province, China in on 19th April 2023.
This is part of the NEPC effort to increase the export of Made-in-Nigerian products in China.
“The establishment of the ETH is a collaborative effort between the NEPC and Zeenab Foods Limited under a Public-Private-Partnership arrangement.
“With the opening of the China ETH, the Council has now launched and operationalized a total number of four ETHS which are located in Cairo, Egypt, Lome in Togo, Nairobi in Kenya, and China. Plans are underway to establish another ETH in Dubai, United Arab Emirates (UAE),” he added.
On the disbursement of N308.45bn Promissory Notes to Exporting Companies, he said following the approval of the Federal Government, the disbursement to 199 exporting companies under the Export Expansion Grant (EEG) Scheme has since been completed in the period under review.
Economy
Stockbrokers Propose Strategies to Grow $1trn Economy
Nigerian Stockbrokers have proposed strategies by which the Federal Government can deepen the capital market to achieve its proposed one trillion dollar economy.
They made the proposal in a communique signed by Mr Oluropo Dada, President/Chairman of Council of Chartered Institute of Stockbrokers (CIS), and the Registrar/Chief Executive of CIS, Dr Josiah Akerewusi.
The communique was from the 28th Annual Conference of CIS held in Ibadan with the theme: “Capital Market as Catalyst for The One Trillion Dollar Economy’’.
Dada said that, if adhered to, the proposed strategies would help the government to achieve its goal without increasing borrowing.
He urged the Federal Government to list Nigerian National Petroleum Company Ltd.
and moribund state enterprises on the secondary markets.According to him, this is to deepen the markets, enhance the companies’ ability to make profit and generate revenue for the government through tax.
The CIS president also said that there was the need to rebase Nigeria’s Gross Domestic Product (GDP) to reclaim the country’s status as Africa’s largest economy to create opportunities to achieve the one trillion dollar target.
Dada urged policies that would incentivise indigenous and privatised companies as well as Small and Meduim Enterprises (SMEs) to list on the Nigerian capital market.
He said that the informal economy constituted a significant portion of Nigeria’s GDP but remained largely untapped by the capital market.
“Government should conclude the ongoing review of Investment and Securities Act while capital market regulators should review relevant rules and laws in line with global best practices,’’ he said.
According to him, this will boost investor confidence, create a favourable business environment for listed companies and remove restrictions hindering liquidity access for stockbrokers.
“The Nigerian capital market should be integrated into Fintech solutions, blockchain technology and other digital innovations to enhance accessibility, efficiency, transparency and attraction of Millennials, Gen Z, Gen Alpha, among others.
“Market operators should also develop products that attract investment appetite of the technology-savvy youths,” he said.
According to him, the government should address foreign exchange challenges and other inhibitions to participation of foreign investors in Nigeria.
“This will also enhance Foreign Direct Investment.’’
Dada said there was a huge knowledge gap among investors, urging that financial literacy programmes should be pursued with renewed vigour.
He said that financial literacy should cut across all segments of investors and would require collaboration of market regulators with all stakeholders.
He said: “The Nigerian capital market should reflect the key sectors such as agriculture, oil and gas to better align with GDP composition and provide opportunities for capital formation and mobilisation.
“Government at all tiers in Nigeria should leverage more on the capital market to raise long-term funds for infrastructure development,’’ he said.
Dada said that this should be done by issuing project-tied bonds with irrevocable standing payment order which would remove the risk of default.
“In order to relieve itself of perennial debt overhang, Nigeria should opt for debt restructuring and extension of maturity period to enable it to manage its resources for the overall development of the economy.
“On the monetary side, the Central Bank of Nigeria should intensify tight monetary policy to control inflation.
“Government should exploit opportunities in the commodities ecosystem to grow the GDP. Commodities Ecosystem remains a niche market in Nigeria.
“Government should implement the policies enunciated to strengthen commodity trading and commodity exchanges to enhance export trades, generate forex, boost external reserve and strengthen the Naira.’’
According to him, government should also implement structural reforms, including deregulation, debt management and public awareness campaigns by collaborating with the market stakeholders to unlock Nigeria’s economic potential.
Dada said that the government should put in place policies to attract private equity, venture capitalists and angel investors, adding that at all tiers of the government should leverage tariff policies to support local industries.
This, he said, would pave way for participation of private equity, venture capitalists and angel investors to support the growth of SMEs. (NAN)
Economy
Minister Says Upgrading MAN to Varsity will Unlock Maritime Opportunities
Mr Adegboyega Oyetola, the Minister of Marine and Blue Economy says upgrading the Maritime Academy of Nigeria (MAN), Oron to a university, will unlock opportunities in the maritime economy.
Oyetola made the expression at the 2024 MAN cadets graduation ceremony in Oron, Akwa Ibom on Saturday.
Represented by Mr Babatunde Bombata, the Director, Maritime Safety and Security, the minister said the Federal Government was working assiduously to unlock opportunities within the marine and blue economy.
He said that the ministry was already collaborating with the Ministry of Education and the Nigerian Universities Commission to ensure MAN’s seamless transition to a university.
“It is our hope that this upgrade will unlock new opportunities for advanced learning, cutting edge research and innovation within the marine and blue economy fields,” he said.
Oyetola urged the graduating cadets to be innovative, resourceful and forward looking in their future endeavours.
“The maritime and blue economy sectors are filled with opportunities, so your contributions to the sector will be instrumental in ensuring a brighter future.
“The government is committed to fostering excellence and innovation in these fields, and we eagerly anticipate the positive impact you will make in your careers,” he said.
He further said that the Federal Government was working on developing a national policy on marine and blue economy.
“This policy will serve as a strategic framework to drive economic diversification, attract investments, create jobs and youth empowerment.
In his remarks, Gov. Umo Eno of Akwa Ibom, said the state government would continue to collaborate with the academy to develop the maritime sector.
Represented by the Commissioner for Internal Security and Waterways, Gen. Koko Essien, (Rtd), Eno urged the graduating cadets to utilise their training in developing the maritime sector.
“I am hopeful that you will utilise the training you have acquired here to further your career as seafarers and in the development of our blue economy,” he said.
Eno commended the Acting Rector, Dr Kevin Okonna and his management team for their commitment towards repositioning the academy for greater results.
Earlier, Okonna said that graduates of the institution had contributed immensely to the growth of Nigeria’s maritime and blue economy.
“Today, we have an opportunity to celebrate a new set of well-trained personnel to the maritime and allied industries.
“We pride ourselves as the pioneer maritime training institution, this is because of the institution’s contributions to national development,” he said.
The acting rector urged the graduating cadets to made effective use of the knowledge gained during their training to make meaningful impact on the growth of the maritime sector.
Report says that awards were given to graduating cadets who distinguished themselves in character and learning. (NAN)
Economy
Investors Gain N183bn on NGX
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)