Connect with us

Archives

Nigeria exports N8.24tr commodities to France, others

Published

on

Nigeria has recorded N8.24 trillion from its non-crude export between 2002 and March, 2014.

The country exports from the period to 2011 was N2.65 trillion but it began to soar when Nigeria’s non-oil exports suddenly rose to 117, from 106 reported by year-end 2012.
Non-oil exports totaled $2.97 billion in 2013, recording 16 percent increase from $2.56 billion recorded in 2012. Data from the Nigerian Export Promotion Council (NEPC) revealed that 126 companies, mostly small-and medium-scale enterprises (SMEs) exported non-oil products to many countries.
In the first quarter of 2014, exports of manufactures and industrial products by Nigeria reached N254.7billion in two months.
Some of the export products include: leather, rubber, wood and articles of wood, charcoal, plastics cocoa, prawns and fish, cashew nuts, aluminium, gum arabic, edible fruits and copper It would recall that exports in Nigeria increased to N128.40 billion in March of 2014 from N126.30billion in February, 2014.
The Central Bank of Nigeria (CBN) data for Q1 2014 revealed that manufactures and industrial products accounted for 77percent of total non-oil exports.
The data noted that non-oil products accounted for just 5percent of total annual Nigerian exports in 2013 on a balance of payments basis. Nigeria’s main exports partners are: USA (30percent), Equatorial Guinea (8percent), Brazil (6.6percent), France (6percent) and India (6percent).

Interestingly, six of the ten major destinations of Nigeria’s exports are also among the ten leading countries where Nigeria imported most of its goods from in the first quarter of 2014. The countries and the value of Nigeria’s net exports to the countries during the period are: India (N450.8 billion), Netherlands (N385.2 billion), Brazil (N334.7 billion), France (N274.4 billion), United Kingdom (N198.3 billion), and USA (-N17.3 billion).

But despite the improvement, FBN’s Purchasing Managers’ Index released this month explained that the Economic Community of West African States (ECOWAS) did not offer attractive export markets as non-tariff barriers and the modest level of integration within the region were not encouraging pointers.

However it said the community planned to introduce a common external tariff in January 2015.

The company noted that a 5percent rate for raw materials and capital goods, 10percent for intermediates and 15percent for finished consumer goods al would be applied.
However, it was not clear whether the tariff would be implemented on schedule.
It added: “We do not expect significant export diversification. Nigeria’s economic model is based upon supplying domestic demand, mostly unmet, and manufacturing policy upon import substitution.

“The reading for new orders fell sharply from 62 to 57 in September. The number of respondents reporting higher orders secured 36percent, compared to 50percent in August.”
Since the early 1970s when Nigeria started the exploration of crude oil in commercial quantity, the Nigerian economy has remained largely a mono-product economy. This is in spite of government’s attempts to shore up the share of non-crude oil in the domestic economy.

In the first quarter of 2014, Nigeria earned N3.2 trillion from crude oil export. This was about 81 per cent of the total exports income Nigeria earned during the period. When sale of liquefied natural gas is included, the oil and gas exports revenue in the first quarter of 2014 rose to N3.5 trillion, representing 90 per cent of the nation’s aggregate exports income during the period.

“But beyond the domineering nature of crude oil export, there is a budding positive story among the Nigeria’s leading exports. No fewer than six agricultural/agribusiness products were among the items on the list of Nigeria’s top 15 exports in the first quarter of 2014 (even though their relative values are not too significant). What this suggests is that with right policies and other necessary support, Nigeria may unleash its potential in the sale of the products,” according to data by the Nigerian Bureau of Statistics and FirstBank Research,

The data explained that Nigeria spent 12 per cent of its total imports on just one commodity – premium motor spirit (PMS, petrol). For a country that earns the majority of its forex income (81 per cent of its exports in the first quarter of 2014)

A further analysis of the quarter-on-quarter trade values and changes reveals a more interesting trend. Whereas the total value of Nigeria’s imports decreased from N1.65 trillion in the first quarter of 2013 to N1.55 trillion in the first quarter of 2014, the aggregate revenue that Nigeria earned from its exports rose from N3.45 trillion in the first quarter of 2013 to N3.97 trillion in the corresponding period of 2014.

Tellingly, Nigeria maintains trade surplus. But if we remove crude oil from the imports category, and PMS from the exports group, Nigeria will record trade deficit. This provides a further boost to the campaign for domestic economy diversification from crude oil and liquefied natural gas.

It was learnt that Nigeria earned more income from the exports of its crude oil and non-crude oil in the first quarter of 2014 when compared with the total exports revenue the country earned in the corresponding period of 2013. But in spite of the increase in aggregate exports income, the worth of both the crude oil and non-crude oil exports in the first quarter of 2014 was significantly below the value of total exports in the first quarter of 2012. This suggests a worrisome conclusion: Nigeria’s exports income in 2014 may just be a fraction of the exports revenue the country earned two years ago!

Also it was discovered that the drop in crude oil exports income was as a result of lower crude oil price and the prevalence of oil bunkering. While crude oil price (Bonny Light) averaged $115.6 per barrel in the first quarter of 2012, it was about $110.2 per barrel in the corresponding period of 2014.

The discovery, extraction, and export of shale oil by the US also affected the demand of Nigeria’s Bonny Light crude oil. For decades, the US was a major buyer of Nigeria’s crude oil. But the US’ decision to explore its shale oil advantage meant that Nigeria had to look for other economies that the country could supply its crude oil.—Business Monitor

Continue Reading
Advertisement Simply Easy Learning
2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

17 − five =

Archives

WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

on

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

Continue Reading

Archives

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

Published

on

The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

Continue Reading

Archives

Wind Farm Vessel Collision Leaves 15 Injured

Published

on

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

Continue Reading
ADEBAYO SARUMI: Doyen of Maritime Industry Marks 80th Anniversary, Saturday 

Editor’s Pick

Politics