Nigeria And Hungary To Sign Mou On Joint Co-Operation
Oil revenue drops by N189bn
Revenue accruable to the Federal Government from crude oil exports dipped by N188.5 billion to N457.2 billion in August 2013, compared to N645.7 billion recorded in July.
According to data obtained from the Central Bank of Nigeria, CBN, in its Economic Report for August 2013, the amount received by the government from crude oil in August, is the lowest since the beginning of 2013 and the lowest in a one-year period.
Specifically, crude oil revenue in January 2013 stood at N591.4 billion, rising to N647.6 billion in February, before dropping to N595.3 billion in March.
Thereafter, it was ups and downs, as the figures rose again in April to N613.4 billion; N641 billion in May, dropping again to N559.4 in June, rose again in July to N645.7 billion, before dropping its lowest to N457.2 billion in August.
This contrasts sharply with earnings of N749.1 billion year-on-year to August 2012, the highest over a 12-month period.
A further look at the CBN Report on the gross revenues in August 2013, revealed that that the Federal Government received N129 billion, from the sales of crude oil and Gas, which dropped by N44.1 billion from N173.1 billion recorded in July.
Revenue accruable to the Federal Government from domestic oil and gas sales stood at N109.3 billion, dropping by N4.5 billion from N113.8 billion in the preceding month, while Petroleum Profit Tax/Royalties dropped by N140 billion, from N358.6 billion recorded in July to N218.6 billion as at August.
The CBN attributed the decline in crude oil revenue relative to the preceding month to the shortfall in receipts from exports and other oil revenue during the period in review.
IMF, experts’ observations
In its World Economic Outlook for October 2013, the International Monetary Fund, IMF, said Nigeria’s economy and those of other countries without sufficient buffers would be negatively affected by a sharp or protracted decline in oil and commodity prices.
The IMF further stated that the decline will likely affect planned or ongoing resource development projects in the country.
Also commenting on the outlook of Nigerian economy for the rest of the year, the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, warned that Nigeria’s economy growth is under threat, especially in the face of volatile global oil prices and the declining trend in Nigeria’s crude receipts.
Oil production
The CBN noted that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.88 million barrels per day (mbd) or 58.28 million barrels for the month.
It stated that this was 0.03 mbd or 1.6 per cent higher than the 1.85 mbd or 57.35 million barrels produced in the preceding month.
The improvement the CBN noted was due to the successful arrests and constant clampdown of crude pipelines vandals, adding however, that crude oil theft in the Niger Delta region continued to impact negatively on oil output.
The CBN report further stated that oil export was estimated at 1.43 mbd or 44.33 million barrels, representing an increase of 2.1 per cent, compared with 1.40 mbd or 43.4 million barrels recorded in the preceding month.
It said deliveries to the refineries for domestic consumption stood at 0.45 mbd or 13.95 million barrels during the review month.
National Dialogue: Manufacturers seek protection for industrial sector
As Nigerians prepare for a national dialogue, the Manufacturers Association of Nigeria, MAN, Apapa Branch, has called for an all embracing discourse that will take the plights of manufacturers in the nation into account.
Making the call at the association’s 42nd Annual General Meeting in Lagos, the out-going chairman, Mr. John Aluya, said the discourse should be focused on ways to reduce trade malpractices with a view to giving local manufacturers enough support to develop local capacity.
According to him, “With the planned national dialogue, our political structure should not only be the fulcrum for discussion. The promotion of better and conducive business operating environment should form part of the discourse.
“This is because as an open economy that depends heavily on imports, stability of the polity and the economy is crucial for manufacturers.
With our level of economic development, such discourse must take concrete actions against trade malpractices such as dumping, smuggling, under invoicing among others with a view to give local manufacturers adequate support to develop local capacity.”
Speaking on the theme of the event, ‘Increasing the Utilisation of Local Raw Materials through Product Research to Enhance Competitiveness’, he regretted that despite the fact that Nigeria is a resource-based economy, over 80 percent of its industrial raw material are still imported.
This, according to him, is because of dearth of raw material extraction and processing locally, adding, “Official statistics says most of the locally-produced raw materials in the country are in unusable state and therefore, require value addition before they can be used by industries.”
“Experts say that the mix of climate, vegetation and geological factors make Nigeria a natural zone for diverse agricultural, mineral and renewable resources. These resources had for a long time not been optimally exploited because of the dominance of petroleum as the main source of national revenue,” he lamented.
He also called for a more integrated programmes from research institutions that will open up more collaboration for product research and development.
He further stated that in addressing some of the challenges militating against the manufacturing sector in the country, efforts should be made to increase the level of contribution of the manufacturing sector to the GDP through policies and programmes that would aid the completion of investments in core industries such as the proposed Integrated Refinery in Olokola Free Zone, Ondo State, saying that it will provide another source of raw material for petro-chemical based industries.
He said that such investment commitments must have intra-industrial linkages for value addition to enhance the growth of Small and Medium Enterprises through utlisation of abundant local raw materials in the country.
“In creating these inta-industrial linkages, other sub-sectors of the manufacturing sector will look at ways to enhance their backward integration programme with primary production sources yielding positive results.
“This is with a view to increase the percentage utilisation of local raw materials from 48 percent to 55 to 60 percent by year 2015,” he added.
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Nigeria-Russia trade hits $250m
Trade volume between Nigeria and Russia stands at $250 million, the Russian Ambassador to Nigeria, Nikolay Udovichenko, has said.
He said though the figure is not so big in terms of statistics, the performance coud be lifted significantly.
The Ambassador, who spoke yesterday in Abuja at the Nigeria-Russia Business Forum titled: Nigeria-Russia Cooperation: New opportunities, pointed out that the idea of the business forum came from shared commitment to establish comprehensive and mutual beneficial ties between the two countries.
“In terms of statistics, it is not so big because it is a quarter of billion dollars, but with our effort, we can lift the performance significantly and I am sure we will be effective in this way,” he said.
He said efforts are on top gear to increase the volume of trade through economic cooperation that will become the backbone and dominant bridge.
He said Russia is interested in developing cooperation in the fields of investment, energy, trade and agriculture, among other.
Udovichenko said Russia is interested in developing cooperation in the fields of investment, energy, trade and agriculture, among other.
He also explained that the embassy’s initiative to invite Russian investors and business companies to Nigeria would bring positive result through lifting the bilateral trade and cooperation in economic, humanitarian, political and foreign technical cooperation fields.
Dangote rated among 10 most valuable African brands
As a measure of its growing influence on the continent, the Dangote Group has emerged among Africa’s top 10 most valuable brands in a survey carried out by the African Business Magazine, a pan-African business publication.
In the survey tagged: ‘The Brand Africa 100 table,’ Dangote emerged as the most valuable brand in the consumer goods sector with an African brand value of 216, according to a statement by the group on Monday.
However, the brand emerged the eighth most valuable brand when placed against brands from other sectors.
The Brand Africa 100 table was established in 2011 in recognition of the growth of African brands, which were beginning to challenge global brands on the continent, or lead global brands in new categories such as telecommunications.
Commenting on the recognition of Dangote brand, the magazine stated, “…what is perhaps a little more surprising is that Dangote, the largest manufacturing conglomerate in West Africa, and Globacom, the Nigeria-based telecommunication provider, are also on the list. Both brands have managed to win the hearts of the communities in which they operate.”
Declaring brands as an asset, the magazine stated that the aim of Brand Africa 100 was to identify, acknowledge and promote African and global brands that were catalysts for the continent’s growth, reputation and value.
Explaining its method at arriving at the ranking, the publishers of the magazine said, “The study involved a comprehensive research among consumers 18 years and older, living in representative countries in metropolitan sub-Sahara African regions to draw up a list of the most admired African and global brands in Africa. Each respondent was asked to mention the five local and global brands they admired.”