Business News
FG closes border to protect economic interests – Customs
Retired Col. Hameed Ali has made known that the Nigerian government closed its borders in order to protect its economic interests.
The Comptroller-General of Nigeria Customs Service (NCS), retired Col. Hameed Ali has made known that the Nigerian government closed its borders in order to protect its economic interests, amongst other pressing issues.
Addressing border stakeholders during a meeting held on Thursday, September 26, 2019 at Seme, Ali admitted that the border closure was aimed at protecting the country’s economy, saying it was never intended to hurt anyone.
[READ MORE: Border Closure: Traders risk losses as 500 truckloads get stranded]
Ali said, “Our interest is to make sure that our country is secure, the well-being of our people is ensured, and our economy is secure. The step we have taken is in the interest of Nigeria, the step is not to hurt anybody but to protect our own interests as a nation.”
According to Ali, a lot of things had gone wrong regarding compliance with transit of goods. The customs boss explained that the border closure was to ensure that things were streamlined so that all stakeholders could be back to doing the right things.
“The idea is to ensure that the protocol that is involved in transit of goods and trade facilitation is adhered to so that we will all live and complement each other. The operation is undertaken to ensure that we get things back in perspective; we know the right thing, it is well written, we are all aware of it, we used to practise it, so we must go back to that,” he added.
Nairametrics reported that Nigeria’s borders in two regions were shut down at the instance of a directive from the Office of the National Security Adviser (NSA), owing to the state of insecurity in the country.
[READ ALSO: Nigeria’s Inflation rate drops to 11.02% in August 2019 despite border closures]
The Seme Border, which is the busiest border between Nigeria and the Benin Republic, was one of the borders partially shut down by President Muhammadu Buhari to restrict the importation of rice into Nigeria.
Commodities
Five oil majors reduce value of their assets by $50 billion in Q2
Energy demand at one point was down by more than 30% globally.
Five oil majors (including Exxon Mobil and British Petroleum) reduced the value of their assets by $50 billion in Q2, 2020. They also reduced their production rates as the COVID-19 pandemic caused a downward trend in energy demand.
What this means: The cut in asset valuations and reduction in crude oil production by these oil majors showed the depth of damage the COVID-19 pandemic caused on the global energy sector in Q2, 2020.
Energy demand at one point was down by more than 30% globally and still remains below pre-pandemic levels.
Some of these conpanies’ executives said they took these austerity measures because they expect demand to continue to be on the downward trend in the meantime. This is in view of the fact that people around the world are traveling less, even as many global industries are not in full capacity. The pandemic has already killed more than 700,000 people.
Of those five oil majors, only Exxon Mobil (XOM.N) did not book sizeable impairments, Reuters reported. However, an ongoing re-evaluation of Exxon Mobil plans could lead to a reasonable amount of its assets being impaired, and signal the removal of 20% or 4.4 billion barrels of its oil and gas reserves.
Oil major BP (BP.L) took a $17 billion hot. It said its plans in the coming years would be a focus on renewables and fewer fossils.
About two weeks ago, Nairametrics reported how Exxon Mobil and Chevron posted their worst losses in modern history, as the COVID-19 pandemic and a glut in crude oil reduced the demand for energy products in the second quarter of 2020.
Hospitality & Travel
US gives reasons it warned citizens against travelling to Nigeria, lists 12 high risk states
The US government has issued a level 3 Travel Health Notice for Nigeria due to COVID-19.
The United State Government has advised its citizens against travelling to Nigeria due to the Coronavirus pandemic, terrorism, civil unrest, kidnapping, widespread inter-communal violence, and others.
This warning is contained in a travel advisory statement that was obtained from the United State Department of State website.
The statement also disclosed that the Centre for Disease Control and Prevention (CDC) had issued a level 3 Travel Health Notice for Nigeria due to the Coronavirus pandemic. Also, some parts of the country have increased risk.
“Reconsider travel to Nigeria due to Covid-19. Reconsider travel to Nigeria due to crime, terrorism, civil unrest, kidnapping and maritime crime. Some areas have increased risk.’
‘’Do not travel to; Borno and Yobe States and Northern Adamawa State due to terrorism; Adamawa, Bauchi, Borno, Gombe, Kaduna, Kano and Yobe States due to kidnapping; Coastal areas of Akwa Ibom, Bayelsa, Cross Rivers, Delta and Rivers States (with the exception of Port Harcourt) due to crime, civil unrest, kidnapping and maritime crime,’’ the statement said.
It stated that violent crimes such as armed robbery, assault, carjacking, kidnapping, and rape, have become common throughout the country. As such, US citizens were advised to exercise extreme caution throughout the country due to the threat of indiscriminate violence.
“Terrorists continue plotting and carrying out attacks in Nigeria, especially in the Northeast. Terrorists may attack with little or no warning, targeting shopping centres, malls, markets, hotels, places of worship, restaurants, bars, schools, government installations, transportation hubs, and other places where crowds gather.
“Sporadic violence occurs between communities of farmers and herders in rural areas.’’
The US government acknowledged the fact that it has limited ability to provide emergency services to US citizens in many parts of Nigeria due to the security conditions.
Going further it stated, “Do not travel to Borno and Yobe States and Nothern Adamawa. Terrorist groups based in the Northeast target churches, schools, mosques, government installations, educational institutions and entertainment venues. Approximately two million Nigerians have been displaced as a result of the violence in Northeast Nigeria.
“Do not travel to Adamawa, Bauchi, Borno, Gombe, Kaduna, Kano and Yobe States. The security situation in Northwest and Northeast Nigeria is fluid and unpredictable, particularly in the states listed above due to widespread inter-communal violence and kidnapping.
“Do not travel to the coastal areas of Akwa Ibom, Bayelsa, Cross Rivers, Delta and Rivers States (with the exception of Port Harcourt). Crime is rampant throughout Southern Nigeria, and there is a heightened risk of kidnapping and maritime crime, along with violent civil unrest and attacks against expatriate oil workers and facilities.’’
Energy
World’s largest oil company to pay $75 billion annual dividend, despite plunge in profits
Saudi Aramco is the national energy company of Saudi Arabia.
The world’s largest oil company, Saudi Aramco reported a 73% drop in profit Q2,2020 profit and still kept its plans to pay $75 billion in annual dividends in a report credited to Bloomberg News
Saudi Aramco reported a plunge in profits for Q2,2020 of 24.6 billion riyals compared to 92.6 billion riyals recorded in the same corresponding year.
Aramco will pay a Q2,2020 dividend of $18.75 billion, most of it to the government of Saudi Arabia, the company’s major shareholder.
READ MORE: Apple becomes world’s largest public listed company, valued at $1.82 trillion
The plunge in profit was due mainly to “the impact of lower crude oil prices and declining refining and chemical margins,” Aramco said in the statement to the Saudi stock exchange.
“Strong headwinds from reduced demand and lower oil prices are reflected in our second-quarter results,” said Chief Executive Officer Amin Nasser.
“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies.”
READ ALSO: Shoprite’s owners to leave Nigeria after 15 years
Quick fact; Saudi Aramco is the national energy company of Saudi Arabia. It produces five grades of crude oil and natural gas liquids.
It also produces refined energy products that include liquefied petroleum gas, ethanol, naphtha, and other products.
It exports about 75% of its crude oil to foreign markets, most often with its oil tankers. Saudi Aramco has access to crude oil reserves of about 260 billion barrels, the largest in the world.
READ ALSO: Nigeria’s Petroleum minister and Saudi Aramco discuss investment options
OPEC’s largest oil exporter, Saudi Arabia has been hit hard by global economic restrictions aimed at curbing the spread of COVID-19.
The Saudis make most of its revenue from crude oil, which has dropped 33% in value this year.
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