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Business News

Sesame, Cocoa, Cashew gross $84.97million – AFEX report

AFEX has stated that the significant attention being received by the agricultural sector is driven by public, private and development investments.

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AFEX cocoa, Nigeria’s agricultural sector driven by public, private and developmental investments - AFEX 

AFEX Commodities Exchange has stated that Sesame, Cocoa, and Cashew led the non-oil export charts, as they grossed $84.97 million by the end of the third quarter of 2019. this was disclosed in the AFEX’s latest annual report.

The report stated that the agriculture sector in Nigeria received significant
attention, rivalling what was witnessed in the 2011-2013 period. The renewed drive has been broad-based with virtually all sub-sectors (Livestock, Crop, and Fishery) benefitting
from the public, private and developmental investments in the sector.

Details: At the end of Q3 2019, Sesame, Cocoa and Cashew led the non-oil export charts, grossing $41.19million, $30.03 million and $13.75 million over the period.

[READ ALSO: Nigeria in 2020: SB Morgen perspective(Opens in a new browser tab)]

The commodities exchange, in the report, found that Kaduna, Niger and Taraba remain the largest producers of maize in Nigeria with an estimated production of 937,820 tonnes, 745,110 tonnes and 608,730 tonnes respectively.

It attributed the increased production levels to high demand from baby food and animal feed companies which service an increasing population with expanding dietary awareness.

 

Nigeria’s agricultural sector driven by public, private and developmental investments - AFEX 

 

The consumption of maize is expected to grow by at least 1.2% per annum with the fundamental drivers remaining strong.

According to the report, the Nigerian commodity markets experienced more structure, with the market seeing a wide range of players getting involved from the producers to final off-takers with trader, merchants and other marketing agents serving as the backbone of the industry and helping to provide the much-required linkage services.

Nigeria’s agricultural sector driven by public, private and developmental investments - AFEX 

However, AFEX said, in spite of the export potential of cocoa and other cash crops, maize and soybean remained the most liquid commodities in the country owing to their much wider use for industrial and household consumption across the country.

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Paddy rice and sorghum have begun to assume more importance in the local landscape with the country’s sesame and ginger gaining more traction in the international consumption markets.

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Meanwhile, in the global market, commodity prices witnessed wide fluctuation as the combined effects of trade wars, geopolitical tensions and the global economic slowdown pressured commodity performance in 2019. Specifically, the US-China trade war and the global economic slowdown, as investors and producers grappled with tariffs and reduced access to key export markets, the report noted.

[READ MORE: AFEX raises funds from Consonance Investment, increases agriculture-fund support)

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Companies

MTN Nigeria declares largest ever revenue by a listed Nigerian entity for FY 2020

The strong revenue growth was basically due to its data-led segment as sales from the segment expanded by an impressive 51.5% Year to Year.

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UACN appoints Toriola as new Director 

MTN Nigeria recently announced another ground-breaking full-year turnover in the financial year of 2020, the highest ever recorded by a Nigerian listed entity.

Specifically, the telecom giant’s revenue expanded by 15.1% year-to-year to N1.3 trillion in the review period. The strong revenue growth was basically due to its data-led segment as sales from the segment expanded by an impressive 51.5% Year to Year.

  • Voice sales rose relatively by 5.6% year to year as the global switch to data-enabled communication subsisted.
  • MTN Nigeria Plc also announced a N5.90/share final dividend on impressive growth in its free Cash Flow for the financial year of 2020.
  • Notably, MTNN’s 4G network now covers 60.1% of the population compared to 43.8% in 2019.
  • According to MTN Nigeria, the suspension of new SIM registration enforced in mid-December did not have a material effect on the voice segment, which managed a 10.6% YoY revenue growth in Q4’20 (vs 7.0% YoY in Q3’20).

In contrast, data revenue growth notably moderated to 37.5% YoY in Q4’20 compared to 55.5% YoY in Q3’20.

In a research report released by CardinalStone, the most valuable telecom company’s margin was adversely affected by currency devaluation;

“Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” the report stated.

The company’s margin was also negatively affected by the higher cost of borrowing and the ultra-low rates prevailing at Nigeria’s debt market;

“Net finance cost increased by 25.4% YoY on the impact of higher borrowings and lower interest on investment in government securities.

Deal book 300 x 250

“Borrowings rose by over 26.3% to N521.2 billion in FY’20, after the company notably issued its N100 billion Commercial paper in June 2020. The effect of higher borrowings combined with a tax increase (a consequence of lower investment allowance and exempt income) to keep after-tax profit growth subdued at 0.9% YoY.”

That being said, in spite of its impressive growth in revenue the Stock was trailing by 3.28% trading at N174 per share.

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Energy

Oil marketers say petrol will sell for N230 per litre in March

Oil marketers have insisted that petrol will sell for as much as N230 per litre in March.

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petrol subsidy, PPPRA, Pump price

Oil marketers, on Sunday, said that Premium Motor Spirit (PMS) otherwise known as petrol is to sell for as much as N230 per litre in March.

This is coming against the background of insistence by the Nigerian National Petroleum Corporation (NNPC) that it has no plans to increase the price of petrol in March.

There has been a reported reappearance of queues at filling stations in some parts of Lagos and Abuja as panic buying and petrol hoarding occurs in some filling stations.

According to a report by New Telegraph, the National Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, declared that the whole nation had crossed the bridge and that there was no hiding place for a hike in fuel price.

What the IPMAN top officials are saying

Osatuyi said, “I have just returned from a meeting in Abuja. What I have observed is that many stations have closed down and there are queues in many places in both Lagos and Abuja. Nigeria has crossed the bridge, there is no hiding place, the N1.2 trillion, which was hitherto annual spending on subsidy, will be borne by the market.

“As it is, the prices of crude oil have gone up to $67 per barrel and, with this, the price of PMS will be between N220 per litre and N230 per litre. I was told by someone that the Group Managing Director of NNPC told them that the official price is likely to be N206 per litre.

“As it is now, all the stations that have shut down their gates must have heard information before they took that action. I want us all to wait by tomorrow we will all see clearly what will happen. There have been annual spending of N1.2 trillion on fuel subsidy and now that the subsidy has said to be abolished, that money must come from somewhere.

‘’The money must be coming from somewhere. “NNPC is not an NGO (non-governmental organisation), there is no budgetary provision for subsidy again and instead of wasting it on subsidy, it should be deployed to other sectors,’’ he said.

On what can be done to cushion the negative effects of higher fuel price, Osatuyi said: “This plan to cushion the negative effects of higher fuel price should be the next important thing. The government can do the free conversion of vehicle from fuel to gas. This should be done to help Nigerians who will definitely be affected by this fuel price hike.”

On his part, the IPMAN National Public Relations Officer, Alhaji Suleiman Yakubu, condemned the panic buying and return of long queues at some filling stations within Abuja.

While assuring Nigerians that the normal supply of petroleum products would soon be restored with the commencement of loading at various depots, Yakubu said the increase in the global price of crude oil has affected the price of petrol.

He said, “We want to assure the buyers that government and marketers are doing everything possible to ensure that the products are available in every filling station within a few days starting from today (Sunday).’’

What you should know

  • The state oil giant, NNPC, had in a press statement on Sunday, assured Nigerians that despite the increase in the price of crude oil, it has no plans to increase the ex-depot price of petrol in the month of March. This is coming after it gave a similar assurance earlier in February, that it was not going to increase the price of the product in February.
  • NNPC explained that the decision was to allow ongoing engagements with organized labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship, to be concluded.
  • This uncertainty has led to hoarding of the product by depot owners and some retail marketers, which has led to the return of queues in some filling stations.
  • The Federal Government had in March 2020, announced the removal of fuel subsidy and full deregulation of the downstream sector of the oil industry, which will allow market forces to determine the price of the product.

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