Business News
Nigeria to lose over $160 million to cocoa, cashew exports over COVID-19
Nigeria is projected to lose over $160 million to cocoa and cashew exports in 2020
Coronavirus pandemic is expected to cause significant hardship to the non-oil export sector, as Nigeria is projected to lose over $160 million to cocoa and cashew exports in 2020. Agricultural exports like Cocoa, Sesame and Cashew exports are predicted to suffer, due to the pandemic that has lockdown economies of nations across the globe.
This was disclosed by the Nigerian Export Promotion Council in a report, which was seen by Nairametrics, titled Impact assessment of and Policy Responses to the Coronavirus Pandemic on Agricultural Exports: Early evidence from Nigeria.
What it means: A fall in exports of over $100 million is expected in the cocoa sector due to the declining prices, which can be attributed to the falling demand in Europe. Though Sesame exports are likely to prove more resilient due to a smaller decline in prices and more diversified export markets, Cashew exports are expected to shed $60 million. This is expected owing to the Vietnam Cashew Association’s guidance to enterprises within the country to carefully consider before importing raw cashew.
READ ALSO: 2020: CBN eyes $4 billion non-oil revenue
While other nations had prohibited exports of certain food products, such a move would be practically difficult for Nigeria to make. The reason is simple and that is because the most populous black nation exports Cocoa, cashew and Sesame to cater to foreign demand.
Findings revealed that the exports of the three commodities, in 2018, led to foreign exchange earnings of about $800 million for Nigeria, which means they accounted for over 70% of all agricultural exports. But for the COVID-19 outbreak, the proceeds from the commodities would suffer setbacks by the end of 2020.
What you need to know: About 280,000 metric tonnes of cocoa beans are produced annually in Nigeria, and about 90% of this exported. That means the impact of the development would be felt more on Cocoa, as it is particularly vulnerable.
It stated, “Over the last decade, cocoa has been the top-performing non-oil export product in Nigeria. Commodity markets have taken a major hit, and this does not apply solely to crude oil. The price of Nigerian cocoa beans stood at $2880.63/tonne on 03 February 2020 (source: ITC market price information). It has now fallen to $2440.94/tonne as of 30 March 2020 (source: ITC market price information). This is a fall of $439.69 per tonne.
“Assuming production stays the same this year, this translates to a loss in export earnings of around $110.8 million across the year. However, if the lockdown in Nigeria in Lagos, FCT and Ogun state, spreads to cocoa producing states such as Ondo and Cross river, then production will evidently fall, generating a further loss in foreign exchange.”
READ MORE: FG moves to clamp down on tax evaders in mining sector
Meanwhile, the demand for Nigerian cocoa is at risk of recording a further decline. For instance, Europe remains the epicentre of the COVID-19 pandemic and over 81% of Nigerian cocoa was exported to Europe in 2018, with 65% going to the Netherlands and Germany alone.
Though the price change seen in Sesame seed has not been drastic as cocoa, the value has also dropped by $60 per tonne from $1.270 per tonne to $1,210/tonne.
On its own part, Cashew exports have been on the increase after NEPC targeted the scale-up production in Nigeria. “Production is now around 200,000 metric tonnes, with semi-processing plants common around the country. However, as of 2018, 90.5% of cashew exports were still raw cashew nuts, accounting for over $162 million.
‘For both the raw and semi-processed cashew, the exports go almost entirely to Viet Nam and India. This puts Nigeria at major risk should these two countries choose to limit their imports of raw and semi-processed cashew, due to fears over falling demand for the final product. Indeed, the Standing Committee of the Viet Nam Cashew Association (Vinacas) has warned enterprises in the country to carefully consider before buying raw cashew from West Africa due to implications of the pandemic, It added.
READ ALSO: Nigeria’s cashew nuts exports fall by 74%
In all, NEPC has shown that the agricultural export sector is at major risk following the COVID-19 pandemic, as the commodities mentioned above and others are expected to witness a lull in 2020. Assuring Nigerians of its commitment, NEPC explained that its efforts in addressing the logistical challenges facing exports currently, as well as promoting diversification of the nation’s agricultural export.
Coronavirus
Facebook launches social media drive to boost Covid-19 acceptance in Nigeria
This initiative is coming at a time when a good number of Nigerians are yet to accept the Covid-19 vaccine and promised not to take them.
Facebook has announced the launch of a new social media drive allowing people to add frames and graphics to their profiles on Facebook and Instagram, saying they have either had the Covid-19 vaccine or plan to do so.
The American Technology conglomerate is collaborating with the National Primary Health Care Development Agency (NPHCDA) and other key regulatory bodies within the Health Sector in the country in driving this initiative.
According to Punch, this disclosure was made known through a statement issued by Facebook on Friday, saying it would use its scale and speed to reach people faster and help them get credible information, get vaccinated and come back together safely.
This initiative is coming at a time when a good number of Nigerians are yet to accept the Covid-19 vaccine and promised not to take them.
Facebook said that the new range of Facebook frames and Instagram GIPHY stickers allow people to share their support for getting vaccinated with their family and friends, as the access to Covid-19 vaccines intensify across Nigeria.
The frames and stickers include banners that say ‘Let’s Get Vaccinated’ or ‘I Got My Covid-19 Vaccine’ which would appear overlaid on the edge of their profile picture next to a blue bubble that reads ‘We Can Do This.’
Facebook, pointed out that due to the reluctance of millions of people to accept the vaccine, it was launching the profile frames with research showing how social norms could have a major impact on people’s attitude and behaviour when it comes to their health.
Facebook’s Head of Public Policy for Anglophone West Africa, Adaora Ikenze, said, “We’re promoting these unique profile frames and GIFs to all Nigerian Facebook and Instagram users to raise vital vaccine confidence.’’
The new frames and GIPHY stickers let you share your support for COVID-19 vaccines, and see that others you respect and care about are doing the same.”
On his part, the Executive Director and Chief Executive Officer of the NPHCDA, Faisal Shuaib, said partnerships like the one secured with Facebook demonstrated the resilience of the human spirit to endure, innovate and reemerge with the promise of hope that COVID-19 vaccination offered to everyone.
What you should know
Facebook has in recent times, have been taking aggressive measures to do away with vaccine misinformation across the globe.
A top executive of Facebook had said that the company has fact-checkers in dozens of countries around the world, who are really working round the clock to look at misinformation about vaccines, as it sees it as absolutely imperative to try to get misinformation off the platform and redirect people to accurate information.
Facebook said that it started removing false information about Covid-19 vaccines in December, and expanded the list of offending vaccine-related claims two months later.
Business News
FG starts the review of emoluments of political office holders, judicial staffs
This is coming at a time when there is a lot of agitation against the huge allowances that political office holders especially the Federal legislators are paid.
The Federal Government has said that it has started the review of emoluments of political office holders and judicial staff.
This is coming at a time when there is a lot of agitation against the huge allowances that political office holders especially the Federal legislators are paid at the expense of other government workers.
This disclosure was made by the Chairman of Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Chief Elias Mbam, on Saturday, at Amagu community in Ikwo local government area of Ebonyi State, at the 7th Ofala festival and 30th anniversary of the coronation of the traditional ruler, saying the commission had begun reviewing their emoluments.
Mbam told newsmen that a process to review the remuneration of political and judicial office holders was in progress, noting that the commission was saddled with the responsibility, hence it would soon conduct a public hearing on the issue, to allow the citizens to contribute to the process.
What the RMAFC Chairman is saying
Mbam in his statement said, “One of the major responsibilities of our commission is to determine remunerations appropriate for political and judicial officeholders. In doing that, the financial situation of the country, at any giving time, is taken into consideration, including inflation and the country’s Gross Domestic Product (GDP), among others.
The commission being conscious that a lot has happened since the last review, has commenced the process of another review to reflect the changing realities. We have progressed and we believe that before the end of 2021 something concrete will happen,” he said.
While not confirming whether their salaries would be reviewed upwards or downwards, the RMAFC Chairman said, “It is a process and the process at the end determines what it will be; when we go through the process, if it comes out to increase, we increase, if it decreases we do it.’’
Mbam, however, encouraged Nigerians to participate in the review, noting that there would be public hearings and invitations for memoranda from members of the public, including institutions under the three tiers of government.
The RMAFC boss, who also spoke on the diversification of Nigeria’s economy, noted that the solid minerals sector had been contributing immensely to the economy since his assumption of duty as chairman of the commission following the sensitization and advocacy campaigns to all tiers of government, to encourage revenue diversification.
Bottom line
The review of the emoluments of political office holders and judicial staffs would help address the concerns of Nigerians and various interest groups who feel that these political office holders are overpaid especially in this period of economic and revenue challenges.
It would also address their quest for better remuneration for Judges in line with the volume of work they do and also to discourage corruption in the Judiciary.
