The Nation Newspaper

Tag: Trade

  • NBCC, NEPC target foreign investment at UK trade mission

    Nigerian-British Chamber of Commerce (NBCC) and the Nigerian Export Promotion Council (NEPC) have concluded arrangements to lead a delegation of 40 business executives on a five-day trade mission to the United Kingdom between November 2 and 6.  The aim is to attract foreign investment to the country with focus on multi sectors, particularly the non-oil products and services.

    NBCC President, Prince Dapo Adelegan, in a statement in Lagos, stated that the Chamber was committed to increasing trade relations between Nigeria and Britain. He said the Chamber’s partnership with NEPC was to enhance its drive to attract UK investors to different states in Nigeria during the UK trade mission. He pointed out that the trade mission will provide opportunities for state governors to showcase the investment potential in their various states.

    Adelegan said: “During the trip, premium members of the chamber and other delegates will have a face-to-face interaction with high level business leaders in the UK, trade related government officials, and a number of UK-based Chambers of Commerce.” He described Nigeria as one of the best destinations for business with its position as the biggest economy in Africa, having enjoyed political stability in the past few years.

    The NBCC boss noted that the highlight of the mission will be the presentations from the Fashion Designers Association of Nigeria (FADAN) and the Committee for Relevant Art (CORA). He said they will participate in a-two-day ‘Made in Nigeria Exhibition’ organised to showcase made-in-Nigeria products.

    NBCC has in the past partnered the United Kingdom Trade and Investment (UKTI), a joint effort that has translated to the steady growth of trade relations between the two countries, with trade volume increasing from £4 billion to £8 billion between 2010 and 2014.

  • Regional trade key to food security, says World Bank

    The World Bank has  fore, called for a new commitment to regional trade in the West African Sub-region to accelerate agricultural production, boost growth and ensure food security.

    World Bank in a recent report, ‘Connecting Food Staples and Inputs in West Africa: A Regional Trade Agenda for ECOWAS Countries’ called on Nigeria and other governments in West Africa to move beyond nationally-focused food policies and address regional trade within the Economic Community of West African States (ECOWAS) to link farmers with consumers in the region’s booming urban areas.

    “Food staples belong at the heart of the ECOWAS agenda on agriculture,” said World Bank senior economist and lead author of the report Jean-Christophe Maur. He said the importance of cross-border cooperation to secure food supply, as well as manage common natural resources, regional diseases and security challenges, has been made painfully clear in recent years.

    According to Maur, now is the time to act and embrace regional trade for what it is—the opportunity to feed populations, reduce poverty, generate jobs and promote shared prosperity.

    The report obtained by The Nation builds on the lessons of the World Bank report, “Africa can help feed Africa,” and examines the specific circumstances in West Africa, which is home to one-third of the continent’s population, and bringing new analysis to the food staples trade and policies in the region.

    The report regretted that though Africa has tremendous agriculture potential with more than half of the world’s fertile yet unused land, countries on the continent are increasingly dependent on food imports from the rest of the world.

    It stressed that regional trade in West Africa is key to food security and agricultural development, and can play an important role if supported by policies and commitments from neighboring countries.

    “Trade across borders will create economies of scale in food production, expand opportunities for producers, and sharply reduce the vulnerability of families, especially the poor, to price volatilities, drought and other shocks,” the report added.

    An active regional agenda exists in West Africa, and regional institutions such as ECOWAS have shown initiative with the recent adoption of harmonized trade and quality control rules for seed and fertilizer markets. Yet despite commitments to integration, many of the 15 ECOWAS member states are pursuing policies to support national self-sufficiency, including import bans on food staples from neighboring countries.

    The report stated that because of lack of adequate regional policies on trade across borders, food producers in West Africa suffer from poorly managed transport and warehousing, a lack of financing, and fragmented supply chains such as refrigeration for perishables, all of which hamper the sale of food staples.

    Responding to the report, the Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Emmanuel Cobham, said local industries need protection against the influx of foreign products in the wake of the implementation of the ECOWAS Common External Tariff (CET).

    NACCIMA‘s position on the policy is that manufacturing companies need some level of protection against the influx of foreign products that the tariff favours. Cobham said since the CET regime has commenced, government may need to consider ways by which the hardship on importers and manufacturers alike could be alleviated.

    Under the new policy, goods are grouped into five categories of tariff rates: zero, five, 10, 20 and 50 per cent. Goods dutiable under the zero per cent category are special drugs as well as industrial machinery and equipment.

    Under the five per cent category, goods dutiable include raw materials and other capital goods.

    Those dutiable under the 10 per cent category are intermediate goods while finished goods attract 20 per cent import tariff.

    Finished goods that can be manufactured locally, however, attract 35 per cent import tariff. But the World Bank seems unimpressed by the success so far recorded by the policy in the region.

  • Photo: Trade union congress holds conference

    Photo: Trade union congress holds conference

  • Governor sets up 10-man committee to boost trade, investment 

    Governor sets up 10-man committee to boost trade, investment 

    •Appoints Head of Service

    Kaduna State Governor Nasir Ahmad El-Rufai has set up a joint committee with the Nigerian American Chambers of Commerce to boost trade, investment and create job opportunities.

    The committee, which is expected to have five members from each of the partners, is headed by Deputy Governor Bala Barnabas Bantex.

    It is expected to come out with a blueprint by September on the projects proposed by the chambers, such as power generation, setting up of hatchery, providing 500 hectares at the Millennium City for Kaduna American School and rebuilding the Zaria and Kafanchan markets.

    Addressing a delegation of the Nigerian American Chambers of Commerce led on a visit to Sir Kashim Ibrahim House by its President, Mr. Sheriff Balogun, El-Rufai lamented that there were over three million unemployed youths in the state, adding that the high number of unemployed youths in the country led to insurgency and other problems.

    He has announced the appointment of Mrs. Alisabatu Dada-Onazi as the new Head of Service.

    El-Rufai made the announcement yesterday at a civic reception organised in honour of his deputy, Mr. Barnabas Bala-Bantex, in Kafanchan.

    The News Agency of Nigeria (NAN) reports that before her appointment, the new head of service was the permanent secretary in the Ministry of Culture and Tourism.

  • Trade Hub to boost cashew nut production

    The West Africa Trade Hub of the  United States Agency for International Development (USAID) has earmarked over US$150,000 to help finance processing raw cashew nuts to increase regional trade competitiveness, improve food security, and reduce poverty over the next five years.

    The programme, which is in partnership with Cashew Alliance, is among other objectives, aimed at boosting international exports, jobs, and investments; and also to promote broader, more sustainable growth by improving both the private sector’s capacity and policies, rules and practices that govern regional and external trade.

    It will also increase regional trade in key commodities through more value added exports: shea, cashew, mango, rice, maize, millet/sorghum, livestock — cattle, and small ruminants.

    Value Chain Development Team Lead of the Trade Hub, Mr. William Bill Noble, said  in Accra, at a workshop organised for finance-access facilitators from some selected African countries and aimed at training them to secure finance and investment for firms to help increase the level of transformation in the processing of raw nuts to add-value — said: “We are going to provide financing to promote cashew nut processing in the region through approval of business plans and proposals. It is a trade project working with processors to add value to such commodities.”

    There are over 40,000 metric tonnes (mt) of raw cashew nuts produced in the country, all in rural areas creating employment for thousands, with women in the majority, and export figures averaging 80,000mt: with inflows from Cote d’Ivoire, Burkina Faso and Benin going to major destinations such as India, Vietnam and Brazil.

     

  • Africa need quality infrastructure to drive free trade – Odumodu

    Africa need quality infrastructure to drive free trade – Odumodu

    The Director-General of the Standards Organisation of Nigeria (SON), Dr Joseph Odumodu, on Friday said African countries needed quality infrastructure to kick-start the Continental Free Trade Area (CFTA).

    He made the declaration in an interview with the News Agency of Nigeria (NAN) in Lagos.

    According to him, without turning around the poor state of infrastructure in the continent, it will be difficult for the African Union (AU) to promulgate the CFTA law by 2017.

    “The Continental Free Trade Area means that Africa will become one common market, just like the European Union markets.

    “We will collapse all boundaries, depending on what the African Union Heads of State agree on.

    “We may not apply any kind of tariffs because we need to break down the tariffs that are barriers to trade seamlessly with each other.

    “In doing that, we must ensure that we have all attained a comfortable level of development in terms of quality infrastructure,’’ he said.

    Odumodu said that if there were no infrastructure in a particular country, it meant that that country had to accept others’ infrastructure, for it to be able to trade with other countries.

    According o him, there is also a mutual agreement, which come with a free trade area.

    He said that the mutual agreement means that when a product is tested in South Africa, there would be no need to test it again in other countries.

    Odumodu urged that African countries should begin to appreciate the essence of a robust quality infrastructure for the continent.

    He said that it would be a way to ensure that trade within African countries could be accomplished and begin to build a better economy for the continent.

    “We realise also that we are not prepared to trade with other continents in terms of level of preparedness,’’ he said.

    The Director-General said that to begin to build African economies, wide preparedness for the CTFA was needed to involve the regional economic communities.

    He listed such regional communities to include the Economic Community of West African States (ECOWAS), the East African Community, the North African Community and the South African Community.

  • Promoting entrepreneurship through trade mission

    The Ogun State government, in partnership with ASUA International Business Network, United  States (US) and Ogun State Chamber of Commerce, Industry, Mines & Agriculture (OGUNCCIMA), embark on a visit to the US in furtherance of stronger trade relationship. DANIEL ESSIET looks at the impact of the visit on entrepreneurship.

    The industrial giants of the economy are largely small and medium businesses. Such companies will represent nearly 70 per cent of the nation’s enterprises. And there are good reasons to suspect that these companies will remain a more significant part of the economy.

    With the  state of the economy,  empowering them is fast becoming a crucial long-term priority—not only for job creation , but also for would-be investors that must ultimately decide whether and how to support this fast-growing segment of the economy.

    To  this  end, the  government, through the state Ministry of Commerce and Industry,  ASUA International  Business Network, United  States  (U.S) and  Ogun State Chamber of Commerce, Industry, Mines & Agriculture (OGUNCCIMA) took  some  business owners and entrepreneurs on trade mission to  the U.S  early  this  month.

    The  fact  that so many entrepreneurs  were involved demonstrated  the commitment  of the government to develop entrepreneurship by exposing Nigerians to the markets and manufacturing capabilities of the US and learn from leading global companies using the latest technology and business management tools. One  of the beneficiaries  is Alhaji Wasiu Olaleye, Treasurer, OGUNCCIMA.

    Speaking  with  The Nation, Olaleye said  the trip  exposed them as  business owners   to  skills on  how  to  manage their businesses more effectively through improved branding, technology and logistics.

    He said the mission demonstrated the   continued commitment of the  U.S  to help business become more competitive to achieve inclusive and resilient growth for the  economy.

    The  trip, he  explained,  afforded them  the  opportunity to seek  guidance  on  what  capacities  they need  to acquire  as   entrepreneurs as they seek new markets beyond their borders.

    As global competition intensifies, Olaleye said  the programme provided an avenue for  them  to learn  about  best practices and tips on how to maximise opportunities and address constraints as  business  persons.

    He  noted, for instance,  that  e-commerce or technology-enabled commerce, lowers the barriers to trade and levels the playing field for enterprises of all sizes, especially SMEs, who lamented  that  small  businesses  in Nigeria have not been able to leverage   on  such  platforms to reach consumers from global markets .

    Deputy  Treasurer, Mrs  Cynthia Sake  noted  that  the prosperity of SMEs is so critical to job creation, praising the bold reforms carried  out  by  the Ogun State  government  to  improve  the business environment. She said the reforms are a great step in the right direction, adding  that  the  major breakthrough is simplifying procedures for micro- and small business owners, who do   register their businesses within the state. Such reforms, she noted,  is crucial in an  economy where a growing number  of  young  people  are  joining  the ranks of the unemployed, adding  that  there  is  a  need to support the establishment of new businesses to create jobs.

    Comparing the country  to the  U.S, she  observed   that  Nigeria  has some of the biggest barriers and constraints to private business  and  changes to business laws may help pave the way for a more entrepreneurial future. According  to her, Ogun State is  naturally fit for new businesses, with the  government ready to listen and  promote  a thriving economy and  a very successful high-tech sector.

    Concerning the  trip, Mrs  Saka  said  it  afforded  them  the  opportunity to see  the  concentration of innovation and entrepreneurship.   According to her, the influx of intelligence, cultivated by public-private entrepreneurial incubators, has spawned a dynamic environment that changed the business culture of the country.   According  to her, the trade mission could   result  in a memorandum of understanding (MoU), which included incentives for technology collaboration, resulting in business partnerships. As business people, she said,  they were able  to  learn  21st Century negotiation skills and business development solutions that would help  them maximise revenue, generate growth and develop a sustainable competitive edge domestically and internationally.

    According to  her, the  Ogun State  government, OGUNCCIMA, the Africa-U.S.A International Business Network in association with the Warwick International Business Institute facilitated  the  trip.

    A member of the group, Mr Aderemi Ogunyemi said the group participated  in business discussions and meetings with U.S entrepreneurs, adding  that  they  are enthusiastic to do business with their Nigerians  counterparts. According to him, the insights gained from the trip will have a major impact on industrial success.

    The  spread of digital technologies, he noted,  has  raised the productivity of business and agriculture, redefine how services are delivered in the U.S. He added  that  the  government  need to address barriers such as infrastructure to create an environment where entrepreneurship can flourish.

  • ‘Lack of trust inhibiting digital trade’

    ‘Lack of trust inhibiting digital trade’

    Global telecommunication solutions provider, Ericsson has said its studies have shown that lack of trust remains a major hindrance to uptake digital trade such as ecommerce.

    Its senior Advisor, Consumer Insight, Ericsson ConsumerLab, Rebecka Cedering Angstrom who spoke via video conferencing in Lagos during the media presentation of Ericsson’s 10 Hottest Consumer Trends for 2015: Connectivity Integrated into Daily Life, said consumers are becoming more comfortable with ideas that once seemed beyond imagination such as robots in the home and mind sharing, adding that consumers want technology and connectivity to be integrated into all facets of their daily life – in everything from bathroom mirrors, to sidewalks and medicine jars

    Head, Research, Ericsson ConsumerLab, Michael Björn, said: “The cumulative effect of smartphones becoming part of mainstream society is astonishing. As consumers, we try out new apps and keep the ones we think improve, enrich or even prolong our lives at such a rapid pace that we don’t even notice that our attitudes and behaviors are changing faster than ever. Services and products that quite recently seemed beyond imagination are now easily accepted and believed to rapidly reach the mass market. With only five years until 2020, the future really does seem closer than ever before.”

    The firm said next year and beyond, media use patterns are globalising. Viewers are shifting towards easy-to-use on-demand services that allow cross-platform access to video content. It said next year will be historic as more people will watch streamed video on a weekly basis than broadcast TV.

    It added that consumers show high interest in having home sensors that alert them to water and electricity issues, or when family members come and go.

    “New ways to communicate will continue to appear, offering us even more ways to keep in touch with our friends and family. Many smartphone owners would like to use a wearable device to communicate with others directly through thought – and believe this will be mainstream by 2020.

    “The idea of smart cities is intriguing – but a lot of that intelligence may actually come about as a side effect of the changing everyday behaviors of citizens. As the internet makes us more informed, we are in turn making better decisions. Consumers believe traffic volume maps, energy use comparison apps and real-time water quality checkers will be mainstream by 2020,” Ericsson said.

    The firm said as the internet enables people to efficiently share information with unprecedented ease, the idea of a sharing economy is potentially huge. Half of all smartphone owners are open to the idea of renting out their spare rooms, personal household appliances and leisure equipment as it is convenient and can save money.

    For digital purse, 48 per cent of smartphone owners would rather use their phone to pay for goods and services while 80 per cent believe that the smartphone will replace their entire purse by 2020.

    Although sharing information when there is a benefit is fine, smartphone owners see no point in making all of their actions open to anyone. 47 per cent of smartphone owners would like to be able to pay electronically without an automatic transfer of personal information. 56 per cent of smartphone owners would like all internet communication to be encrypted.

  • Nigeria’s trade drops by 5.4 percent

    Nigeria’s trade drops by 5.4 percent

    Nigeria recorded a decline of about 5.4 percent in the total value of trade in the third quarter of 2014 as a result in the fall in the value of import and export.
    In the third quarter trade report released Sunday in Abuja, the National Bureau of Statistics said that the total value of merchandise trade in the third quarters of 2014 stood at N6,299.7 billion.
    It stated that the new figure indicates a decline of N359.6 billion over the value of N6,659.4 billion recorded in the previous quarter of 2014.
    The Bureau said that the decrease was a result of fall in the value of exports and imports in the Third Quarter relative to the Second Quarter.
    While exports declined by N202.7billion or 4.3% to N4,479.5 billion, imports declined by N157.0billion or 7.9% to N1,820.3 billion, leaving the balance of trade standing at N2,659.2 billion.
    The report said further that the value of Crude oil exports stood at N2,931.0 billion, constituting 65.4% of the export total, while the non-crude oil export value of N1,548.5billion made up the remaining 34.6%.
    It however said that Total trade grew by N641.6billion or 11.3% relative to the N5,658.2 billion recorded in the corresponding quarter of 2013. The year to date total merchandise trade amounted to N18,474.1billion.
    While classifying import by Standard International Trade Classification and Country of Origin, the 15 paged report said “Nigeria’s imports amounted to a value of N1,820.3 billion in third quarter of 2014, representing a decrease of N157.0 billion or 7.9% over the N1,977.2 recorded in the previous quarter.
    “In comparison with the N2,0948 billion of imports recorded in Third Quarter of 2013, the 2014 value revealed a decrease of N264.5billion or 12.7%. The year to date total imports amounted to a value of N5,343.0 billion, a marginal increase of N13.2 billion or 0.2% from levels recorded in the corresponding period in 2013.
    “Classified by SITC, the quarter-on-quarter decrease in the value of imports was primarily driven by a fall in the value of Mineral fuel imports of N100.1billion or 27.2% from the N368.6 billion recorded in Q2 of 2013 to N268.4 recorded in quarter three.
    “However, significant declines were also recorded in Machinery and transport Equipment, declining by N44.2 billion or 6.8% to a value of N606.4 billion in quarter three and Chemicals and Related Products, which declined by N39.5billion or 14.6% to an export value of N231.8 billion in Quarter Three.
    “Classified by Section, Boilers, Machinery and Appliances accounted for the largest share of imports with a value of N426.8billion or 23.4% of the quarter three total. Sections of Mineral Products and Vehicles and Aircraft and Parts ranked second and third with N278.4billion or 15.3% of the total and N185.9billion or 10.2% of the quarter three total respectively.
    “Analysis at the product level showed that Motor Spirit recorded the greatest value of imports, contributing N227.8billion or 12.5% of the total imports for Q3, 2014.
    “Third quarter imports classified by Broad Economic Category showed that Industrial Supplies accounted for the greatest value of imports, at N510.2billion or 28.0% of total imports, followed by Capital goods at N378.9billion or 20.8% of the total, and Food and beverages at N323.8billion or 17.8% of the total”.
    The report also revealed that Asian countries contributed the highest import value of N779.9billion or 42.8% of the third quarter import total, followed by Europe with N676.9billion or 37.2% of the total, The Americas with N266.1billion or 14.6% of the total and Africa with N78.9billion or 4.3% of the total while Africa and ECOWAS countries contributed N15.5billion or 19.7% of the continent’s total.
    China, United States, Belgium, India and Netherlands took the first five positions in terms of the greatest import values with N429.1billion or 23.6% of the total, N183.3billion or 10.1% of the total, N148.4billion or 8.2% of the total, N106.5billion or5.9% of the total and N94.1billion or 5.2% of the total respectively.
    The report also revealed that the value of Nigeria’s export trade within the third quarter of 2014 stood at N4, 479.5billion, a decline of about N202.7 Billion when compared with N4,682.2billion recorded in Q2 of 2014, but an increase an increase of N906.1billion or 25.4% from the recorded value of N3,573.4 billion over the corresponding period in 2013.
    It said further that The year to date export trade totaled N13,131.1 billion, a N2,362.7 billion or 21.9% increase relative to last year, with Mineral products contributing the greatest value of N4,340.4 billion or 96.9% of the total.
    “At the product level, aside from Crude oil, Liquefied Natural Gas contributed significantly to the total export value in the third quarter of 2014, with N284.7billion or 6.4% of the total export value recorded in the quarter.
    “By Region of Destination, Europe recorded the greatest value of exports with N 1,742.1billion or 38.9% of the total. This was followed by Asia, Africa and The Americas with N1,416.3 or 31.6% of the total, N672.1 billion or 15.0% of the total and N474.3 billion or 10.6% of the total respectively. ECOWAS contributed N376.0billion or 55.9% of total exports to the African continent.
    “Exports ranked by Country of destination showed that India took the first place with an export value of N685.0billion or 15.3% of the third quarter total. Spain ranked second with N393.3billion or 8.8% of the total, followed by Netherlands with N374.2 billion or 8.4% of the total, Brazil with N238.6billion 5.3% of the total and South Africa N233.7billion or 5.2% of the total for Q3 of 2014”

  • China trade data below expectations

    Trade data from the world’s second largest economy, China, came in well below expectations on Monday, heightening fears of a sharper slowdown.

    China’s exports rose 4.7% in November from a year ago, compared to market forecasts of a 8.2% jump.

    Imports fell 6.7% in the same period against predictions of a 3.9% rise.

    The surprise slump in imports led the trade surplus to hit a record $54.5bn (£35bn), the highest in 14 years.

    While the trade surplus, which is up 61% compared to last year, will add to economic growth in the fourth quarter, it does suggest the government needs to step in to stimulate growth, said Dariusz Kowalczyk, economist at Credit Agricole.

    “[Imports fall] is partly a reflection of lower commodity prices and base effects, but these two factors cannot fully explain the weak import number and we have to assume that poor domestic demand has played a part,” he said.

    “We expect a reserve requirement ratio cut in December, introduction of reverse repos this week, and another rate cut in the first quarter.”

    In October, exports grew by 11.6%, while imports were higher at 4.6%.

    China’s economic growth had slowed to 7.3% in the third quarter, marking its weakest quarter since the global financial crisis as a cooling property market and tighter credit conditions weighed on growth.

    Economists had been calling for stimulus measures from the government and the central bank did unexpectedly cut interest rates for the first time in over two years last month to spur activity.