The Nation Newspaper

Tag: US

  • U.S. wants firms to share Africa’s trade’s benefits

    American companies should share the benefits of trade with sub-Saharan Africa as the U.S. examines extending duty-free access for imports from many nations on the continent, Trade Representative Michael Froman said.

    The U.S. African Growth and Opportunity Act, approved by the U.S. Congress in 2000 and extended in 2004, is meant to boost economies on the world’s poorest continent. The law eliminates import levies on products ranging from textiles to manufactured items for about 40 sub-Saharan African nations that meet criteria including good governance and poverty reduction. AGOA may be renewed before it expires in 2015.

    “How do we think about AGOA in the context of two-way, reciprocal trade agreements?” U.S. Trade Representative Michael Froman said, in copy of speech handed to reporters today in Ethiopian capital, Addis Ababa.

    “As we think about renewing AGOA, we certainly do not want U.S. firms to be put at a competitive disadvantage in the rapidly growing and dynamic African market,” Froman said.

    The U.S. is cognizant of the terms of free trade deals being discussed by the European Union and some Africa nations, Froman said. The EU is negotiating to give preferential market access, known as Economic Partnership Agreements, across most of the continent before an October 2014 deadline.

    AGOA doesn’t go far enough in helping African exporters become more competitive, President Barack Obama said last month on a three-nation African tour. The U.S. also wants to help African countries ease trade and investment barriers by simplifying customs procedures and improving the flow of goods across borders, among other measures, Obama said.

    Stronger Ties

    The U.S. and the five-nation East African Community, a common market of about 135 million people, are discussing trade facilitation and investment agreements to strengthen commercial ties, Froman said today in a separate statement.

    U.S. imports from sub-Saharan Africa fell 33 percent to $49.7 billion last year as shipments of oil, mineral fuel, precious stones and metals declined. Of that amount, $34.9 million was shipped under the terms of AGOA, according to the U.S. Department of Commerce’s website. Total two-way trade was $72.3 billion, down 24 percent from 2011.

    Oil remained the largest portion of AGOA imports accounting for 86 percent of the total. Under AGOA, the top exporters were Nigeria and Angola, the largest oil producers in Africa, the continent’s biggest economy, South Africa, as well as Chad and Gabon, according to the statement.

    AGOA, which is being reviewed by U.S. and African officials in Addis Ababa today and tomorrow, should be extended another 15 years to 20 years, South Africa’s Deputy Trade and Industry Minister Elizabeth Thabethe said in an interview today in the city.

    “We feel that will give us space to do a lot of development and for industrialization to take place,” Thabethe said.

  • US. posts $98b budget deficit in July

    The United States ran a budget deficit in July, although government revenues increased from a year earlier due to tax hikes and a strengthening economy, a report from the Treasury showed on Monday.

    The U.S. government spent $98 billion more than it took in last month, with the deficit driven by spending on healthcare programs, pensions for the elderly and the military.

    Analysts polled by Reuters had expected deficit of $96 billion.

    The United States customarily runs deficits in July as there are few tax deadlines during the month.

    The country has run full-year budget deficits continuously since 2001, and the amount of red ink has grown immensely since 2009 when a surge in unemployment fueled higher spending on the social safety net.

    But this year, the deficit appears on track to narrow substantially.

    One major reason is that Washington ratcheted austerity efforts by raising tax rates, which has helped tax receipts. It has also slashed the federal budget, although in July total spending rose to $298 billion from $254 billion in the same month of 2012.

    Another factor that has been leading to a lower deficit is the steam that appears to be gathering in the U.S. economy. That is also lifting tax receipts, which rose to $200 billion in July from $185 billion in July last year.

    So far in the current fiscal year, which began in October, the federal government has run $607 billion into the red, a narrowing from the $974 billion deficit chalked up in the same 10 months of fiscal year 2012.

  • US invests $5 million to strengthen Nigeria’s private sector

    The US Consul General, Jeffrey Hawkins, said the US government has invested a total sum of $5 million to strengthen the Nigerian private sector, especially the energy sector in recent times.

    Hawkins made this disclosure while speaking as a guest in a television magazine programme in Lagos.

    According to him, “The idea is to address some of the key problems in Nigeria, five of these have topped the list, we have regional security, transparency and democracy in government, energy and investment, agriculture and food security and the Niger delta region.”

    He said that America has so much at stake in Nigeria, as Nigeria is the 2nd largest investment destination in Africa and Nigeria’s success is tied to America’s.

    He added that three million dollars has been spent every year to assist law enforcement agencies like EFCC and NDLEA.

    Mr. Hawkins maintained that Nigeria is very important to the USA and whether the president makes a stop at Nigeria on his African visits or not is not important to the relationship they have already established.

  • Nigeria, U.S partner on food production

    Nigeria, U.S partner on food production

    Gidan Makama National Museum Kano and Phipps Conservatory and Botanical Gardens, United States, is to hold a collaborative programme, that will bring youths together from both countries, to be focused be on food production.

    The programme, with the theme ‘’Cultural Cuisine’’ A shared Culinary Experience is jointly developed by the two institutions under a United States sponsored programme of ‘’Museum Connect’’.

    Among others the objective of the programme is to connect youths from Nigeria and the United States through Cultural Exchange with emphasis on food production and consumption.

  • Obama to the rescue?

    Obama to the rescue?

    •Perhaps the US President’s $7bn electrification package for Africa
    will break Nigeria’s electricity jinx

    On June 30 in South Africa, US President Barack Obama in South Africa during his three-country Africa swing, announced a $7 billion “Power Africa” initiative, spread over five years, benefiting seven countries: Nigeria, Ethiopia, Kenya, Liberia, Uganda, Tanzania and Mozambique, in the first wave.

    But a few days after Obama’s good news, Nigeria, one of the beneficiaries of the electrification aid, announced not-so-good news of its own. From an initial promise of attaining 10, 000 megawatts of electricity by December 2013, Prof. Chinedu Nebo, power minister, rolled the target back by one full year!

    The new promise is 10, 000 mw by December 2014 – and there are no guarantees that the projection would not be further rolled back. This is no cynical fear because by the original Obasanjo Presidency projection, 10, 000mw was to have been attained by December 2007. Now, if the 2014 new day holds, it would have been seven years late.

    The annoying thing about the minister’s latest target was not the failure to deliver on a promise on a critical sector of the economy, on which nearly everything in a modern economy rests. Bad as that recurrence was, it was not unexpected.

    It was rather in the ostrich-like, cavalier manner the minister announced his latest shift of the goal post, citing some so-called latest data from the field, and gifting himself the sanctimony of one defaulting for the very first time. That is not good enough; for it portrays the Jonathan Presidency, under which the minister serves, as not only without focus but unrepentantly so.

    Now, contrast this tardiness with the sure-footed philosophy that appeared to have inspired Mr. Obama’s five-year Africa electrification plan. “Access to electricity is fundamental to opportunity in this age,” the US president declared. “It’s the light that children study by, the energy that allows an idea to be transformed into a real business. It’s the lifeline for families to meet their most basic needs, and it’s the connection that’s needed to plug Africa into the grid of the global economy.”

    Like the proverbial Greek and his peculiar gifts, America’s latest electricity aid comes with its own baggage, ideological or otherwise. Broken down, the funding would come from the $1.5 billion US Overseas Private Investment Corporation and another $5 billion from the US Export-Import Bank. Even if the project succeeds as envisaged, it would have lit up the targeted part of Africa. But it would also have created jobs for American big businesses and expatriate experts.

    But even that enlightened self-interest could not vitiate America’s felt urgent need to improve the near-hopeless Africa power situation, which our own government, hence its criminal tardiness on its electrification project, could not even boast.

    Meanwhile, from the statistics the US president trotted out, Sub-Saharan Africa alone, where Nigeria is marooned, would need $300 billion to achieve electricity access for all its citizens by 2030. That means the $7 billion aid is no more than a tiny drop in the ocean.

    Yet it is clear the Jonathan Presidency, by its all-too-obvious parlous electricity record, is not gripped by any urgency; or rattled by the near-hopelessness of the power situation, particularly as it imposes structural poverty on an economy that is far from being competitive. This is clearly not good enough.

    For a programme that is continent-wide, the US intervention is a mere drop in the sea. Indeed, it is less than half of the $16 billion Nigeria has, since the Obasanjo presidency, committed to electricity, with pretty little to show.

    That just proves that lack of money is not Nigeria’s power problem. It is rather blind greed and corruption, which have fated resources committed to the sector to be no more than water pouring through basket. But perhaps Uncle Sam’s proposed intervention in Nigeria’s rural electrification would jerk the authorities awake to do the needful; and deliver on the all-important electricity promise.

  • Govt urged to find new market as US embraces shale oil

    Govt urged to find new market as US embraces shale oil

    Nigeria must rethink its marketing strategies to win the confidence of prospective buyers of its crude oil, an expert, Prof Adeola Adenikinju has said.

    He told The Nation that the introduction of shale oil by the United States (US) has implication for the nation’s oil and gas sector. Shale oil is a petroleum obtained by the distillation of bituminious shales.

    He said the country needs to adopt a more flexible and proactive strategy, by offering discounts to potential buyers of its oil.

    Adenikinju, the President of National Association of Energy Economics (NAEE), said India and China were Nigeria’s new oil destinations, advising the Federal Government to offer them discounts to win their confidence.

    “In the short- to-medium term, the emergence of shale oil will affect Nigeria’s ability to generate more money from the market, the reason being that the United States is the largest importer of our oil. Now, that the US is more concerned about the development and sales of its oil, Nigeria needs to overhaul its strategies to win new and stronger markets.

    “Nigeria will be struggling with other countries to penetrate new markets, especially India and China. We need to understand the fact that the two countries already have commitments, and the only way to penetrate them is to offer them discounts on any volume of crude they are buying from us,” he said, adding that there is nothing wrong in offering your prospective customers discounts. “In business, when you are entering a new market, you adopt different strategies to get your customers look in your direction. I think that is the most valuable option available to Nigeria now.”

    He advised the government to put in place short-medium and long-term strategies to cushion the shocks in the global oil market, adding that the inability to do that would affect the country. He listed the strategies to include building refineries in order to meet local demands and further reduce importation; prospecting for new buyers in advance to mitigate the shocks of losing some markets; offering a discounted oil price and providing value additions in the industry, among others.

    According to him, Nigeria must look beyond the US if it wants to achieve a lot in the global oil market.

    He said while it is good to acknowledge the growing influence of US in the oil market, the need to consider new debutants should not be overlooked.

    He explained that in recent times, some countries have discovered crude oil in West Africa, saying those countries have added to the list of players in the market. This means that the more players in the market, the stiffer the competition, he said.

    “Nigeria must be wary of these countries, by putting measures to protect its oil. That is why the government must consider future and potential problems, and find means of preventing them,” he stated.

    Also, the nation’s oil and gas industry is threatened by the activities of oil thieves and its attendant loss of an estimated $10billion in the last four years. While reacting to the issue, the President, Petroleum and Natural Gas Senior Association of Nigeria(PENGASSAN), Babatunde Ogun, said the development is making International Oil Companies to divest from the industry, as well as posing more threat to the economy. He said companies, such as Shell, Chevron, Addas, Petrobras, among others have plans to divest their stakes in the industry.

    He said: “Shell has divested part of its stakes in the industry. Chevron has concluded plans to do so. Addax and Petrolbras are making similar moves.”

    He said the companies are facing three problems namely; losing crude oil production and profit as a result of the activities of oil thieves, facing attacks from the government’s agencies and civil liberty organisations and spending a lot of money to repair the vandalised pipelines.

  • Nigeria sells $Ibn bonds – Okonjo- Iweala

    Nigeria sells $Ibn bonds – Okonjo- Iweala

    The Minister of Finance, Mrs. Ngozi Okonjo-Iweala, said on Wednesday that Nigeria returned to the capital market after two years of absence and sold $1 billion dollar bond with ease.

    Okonjo-Iweala said this in Abuja while briefing journalists on the recently concluded road show in Europe and United States to float the billion dollar bond to international investors.

    She said the bonds, which were four times oversubscribed, were improvements on investors’ response to the $500 million bonds floated in 2011.

    “The reason we are excited is because as you know, these are turbulent times, especially following expectations of tapering of Qualitative Easing by the U.S Federal Reserve Bank.

    “So, the fact that Nigeria could go to the bond market, after waiting a while and we got four times our subscription, shows confidence in the strength of the Nigerian economy,’’ the News Agency of Nigeria quoted the minister as saying at the briefing.

    Okonjo- Iweala said the transaction attracted top investors primarily from US, Europe and Asia.

    “ The demand was such that we couldn’t meet all of them. Over 200 investors could not get any share of the bonds because we were oversubscribed,’’ she added.

    The minister said the $1 billion bond was offered in two categories at the international capital market.

    She said that $500 million was offered as a five-year bond at 5.125 per cent interest rate, while the other $500 million was offered as a 10-year bond at 6.375 per cent interest rate.

    She added that the two-category offer gave Nigeria the opportunity to achieve an overall cheaper cost of borrowing.

     

  • Boko Haram chief Shekau may face trial in US

    Boko Haram chief Shekau may face trial in US

    Boko Haram leader Abubakar Shekau could be put on trial for terrorism in the United States when caught, it was learnt yesterday.

    United States Acting Assistant Director of Diplomatic Security Amb. Kurt Rice, stated this.

    Rice spoke in a joint-teleconference with Deputy Assistant Secretary for African Affairs David Gilmou from Washington DC. The session was aired to audiences in Abuja, Accra, Lagos and Niamey.

    They spoke on the U.S government’s offer of $23 million (about N3.6b) in cash rewards promised to people that could provide information on some terrorists in the West African countries.

    Among the terrorists is Shekau, who had a $7 million price tag (about N1.6b), placed on his head.

    The Federal government yesterday announced that President Goodluck Jonathan has approved the proscription of Boko Haram and authorised the gazetting of an order declaring the group’s activities illegal and as acts of terrorism.

    The statement by Dr Reuben Abati, Special Adviser to the President on Media & Publicity, confirms the exclusive story published by The Nation yesterday.

    Boko Haram’s proscription is gazetted as the Terrorism (Prevention) (Proscription Order) Notice 2013.

    Ansaru, the other terrorist group that came out of Boko Haram, was also proscribed.

    The U.S official said the Nigerian Government needed to urgently evolve ways of reducing youth unemployment, as well as addressing the peoples’ political and socio-economic grievances.

    “For the first time, the U.S Department of State Rewards for Justice Programme has offered rewards for information on key leaders of terrorist organisations in Nigeria and other countries.

    “The rewards are to enable the U.S government get at such terrorists, and take them to its court for prosecution.

    “We are, therefore, urging the Nigerian Government to also come up with a comprehensive approach to its security problems and challenges,’’ he said.

    Rice said that Nigeria’s security problem was a “multi-faceted” one, which also needed “multi-faceted solutions”.

    The U.S Assistant Director of Diplomatic Security said the rewards were to expose and prosecute terrorists targeting U.S properties and citizens in West Africa.

    “We want people to provide us with confidential information and such information will be carefully used in getting at these insurgents,’’ he said.

    “Our intent is to bring him before a court. Our intent in offering this reward at this time is to work with our Nigeria partners to try and make (Nigeria) a more stable and secure area.’’

    “The fact is that this is a shared fight against terrorism. This is one tool we have against terrorism and we find that overtime it has been enormously effective and it has saved a lot of lives and we want to continue doing that,’’ he said.

    Rice also said that the Rewards for Justice programme, an initiative of the U.S Department of State Bureau of Diplomatic Security, had since inception in 1984, paid about 125 million dollars to 80 people, who provided information on terrorists globally.

    Also speaking, Gilmour ruled out suggestions that the seven million dollar (N1.1bn) bounty offered on the head of Shekau could be counter-productive to Nigeria government amnesty offer to the insurgents.

    He reiterated the U.S. position that security-based solution was not the only way to address the current security challenges in Nigeria.

    He said the U.S. recognised that among Northern Nigeria there were legitimate grievances such as social inequality and youth unemployment.

    “We urge the Nigeria government to take seriously those grievances of the general population of Northern Nigeria,’’ he said.

    He advised security operatives, currently conducting military operations in three states, under the state of emergency , to try and build the confidence of the population to keep them safe.

    The U.S. diplomat on Africa said his government was working closely with Nigeria on security and counter-terrorism issues.

     

  • DHQ, US partner on improved civil-military relations

    The Defence Headquarters (DHQ), in collaboration with the United States (US) Government yesterday began a three-day seminar to strengthen civil-military relations in the ongoing war against terrorism.

    The three-day seminar, which started in Abuja yesterday, seeks to build confidence and understanding of the civil populace on the role of the military during emergencies.

    Federal troops are still being deployed in the three northeastern states of Borno, Yobe and Adamawa, where an emergency rule has been imposed.

    The Chief of Defence Staff (CDS) Admiral Ola Sa’ad Ibrahim said the seminar would boost the confidence and cooperation between the military and the civil society.

     

  • US urges respect for human rights

    The United States wants Nigeria to respect human rights in the on-going offensive against terrorists in Borno, Yobe and Adamawa states.

    In a statement in Washington D.C, the US Secretary of State, Mr. John Kerry, said his country is “deeply concerned about the fighting in North eastern Nigeria following President Jonathan’s declaration of a state of emergency” in the three states.

    He also spoke of ‘deep concern’ by “credible allegations that Nigerian security forces are committing gross human rights violations, which, in turn, only escalates the violence and fuel extremism.”

    He condemned “Boko Haram’s campaign of terror in the strongest terms,” and urged soldiers on the operation in the three states to “apply disciplined use of force in all operations, protect civilians in any security response, and respect human rights and the rule of law.”