• Friday, March 29, 2024
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News Roundup: How Nigeria can ease subsidy removal pain, Despite high oil price, Nigeria’s cost of borrowing spikes to highest in 15-months…

News Roundup: Super Eagles drops on FIFA ranking after Algeria defeat, Victims of Kaduna-train attack gains freedom…

How Nigeria can ease subsidy removal pain
The Federal Government has said it is unwilling to inflict an additional burden on Nigerians as a major reason for the decision to suspend its petrol subsidy removal. However, understanding how countries in similar situations solved the problem may provide lessons for Nigeria. BusinessDay’s analysis of studies conducted by the International Monetary Fund (IMF) and the non-profit, Governance and Social Development Resource Centre, sheds light on strategies used by over a dozen countries to lessen the pain of subsidy removal which includes Research- some countries succeeded in convincing their people that subsidies are harmful using independent research and proactive communication. Public campaigns and education- countries that have successfully removed petrol subsidies embarked on public campaigns to educate the people. Cash transfers- several governments that have tried to remove fuel subsidies in their respective countries have always aimed at protecting low-income households. Others include public trust, phased approaches, international and domestic pressure, and coherence in reform policy.

Nigeria’s 2022 cashew output seen rising by 20% on favourable weather
Nigeria’s cashew output is expected to rise 20 percent on favourable weather conditions which have helped boost output for the 2021/22 season to an estimated 192,000 tons, the national president of the National Cashew Association of Nigeria has said. Nigeria is the fourth-largest producer of cashew nuts in Africa and sixth globally, with 160,000 metrics per annum, according to data from the country’s Agricultural Ministry. “The weather condition has been very favourable with moderate harmattan. Most of the trees we have seen across key growing states are fruiting well,” said Ojo Ajanaku, national president, National Cashew Association of Nigeria (NCAN). “We expect our output to increase by at least 20percent this year. Also, a lot of new trees will start fruiting this year and that will also contribute to our output for the year,”Ajanaku said. He noted that the quality of the nuts will also be very good owing to the mild harmattan that will help in reducing the level of heat during the storage of the crop. Despite the omicron variant uncertainty, accelerating inflation, increasing shipping and logistic cost, demand for Nigeria’s cashew crop has remained strong on the back of cashew being an immunity-boosting food. Cashew farmers in Africa’s most populous expect prices to hit an average of N500,000 per metric ton on the decline in Indian production and surging demand from Vietnam and Asia. “We are already getting orders and we expect prices to surge. There has been a global commodity rally and cashew will not be left out,” said Tola Faseru, president of African Cashew Alliance.

More Chibok students matriculate at AUN
A fresh batch of thirteen students from Chibok who have completed an intensive programme under the New Foundation School (NFS) were among those who took the traditional Community Oath of the American University of Nigeria on Monday, January 24. The 13 young women from Chibok joined other new students from all the 36 states of Nigeria, Rwanda, Niger Republic, and Cameroon, to participate in the colourful Spring 2022 Semester Convocation and Pledge ceremony along with parents, friends, and relatives. President Margee Ensign presided over the ceremony. She extolled the merits of the American-style liberal arts education offered at AUN, which she pointed out is purposefully designed to develop solutions to local, regional, national, and global problems. Last October, 57 Chibok students from AUN’s New Foundation School (NFS) were admitted into AUN’s undergraduate programs. They have since begun their academic journey in Public Health, Law, Engineering, Computer Science, Software Engineering, Business Administration, Entrepreneurship, Communication, and Multimedia Design, among other exciting and life-changing programs offered at AUN. The Chibok students enrolled in the AUN New Foundation School (NFS) program on the scholarship of the Federal Government of Nigeria. Under the Federal Ministry of Women Affairs guardianship, AUN has mentored them into vibrant, curious, and ambitious young women ready for university life and careers after graduation.

Read also: Nigeria’s election – Fuel subsidy conundrum

Despite high oil price, Nigeria’s cost of borrowing spikes to highest level in 15-months
Nigeria’s oil industry woes are starting to capture the attention of bond investors according to Bloomberg. The cost of insuring the nation’s dollar bonds against default jumped to the highest since October 2020 this week after Africa’s largest crude producer delayed plans to cut expensive gasoline subsidies by 18 months. While credit-default swaps have risen across emerging markets recently, Nigeria’s spiked more than peers “despite robust oil prices and moderate external debt service relative to foreign exchange reserves,” said Samir Gadio, head of Africa Strategy at Standard Chartered. The decision to delay the subsidy cuts could deprive the country of up to 3 trillion naira ($7.2 billion) in lost income from oil and gas over 12 months, according to the World Bank. The state energy company is currently absorbing the spiraling costs of keeping the pump price steady, which is eroding its capacity to finance the government. Deferring the reforms will make Nigeria’s budget deficit balloon even further if — as the government has signaled — this year’s spending plan is amended to include gasoline subsidies beyond the current limit of June, said Razia Khan, head of research for Africa and the Middle East at Standard Chartered. Africa’s largest economy will likely significantly surpass its projected deficit of 6.39 trillion naira, or 3.46% of gross domestic product, this year. The country also exceeded last year’s projected deficit, according to a presentation by Finance Minister Zainab Ahmed earlier this month. Through November 2021, the West African nation borrowed about 56% of its 12.6 trillion naira spending, she said.

TLcom secures first close of $150m fund to invest in African tech companies
TLcom, an Africa-focused venture capital firm, has secured the first close of $70 million for its $150 million tech fund dedicated to companies in Africa and putting its insight to becoming the largest independent venture firm. Launched in 1999, TLcom currently has in excess of $350 million worth of funds under management across primary and secondary funds. It also boasts 12 diversified portfolios of tech companies on the continent including Andela, Ajua, Autochek, Ilara Health, Kobo360, Okra, Pula, Seamless HR, Shara, Terragon Group, Twiga Foods, and uLesson. Participants in its latest funding include Allianz, the world’s largest insurance company, through AfricaGlow, its joint venture with DEG Impact (German Investment Corporation), as well as a host of new and returning investors including Bertelsmann, King Philanthropies, the TLcom team, and FBNQuest from the private sector, and major DFIs such as CDC Group (the UK’s development finance institution), IFC, Proparco and Swedfund. A second close of the fund is expected later in 2022. TLcom plans to use the new fund to expand its existing focus on fast-growth, tech-enabled African startups to Egypt, as well as strengthen its long-standing presence across East and West Africa. The company is hoping to bring an additional 20 early-stage startups to its portfolio with an emphasis on Seed and Series A stages. It will also target entrepreneurs tackling some of Africa’s most complex challenges in sectors including fintech, mobility, agriculture, healthcare, education, and eCommerce. The ticket size ranges from $500,000 to $15 million.

Rotary Club of Lagos provides N40m facility to school
To enhance learning by students, Rotary Club of Lagos in partnership with First Bank of Nigeria has renovated a block of four classrooms, provided a library that will accommodate 60 students and a borehole to Lafiagi Senior High School in Lagos Island at a cost of about N40 million. The Club which is an organisation of business and professional individuals united worldwide who provide humanitarian services and help build goodwill embarked on this project with contribution from its sponsor and members on the understanding that a conducive environment will enhance learning and education is pivotal to all development goals. Education is regarded as the foundation of a better future and any investment as initiated and completed by the Rotary Club of Lagos in the sector is considered worthwhile. Handing over the three projects to the school established in 1983 by Lateef Jakande, one-time governor of Lagos State, the president of Rotary Club of Lagos, Babawale Agbeyangi described Rotary as a service organisation and “what we do is to impact lives, alleviate poverty and create friendship” Describing Lafiagi Senior High as the adopted school of the club, Agbeyangi said the relationship with the school started in 2014 when the club provided a borehole to help sanitation and hygiene. In 2020, the club donated computers and last year the club conducted a cancer assessment in the school.