BUSINESS

Oil And Gas Amounts For 92.9% Of Exports Earnings In Q2

Published

8 years ago

September 14, 2016

Despite calls for diversification of Nigeria’s revenue base to other sectors like manufacturing and agriculture, oil and gas accounted for 92.9 per cent of the country’s export earnings during the second quarter of 2016.

Specifically, out of the N1.872 trillion of export earnings by the Federal Government during the second quarter of 2016, oil and gas accounted for N1.735 trillion or 92.9 per cent of the total export value.

The National Bureau of Statistics, which made this known in its second quarter foreign trade statistics released last week, disclosed that natural liquefied gas recorded ₦198 billion of the total export value during the period under review.

Besides Nigeria’s crude oil production decreased by 51,000 barrels per day (bpd) from the 1.520 million barrels per day it recorded in July to 1.468 mbpd in August, according to the August report of the Organisation of Petroleum Exporting Countries (OPEC).

The Bureau disclosed that Nigeria imported N296.1 billion worth of Premium Motor Spirit (PMS) also called petrol, during the quarter under review.For example, out of the total N402 billion export earnings from India in the quarter under review, crude oil accounted for N362 billion while non-oil was N39.727 billion.

Also, Nigeria recorded N10.928 billion from non-oil export to the United States, while crude oil accounted for larger sum of N224.081 billion.Nigeria’s crude oil export to Spain was N181,663 billion while it earned N33.505 billion from non-oil products.

Based on export by continent, the report showed that Nigeria mainly exported goods to Europe and Asia, which accounted for ₦611.7 billion or 32.7 per cent and ₦606.4 billion or 32.4 per cent respectively, of the total export value during the period under review.

It added that Nigeria exported goods valued at ₦265.9 billion or 14.2 per cent to Africa while, export to the Economic Community of West Africa States (ECOWAS) region totaled ₦86.9 billion.

The agency stated: “Nigeria’s import trade stood at ₦2.069.2 trillion at the end of second quarter showing an increase of 38.1 per cent from the value ₦1.498.4 trillion recorded in the preceding quarter.

“As with exports. The increase in import value can be traced to a decline in the value of the naira. The structure of Nigeria’s import trade by section was dominated by the imports of “Boilers, machinery and appliances; parts thereof” which accounted for 34.9 per cent of the total value of import trade in second quarter. Other commodities which contributed noticeably to the value of import trade during the review period were Mineral products” (15.8 per cent), Vehicles, aircraft and parts thereof; vessels etc.”(14.7 per cent), Products of the chemical and allied industries (7.6 per cent), and “Base metals and articles of base metals (5.1 per cent).”

“The import trade classified by broad economic category revealed that “capital goods and parts ranked first with ₦663.6 billion or 32.1 per cent. This was followed by Industrial supplies with the value of ₦421.2 billion or 20.4 per cent, and Transport Equipment and Parts with ₦356.1 billion or 17.2 per cent. The value of motor spirit stood at ₦296.1 billion. Nigeria’s import trade by direction showed that the Country imported goods mostly from China,

“Netherlands, United States, India and the United Kingdom, which respectively, accounted for ₦493.5 billion or 23.9 per cent, ₦285.7 billion or 13.8 per cent, ₦199.0 billion or 9.6 per cent, ₦124.9 billion or six per cent, and ₦119.3 billion or 5.8 per cent of the total value of goods imported during the quarter. Further analysis of Nigeria’s imports by Continent revealed that the country consumed goods largely from Asia with import value of ₦886.1 billion or 42.8 per cent,”.

According to the OPEC report released on Monday, Nigeria’s drop in oil production also contributed to the decrease in the OPEC total crude oil production, which stood at 33.24 mbpd in August, a decrease of 23 kbpd over the previous month.OPEC said that crude oil output increased mainly from Saudi Arabia and Iran, while Nigeria and Libya showed the largest drop

In its latest September report, the 14-member oil-producing cartel said the trend of “moderate” global growth is likely to continue in 2016 and 2017, and that imminent central bank’s decisions and political developments were likely “to be influential”.

“There are several key dynamics across the globe that are significant (to global growth) in the short-term, OPEC said before commenting on the effectiveness of central bank stimulus programms.

“Interest rates are already low in major economies and the effectiveness of further monetary stimulus has diminished, despite remaining crucial for some economies. Here, any decision from main central banks on monetary policies, particularly the U.S. Fed, will continue to be influential. Moreover, in most key economies the space for fiscal stimulus seems to be limited given high debt levels.” it said.

OPEC said the trend of moderating global growth is likely to continue this year, but that the energy sector, despite being harmed by lower investment as a result, could help buoy global growth.

“There are several key dynamics across the globe that are significant (to global growth prospects) in the short-term,” OPEC noted. “There is a considerable negative impact on global growth from the energy sector due to the sharp decline in investments, mainly in the oil and gas sector as well as lower output values.”
“So far this has not been entirely compensated by positive effects from consumption. Any stabilisation in the crude oil market in coming months could provide positive support to overall economic activity”, OPEC said.

Source: guardian.ng

Related Topics:Organisation of Petroleum Exporting Countries (OPEC)

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BUSINESS

10 Nigerian Sectors Attracting High Foreign Investments

Published

3 weeks ago

July 7, 2024

Adaeze Okechi

10 Nigerian Sectors Attracting High Foreign Investments | Fab.ng

Nigeria, the giant of Africa, boasts a vibrant economy rich in natural resources and a young, energetic population. This makes it a prime target for foreign investors seeking lucrative opportunities for investments.

While the oil and gas sector has historically dominated foreign investments, recent trends reveal diversification across various industries.

Let’s delve into the top 10 sectors currently attracting significant foreign investments to Nigeria:

1. Banking

The Nigerian banking sector stands tall as the top recipient of foreign investments. The country’s robust financial system, coupled with a growing middle class, presents an attractive market for international banks and investors.

Recent quarters have witnessed a significant surge in foreign capital inflow into Nigerian banks, with a focus on providing financing for businesses and individuals.

2. Trading

The bustling commercial activities in Nigeria make the trading sector a magnet for foreign investments. From established retailers to import and export businesses, the opportunities are vast.

Foreign investors are drawn to the growing consumer base and the potential for establishing efficient distribution networks across the country.

3. Production & Manufacturing

Nigeria’s push for industrialization has opened doors for foreign investors in the production and manufacturing sector.

Investments are flowing into areas like food processing, pharmaceuticals, and construction materials. This sector offers the potential for import substitution, creating jobs, and boosting the nation’s self-sufficiency.

4. Telecommunications

Nigeria’s telecommunications sector has experienced phenomenal growth, fueled by a rising mobile phone penetration rate.

This has attracted significant foreign investments in network infrastructure expansion, mobile money services, and the development of innovative telecommunication solutions.

5. Information Technology (IT) Services

Nigeria’s youthful population and tech-savvy individuals are driving the demand for IT services. Foreign investors are recognizing the potential in areas like software development, cloud computing, and cybersecurity.

This sector presents an exciting opportunity for collaboration and knowledge transfer between international companies and local talent.

6. Shares & Stocks

The Nigerian Stock Exchange (NSE) is a vibrant platform attracting foreign investors seeking to participate in the country’s economic growth.

Investments are channelled into various sectors listed on the NSE, allowing foreigners to diversify their portfolios and tap into the potential of promising Nigerian companies.

7. Financing

The growing demand for financial services, particularly in areas like microfinance and venture capital, is attracting foreign investment in the financing sector.

Foreign investors are providing capital to support small and medium-sized enterprises (SMEs) and fostering an environment for entrepreneurship to flourish.

8. Electricity

Nigeria’s ongoing quest for a stable and reliable power supply has opened doors for foreign investors in the electricity sector.

Investments are directed towards renewable energy solutions, grid modernization, and independent power generation projects. This sector holds the key to unlocking Nigeria’s economic potential.

9. Agriculture

Despite being a powerhouse in agriculture, Nigeria still relies on imports for certain food items.

This presents an opportunity for foreign investors to partner with local farmers and businesses to improve agricultural practices, and processing techniques, and establish efficient distribution channels.

10. Transportation

Nigeria’s underdeveloped transportation infrastructure is seen as a hurdle by foreign investors. However, this also presents a lucrative opportunity for investment in road construction, railway development, and the modernization of air and seaports.

Improved transportation infrastructure will not only benefit foreign businesses but also enhance the overall economic activity within Nigeria.

In conclusion…

Nigeria’s economic landscape is transforming, attracting foreign investments across diverse sectors. The government’s efforts to create a conducive business environment, coupled with the nation’s abundant resources and vast market potential, make it a compelling destination for foreign capital.

As Nigeria continues on its growth trajectory, these investments will play a crucial role in unlocking its full economic potential and propelling the nation towards a brighter future.

For more business updates, check here.

BUSINESS

7 Reasons Good Logistics Management Is Important For Every Business

Published

4 weeks ago

June 29, 2024

Adaeze Okechi

Logistics management: it's important for every business | fab.ng

Imagine your business as a busy kitchen. Ingredients (raw materials) need to be ordered, stored (in the fridge), prepped (production), and cooked (assembled into a product). Then, the final dish (finished product) needs to be delivered hot and fresh (on time and in good condition) to the customer. Logistics management is like the skilled chef who coordinates everything behind the scenes.

Here’s why good logistics management is essential for your business success:

1. Boosting productivity

Good logistics help you optimize production, supply, and delivery processes. This saves money, avoids mistakes, and lets your team work more effectively. They can produce more in less time, without sacrificing quality.

Imagine your kitchen staff having all the ingredients they need, prepped and ready to go. They can whip up delicious meals quickly and efficiently.

2. Running smoothly

Logistics ensures everything runs smoothly, like a well-oiled kitchen. It plans, organizes, and controls everything that happens to your product, from getting ingredients to delivering the final dish. This avoids delays, mistakes, and grumpy customers (because their food arrived cold).

3. Happy customers

Fast and reliable deliveries are what keep customers happy these days. Imagine ordering a pizza – good logistics ensure it arrives hot and on time, making you a hero to your hungry friends. Logistics helps businesses meet these expectations by getting products to customers quickly, which builds trust and keeps them coming back for more.

Logistics management helps you meet customer expectations and build trust. They’ll keep coming back for more if they know they can rely on you to get them what they need when they need it.

4. Saving money

Every business wants to cut costs. Logistics helps by optimizing storage, transportation, and other areas. It’s like using the right amount of fridge space, finding the most efficient way to cook, and negotiating good deals with suppliers. This reduces waste, saves time, and helps your business keep more money in its pocket.

5. Standing out from the crowd

In today’s world, fast and reliable service is a must-have, not a bonus. Customers have many choices, and they’ll often go with the business that offers the quickest and easiest delivery.

Think of two restaurants: one with slow delivery and another with lightning-fast service. Good logistics give businesses an edge over competitors who can’t deliver as efficiently. By offering faster shipping or lower delivery costs, you become the more attractive option.

6. Becoming more agile

With good logistics, you can track and measure each step of the process. This gives you real data to analyze and improve your business. Think of a kitchen constantly looking for ways to improve. Maybe they can find a faster way to chop vegetables or a more efficient layout for the kitchen.

7. Real-time monitoring

Good logistics lets you track everything in real time, from storage to delivery. This allows you to make better decisions and identify areas for improvement. Imagine the kitchen manager being able to see exactly where each delivery driver is and how long it will take them to get to the customer. They can address any issues immediately and keep things running smoothly.

In short, effective logistics management is a secret ingredient for business success. It helps your business run smoothly, save money, keep customers happy, and beat the competition. By having a well-organized logistics system, your business can focus on what it does best – creating great products and providing excellent service.

By implementing effective logistics management, your business can experience many benefits, from increased productivity and happier customers to lower costs and a competitive edge. It’s a win-win for everyone.

BUSINESS

Top 5 Smartphone Brands Dominating Africa’s Market

Published

1 month ago

June 22, 2024

Adaeze Okechi

Top 5 Smartphone brands dominating markets in Africa | Fab.ng

The African smartphone market is booming! Sales of smartphone brands across Africa surged in the first quarter of 2024, according to a report by Canalys. This impressive growth makes Africa the third-fastest-growing region in the world for smartphones.

Here’s a closer look at the numbers:

Big jump in shipments: Canalys reports that roughly 18.2 million smartphones were shipped to Africa in the first quarter, which is a significant 24% increase compared to the same period in 2023.
Dominant brands: Popular smartphone brands like Transsion, Samsung, and Xiaomi are leading the charge in this growth. These brands are likely popular due to a combination of factors such as brand recognition, affordability, and features that cater to the needs of African consumers.

This significant growth in the African smartphone market suggests a growing number of people across the continent are gaining access to these devices. Smartphones can be powerful tools for communication, education, and economic empowerment, and their increasing availability is a positive sign for Africa’s development.

Let’s take a look at the top 5 smartphone brands dominating Africa’s smartphone market below.

Top 5 smartphone brands in Africa (Q1 2024)

Top smartphone brands in Africa with insights into why these brands are popular and how they’re competing in the market:

1. Transsion (Tecno, Infinix, Itel):

Transsion reigns in Africa, capturing over half the market share (52%), with 9.5 million units shipped in Q1 2024. This dominance extends to key markets like Nigeria (67%) and Kenya (48%).

Transsion’s success can be attributed to its strategic brand portfolio. They offer a range of smartphones under the Tecno, Infinix, and Itel brands, catering to different price points and customer preferences. This allows them to tap into a wider consumer base. Also, it encompasses budget-conscious buyers seeking affordable options alongside those seeking more feature-rich devices.

Beyond leading markets, Transsion has established a presence in other African countries like Egypt (11%), South Africa (15%), Morocco (24%), and Algeria (19%). This solidifies their position as a major player across the continent.

2. Samsung

Smartphone brands dominating markets in Africa | Fab.ng

While Samsung holds the top spot globally with a whopping 60 million units shipped, its presence in Africa (21% market share) falls behind Transsion. However, Samsung remains a leader in specific regions, dominating markets like Egypt (29%), South Africa (46%), and Morocco (39%).

Despite facing stiff competition, Samsung maintains a presence in other African countries like Kenya (31%), Nigeria (6%), and Algeria (23%). This suggests Samsung is strategically focusing on maintaining its brand recognition and customer base in these markets.

3. Xiaomi

Smartphone brands dominating markets in Africa | Fab.ng

Xiaomi is a brand on the rise in Africa. They currently lead the Algerian market with a 32% share and have a presence in other countries like Egypt (20%), Nigeria (19%), Kenya (8%), South Africa (7%), and Morocco (26%).

Xiaomi’s growth is evident in their increased market share from 6% to 11% in Q1 2024. This surge can likely be attributed to their aggressive expansion strategy. It involves offering competitive features at attractive prices. By focusing on value for money, Xiaomi is attracting a growing number of African consumers.

4. OPPO

OPPO Nigeria | Fab.ng

OPPO is a relatively new entrant in the African smartphone market, having established a presence in Egypt (15%), Algeria (1%), and Kenya (5%) in Q1 2024.

Despite their early efforts, OPPO faces intense competition from established brands. They shipped 600,000 units in Q1 2024, securing a 3% market share. To gain a stronger foothold, OPPO will need to develop targeted strategies to appeal to African consumers and stand out in a crowded market.

5. HMD Global (Nokia)

HMD Global, the brand behind Nokia phones, manages to cling to a spot in the top 5 with a minor presence in Nigeria (1%) and Kenya (3%).

Nokia’s legacy as a trusted brand might help them retain some customers. However, the rapidly evolving smartphone market demands innovation and adaptation. HMD Global will need to up their game to compete effectively with the aggressive strategies of other brands.

The dominance of Transsion and the strong showing of Xiaomi highlight the growing importance of offering budget-friendly smartphones with good features to cater to the African market.

Samsung, with its global brand recognition, remains a major player. Moreso, it will need to adapt its strategies to maintain its position.

As the African smartphone market continues to flourish, it will be interesting to see how these brands, along with others, innovate and compete to win over the hearts (and wallets) of African consumers.

For more articles, check here.