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Nigeria’s Cocoa Earnings Surge by 279% in Q1, 2024

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Nigeria’s cocoa earnings surge by 279% in the first quarter of 2024 on the back of elevated cocoa prices during the first quarter of 2024.

This is as seen in the data from the National Bureau of Statistics (NBS) reveals for the first three months of the year, the value of cocoa exports reached a total of N408.66 billion.

This represents an increase of 279% from the N107.59 billion recorded in the first three months of 2023.

When compared to the preceding quarter, total cocoa exports increased by 138% from the N171.29 billion recorded in the preceding quarter.

Also despite the significant depreciation of the Naira in the first quarter of the year, the dollar value of cocoa exports saw a significant increase both year-on-year and quarter-on-quarter.

There was a 65.3% increase in the USD value of Nigeria’s exports between Q4 2023 and Q1, 2024. Using the closing rate of the USD to the Naira at the end of December 2023, cocoa exports for the period stood at $188.83 million.

This increased to $312.19 million at the end of Q1 2024 using the exchange rate at the end of March 2023.

Year-on-year, the USD value of exports in the first quarter of 2023 stood at $233.8 million using the exchange rate of $460/$ at the end of March 2023. This represents an increase of 33.4% over the one year in the USD value of cocoa exports.

The significant rise in cocoa exports in the quarter under review stems from a rise in the prices of cocoa between January and March 2023.

In the first quarter, the average price of cocoa in the international market increased by 130%, closing the quarter at $9,900 per ton since the beginning of the year.

In January, the spot price of coca in the international market rose from $4,297 to end the month at $4,841. In February, the commodity continued its bullish wave to close the month at $6,443 and reached a monthly peak of $6,866. In the final month of the quarter, cocoa prices reached a staggering $9,828 to close for the month.

The bullish trend in cocoa prices did not just end in the first quarter. In the following month of April, cocoa prices reached a record high of $12,216. However, the commodity currently trades around $9,800 with projections for further increases in the future.

This increase in cocoa prices can be attributed to a global cocoa shortage. Climate change-induced droughts have severely impacted crops in West Africa, (Ghana, Ivory Coast and Nigeria) the countries responsible for approximately 80% of the world’s cocoa production. The International Cocoa Organization predicts that the global cocoa supply will decrease by nearly 11% during the 2023/2024 season.

 

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WIOCC Raises $41 Million to Expand Infrastructure in 3 African Country

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The West Indian Ocean Cable Company (WIOCC) has secured $41 million in debt funding to expand data centre infrastructure in Nigeria, South Africa, Democratic Republic of Congo (DRC). 

The funding led by IFC, a member of the World Bank Group, also saw participation from Proparco, a development finance institution and subsidiary of the Agence Française de Développement Group.  

The funding comprises loans of $10 million, ZAR 200 million ($11 million) from the IFC and $20 million from Proparco.

From a joint statement by the financiers, WIOCC is also expected to sign an additional $10 million loan with RMB in the next few weeks. 

With the funding, WIOCC which owns one of the largest data centers in Nigeria, Open Access Data Centres, said it would expand its core and edge data centers in its three operating countries to meet the growing demand for colocation and other data centre services.  

It will also grow its fibre networks, helping bridge the digital divide, and fostering economic growth across Africa. 

According to the statement, the financing is structured as a sustainability-linked debt, with pricing linked to WIOCC’s commitment to improve the energy efficiency of its data centres and obtain EDGE green building certification for them. EDGE, an innovation of IFC, makes it easy to design and certify resource-efficient and zero-carbon buildings. 

“We are excited to conclude this next stage of our capital raise, which will enable significant expansion, adding further capacity to our open-access data centre operation and extending open-access hyper scale national, international, and metro connectivity across our key markets in Nigeria, southern Africa, the DRC and Greater East and Central Africa 

“Our policy of continual investment in infrastructure to create Africa’s first, truly open-access interconnected digital ecosystem means ongoing investment for growth, ensuring readiness to meet the future demands of our client’s customers throughout Africa”  CEO of WIOCC Group, Chris Wood, stated

Head of Energy, Digital and Infrastructure at PROPARCO, Ariane Ducreux, said the Agence Française de Développement Group has been supporting WIOCC since its inception back in 2007.  

IFC Global Industry Director of Infrastructure, Bertrand de la Borde, also said that the Corporation’s long-standing partnership with WIOCC of more than 15 years demonstrates its commitment to increasing affordable and reliable digital connectivity in Africa through shared infrastructure.  

According to him, this new debt facility would help WIOCC fulfil its ambition to establish an integrated, open-access, core-to-edge cloud ecosystem throughout the African continent, which is critical to bridging the digital divide.  

 

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Biden Administration Bans Sales of Kaspersky Software Over National Security Concerns

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The Biden administration announced on Thursday that it would ban the sale of software in the U.S. built by Russian antivirus vendor Kaspersky Lab, citing longstanding concerns that the firm poses a significant national security threat.

“Kaspersky will generally no longer be able to, among other activities, sell its software within the United States or provide updates to software already in use,” stated a Commerce Department announcement.

The decision followed a comprehensive investigation which concluded that Kaspersky’s continued operations in the United States posed a national security risk due to the Russian government’s offensive cyber capabilities and potential influence over the company’s operations.

U.S. Commerce Secretary Gina Raimondo emphasized, “Russia has shown time and again they have the capability and intent to exploit Russian companies, like Kaspersky Lab, to collect and weaponize sensitive US information.”

Kaspersky, in a statement to AFP, criticized the Commerce Department’s decision as being based on the current geopolitical climate and theoretical concerns. The company vowed to “pursue all legally available options to preserve its current operations and relationships.”

“Kaspersky does not engage in activities which threaten US national security and, in fact, has made significant contributions with its reporting and protection from a variety of threat actors that targeted US interests and allies,” the company asserted.

This move marks the first action of its kind since an executive order issued under former President Donald Trump granted the Commerce Department the authority to investigate whether certain companies pose a national security risk. Raimondo stressed that the department’s actions signal to America’s adversaries that the U.S. will act decisively when foreign technology poses a risk to national security.

While Kaspersky is headquartered in Moscow, it operates offices in 31 countries and serves over 400 million users and 270,000 corporate clients in more than 200 countries, according to the Commerce Department.

In addition to banning the sale of Kaspersky’s antivirus software, the Commerce Department added three entities associated with the firm to a list of companies deemed national security concerns. These entities were cited for their cooperation with Russian military and intelligence authorities in support of the Russian government’s cyber intelligence objectives.

The Commerce Department strongly encouraged current users to switch to new vendors, although the decision does not outright ban them from continuing to use the software if they choose. Kaspersky is permitted to continue certain operations in the U.S., including providing antivirus updates, until September 29 of this year. This grace period is intended to minimize disruption to U.S. consumers and businesses and to allow them time to find suitable alternatives.

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N280 Billion Final Approval For Bodo-Bonny Road Project ~ FG

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The Federal Government has approved a final N280 billion for Julius Berger Nigeria PLC to complete the Bodo-Bonny road project in Rivers State.

This announcement was made by the Honourable Minister of Works, David Umahi, during his inspection visit to the project site on Wednesday, as reported on the Ministry’s website.

Minister Umahi set December 2024 as the deadline for the project’s completion and urged the contractor to strictly adhere to this timeline, with the goal of resolving the longstanding transportation challenges in Bodo-Bonny once and for all.

“The Federal Government has approved the total and final sum of N280 billion for the completion of Bodo-Bonny road project

“This was revealed by the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi CON during his inspection visit to the project site this 19th June 2024. He warned that the contractor handling the project, Julius Berger Nigeria Plc, must work round the clock to beat the project delivery timeline of December 2024,” the statement read in part.

Engr. Umahi strictly advised Julius Berger Nigeria Plc. that, regardless of any unexpected challenges or difficulties, the cost of the project will not be increased beyond the approved amount. He insisted that the project must be completed to a high standard.

The Works Minister highlighted the urgency by noting that the project has been ongoing for 11 years and must be finished within this year, setting December 15, 2024, as the deadline for completion.

The statement also revealed that Umahi praised the perseverance of the Bodo-Bonny Peace Committee and the cooperation and integrity of Nigeria Liquefied Natural Gas (NLNG) in funding the project.

NLNG representative Dienye Godson, on behalf of the company, expressed gratitude to the President and his team for their determination to complete the project.

He noted that NLNG is pleased with the progress and will now review its internal processes to provide as much support as possible to the government.

In response, the project manager from Julius Berger Nigeria Plc. assured that they will continue their efforts without hesitation and will expedite the re-mobilization of the project to demonstrate their full commitment.

He acknowledged the Minister of Works’ statement and emphasized the need for everyone involved to work together diligently as partners to ensure the project’s success.

Back story

The contractor handling the Bodo-Bonny road project, Julius Berger Nigeria Plc., had abandoned the 35.7-kilometer project, which includes 13 bridges: three main bridges, nine mini bridges, and one bridge over a pipeline.

This road is set to be the first to connect oil-rich Bonny Island to mainland Rivers State. The abandonment occurred because Julius Berger was seeking additional funds for the project.

In 2021, Julius Berger requested a review of the contract, but the Federal Government maintained that this was against the original agreement signed in 2017 by the three parties: the Federal Government, Nigeria Liquefied Natural Gas (NLNG), and Julius Berger Nigeria Plc.

The Federal Government’s refusal to accept the contractor’s request for a variation led to the abandonment of the Bodo-Bonny road project.

In December 2023, the Federal Government directed Julius Berger to return to the site and complete the project, faulting the company for seeking a project variation despite the agreement. However, Julius Berger did not comply and refused to return until their request for an upward variation was eventually approved by the Federal Government in June 2024.

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