Nigeria has one of the largest land areas dedicated to oil palm cultivation globally, but it still lags in palm oil production.

According to a report by Vestance entitled, ‘Reclaiming Lost Glory: Nigeria’s Palm Oil Renaissance,’ Nigeria used to be a major producer of palm oil between the 1950s and 1960s, with states like Calabar, and Rivers State being some of the top distributors.

However, while other countries like Malaysia and Indonesia have found a way to grow the plant, becoming major exporters today, Nigeria has fallen in rank.

“The Nigerian oil palm industry stands at a crossroads, as it remains at the embryonic stage of an industry cycle, with high susceptibility to external shocks and a sustainability outlook that might deter expansionary plans for increased growth and production,” the report said.

“However, Nigeria can position itself as a responsible and competitive player in the global palm oil market by capitalising on emerging opportunities (like increasing demand and potential slow growth with national competitors), addressing sustainability concerns, and prioritising value addition,” it added.

BusinessDay has identified four things Nigeria can learn from the success stories of Malaysia and Indonesia which are top palm oil producers and flourishing in its export.

The Vestance report notes that the governments of Indonesia and Malaysia played a crucial role in boosting palm oil production in their respective countries by establishing large state-owned estate plantations.

Central organisations drove these efforts – Perusahaan N’égara Perkebunan (PNP) in Indonesia and the Federal Land Development Authority (FELDA) in Malaysia.

“These entities provided land, financing, and training to smallholder farmers, organising them into clusters around large, centrally managed estates,” the report said.

This clustering approach integrated smallholder plasma farms with larger estates, creating economies of scale, improving access to resources, and ensuring market access.

For Africa’s most populous nation to achieve similar success, it should prioritise cluster farming among the farming population.

Growth in palm oil production in leading countries is closely tied to effective trade policies and reforms that promote investment and development.

The Vestance report says that substantial tax incentives such as import duty exemptions on machinery, reduced tax rates on palm oil profits, and subsidies on fertilisers and pesticides, coupled with deregulated land acquisition in Indonesia, made the palm oil sector highly attractive for foreign investment.

These policies, introduced in the mid-1970s to early 1980s, attracted significant capital from the World Bank and the Asian Development Bank, dramatically increasing production and expanding cultivated land.

This should be copied by Nigeria.

Findings by BusinessDay reveal that Nigeria has spent N266 billion on agricultural research institutes in the last five years, yet farmers’ output remains low due to poor utilisation of research results.

The Vestance report cites Guatemala as an example of a country which employs improved palm oil varieties, developed through research and implements rigorous seedling selection processes to ensure optimal productivity.

It stresses that this focus on seedling quality is crucial for determining the success, yield, and sustainability of plantations.

The Vestance report further notes that creating a dedicated body to oversee and regulate the industry can address issues such as smuggling, counterfeiting, and quality control.

It emphasised that, “This authority could also promote sustainable and environmentally responsible practices.”

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

Read the original article on KkrAgroConsult

The landing cost of petrol and other petroleum products has crashed further following exchange rate stability.

Data from major marketers, including the NNPC, shows that landing cost crashed to N935.94 per litre from N977

The development means that filling stations nationwide are expected to sell petrol for less than N1,100 per litre

Filling stations nationwide are expected to adjust pump prices again following the crash in fuel landing costs.

The landing cost of freighting fuel to Nigeria fell to N935.94 per litre, and aviation fuel crashed to N1,117.48 per litre.

This is according to data by the Major Energy Marketers Association of Nigeria (MEMAN).

The MEMAN report, published on Tuesday, November 19, 2024, also indicated that the landing cost of diesel dropped to N1,071.8 per litre, calculated at the exchange rate of N1,659.37 per dollar.

The report disclosed that the landing cost comprised multiple factors, such as finance charges calculated at an annual rate of 32% over 30 days, freight costs over 10 days, and the Nigerian Ports Authority (NPA) fees covering mooring and towage.

MEMAN gave the ex-depot price for Lagos at N1,029 per litre for petrol, N1,120 per litre for diesel, N1,040 per litre for aviation fuel and N1,125 per litre for LPG.

MEMAN added that the compressed natural gas (CNG) cost was between N230 per scm and N450.

Legit reported that as of Friday, November 15, 2024, the landing cost was about N1,975 per litre.

The adjustment was calculated with an exchange rate of N1,685.93 per dollar, reflecting a decrease from the previous price of N977.45 per litre.

The spot landing cost also crashed slightly to N938 per litre, showing modest improvements caused by exchange rate stability.

Nigeria has been experiencing a reduction in petrol prices following massive importation by the Nigerian National Petroleum Company Limited and oil marketers. Prices have crashed from N1,200 early in November to about N1,080 per litre in many filling stations.

Analysts say the development is due to intense competition in the downstream petroleum sector between the Dangote Refinery and oil marketers in Nigeria.

Nigeria has become a hotspot for young, dynamic entrepreneurs who are making their mark in various industries. From energy to technology, real estate to entertainment, these individuals are reshaping the business landscape both within Nigeria and internationally.

Nigeria has become a hotspot for young enterprising entrepreneurs who are making waves across diverse industries, from energy and technology to real estate and entertainment.

While business giants like Aliko Dangote and Femi Otedola continue to dominate the spotlight, a new generation of ambitious young Nigerians is rapidly establishing their presence and shaping the future of business both locally and globally.

Here are the 10 youngest billionaires in Nigeria, according to a list compiled by IntelRegion.

1. Igho Sanomi
Igho Sanomi is one of Nigeria’s youngest billionaires, with a net worth of $1 billion. Born in Delta State, Nigeria, Sanomi is a geologist, businessman, and philanthropist with interests in multiple sectors, including oil, power, telecommunications, aviation, and real estate. He is the founder of Taleveras Group, an energy trading company established in 2004. His company holds significant shares in Nigerian oil blocs, making him a key player in the country’s energy sector. Sanomi’s diverse business portfolio also spans shipping, engineering, and construction, contributing significantly to his wealth.

2. Sijibomi Ogundele
Sijibomi Ogundele, born in 1981, is the CEO of Sujimoto Construction Limited, a prominent real estate and hospitality company in Nigeria. After a career in risk assessment and SME lending, Ogundele moved into the Nigerian real estate market, where he has become known for his luxury developments. Sujimoto’s projects, such as the Medici, have drawn significant attention. Ogundele’s vision to revolutionise Africa’s luxury real estate market is embodied in his upcoming development, “LorenzoBySujimoto,” which promises to redefine high-value residential properties in Nigeria.

3. Ladi Delano
Ladi Delano is a British-born Nigerian technopreneur who co-founded Moove Africa, a mobility fintech service. Moove, launched in 2019, offers revenue-based financing to ride-hailing drivers across sub-Saharan Africa, securing lucrative partnerships with companies like Uber. With over $174.5 million in funding, Delano has expanded the business rapidly. He now plans to scale the company across Asia, MENA, and Europe. Delano’s background includes a Master’s degree from Oxford University and an MBA from the London School of Economics, and he credits his parents with inspiring his entrepreneurial spirit.

4. Seyi Tinubu
Seyi Tinubu, the only surviving son of Nigeria’s President, Bola Ahmed Tinubu, has carved out his successful path as an entrepreneur and businessman. Seyi is the CEO of Loatsad Promo Media Ltd, an outdoor advertising company that has become a key player in Nigeria’s advertising industry. His company works with leading multinational companies, and he is known for his ability to create effective branding solutions. His company is responsible for placing ads in prime locations in Lagos, Nigeria’s commercial hub. Seyi’s political connections, due to his father’s influence, have also played a significant role in his success.

Linda Ikeji

5. Linda Ikeji
Linda Ikeji is one of Nigeria’s most successful bloggers, entrepreneurs, and former models. She began her blogging journey in 2006, a time when the internet was still emerging in Nigeria. Her blog, Linda Ikeji’s Blog, quickly gained a wide following, and she has since expanded her business ventures into radio broadcasting and television with Linda Ikeji TV. Ikeji has built a media empire from scratch, and her influence continues to grow through her online platforms and entrepreneurial pursuits.

6. Obinna Iyiegbu (Obi Cubana)
Obi Cubana is a Nigerian businessman and socialite known for his hospitality empire. Starting with a nightclub in Abuja in 2006, he went on to establish Cubana Group, a chain of luxurious hospitality clubs. Obi Cubana’s business has expanded into real estate, and he is now one of Nigeria’s wealthiest entrepreneurs, with an estimated net worth of $500 million. His ventures also include a hotel and a brand of bitters. Known for his extravagant lifestyle and high-profile social gatherings, Obi Cubana has become a leading figure in Nigeria’s entertainment and business sectors.

7. Mark Essien
Mark Essien is a Nigerian entrepreneur and the founder of Hotels. Ng is one of Nigeria’s leading online hotel booking platforms. Before venturing into the hospitality industry, Essien developed a file-sharing software called Gnumm, which was later acquired by Snoopstar.com. He started Hotels. Ng in 2013 with an investment of $75,000 and went on to raise over $1 million in additional funding. Essien is also the founder of HNG Internships, a program designed to bridge the software engineering skills gap in Nigeria.

8. Jason Njoku
Jason Njoku is the co-founder and CEO of iROKOtv, a Nigerian-based video-on-demand service that focuses on Nollywood films. Njoku, who was raised in London and later moved to Nigeria, used his background in chemistry and business to build the platform. With the rise of digital streaming, iROKOtv has become a key player in the African film industry, making Nigerian films accessible worldwide. Njoku has also ventured into the tech space, investing in several startups, and continues to grow his influence in the entertainment sector.

9. Joseph Eze Okafor (Jowizaza)
Joseph Eze Okafor, better known as Jowi Zaza, is a Nigerian oil magnate and the CEO of Jezco Oil Nigeria Ltd. Founded by his father in 1980, the company became an independent marketer of petroleum products in 1988. Jowi Zaza inherited the business, and under his leadership, the company has grown significantly. He is known for his socialite status and wealth, often seen at elite events and gatherings. Jowi Zaza is also involved in luxury cars and real estate, with investments in multiple sectors.

10. Iyinoluwa Aboyeji
Iyinoluwa Aboyeji is a Nigerian entrepreneur and venture capitalist known for co-founding Andela and Flutterwave, two of Africa’s most successful tech companies. Aboyeji has played a significant role in shaping the African tech ecosystem and is committed to driving innovation across the continent. He is also the co-founder of Future Africa, a platform that provides funding and support for mission-driven startups. Recognised as one of the top 100 most influential Africans in 2019, Aboyeji continues to invest in and mentor the next generation of entrepreneurs.

Heineken Lokpobiri, minister of state for petroleum resources (oil), says Nigeria will conform with the production quota set by the Organisation of Petroleum Exporting Countries (OPEC).

On June 2, OPEC extended Nigeria’s production quota of 1.5 million barrels of crude per day (bpd) to 2025.

OPEC said Nigeria should maintain the production level till December 31, 2025.

The oil cartel increased Nigeria’s production level to 1.5 million bpd for 2024 at its ministerial meeting on November 30, 2023.

However, Nigeria has been producing below the quota.

Speaking after OPEC’s 56th joint ministerial monitoring committee (JMMC) on October 2, the minister said Nigeria remains fully committed to the objectives of the body’s declaration of cooperation (DoC).

“Nigeria remains fully committed to the objectives of the DoC, and I can confidently confirm that our country is in conformity with the agreed production limits,” he said.

“While we continue to ramp up production in line with our national interests, we are doing so within the framework of OPEC’s guidelines, as we remain committed to balancing responsible production with our economic goals, and continue to meet our obligations under the DoC.”

OPEC RETAINS PRODUCTION OUTPUT POLICY

At the meeting, the oil cartel and its allies, known as OPEC+, retained its oil output policy, including a plan to start raising output in December.

According to a statement by OPEC, the group reviewed the crude oil production data for the months of July and August 2024 as well as current market conditions.

“During the meeting, the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation confirmed that they had achieved full conformity and compensation according to the schedules submitted for September,” the oil cartel said.

OPEC said the three countries reiterated their resolve to maintain full conformity and compensation throughout the remaining period of the agreement.

Final estimates of September’s crude oil production levels, according to the oil cartel, would be based on authorised secondary sources that would be accessible by the second week of October.

The oil alliance added that it will provide production figures for the nations that are part of the declaration of cooperation (DoC).

“The committee noted the three separate technical workshops between representatives from the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation and the secondary sources,” OPEC said.

“The meeting was aimed at discussing September production details and submitting their revised compensation plans that include the August overproduction as per the submitted plans to the OPEC Secretariat while also emphasising the need for some members to make further cuts to compensate for overproduction.

“The JMMC emphasised the critical importance of achieving full conformity and compensation. It will continue to monitor adherence to the production adjustments agreed upon at the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 2 June 2024.

“The Committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non OPEC countries as agreed upon in the 52nd JMMC held on 1 February 2024.”

Furthermore, according to OPEC, the committee would continuously assess market conditions.

OPEC said the next meeting of the JMMC is scheduled for December 1, 2024.

Resuming from the 1 October Independence Day holiday, trading activities on the Nigerian Exchange Ltd. (NGX) declined by 0.33 per cent on Wednesday, driven by sell-offs in MTN Nigeria and Tier-one banks.

Specifically, the NGX market capitalisation, which opened at N56.635 trillion, lost N187 billion or 0.33 per cent to close at N56.448 trillion.

The All-Share Index also shed 0.33 per cent or 327 points to close at 98,232.39, against 98,558.79 reported on Monday.

Consequently, the All-Share Index Year-To-Date return fell by 331.3 per cent.

Losses in MTN Nigeria, Guaranty Trust Holding Company(GTCO), FBN Holdings, Access Corporation, Dangote Sugar, and Transnational Corporation, among other declined equities, were the primary drivers of the market’s downturn.

Analysis of the market activities showed trade turnover settled lower, relative to the previous session, with the value of transactions down by 92.43 per cent.

A total of 425.76 million shares valued at N8.45 billion were exchanged by investors in 11,954 deals, in contrast to 1.86 billon shares valued at N111.58 billion were exchanged in 10,583 deals posted previously.

Market breadth also closed negative with 32 losers and 26 gainers.

On the losers’ chart, Ellah Lakes led by 9.93 per cent to close at N3.99 per share, while International Breweries led the gainers’ chart by 9.98 per cent to close at N4.41 per share.

Meanwhile, the United Bank for Africa (UBA) led the activity chart in volume and value with 108.02 million shares worth N3.01 billion.

What is the Dollar to Naira Exchange rate at the black market also known as the parallel market (Aboki fx)?

See the black market Dollar to Naira exchange rate for 2nd October, below. You can swap your dollar for Naira at these rates.

How much is a dollar to naira today in the black market?

Dollar to naira exchange rate today black market (Aboki dollar rate):

The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1640 and sell at N1680 on Wednesday 2nd October 2024, according to sources at Bureau De Change (BDC).

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.