http://www.businessweek.com/news/2011-02-02/nigerian-growth-accelerated-to-8-29-in-fourth-quarter.htmlNigeria’s economic growth accelerated to 8.29 percent in the fourth quarter, boosted by agriculture and higher oil prices.
Growth picked up from 7.86 percent in the previous three months, Information Minister Labaran Maku told reporters today in the capital, Abuja. Lamido Sanusi, governor of the Central Bank of Nigeria, had presented the growth figures to the Cabinet earlier.
Non-oil industries, led by agriculture, grew 8.87 percent and may continue to fuel expansion as the government encourages banks to lend more to farmers, Maku said, forecasting growth of 8 percent in the first quarter of this year. The country’s 24 lenders have agreed to triple their lending to agriculture to 3 percent of loans, Phillips Oduoza, chief executive officer of United Bank for Africa Plc., said yesterday.
“Without support for agriculture, it’d be very difficult to develop the economy,” Maku said. Agriculture is the largest provider of jobs in the country, accounting for 60 percent of all employment, he said.
Fourth-quarter growth surpassed the expectation of some analysts, including Gbadebo Banmeke of Renaissance Capital in Lagos, who had forecast 8 percent.
Nigeria, Africa’s most populous country and top oil producer, has seen crude production stabilize at 2.16 million barrels a day as a result of the relative calm in the Niger River delta, the hub of the country’s oil industry, according to Maku.
Attacks by armed groups targeting the oil industry cut more than 28 percent of the country’s oil output between 2006 and 2009, according to data compiled by Bloomberg. Assaults subsided after thousands of militants campaigning for more local control of the delta’s energy resources accepted a government amnesty and disarmed in 2009.
Crude oil for March delivery rose 52 cents, or 0.6 percent, to $91.29 a barrel at 10:31 a.m. today on the New York Mercantile Exchange.
Nigeria’s economy, surpassed only by South Africa in sub- Saharan Africa, will grow about 7 percent this year, compared with 7.8 percent in 2010, President Goodluck Jonathan said on Dec. 15.
just a quick question....Libyan crisis threatens global crude supply
Libyan crude oil production output may drop by as much as a quarter as Africa's third largest producer faces daunting civil unrest.
Beneficial for Nigeria
However, there is optimism that the spike in oil prices will be beneficial to Nigeria, the world's seventh largest producer. With a 2.3 million bpd output, experts say this is a good time for the country to build up her foreign reserves.
"It is worth noting that elevated Bonny Light prices could also help re-build the excess crude account and/or launch the planned sovereign wealth fund, although this would be conditional on the authorities' willingness to effectively resume the implementation of the oil fiscal rule and save oil-related proceeds for the rainy day," said Samir Gadio, emerging market strategist at Standard Bank.
According to him, this would improve the ability of the Central Bank of Nigeria to meet demand for dollars at the official foreign exchange market. He nonetheless said as an import dependent country, Nigeria should prepare for the downside: "The downside risk is, however, that higher energy prices could have an impact on imported inflation."
The series of uprising sweeping through the Middle East in the last few weeks has heightened fears about the possible slip into another round of global economic crisis.
Tunisia, Egypt, and now Bahrain, Yemen, and Libya have come under unprecedented civilian protests against the authoritarian rule that were hitherto in place. The fear is that this could spread to larger producers like Saudi Arabia. For a region which accounts substantially for global crude oil supply, major economies have cause for worry.
Brazilian state oil company, Petrobras, has said it will not change its gasoline prices in Brazil despite volatility in global oil prices caused by Middle East turmoil, its president was quoted as saying by Brazilian media on Wednesday.
"We won't pass on the volatility of international prices to Brazil," Sergio Gabrielli told reporters on Tuesday, according to the Valor Economico newspaper, adding he expected months of "intense volatility" in commodity prices, according to Reuters.
Meanwhile, in America, economists are warning that the rising cost of crude could dent consumer confidence and stifle economic recovery. Experts fear that a rise in petrol prices could force businesses and consumers to spend less on other things, slowing both the economy and the pace of hiring.
Although Saudi Arabia has promised to make good any shortfall in global oil supplies, the concern is how much calm this would achieve in an already volatile oil market.
The money goes to the Excess Crude Account. . . . until the SWF is passedjust a quick question....
the money we get when the oil is over the benchmark budgeted it goes to the ECA Excess rude Account now that it has been wiped and killed to be replaced by Sovereign Wealth fund which has not been passed by the legislature.. this excess crude money goes where?
if it is foreign reservers after some months when the foreign reserves are announced am SURE it would still be no reasonable change -- but neva mind
where is the money kept ?
allAfrica.comDangote Invests $1 Billion in Senegal
3 March 2011
Lagos — The senior adviser to the Senegalese president on foreign investment, Serigne Mbacke says Dangote Group has over one billion dollar (N150 billion) investment in cement manufacturing and sugarcane refinery in Senegal.
Mbacke who disclosed this to journalists in Senegal during a facility tour of the factory, said that the Senegal government gave about 8,000 hectares of land to the group for the cement manufacturing and sugar refineries.
According to him, the group's investment was one of the biggest Foreign Direct investments by an Africa company in Senegal.
Mbacke said that the investment was an indication of a strong believe in the future growth of African economy.
He said Dangote's target production of about 45 million tonnes of cement was feasible with the level of massive investment in the expansion of old plants and construction of new plants in African countries.
The senior adviser said that Senegal, with a population of about 16 million, was becoming one of the fastest growing economies, adding that the demand for cement was high, because of the demands to meet housing needs.
He said that the country has all the raw materials to produce enough cement and export to other continents.
Also speaking at the forum, Mr Ganapathy Balasubrahanian, General Manager, Project, Dangote Industries in Senegal said that the cement plant had installed capacity of one million metric tonnes per annum.
"We are hoping to have more than 1,500 direct workers and 7,000 indirect workers at the site.
"Before the end of 2011, that is, between November and December, we will start operation.
"We are hoping that Dangote's investment in the country will complement the government's efforts in stimulating economic growth and creating jobs," he said.
According to Balasubrahanian, at the moment only two cement manufacturing companies, SOCCOSIM and SEHEM are operating in Senegal.
He said that the companies produce 2.5 million tonnes per annum as against the local demand of 3 million tonnes per annum.
"The investment marked a significant milestone in Senegalese quest to be self-sufficient in cement production.
According to him, the plant is being constructed by SINOMA, a Chinese company in a site with abundant raw materials that can last for 50 years life span.
He said that in spite of the availability of power in the country, the company would build a coal power of about 30 mega watts to power the plant.
On why the choice of coal, he said "it was chosen because of lack of adequate water to build hydro power and insufficient gas in the country for now
"For now going hydro or gas will not be prudent but one thing about the group cement plants is that they are built in such away to ultilise different types of power ," he said
Balasubrahanian noted that the investment was strategic, adding that Senegal with a population of about 16 million was becoming one of the fastest growing economy with it attendant need for more housing.
He added that Dangote's target of producing about 45 million tonnes of cement in Africa was very feasible with the level of massive investment in old and new plants in some African countries.
Lauding Senegalese investment and trade policy, he said that the land was free and the company also enjoyed tax holiday for about 10 years and free duty for all imported equipment for the construction of the factory.
On challenges faced in distribution of the cement being a bulking product, he said "there is rail system from the factory to the various parts of the country and Mali.
He said that Dangote presently had cement manufacturing firms in 14 countries in Africa
Balasubrahanian, who have over eight years experience in cement manufacturing and had worked as plant manager in India Bilia Cement Group said the company had increased its stake in South Africa's Sephaku Cement (Pty) Limited, from 19.76 per cent to 64 per cent in October 2010.
He said that the investment was worth R779 million ( about $113 million), making it the largest foreign direct investment by an African company into South Africa.
Besides, he said the firm would soon invest over $100 million in building a new cement manufacturing plant in Cameroon.
According to him, the move was to ensure that African remains self-sufficient in cement production and making the product available and at an affordable cost to the end users.