...Promoting International Trade Education

3T IMPEX TRADE ACADEMY

...ENHANCING EXPORT TRADE EDUCATION

Literal slavery might have ended in Africa but economic slavery continued and had never stopped but rather becomes intensified. This is because, the secret of the development of the western world is hinged on this and they will put up a great fight to resist any attempt to reverse the trend. It is important to note that the Sub-Saharan Africa is fundamental to the development and prosperity of the western world. They source the raw materials for manufacturing in their factories from Africa and so they will do everything to keep Africa where it is in order for them to keep their status as a developed nation.The western world is doing everything possible to convince Africa that they need to continue to produce raw materials in order to build wealth. They provide all the necessary support to aid the production of raw materials. They provide equipment, training on good Agricultural practices, post harvest handling, all in the bid to ensure that Africa effectively deliver their raw materials. Africa must come to terms with the fact that its prosperity can never lie in the production of raw materials. It lies in the production of finished goods not as assisted by nature but production of complex products as assisted by the intellectual capacity.The trade report of the World Trade Organisation (WTO) in 2015 showed that the total merchandise export in the world in 2014 was about $18.5 Trillion. Out of this volume, the total value of manufactured goods was about $12.5 Trillion while that of Agricultural commodity was about $1.76 Trillion. This data therefore showed that no matter the volume of agricultural commodities being exported out of Africa, the value of African export will remain low because the pricing of primary products are usually very low since the demands are limited to few companies in few countries that use them as raw materials.More importantly is the fact that they create a monopoly by ensuring that there are few major buyers of these commodities in their continents. They then add different regulations and commodity specifications that will be difficult for many African farmers to achieve. These two prong approach makes it easy for them to therefore grossly underprice the agricultural commodities. As a matter of fact, Africa is always at their mercy as far as selling the commodity is concern. They pose as if they are doing Africans a favour by buying below the stated regulation and specifications. Cont'd in next issueSource: 3T Impex

INSIDETHIS ISSUEExport News:

The West has Kept African

Exports Under 3%

- 1

Export Education:

How Nigerian States can

Generate over N100 Billion

Revenue

- 3

Export Training Products:

Exporter’s Companion

and more

- 4

Export Miscellaneous:

Commodity Prices,

Infographs, and lots more

- 3 & 4

Export Programme:

Import Processes, LC & BC

and More

- 2

VOLUME 4ISSUE 11

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How The West Has Kept African ExportsUnder 3% Cereals Import, Export Challenges WorryStakeholders

Nigeria's Terms of Trade Declines By 2.8%In Q4'18

Federal Govt urged to reduce export cost

China's Weekly Export Container ShippingIndex Dips

Us Corn Net Export Sales Rise 8% On WeekTo 915,944 Mt, Within Expected Range

NEPC and LCCI Organise Made-in-NigeriaExhibition in Cote d'lvoire

Top NewsThe West has Kept AfricanExports Under 3% - Part 1

Stakeholders in the industry are worried that barriers to trade in the region have triggered increase in cost, particularly the import and export of processed cereals in the country.Concerned by these challenges, the Nigerian Shippers Council (NSC), in collaboration with Border less Alliance, has provided a guide to unhindered cross-border trade in the West African sub region.The United Nations Conference on Trade and Development (UNCTAD), had rated Africa as having the highest cost of transporting goods between destinations and across all modes of transportation.Some of the identified barriers include non-tariff barrier, illicit payment, seasonal or permanent export bans, non-compliant trucks, operations of forwarding agents, and non-harmonisation of working hours at the borders, and many others.Executive Secretary, NSC, Hassan Bello, said: “We must work assiduously to reduce these unnecessary costs by eliminating all the barriers to trade, and making our products more competitive in the international market.”Bello spoke at the official launch of a new handbook on procedures for import and export of processed cereal (maize, cassava, sorghum, and millet) under the ECOWAS Trade Liberalisation Scheme (ETLS).He said this would acquaint traders with the protocols and procedures, and how it can be effectively utilised to enhance cross-border trade in the region.He said: “We believe that the knowledge would enable parties involved in trade and transport to facilitate cross-border trade, and invariably increase the capacity for commerce and reduce cost of trading especially for small scale traders in ECOWAS sub region.”Bello, who was represented by the Director, Consumer Department, NSC, Cajetan Agu, said removing obstacles to intra-regional integration in the ECOWAS sub-region would be particularly beneficial to the small scale traders that conduct cross-border commerce within the sub region. He highlighted the benefits to include food security, job creation, poverty reduction, increased tax revenues for authorities and long term development outcomes.Excerpt: The Guardian

Cereals Import, ExportChallenges Worry Stakeholders

for June

Page 2.

Akintunde said it was regrettable that the cost of exporting products to other countries from Nigeria was high.

“This has discouraged many local exporters in the country and put them out of business.

“Some Nigerians go as far as Accra in Ghana to export Nigerian Yams to other countries of the world because the cost of export is cheap there compared to Nigeria.

“To export a kilo of products in Ghana is two dollars while in Nigeria it's about seven dollars; that is why Nigerians are rushing there to export Nigerian products.

“This is indirectly increasing the GDP of Ghana at the detriment of Nigeria's GDP.

“The government is talking about diversification of the economy from oil but with high cost of export, we cannot achieve diversification.

“If there is no enabling environment for Nigerian exporters to flourish, then achieving diversification will be a difficult task,'' he said.

Akintunde said bureaucracy was another challenge for exporters, adding that Nigeria deserved a one stop shop to take care of export processes.

The ASF Chairman said that there was need for government to review policies in line with present day realities in the sector.

He said there was also need for enlightenment of farmers to realise that their products were needed in other countries.

“This is where Export Promotion Council should come in to ensure that local farmers with export potentials are sensitised on the rudiments of exportation; bringing together buyers and sellers.

“ASF with other relevant stakeholders will inaugurate a committee to be headed by the Nigeria Customs to identify challenges, make recommendations to government and transform it into policy that will address the challenges.

“For instance getting the Clean Certificate of Inspection (CCI) form to export through Cobalt Services which is a pre-shipment inspection agent for the Nigerian Export Supervision Scheme is difficult.

“In Abuja Airport, we don't have Cobalt that will look at products to be exported, do the analysis, x-ray and certify.

“Therefore products for export from Abuja will have to be sent to Lagos for Cobalt inspection and analysis before bringing them back to Abuja; this is not proper,'' he said.

Excerpt: PM News

China's container transport for export purposes slightly contracted for the week ending Friday, according to the Shanghai Shipping Exchange.

The average China Containerized Freight Index (CCFI) stood at 813.37, down 0.9 percent from a week earlier, the exchange said.

The sub-index for West/East Africa route saw the strongest rally of 9.5 percent week on week, while that for the Persian Gulf/Red Sea route led the fall by dropping 3.9 percent.

The CCFI tracks spot and contractual freight rates from Chinese container ports for 12 shipping routes across the globe, based on data from 20 international carriers.

The index was set at 1,000 on Jan. 1, 1998.Source: xinhuanet

The National Bureau of Statistics, NBS, yesterday said the nations' Terms of Trade (ToT) declined by 2.8 percent i n t h e f o u r t h q u a r t e r o f 2 0 1 8 . ToT is the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. The decline recorded in Q4'18 means a drop in the value of Nigeria's export compared to the imports. According to the Bureau, the groups that contributed to the development were products of the chemical and allied industries, mineral products and live animals; animal products. The Bureau disclosed this in its Commodity Price Indices and ToT Q4'18 report. The report stated: “The all products terms of trade index stood at 98.0 percent in October, 99.6 percent in November and 95.1 percent in December. This indicated an increase of 1.64 percent in November and a decrease of 4.48 percent in December. “On average, the terms of trade declined by 2.8 percent during the quarter, further indicating less favourable terms of trade. “The product groups that contributed to these changes were products of the chemical and allied industries, mineral products and live animals; animal products.” The Bureau noted that all commodity group import index, on average, grew by 0.89 percent during the quarter while all commodity group export index decreased by 2.02 percent. Prices of fuel, kerosene rose in February — NBS It stated: “The All commodity group import index, on average, grew by 0.89 percent during the quarter, following a 0.47percent drop in November and a 1.36 percent rise in December. Food prices drop. Meanwhile, the prices of eggs, rice, tomatoes and yam dropped in February 2019, according to the NBS' “Selected Food Price Watch” report for February 2019. The data indicated that the average price of one dozen of Agric eggs medium size decreased year-on-year (YoY) by 10.56% and month-on month (MoM) by 1.19% to N464.27 in February 2019 from N469.85 in January 2019, while the average price of a piece of Agric eggs medium size increased YoY by 2.33% and month-on-month by 0.12% to N42.23 in February 2019 from N42.18 in January 2019 The report further stated: “The average price of 1kg of tomato decreased YoY by -3.97% and month-on-month by -3.38% to N256.50 in February 2019 from N265.49 in December 2018. “The average price of 1kg of rice (imported high quality sold loose) decreased year-on-year by 0.23% and decreased month-on-month by -0.45% to N364.38 in February 2019 from N366.04 in January 2019. “Similarly, the average price of 1kg of yam tuber decreased year-on-year by -10.56% and month-on month by -2.24% to N206.48 in February 2019 from N211.21 in January 2019”. Excerpt: Vanguard

The Airfreight Stakeholders Forum (ASF) has appealed to the Federal Government to reduce the cost of doing businesses in Nigeria to encourage local exporters.

Mr Sunday Akintunde, The Chairman of the Forum made the call in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.

Nigeria's Terms of TradeDeclines By 2.8% In Q4'18

Federal Govt Urged ToReduce Export Cost

China's Weekly ExportContainer Shipping

Index Dips

VOLUME 4 ISSUE 11

.

US net export sales of corn — both old and new crop — for the current and next marketing year rose to 915,944 mt in the week that ended March 14, up 8% compared with the previous week, Department of Agriculture data showed.

Of that, 855,944 mt were for the current 2018-19 marketing year or the old crop, and 60,000 mt were for the next 2019-20 marketing year, or the new crop, the weekly export sales report data showed.

Market expectations for the net export sales total were between 600,000 mt and 1.3 million mt, sources said. Expectations were for between 600,000 mt and 1 million mt for the 2018-19 marketing year, and up to 300,000 mt for next marketing year.

Since the 2018-19 marketing year began on September 1, total commitments — cumulative exports plus outstanding sales — have reached 41.754 million mt, down 7% year on year but 5% above the five-year average.

That total was up to 69% of the USDA's 60.328 million mt recently updated projection for the 2018-19 marketing year. USDA's export projection was cut from 62.233 million mt on March 8.

Outstanding export sales of US corn — product sold but not yet shipped — for the current marketing year through the most recent week totaled 13.934 million mt, 41% below the total at the same point last year and 21% below the five-year average, the USDA said.

The top corn buyers in the most recent week for deliveries in the current marketing year, were Japan with 346,845 mt, South Korea with 193,461 mt, Mexico with 127,418 and Taiwan with 92,992 mt.

Japan was the only buyer, in the most recent week, for deliveries in the next marketing year, with 60,000 mt.

Excerpt: Hellenicshipping News

The Export Group of the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with the Nigerian Export Promotion Council (NEPC) have conducted arrangement to organise a Made-in-Nigeria Exhibition (MINE) programme in Abidjan, Cote D'Ivoire.

The programme is being organised under the umbrella of the Nigeria-ECOWAS Export Development (NEED).The maiden edition of the MINE programme scheduled to hold from March 27-30, 2019, is organised for small, medium and large scale manufactures of different products from different sectors of the Nigerian economy; while also covering services for professionals and entertainment industries.

Us Corn Net Export SalesRise 8% On Week To

915,944 Mt,Within Expected Range

NEPC and LCCIOrganise Made-in-NigeriaExhibition in Cote d'lvoire

for June

Page 3.

According to a statement signed by the Regional Coordinator, NEPC and Chairman, Export Group LCCI, the NEED Committee was set-up by the president of LCCI in February 2018, to develop a programme that helps the nation take advantage of the potential in the Economic Community of West African States (ECOWAS) markets.

''The ECOWAS market remains an untapped potential that could lead to significant growth in non-oil export from Nigeria. With a population of about 350 million people and GDP of about 1.48 trillion dollars, this market remains the low hanging fruits to be fully explored in the quest for the growth of the non-oil export volume from Nigeria,'' they disclosed.

Excerpt: Thisday

''The ECOWAS market remains an untapped potential that could lead to significant growth in non-oil export from Nigeria. With a population of about 350 million people and GDP of about 1.48 trillion dollars, this market remains the low hanging fruits to be fully explored in the quest for the growth of the non-oil export volume from Nigeria,'' they disclosed.

Excerpt: Thisday

.

VOLUME 4 ISSUE 11

OTHER

FG Begins Cargo Evaluationby Rail

- THISDAY

HEADLINES

CBN To Revive Palm OilValue Chain

- AgroNigeria News

Mines and Steel: Optimizing ValueChain Key to Greater

Economic Growth- The Nation

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Days & Time 9amWeekdays -

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Page 4.

Export

Miscellaneous:

(this price is much higher than what they currently charge), the state will only make an income of about N166Million from this mine. On the other hand, if the federal government charged a royalty of 5% (which is highest rate ) based on the local market price, it will only realise an income of about N175Million and if they shared this equally with the states (which is currently not the case), the state will only get about N87.5Million. However, with the 3T Impex MRG Model, the government together with other stakeholders in the joint venture will earn about N2.98Billion. This is based on the fact that the 10,000MT of lead ore were exported at the rate of $850/MT and using an exchange rate of N350 to 1$ the total income on this export transaction will come to about N2.98Billion. If the share of the state governments in this arrangement is 40% for example, this will mean that the amount that will accrue to the coffers of the state governments will come to about N1.19Billion. To make hundreds of millions from this

The fifth and the last phase of the MRG Model is the Income. This include the signing of purchase agreement with the buyer, opening of the export proceed account, pre and post export documentations, quality inspection, shipment and payment of export proceeds from abroad. The revenue sharing formula proposed at the Incorporation phase is just a suggestion based on our experience but the adoption or adjustment are subject to the parties involved. At this point, I will like to paint a picture that compares the Income of the MRG Model to that which is expected from just royalty or fees charge per truck load. Take for example a mine that produced 10,000MT of lead ore of 60% purity over a period of 12 months. The goods were transported to the port from the mine using about 333 Truckloads because each of the trucks is having a capacity of 30MT each. The local market price is N350,000/MT while the export price is $850/MT FOB Lagos. If the state charges a fee of N500,000 per truck

arrangement, all the state needs to do is to scale up production to hundreds of thousand MT and then engage technical partner to process it to ingots. This is a lot of income being lost by the state because they are only focussing on a cheaper way of generating revenue instead of doing the hard work that will lead to an enduring income stream in this sector.Finally, I want to unequivocally say that any state government in Nigeria that will embrace this model and implement them in about 3 to 5 joint venture agreements will soon become financially independent of the federal government in Nigeria. I will like to therefore call on all the state governments in Nigeria, especially those that are located in states where exportable solid mineral are found in commercial to reach out to the consultants and other relevant stakeholders in the mining industry in order to make this a reality in their various states.

Author: Bamidele Ayemibo

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Exporter’s Companion

Export TrainingProducts

EXPORT ORDERS

LOCAL ORDERS

COMMODITY PRICES (LONDON METAL EXCHANGE AND BLOOMBERG)

S/N

S/N

PRODUCT

COMMODITY

SPECIFICATION MINIMUM SHIPMENT

1.

2.

3.

1.

2.

3.

4.

5.

6.

7.

PRODUCT SPECIFICATION PAYMENT MONTHLY VOLUME

Zinc Ore Purity 35% 60MT Per Month

120MT Per Month

60MT Per Month

121MT Per Month

60MT Per Month

122MT Per Month

Purity 60%

Purity 30%Lead Ore

Lead Oxide

Zinc Ore

Lead Ore

Lead Oxide

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Cocoa Beans

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UNIT OF MEASUREMENT

Metric Tonne

Bushel

Pounds

Metric Tonne

Metric Tonne

Metric Tonne

Metric Tonne

PRICES

VOLUME 4 ISSUE 11

Cont'd from previous issue

How Nigerian States canGenerate Over N 100 BillionRevenue

USD 2,020.00

USD 2,865.00

USD 2,159.00

USD 6,375.00

USD 21,600.00

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Page 5. VOLUME 4 ISSUE 11

Picture Speaks