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Nigeria’s oil exports are facing a significant hurdle as a decline in European demand creates a buyer’s market.

This development comes at a time the nation is grappling with oil theft and needs a strong export market to bolster its revenue.

About 20 to 25 shipments of Nigerian crude for April loading are still seeking buyers, according to four traders specialising in the West African market, Bloomberg reports on Friday.Read more

The traders said it is a considerably weaker position than normal for this time of the month — when trade should be moving on to May’s barrels — and the prices the shipments can fetch are plummeting. 

The report highlights a confluence of factors causing the slowdown. Strikes in France’s refining sector and seasonal maintenance at European refineries have significantly reduced their capacity to process crude oil. This has led to a surplus of oil and a drop in prices, making it difficult for Nigerian crude to compete.

In addition to the strike’s impact, traders said other plants in Europe are also purchasing less crude because of seasonal maintenance.

“Capacity is offline at some typical destinations for Nigerian crude such as Spain’s San Roque refinery and Italy’s Sarroch plant. Facilities that have halted capacity for work also include Shell Plc’s Pernis refinery near Rotterdam, Europe’s biggest plant,” Bloomberg said.

READ ALSO:Petroleum Minister raises alarm over lack of crude oil for P/Harcourt, Dangote, other refineries

Also, the report said Mediterranean refiners can choose to skip Nigerian supply in favour of “cheap North African barrels that ship more quickly to the region, or they can process some of the large volumes of US West Texas Intermediate crude that have been arriving in Europe in recent months.”

The situation is further compounded by the specific challenge of finding buyers for Nigerian oil. Traditionally, France has been a major importer of Nigerian crude, averaging roughly 110,000 barrels a day over the past year. However, due to the nationwide French strikes and a decline in overall crude imports, this demand has plummeted.

The report cites traders specializing in the West African market who claim that around 20 to 25 shipments of Nigerian crude for April loading are currently struggling to find buyers. This represents a significant deviation from the usual trend, where sales for the following month would typically be underway by this point. The situation is further strained by falling prices for these unsold shipments.

Impact on Nigeria

This struggle to find buyers for its oil could have a negative impact on Nigeria’s economy. The nation relies heavily on oil exports as a major source of revenue for its national budget. A decline in sales volume or price could lead to a significant shortfall in government income.

Looking Ahead

The report doesn’t delve into potential solutions, but some key questions emerge:

  • Diversifying Markets: Can Nigeria explore alternative markets for its oil exports to lessen dependence on Europe?
  • Negotiating Prices: Will Nigeria be forced to offer steeper discounts to entice buyers in the current market?
  • Long-Term Solutions: What long-term strategies can Nigeria implement to minimize the impact of external factors on its oil exports?

The ability of Nigeria to navigate this challenging market situation will be crucial for its economic well-being. Finding new buyers, negotiating favourable prices, and potentially diversifying its export markets could help mitigate the impact of the European demand slowdown. By Ripples Nigeria

Members of the public assist in pulling out a police vehicle swept away by floods in Eldas sub-county, Wajir County.[Victor Ogalle, Standard]

Heavy rains pounding different parts of Kenya have led to the deaths of at least 13 people and displaced some 15,000, the United Nations said, as forecasters warned more rains can be expected until June.

 

The U.N Office for the Coordination of Humanitarian Affairs, citing the Kenya Red Cross Society, said Thursday that nearly 20,000 people have been affected. That includes the estimated 15,000 displaced by heavy rains and flash floods across the country since the start of the wet season in mid-March.

The East African country has seen thousands of people killed by flooding in previous rainy seasons, mostly in the lake regions and downstream of major rivers. 

The Kenya Red Cross Society told The Associated Press that five major roads were cut off by the floods, including Garissa Road in northern Kenya, where a bus carrying 51 passengers was swept away on Tuesday. All passengers were rescued.

Kenya’s disaster management agency issued a flood warning to residents of Lamu, Tana River and Garissa counties that are downstream of Tana River after flooding breached dams upstream. Residents have been urged to move to higher ground.

So far, nine out of 47 counties in the country have reported flooding. 

Mudslides have been reported in the central regions. On Tuesday four people were killed in Narok county, in the western part of the country.

The Kenya Red Cross Society's secretary general, Ahmed Idris, told Citizen TV that "lifesaving assistance" including shelter and clean drinking water was being offered to those displaced and are living in camps to avert outbreaks of waterborne diseases.

The rainy season is expected to reach its peak towards the end of April and subside in June, according to the meteorology department. Story by VOA

Public Service CS Moses Kuria during the burial of Pauline Njoroge's, popularly known as 'Mama Mboga', son, April 3.

Cabinet Secretary for Public Service Moses Kuria has called on Kenyans to end their silence on the fact that civil servants consume nearly half of the nation’s revenues.

The outspoken CS termed civil servants as ‘selfish’ for facilitating the high wage bill. 

Speaking at a press briefing in Nairobi, Kuria expressed his bewilderment at the persistently high wage bill, which currently stands at 43 per cent of revenues.

“This is a question of morality. It is a question of ethics. It is not even a question of economics and other high-value principles,” Kuria bemoaned. 

“It is a question of selfishness. How can one million people be so selfish?” he added.

At the event, held on April 12 at the Nairobi Safari Club, and organised by the Steering Committee of the Third National Wage Bill Conference 2024, Kuria questioned the ethical and moral justifications for such disproportionate spending. 

“How can you agree to shoulder the burden of one million people for so long? How can you allow one million people to gobble up all the money you make?” he queried the audience, emphasizing the urgent need for reform.

Kuria's remarks come ahead of the much-anticipated conference scheduled from April 15 to 17, which aims to tackle this pressing issue. The goal is to reduce the wage bill-to-revenue ratio to 35 per cent by 2028, potentially saving the country an estimated Ksh80 billion annually.

Lyn Mengich, Chairperson of the Salaries and Remuneration Commission (SRC), echoed Kuria’s sentiments, highlighting the broader economic implications of such a reduction.

“If we can, for example, guarantee a Ksh80 billion to the Ministry of Roads year on year, then we could restart stalled projects that have significant multiplier effects on other sectors and improve the quality of life for our people,” Kuria explained. 

The call for a trimmed wage bill is not just about balancing the books but also for curbing unnecessary government expenditures. 

“We have to do something about our salaries, debt, and the mandazis and doughnuts we consume,” Kuria added, pointing out areas where fiscal discipline could be immediately applied.

Historically, the wage bill reduced from 57.33 per cent of total revenue in the 2013/2014 fiscal year to 48.1 per cent in 2018/2019, thanks largely to revenue growth and initiatives spearheaded by the SRC.

Despite these efforts, there is a consensus that more drastic measures are necessary.

Government data suggests that achieving a wage bill of no more than 35 per cent of revenue is critical and in line with the Public Finance Management (PFM) Regulations of 2015. by SAMUEL MWANAWANJUGUNA, Kenyans.co.ke

Somalia has firmly rejected claims by a senior Kenyan official that a maritime agreement among countries in the Intergovernmental Authority on Development (IGAD) has been proposed to ease tensions between Somalia and Ethiopia over the latter’s violation of Somali sovereignty.

Ali Omar Balad, Acting Minister of Foreign Affairs dismissed the purported plan as “non-existent and baseless,” emphasizing that Somalia insists on the unity of its territory.

“Reports of a maritime treaty involving Somalia and Ethiopia are completely unfounded. Somalia stands firm on its territorial integrity. We call for a focus on peace and stability in the region.” Balad stated. 

The denial comes after Korir Sing’oei, Kenya’s Foreign Secretary, told Reuters that a maritime agreement facilitated by Kenya was being discussed within IGAD. The proposed deal aimed to provide landlocked Ethiopia with “stable and predictable access to maritime resources” while respecting Somalia’s territorial integrity.

Sing’oei claimed the agreement, also known to Djibouti, would allow landlocked states in the region to access commercial ports by sharing marine resources among IGAD members with coastlines, primarily Somalia and Djibouti.

The alleged maritime deal surfaced after Ethiopia announced on January 1 that it had acquired a 20-kilometer (12-mile) coastline stretch from Somaliland, a breakaway region of Somalia, in exchange for potential recognition. This move drew strong condemnation from Somalia and raised concerns about further destabilization in the Horn of Africa.

Somalia, which boasts Africa’s longest coastline, has reiterated its commitment to maintaining its territorial integrity and promoting regional peace and stability.

The conflicting statements highlight the ongoing tensions between Somalia and Ethiopia, with Somalia rejecting any attempts to undermine its sovereignty or territorial claims.

As the situation unfolds, regional stakeholders and the international community are closely monitoring developments, hoping for a peaceful resolution that respects the sovereignty of all nations involved while addressing the concerns of landlocked states’ access to maritime trade routes. By , Horsemedia

  • A year after war broke out in Sudan, millions of people continue to suffer under heavy fighting and a lack of aid.
  • Sudanese authorities systematically block the delivery of aid to some areas, while the RSF has looted health facilities and supplies.
  • A chronic lack of response from humanitarian organisations and the UN have made an already dire situation in Sudan desperate.
  • MSF urges the warring parties to allow humanitarian aid and access, and for the UN and organisations to immediately scale up their response.

PORT SUDAN/DARFUR – In one of the world's worst crises for decades, Sudan is facing a colossal, man-made catastrophe, one year after the start of the war between the government-led Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF). It is a matter of life or death for millions of people to urgently enable safe humanitarian access. As governments, officials, aid organisations, and donors meet on 15 April in Paris to discuss ways to improve the delivery of humanitarian aid, Médecins Sans Frontières (MSF) is making an urgent call for them to immediately scale up the humanitarian response.

Millions of people are at risk, yet the world is turning a blind eye as the warring parties intentionally block humanitarian access and the delivery of aid. The United Nations (UN) and member states must redouble their efforts towards negotiating safe and unhindered access, and to scale up the humanitarian response to prevent this already desperate situation from deteriorating any further.

“People in Sudan are suffering immensely as heavy fighting persists —including bombardments, shelling and ground operations in residential urban areas and in villages — and the health system and basic services have largely collapsed or been damaged by the warring parties,” says Jean Stowell, MSF head of mission in Sudan. “Only 20 to 30 per cent of health facilities remain functional in Sudan, meaning that there is extremely limited availability of healthcare for people across the country.”

Every day we see patients dying because of violence-related injuries, children perishing due to malnutrition... Despite all this, there is an extremely disturbing humanitarian void.JEAN STOWELL, MSF HEAD OF MISSION IN SUDAN

In areas close to hostilities, MSF teams have treated women, men and children injured by stray bullets and in the fighting, including shrapnel wounds, blast and gunshot injuries. Since April 2023, MSF-supported facilities have received more than 22,800 cases of trauma injuries and performed more than 4,600 surgeries, many of them related to the violence which occurred in Khartoum and Darfur. In Wad Madani, a town surrounded by three active frontlines, we currently see 200 patients per month with violence-related injuries.

According to the UN, more than eight million people have already been forced to flee their homes and been displaced multiple times, and 25 million – half of the country’s population – are estimated to need humanitarian assistance.

“Every day we see patients dying because of violence-related injuries, children perishing due to malnutrition and the lack of vaccines, women with complications after unsafe deliveries, patients who have experienced sexual violence, and people with chronic diseases who cannot access their medicines,” says Stowell. “Despite all this, there is an extremely disturbing humanitarian void.”

Although MSF works in good cooperation with the Ministry of Health, the Government of Sudan has persistently and deliberately obstructed access to humanitarian aid, especially to areas outside of their control. It has systematically denied travel permits for humanitarian staff and supplies to cross the front lines, restricted the use of border crossings, and established a highly restrictive process for obtaining humanitarian visas.

“Today, our biggest challenge is the scarcity of medical supplies,” says Ibrahim*, an MSF doctor working in Khartoum. “We’ve run out of surgical equipment, and we are on the brink of stopping all work unless supplies arrive.”

Khartoum is a city that has been under blockade for the past six months. A similar situation has been impacting the city of Wad Madani since January.

In RSF-controlled areas, where many different militias and armed groups also operate, health facilities and warehouses were frequently looted in the first months of the conflict. Incidents such as carjackings happen on a regular basis, and medical workers, particularly from the Ministry of Health, have been harassed and arrested.

In hard-to-reach areas like Darfur, Khartoum or Al-Jazirah, we often find ourselves the only, or one of the few, international humanitarian organisations present. The needs far exceed our capacity to respond. Even in more accessible areas such as White Nile, Blue Nile, Kassala and Gedaref states, the overall response is negligible: a drop in the ocean.

One example is the catastrophic malnutrition crisis in Zamzam camp in North Darfur, where there have been no food distributions from the World Food Programme since May 2023. Almost a quarter (23 per cent) of children we screened there in a rapid assessment in January were found to have acute malnutrition – seven per cent were severe cases. Forty per cent of pregnant and breastfeeding women were suffering from malnutrition, and there was a devastating mortality rate across the camp of 2.5 deaths per 10,000 people per day.

We’ve run out of surgical equipment, and we are on the brink of stopping all work unless supplies arrive.IBRAHIM*, AN MSF DOCTOR WORKING IN KHARTOUM

“The situation in Sudan was already very fragile before the war and it has now become catastrophic,” says Ozan Agbas, MSF Emergency Operations Manager for Sudan. “In many of the areas where MSF has started emergency activities, we have not seen the return of the international humanitarian organisations that initially evacuated in April last year.”

Khadija Mohammad Abakkar, who had to flee her home in Zalingei, Central Darfur, in search of safety, recounts how difficult it was to survive without humanitarian assistance: “During the fighting, there was no access to healthcare or food in the camp. I sold my belongings to earn some money for food.”

While these are difficult conditions in which to operate, the response should have increased, not diminished, especially in the areas where access is possible. Increased efforts are urgently needed by all humanitarian organisations to find solutions to these problems and scale up activities across the country.

“The United Nations and their partners have persisted in self-imposed restrictions on accessing these regions,” says Agbas. “As a result, they have not even pre-positioned themselves to intervene or establish teams on the ground when opportunities arise.”

MSF calls on the warring parties to adhere to International Humanitarian Law and the humanitarian resolutions of the Jeddah declaration by putting in place mechanisms to protect civilians and to ensure safe humanitarian access to all areas of Sudan without exception – including stopping blockages. MSF also calls on the UN to show more boldness in the face of this enormous crisis and to focus on clear results related to increasing access so that they actively contribute towards enabling a rapid and massive scale-up of humanitarian assistance. MSF also urges donors to increase funding for the humanitarian response in Sudan.

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