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3T IMPEX TRADE ACADEMY

...ENHANCING EXPORT TRADE EDUCATION

The Ministry of Mines and Solid Minerals Development (MMSD) is almost set to implement an export regulation that will trigger the beginning of the end for minerals exportation in Nigeria. According to a newspaper report published on January 15, 2019, “the minister said that under the soon-to-be-released Mineral Export Guidelines, the lingering issue of evading payment of royalties or false declarations had been dealt with. According to him, all mineral exports shall henceforth be inspected by government- appointed independent pre-shipment inspection agents.”

This guideline was drafted without the input of the stakeholders which are the mineral exporters in Nigeria. The uproar from the stakeholders who got to know through other means lead to a public hearing last year. Despite the input from the practitioners, the MMSD has refused to make the recommended changes on the document. It is bent on going ahead to implement it at the detriment of the growth of the sector. The major focus of the ministry is to increase revenue by passing the royalty that are being evaded by the miners to the merchants who export theses products.

The non-oil export sector contributions to the total export volume in Nigeria declined from about 12% in Q1 of 2018 to 3.6% in Q3. This is primarily due to the gridlock in Apapa. Instead of first putting pressure on all the stakeholders and working with them to resolve the issue in order to increase the export volume, it is sad that what MMSD is interested in is increasing the tax burden on the exporters who are currently incurring losses due to increasing delays, demurrage and debts.

The new regulation will increase the timeline of exportation in Nigeria by 27days in addition to the current delay of about 3-4weeks needed to get your goods into the port.

It will increase NESS fees from the current 0.5% to 2% of the FOB value for mineral exporters. It will pass the royalty fees from miners to merchants that are exporting the minerals. It will increase the logistics cost of the exporters because of the cost of moving the goods to the premises of the Pre-Shipment Inspection agents (PIA). It will also discourage funding by the commercial banks because the PIA will now take the custody of the goods for export and not the commercial banks that are funding the transaction. It will introduce additional documenta t ion which wi l l increase the expor t documentation to 11 as against the reduction to 7 which was done by the policy of the presidential enabling business environment and finally, it reduce employment opportunities in the sector by granting foreigners with tourists visa a license to buy and export minerals from Nigeria.

The type of regulation Nigerian exporters needs right now is a policy that ensures that all goods being exported out of Nigeria are inspected by an agency of government at a designated location near the different ports in the country to ensure that the quality of the exported items are good enough to avoid rejection and boost the competitiveness of the Nigerian non-oil export sector. We do not need a regulation that makes worse the current precarious situation of the sector.

We will like to finally call on the presidency to call the staff, consultant and the minister MMSD to order and halt their ignorant, inept and inimical plans to implement a new mineral export policy that is capable of plummeting to zero the over $215 million currently being realised annually from this sector.

Source: Tradeinfong

THE Securities and Exchange Commission, SEC, and other stakeholders in the commodities ecosystem have set a seven year timeline to revive the commodities market in Nigeria through the Nigerian Commodity Exchange, NCX, and set it at par with other commodity exchanges in other parts of the world. The restructuring will be concluded in 2025.The Commission is said to be focusing on the importance of commodity exchange to the economic diversification agenda of the federal government and the need to grow the agriculture value chain. Part of the restructuring plan includes injection of fund by the Nigeria Sovereign Investment Authority (NSIA) into the NCX which has been

Nigeria Set To Loose over $215 Million FromNew Minerals Export Regulation SEC sets 7-year Timeline to Revive, DevelopCommodities Market

Apapa Gridlock: Residents Issue 21-dayUltimatum to FG

ENEPC Supports Export Logistics CentreEstablishment in Lagos

Top News

INSIDETHIS ISSUEExport News:

Nigeria Set to Loose Over

$215 million from New

Minerals Export Regulation

- 1

Export Education:

Non-Oil Export Drops To

3.4%, 2018 Banker's Retreat

Theme Timely

- 3

Export Training Products:

Importer’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 4

Nigeria Set to Loose OverN215 Million

From New Minerals ExportRegulation

FOLLOW USONLINE

3timpextrade

3timpextradeacademy

www.3timpex.com

tradeacademy@3timpex.com

SEC set 7-Year Timeline toRevive, Develop Commodities

Market

for June 2018

.

Page 2.

for necessary action. The aggrieved Apapa residents had in December 2018 issued ultimatum to the federalgovernment to address the gridlock but failed to act at the end of the 7-day ultimatum they gave.Excerpt: Ships and Ports

The Nigerian Export Promotion Council, NEPC, has thrown its weight behind the proposed export processing facility to be sited at Ijora in Lagos. The Chief Executive Officer of Nigerian Export Promotion Council (NEPC), Chief Olusegun Awolowo, has commended the management of Lilypond Container Terminal, Ijora for planning to establish the export processing and logistics facility at the terminal. Speaking at the opening ceremony of a conference themed: Provision of seamless logistics service as panacea for economic growth,” Awolowo, said that the government will support every effort that will reduce the cost of exportable Nigerian goods. Awolowo said that the government wants to sustain the progress so far recoded in the exportation of agricultural goods. Similarly, convener of the Conference, Mr Las Shobande, noted that there is a need to develop a seamless logistics chain that will make export business more profitable with a view to helping the overall growth of the nation's foreign exchange earnings. Shobande who is also the Managing Director of Accessport, commended the Nigerian Ports Authority, NPA, for keying into the vision of the NEPC in developing a Standard Operating Procedure, SOP, in ports across the country.Excerpt: Vanguard

comatose for some years. This comes as the only functional commodity exchange in Nigeria - AFEX Commodities Exchange – a privately owned commodities exchange, moved 46,160 metric tonnes (MT) of commodities (ginger, paddy rice, soya beans and maize among others) worth N6.3 billion between second quarter 2016 and fourth quarter, 2017, according to available data. To also facilitate the plan, the Commission has set up a special division – Commodities Division – as part of measures to strengthen regulatory capacity for the market. The NCX has been battling with a host of challenges, including lack of funding occasioned by government's inaction, lack of enabling laws and proper understanding of the operations of commodities exchange.Challenges: However, the NCX has been faced with beehive of challenges, which the committee identified to include lack of proper funding to carry out its functions, which has hampered the ability of the NCX to enter into technical collaboration for capacity building and knowledge transfer that is badly needed with established commodity exchanges. In addition to these challenges, the exchange is faced with weak supply, lack of interest by operators in the securities market to open commodities trading subsidiaries, low understanding of the workings of the exchange and the absence of supportive infrastructure and institutional arrangements that could strengthen the supply side of the market. There is also the non – existence of vibrant farmers' co-operativesthat could bulk the produce of their members for wholesale marketing on the floor of the Exchange. Equally lacking were commodity grades and standards as well as farmers' credit system based on Warehouse Receipts.Excerpt: Vanguard

Residents of Apapa and its environs have issued a fresh 21-day ultimatum to the federal government to relocate the articulated vehicles causing traffic gridlock in the area.Chairman of the Residents Association, retired Brigadier-General Sola Vaughan issued the fresh ultimatum while leading hundreds of residents on a peaceful protest to Area B Command in Apapa.A protest letter for President Muhammadu Buhari was handed over to the Police boss inArea B Command in Apapa by the protesters.Vaughan vowed that the association would take legal action against the Nigerian PortsAuthority (NPA) and all shipping companies operating in the area if no action is taken to address the worsening situation at the end of the ultimatum.He lamented that residents of Apapa and its environs over the years had abandoned their homes and businesses due to hardship caused by indiscriminate parking of trailers and tankers in the area.Another concerned resident Mrs. Ronke James said hoodlums had taken advantage of the situation to unleash terror on the residents at will.Receiving the protest letter, Assistant Commissioner of Police, Area B Command, Mohammad Ahmadu, promised to deliver it to the state Police Commissioner

VOLUME 4 ISSUE 4

HEADLINESOTHER

Apapa Port Moves Against Extortion,Inaugurates Anti-Corruption

Committee- Business Newspaper

Freight Forwarders seek Cancellationof 35% Import Levy on New Vehicles

- P.M. NewsNEPC Supports ExportLogistics Centre

Establishment in Lagos

Nigeria: With 10000-Hectare CoconutPlantation, We’ll Employ 100,000

Youths- AllAfrica.com

Apapa Gridlock:Residents Issue 21-day

Ultimatum to FG

Free Export LicenceFree subscription to join African Export DevelopmentInitiative (AFED)Guaranteed Contracts for Export (T&C Apply)Export Mentoring Program with 20% discount Free Export Book & Advisory Service.

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CONTACT: 08067476669, 08026782568, 08091244449 tradeacademy@3timpex.com

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March 8th & 15th, 2018 Date -

Page 3.

Cont’d from previous issue

Non-Oil Export Drops to 3.4%,2018 Bankers’ RetreatTheme Timely

Export

Miscellaneous:

Nigeria in the incoming year.This renewed drive and commitment on the part of the CBN and Bank MDs to grow non-oil export volume in Nigeria has therefore made it necessary for Bankers that wants to be relevant in the new year and subsequent years to grow their skills and competence in Export Trade Finance and Export Business Management.We will like to therefore present to bankers, from the American Institute of

The current reduction in the price of crude oil in the international market coupled with the continuous reduction in the contributions of non-oil export to the total export volume from Nigeria attest to the fact that the focus of this year Banker's Committee retreat is very timely. If the bankers present at the retreat will go back to their various banks to start implementing the lessons learnt, then we should expects to see an increase in the non-oil export volume from

Extended Studies, the Executive Diploma in Export Trade Finance and Export Business Management. These are necessary certification and trade programmes that will help them strengthen their relevance and grow their careers as a marketer, risk managers and trade desk officers/managers in the Banking sector. Cont'd in next issue

Author: Bamidele Ayemibo

Price: N 5,000

Title:

Importers’s Companion

Speaker: Bamidele Ayemibo

Price: N 5,000

Title:

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

Purity 35%

Purity 60%

Purity 30%Bank Guarantee

Bank Guarantee

Bank Guarantee

Lead

Zinc

Cocoa Beans

Copper

Tin

Alluminium

Cotton

S/N

1.

2.

3.

UNIT OF MEASUREMENT

Metric Tonne

Bushel

Pounds

Metric Tonne

Metric Tonne

Metric Tonne

Metric Tonne

PRICES

VOLUME 4 ISSUE 4

USD 2,090.00

USD 2,719.50

USD 2,169.00

USD 6,148.00

USD 20,950.00

USD 1,880.50

USD 74.47

EXPORT NIGERIA CAMPAIGN

tradeacademy@3timpex.com08091244449 www.3timpex.com www.tradeinfong.com

...raising legion of exporters

Targets:

export seminar for religiousFREEorganizations, clubs, cooperative associations, etcObjective:educate, enlighten, empower thepublic and create employment

Page 4.

Export Miscellaneous

VOLUME 4 ISSUE 4