Business
Adeleke Pitches Osun’s Cocoa Potentials To Chocolate Producers, Stakeholders
The Executive Governor of Osun State, Senator Ademola Adeleke has urged global investors to tap into the potentials of cocoa in the state.
He made the call in London while addressing a global audience of investors in the cocoa sector, on Wednesday.
He informed the gathering that his administration was already taking steps in addressing past challenges which stunted growth of the sector.
Gov Adeleke noted that Osun’s brand of cocoa was highly sought after by end users providing investors with a guarantee of returns for their investments.
He described Osun as a major cocoa belt in Nigeria. To underscore opportunities, he outlined ongoing efforts by his government to expand the production base and unleash the benefits of the sector for both the state and investors.
Gov Adeleke said, “Our cocoa is the traditional species which has the best taste in chocolate and other related products. Our brand is therefore much sought after by end users.
“Our cocoa sector faces several challenges, several of which include the need to expand the production base, ensure entrance of young farmers, ease access to finance, deepen the value chain among others.
“It was in pursuance of the above that I launched the Osun Cocoa Revival Agenda in January this year.”
The agenda focuses on assembling stakeholders to design an updated revival implementation plan; get the cocoa industry company in the state running again; put life back into the cocoa farming sub-sector through demonstration of political will; get more investors into the value chain through ease of doing business.
Others include setting up a domestic export terminal in Osun state to ease export process and access to international market; partnering with the Nigerian Railway Corporation (NRC) for easy of transport; upgrading local infrastructures for farming community; setting up a modified commodity boards to strengthen stakeholders’ finance; develop partnership with financial institutions to support the cocoa farming community;
The Governor also listed the development of relationship with the National Agency for Science and Engineering Infrastructure (NASENI) for agricultural technology and innovations; and establishment of strong partnership with the Cocoa Research Institute (CRI) for partnership and collaboration engagement.
The Governor said he has directed the state Ministry of Agriculture to establish high yielding cocoa nurseries across the local governments; prepares an action plan for the rehabilitation of old cocoa plantations in term of facilities and re-plantation; open up new cocoa estates with young farmers; introduce deliberate programme to protect cocoa farms from destructive activities of miners and mining activities.
Describing his cocoa plan as very ambitious, Gov Adeleke noted that his administration planned to resuscitate the state owned cocoa processing industry at Ede for value chain addition; link the cocoa revival plan with climate agenda, establish cottage cocoa factories across the state under an industry cluster agenda among others.
The Governor called on “our business friends in the United Kingdom and Europe as well as North America to partner with us for mutual interest in the cocoa sector. We are widely open to investors who are interested in the value chain of the cocoa sector as well as shareholding in the existing cocoa ventures.
“Your coming to Osun is assured to be very rewarding for many reasons. Our government has enhanced the ease of doing business Osun through an end to multiple taxation and facilitation of access to land and simplification of the approval system.
“We are open to supporting government to government, government to business, business to business arrangements. We are a willing partner and my team is here to negotiate deals and partnership.”
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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