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Global Food Crisis Looms Over Increased Grain Price

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The world could face a food

crisis of
the kind seen in 2007 to 2008 if countries restrict exports on concerns about a
drought-fuelled grain price rally, the UN’s food agency has warned.

The warning came after reporting a surge in global food
prices in July.

A mix of high oil prices, growing use of bio-fuels, bad
weather, soaring grain futures markets and restrictive export policies pushed
up prices of food in 2007 to 2008, sparking violent protests in countries
including Egypt, Cameroon and Haiti.

Concern about extreme hot and dry weather in the U.S.
Midwest sent corn and soybean prices to record highs last month, driving
overall food prices higher again and reversing the Food and Agriculture
Organisation’s forecast for declines this year.

“There is potential for a situation to develop like we had
back in 2007 to 2008,”the FAO’s senior economist and grain analyst Abdolreza
Abbassian told Reuters.

“There is an expectation that this time around we will not
pursue bad policies and intervene in the market by restrictions, and if that
doesn’t happen we will not see such a serious situation as in 2007 to 2008. But
if those policies get repeated, anything is possible.”

A number of major producers imposed various restrictions on
exports in an attempt to control domestic prices in the 2007 to 2008 crisis,
including outright bans as well as quotas or higher tariffs on exports of foods
including rice, corn and wheat.

The restrictions reduced supply on international markets,
helping to drive prices even higher.

Grain markets have been boosted recently by speculation that
Black Sea grain producers, particularly Russia, might impose export
restrictions after a drought there hit crops.

Markets drew a little comfort from official Russian comments
on Wednesday that the country saw no grounds to ban grain exports this year but
did not rule out protective export tariffs after the end of the 2012 calendar
year.

The FAO Food Price Index, which measures monthly price
changes for a food basket of cereals, oilseeds, dairy, meat and sugar, averaged
213 points in July, up Six per cent from 201 points in June, the FAO said in
its monthly index update.

The rise, which followed three months of declines, was
driven mainly by a surge in grain and sugar prices, while meat and dairy prices
were little changed, the FAO said.

It said the U.S. drought, which is the worst to hit the
Midwest in 56 years, had pushed up corn prices by almost 23 per cent in July,
and international wheat prices had followed, rising about 19 per cent amid
worsening output prospects.

Although below a peak of 238 points in February 2011, when
high food prices helped drive the Arab Spring uprisings in the Middle East and
North Africa, the index is still higher now than during the food price crisis
in 2007 to 2008.

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Adeniyi’s Impersonator Faces Trial, Knows Fate, July 3

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The Federal High Court sitting in the Central Business District of the Federal Capital Territory, Abuja, has conducted a hearing of one Ibrahim Shu’aibu, a 50-year-old man, for assuming the character of the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, among other distinguished personalities in Nigeria, to commit fraudulent activities.
The Nigeria Customs Service (NCS) had in January addressed the media about the suspect’s apprehension by the Service’s Police Unit following his involvement in fraudulent activities, which included luring numerous citizens to pay him money for the issuance of job appointment letters.
During the court hearing, the lead Counsel of the NCS, Abidemi Adewumi-Aluko, said the accused was arraigned on a nine-count charge to which the defendant pleaded not guilty.
Justice Binta Nyako, the Presiding judge, adjourned the hearing to Wednesday, 3 July 2024, and ordered that the accused be remanded with the Nigerian Correctional Service pending the fulfillment of bail requirements.

By: Nkpemenyie Mcdominic, Lagos

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Trans-Border Trade Setback: Shippers’ Council Pledges Support For ITC 

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The Nigerian Shippers’ Council (NSC) has expressed readiness to support the International Trade Centre (ITC) as part of measures toward resolving challenges faced by trans-border traders and trade facilitation.
Executive Secretary, Nigerian Shippers’ Council, Barr. Pius Akutah, disclosed this in Lagos last Friday, when  delegates of ITC, paid a working visit on a fact finding mission.
While harping on the role of the Council as an ombudsmen in port operations, Akutah emphasized that trade facilitation is a major initiative of the NSC, pledging to provide the necessary support to ensure the success of the study brought forward by the ITC team.
He noted that the study will strengthen the Council’s ability to formalize informal trade at border areas, gather statistics, and plan for trade volumes.
Akutah stated that the focus of the study is on agricultural products, as a significant area of potential for Nigeria, not only in the African region, but also globally.
He expressed optimism that the study will help develop skills and improve operations at the Border Information Centre (BIC) managed by the Council.
“Trade facilitation is one of the major aspect of what we do so we are going to give you the necessary support to achieve the success that is desired.
“The study will help us to plan and develop more skills in terms of what we do at the Border Information Centre. Shippers Council is a partner and I want us to take our partnership to the next level that will focus on engagement with our stakeholders”, Akutah noted.
Speaking earlier during the courtesy visit to the NSC headquarters, Associate Programme Officer, ITC, Richard Eke- Metoho, who led the delegation, said the visit to the Council was part of the team’s ongoing study to identify areas for improvement in trade facilitation, particularly at border crossing points.
He stated the importance of collecting data from the Nigerian Shippers’ Council, which manages a border information center at Seme-Krake border.
According to him, some of the identified challenges faced by traders and truck drivers using the Seme-Krake border, a key trade route is the number of checkpoints and lack of scanners.
He said information collected by the team will not only identify existing trade facilitation measures that are working effectively, but also lead to the development of new trade facilitation measures that address the challenges faced by traders
He said, “We are here to collect experience from the Nigerian Shippers Council.
“From our interactions with the Shippers Council, we keep finding similar problem faced by traders, most especially on the number of checkpoints and scanners that are really needed especially for transporters and truck drivers.
“It is still an ongoing study. The more information we collect right now, the more it will help us to make more informed decision process. At the end of the study, we will be able to develop a report that will pinpoint all the main obstacles that traders are facing”.

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Customs Condemns Attack On Officers In Katsina

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The Nigeria Customs Service (NCS) has condemned the brutal attack on its officers and men at the Gamji Makaho checkpoint in the Dankama area of Katsina State on April 17, 2024, which claimed the life of Customs Assistant II Auwal Haruna.
The Service vowed that it would stop at nothing in securing justice for the victims of the attack.
NCS also said it would rejig its anti-smuggling operations while strengthening collaborations with other sister security agencies as part of measures to reinforce the fight against smuggling.
Speaking on the resolve of the management to pursue the matter to its logical conclusion, Comptroller General of Customs, Bashir Adewale Adeniyi extended his heartfelt condolences to the family and colleagues of CA II Auwal Haruna.
He disclosed that the service, in close collaboration with other security agencies, is tirelessly working towards “apprehending the perpetrators of this reprehensible act and ensure they face the full consequences of the law.
“Violence against our officers is utterly unacceptable, and we will pursue every avenue to bring those responsible to justice.
“The safety of our personnel and the security of our borders remain paramount. We are committed to working with traditional rulers, government bodies, and sister agencies to combat this heinous crime against our personnel”.
He further reaffirmed the unwavering commitment of the service under his watch to combating smuggling and other cross-border crimes, adding that the Service will not falter in its mission to uphold the laws of the land and protect the interests of the Nigerian people.
The CGC said: “Intelligence available to us indicates that certain unpatriotic community members are harbouring suspected accomplices involved in this heinous crime.
“We implore these individuals to embrace patriotism by aligning with the laws and refraining from condoning illegality. It is in the best interest of our communities and nation to collaborate with law enforcement agencies to root out criminal elements and ensure that justice prevails”.

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