Migrant crisis fuels sex trafficking of Nigerian girls to Europe

A promising student who dreamed of going to university, Mary was 16 when a woman approached her mother at their home and offered to take the Nigerian teenager to Italy to find work.
Pushed to go by her family who hoped she would lift them out of poverty, Mary ended up being trafficked into prostitution.

Some Nigerian girls soliciting for sex

Her voice faltering, Mary described three years of being forced to sell her body, beatings, threats at gunpoint and being made to watch as a 14-year-old virgin was raped with a carrot before being sent on to the streets of Turin in northwest Italy.
After being arrested by Italian police, Mary was repatriated to Nigeria's southern Edo state in 2001, but she was rejected by her family and left feeling like a failure.
"I returned with nothing," Mary, now 35, told the Thomson Reuters Foundation from Benin city in Edo. "I hated myself."
While Mary's ordeal ended 15 years ago, a soaring number of Nigerian girls like her are being trafficked to Europe - mainly Italy - and forced to sell sex by gangs taking advantage of the chaos caused by the migrant crisis, anti-slavery activists say.
Thousands of women and girls are lured to Europe each year with the promise of work, then trapped by huge debts and bound to their traffickers by a religious ritual - the curse of juju.
"The victims are getting younger as girls, mainly those in rural areas, are more likely to focus on the positive stories of those who made it to Europe and didn't end up in prostitution," said Katharine Bryant of the Walk Free Foundation rights group.
She spoke ahead of the launch of the third Global Slavery Index, which found Nigeria has the world's eighth highest number of slaves - 875,500 - and is a key source country for women trafficked to Europe and sold into sex work.
BOUND BY JUJU
More than nine in 10 of the Nigerian women trafficked to Europe come from Edo, a predominantly Christian state with a population of about 3 million, according to the United Nations.
While Edo is not among the country's poorest states, its history of migration to Italy has fuelled locals' hopes of easy money in Europe - leaving people vulnerable to traffickers, the International Organization for Migration (IOM) says.
Before going to Europe, women and girls must sign a contract with traffickers to finance their move, racking up debts of up to $100,000. They then must seal the pact with a juju ritual.
"I was taken to a native doctor's shrine, and told to bite the neck of a chicken to add its blood to a concoction made with bits of my hair and fingernails, and my underwear," Mary said.

Some girls that were deported from Italy 

This belief in black magic means victims fear they or their family may fall ill or die if they do not pay off their debts.
Most of the women and girls know they will have to sell sex but are pressured by their families and deceived by traffickers, said Nigeria's anti-human trafficking agency (NAPTIP).
Many have no idea they will live under the control of older "madams" and be forced to work for several years to clear their debts, according to the U.N. Office on Drugs and Crime (UNODC).
Madams, who make up almost half of traffickers in Nigeria, are mostly former victims who target others in order to escape prostitution - perpetuating a cycle of exploitation, the UNODC said in its latest global report on human trafficking.
MIGRANT CRISIS
Traffickers and gangs in Nigeria are now exploiting Europe's migration crisis - moving girls to lawless Libya, before crossing the Mediterranean to Italy on flimsy, overloaded boats, said Bryant from the Walk Free Foundation.
More than 5,600 Nigerian women and girls arrived in Italy by sea last year, up from 1,200 in 2014, and at least four in five were trafficked into sex work, the IOM said.
At least 1,250 Nigerian women have landed in Italy this year, up from 373 for the same period in 2015, IOM data shows.
Traffickers also take victims to Europe by plane, using forged documents and flying via other West African countries to avoid suspicion, said Mikael Jensen of the UNODC.
British airports such as Gatwick are increasingly used as entry points by Nigerian trafficking gangs with forged documents, Spanish police said earlier this year.
"Many traffickers are careful with their goods, they don't want to risk them on a dangerous sea crossing," Jensen said.
About 3,770 migrants and refugees died in 2015 crossing the Mediterranean, making it the deadliest year on record for those fleeing conflict and poverty, according to the IOM.
RE-TRAFFICKED
Human trafficking by Nigerian organised crime gangs is one of the greatest challenges facing police forces across Europe, according to the EU's law enforcement agency Europol.
A lack of coordination between European states and Nigeria is allowing traffickers to act with impunity, said Kevin Hyland, who was appointed Britain's first anti-slavery chief in 2014.
"There has been some progress, but it's been a piecemeal plan, and responsive rather than proactive," Hyland said.
Nigerian anti-trafficking official Arinze Orakwe said more European nations should criminalise the purchase of sex to curb the number of Nigerians trafficked into prostitution in Europe.
"If nobody is buying, nobody will sell," said the official at NAPTIP, which has rescued some 1,340 victims in Nigeria over the past year, and works with NGOs to support them.
The Women Trafficking and Child Labour Eradication Foundation (WOTCLEF) clothes and feeds victims, provides counselling and attempts to reunite them with their families.
"But sometimes families are hostile, and not interested in getting them back," said WOTCLEF coordinator Veronica Umaru.
Disillusioned by her parents' disappointment at her return home, Mary hoped to go back to Italy before being referred to Girls' Power Initiative, a Nigerian NGO that housed her, trained her to run a business and encouraged her to help other victims.
Yet Mary says many former victims have been re-trafficked to Italy, and fears not enough is being done to stop traffickers or persuade women and girls not to go abroad and into prostitution.
"Girls today, unlike me, know exactly what they are in for when they agree to go to Italy to work," Mary says tearfully.
"But they do not understand the trauma they will face."

*First published by Reuters

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Ivory Coast rains begin to strengthen cocoa crop

Abundant rain and sunny spells improved growing conditions in Ivory Coast's cocoa regions last week, farmers said, offering respite after an especially harsh dry season.
The long dry season reduced the size and quality of beans, especially for the mid-crop which runs from April to September. But continued good weather through June could help crops in the last few months of the season, growers said.

Cocoa beans

"The farmers are confident. The conditions have been good since the beginning of the month," said Salame Kone, who farms in the western region of Soubre, at the heart of the cocoa belt.
Soubre received 30.5 millimetres of rain last week, down from 37 mm the week before, one analyst reported.
In the centre-western region of Daloa, which produces a quarter of Ivory Coast's cocoa, farmers said flowers have started to proliferate in some plantations thanks to the improving conditions.
"The flowers have come in abundance. It means that the trees have regained strength. This is a good sign for future harvests," said Albert N’Zue, a farmer in Daloa.
Farmers in the west, east and coastal regions also said conditions were improving, though one farmer in the south said that the rain was hindering drying conditions, which can create mould.

*First published by Reuters

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Nigeria's Barkindo frontrunner to become OPEC secretary-general

OPEC is likely to choose Nigeria's Mohammed Barkindo, a former head of state oil firm NNPC, as the next secretary-general of the producer group, three sources with knowledge of the matter said on Tuesday.
The Organization of the Petroleum Exporting Countries has been looking for a replacement for Libya's Abdullah al-Badri, who was elected acting secretary-general in December until the end of July after serving full terms.
Barkindo led the Nigerian National Petroleum Corporation from 2009 to 2010.
OPEC oil ministers meet on Thursday in Vienna. The consensus of all members - which in the past has sometimes been elusive - is required for the appointment of a new secretary-general.

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Lufthansa revenues trapped in Nigeria at $20 mln - source

Lufthansa is unable to access $20 million of ticket revenues in Nigeria because of foreign currency restrictions in the African country, a person familiar with the matter told Reuters.
If that amount swells to $30 million, the German flagship carrier will consider cutting capacity to Nigeria, the person said.
Global airlines association IATA has estimates that some $575 million of foreign airlines' revenues were trapped in Nigeria. U.S. carrier United and Spain's Iberia have stopped flying to Nigeria as a result.
A spokesman for Lufthansa said the carrier currently has no plans to cut flights to Nigeria and is including routes to the country in its winter schedule.
He declined to comment on details concerning Lufthansa's revenues in Nigeria.
Lufthansa currently flies to Nigeria from Frankfurt twice a day - once to Lagos and once to oil hub Port Harcourt via Nigerian capital Abuja.
*First published by Reuters

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Nigerian interbank rates fall on expecations of budget disbursal

Nigeria's overnight interbank rate eased to an average of 5 percent for overnight lending on Friday, down from 9 percent last week in anticipation of April budgetary allocations disbursal to government agencies.
Nigeria, Africa's biggest economy, distributes money from oil revenue to its three tiers of government from a centrally held account, which provides liquidity for the banking sector and eases the cost of borrowing among banks.
"There was speculations of possible injection of April budget allocation into the system today (Friday), this forced down cost of borrowing from an average of 8 percent in early trade to 5 percent at 1330GMT," one dealer said.
Total banking system liquidity stood at 277 billion naira ($1.39 billion) on Friday, compared with 141.7 billion naira last week, dealers said.
They said system liquidity should receive a boost next week by the time the central bank injected budget allocations to states and local governments.
Also on Thursday, the central bank retired about 83.81 billion naira in matured treasury bills into the system, which further helped to lower the cost of borrowing at the interbank.
"We expect (the) rate to further drop next week when budget cash would have hit the system,' another dealer said.

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Nigeria eyes maiden sukuk issue this year, may sell eurobond

Nigeria is working out details for issuing a debut sovereign sukuk this year and may also sell a eurobond, the head of the country's debt office said on Friday.
Abraham Nwankwo said his Debt Management Office (DMO) had yet to determine the size of a potential sukuk deal and was working with the Securities and Exchange Commission (SEC), the central bank and the stock exchange to build capacity. 

Nwankwo, DMO boss

Nigeria, reeling from the plunge in vital oil revenues, has set up a government committee to advise on the amount to be raised from the Islamic bond sale, the timing and jurisdiction of issue, either domestic or foreign.
"We are definitely going to issue a sukuk this year. We may also likely issue a eurobond this year. We are working hard to put together all the necessary framework," Nwankwo told Reuters on the sidelines of a media briefing.
Nigeria plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources, to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira.
The government has said it wants to access concessionary sources to fill its funding needs, but any shortfall would be covered through the capital markets.
Issuance of a sovereign sukuk is part of a strategic plan developed by the DMO to develop alternative sources of funding and to establish a benchmark curve for corporates to follow.
Nigeria is home to the largest Islamic population in sub-Saharan Africa, with about half of its 160 million people Muslims. It is also home to one of Africa's fastest growing consumer and corporate banking sectors.
In 2013, Nigeria's Osun State issued 10 billion naira ($62 million) of sukuk, but no other sukuk transactions have followed.

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Niger Delta militant attack shuts down Chevron facility -company source

Chevron's onshore activities in Nigeria's Niger Delta have been shut down by a militant attack at its Escravos terminal, a company source said on Thursday.

An oil rig

A militant group called the Niger Delta Avengers, which has told oil firms to leave the Delta before the end of May, said late on Wednesday it had blown up the facility's mains electricity feed.
"It is a crude line which means all activities in Chevron are grounded," the source told Reuters, without elaborating.
There was no immediate official confirmation from Chevron.
Zebo Austin, who lives nearby, told Reuters: "We heard a loud blast at the Abiteye to Escravos crude pipeline which was blown up last night by yet-to-be identified militant group."
A Twitter account with the group's name said late on Wednesday: "We Warned #Chevron<https://twitter.com/hashtag/Chevron... but they didn't Listen. @NDAvengers<https://twitter.com/NDAvengers> just blow up the Escravos tank farm Main Electricity Feed PipeLine."
The Avengers and other militants, who say they are fighting for a greater share of oil profits, an end to pollution and independence for the region, have intensified attacks in recent months, pushing oil output to its lowest in more than 20 years and compounding the problems faced by Africa's largest economy.
Abuja has responded by moving in army reinforcements but British Foreign Minister Philip Hammond said this month President Muhammadu Buhari needed to deal with the root causes of the conflict.
Crude oil sales from the Delta account for 70 percent of national income but residents in the area, some of whom sympathise with the militants, have long complained of poverty.
Buhari has extended an amnesty deal signed with militants in 2009 that stepped up funding for the region. But he has cut funding for the amnesty programme and cancelled contracts with former militants to protect the pipelines they used to attack.

*First published by Reuterrs

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Nigeria bond yields fall as traders buy debt after FX shift

Yields on Nigeria's government bond fell across maturities on Wednesday as traders bought debt to cover their positions, a day after the central bank kept interest rates on hold but pledged a flexible currency policy to lure back foreign investors.
On Tuesday, the central bank said it would adopt a flexible exchange rate policy, a shift from a peg for the naira seen as overvalued, which had hampered growth and investment.
Bond yields fell between 11 and 46 basis points across maturities with liquid five-year  debt down the most to 13.24 percent. Yields on the 2020 bond has been falling since last week in the run-up to the central bank meeting.
Before the central bank decision, traders had taken a short position on debt, expecting the monetary policy committee to hold rates at 12 percent to boost Africa's biggest economy so as to tackle slowing growth.
The 20-year benchmark paper, the most traded on Wednesday, fetched 13.24 percent, down 11 basis points from Tuesday's close.
Analysts expect the shift to a flexible interbank market from a de facto peg of around 197 , which the central bank has retained for 15 months, to boost investor confidence and create more dollar liquidity.
But traders say many foreign investors are unlikely to return in the short term after exiting the debt market, prompted by JP Morgan's decision last year to kick Nigeria out of its government bond index due to currency controls.

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Nigerian stocks near 5-month high after central bank FX shift

Nigerian stocks soared to near a 5-month high on Wednesday with banks leading the charge, driven by hopes that a more flexible foreign exchange policy will boost dollar supply and lure back foreign investors.

Dada, Anchoria Investment

On Tuesday, the central bank said it would adopt a flexible exchange rate policy, a shift from a peg for the naira seen as overvalued, which had hampered growth and investment.
The main stock index was up 3.36 pct at 28,143 points at 1057 GMT, to levels last seen on Jan. 5, ending a selloff by foreign investors who had quit due to currency curbs and worries they would get caught in the middle of a naira devaluation.
Nigerian and foreign companies active in the oil-producing country have been laying off staff as they struggle to get hard currency to fund imports for spare parts and their products.
"The cheering news is that the central bank has come to realise that we need a flexible exchange rate regime rather than the fixed regime," said Ayodeji Ebo, head of research at Afrinvest.
The introduction of a flexible interbank market from a de facto peg of around 197 would boost investors' confidence and create more dollar liquidity, Ebo said.
But the currency parallel market was frozen, with the naira remaining unchanged at 346 to the dollar, as traders were confused over how the new rules would be implemented. The central bank has only said it will give guidance within days.
"The relevance of the coming reform will hinge on just how much flexibility is allowed," said Alan Cameron at Exotic Partners. "To the sceptics among us, this will simply sound like a re-hash of the same old material we've been hearing about since December 2015."
President Muhammadu Buhari said last December there would be a more flexible system but took no action. Since then he has vehemently rejected any naira devaluation.
Giving an indication of where traders see the naira going once the rules become clearer the one-month non-deliverable forward fell 3.1 percent to 226.30.
Prior to Tuesday's news, traders had put together bids to submit to the central bank's weekly dollar sale on Thursday but were now awaiting the guidance on the rate, dealers said.
Analysts expected the interbank market to take a cue from the 285 naira to the dollar now used by the government to calculate fuel imports. It had lifted prices to 145 naira ($0.73) a litre from 86.5 naira before to eliminate a costly subsidy scheme.

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Oil nudges $50 a barrel as investors bet on shrinking overhang

Oil rose towards $50 a barrel on Wednesday for the first time in seven months, driven by expectations that shrinking supply will help erode any overhang of unwanted crude, particularly after industry data showed a sharp fall in U.S. inventories.

A series of outages around the world, such as wildfires in Canada and a spate of violence in Nigeria's oil-producing region, has helped cut global oil supply by nearly 4 million barrels per day this month.
Although these hitches are temporary, they have contributed to a drop in the supply glut that has plagued the market for nearly two years.
Brent crude futures were up 59 cents at $49.20 a barrel by 1128 GMT, while U.S. crude futures rose 52 cents to $49.14 a barrel.
"We are definitely moving out of this surplus situation that we've been living in since mid-2014. There will still be some time, maybe six months of surplus, but then we're basically into rebalancing," SEB head commodities strategist Bjarne Schieldrop said.
"There have been losses in equities and especially emerging markets (this month) and still oil is up, so it's definitely about oil fundamentals, rather than tailwinds from equities and currencies," he said.
Strikes across France that crippled output from most of the country's eight refineries have had little impact so far on crude oil prices, but rather helped lift refining margins for diesel and gasoline.
Data on Tuesday showed U.S. crude inventories fell by 5.1 million barrels to 536.8 million last week, double the expectations of analysts polled by Reuters.
Some of the drawdown was caused by falling imports due to the fires in Canada, which cut production by about 1.5 million barrels per day, said Ben Le Brun, market analyst at Sydney online brokerage OptionsXpress. Some crude producers restarted operations on Tuesday in Canada's energy heartland.
"A strong U.S. economy is (also) good for oil consumption and demand," Le Brun said.
Investors are awaiting confirmation of the big drawdown when the U.S. Energy Information Administration (EIA) issues official inventory figures on Wednesday.
Masanobu Hamada, general manager of the crude oil trading department at JX Nippon Oil & Energy Corp, said the current price rise was due to supply disruptions.
"Unless there is a halt in supply, the market lacks material (strength) to go higher because the inventory levels are high," Hamada said.

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AFRICA Reinsurance Corporation to bolster development of insurance

The Group Managing Director, Africa Reinsurance Corporation, Corneille Karekezi, has said the company will pursue to bolster underwriting companies on the continent to boost the development of insurance.
Karekzi said this amid the award function for African underwriters at the African Insurance Organisation summit, that was conducted in Marrakech, Morocco, recently.
He said that the company?s reason for launching the award for the carriers at the AIO was to reward hard work of people and organisations that were making changes in their nations.
As per him, Africa Re will pursue to bolster moves that will assist develop and drive insurance to every part of the continent.
He likewise said that the provision of insurance might alter the lives of millions of African workers and help them manage the several risks they were exposed to.
The reinsurer said, ?This opportunity to change lives in Africa should be seized by all of us by providing insurance services that can mitigate the various risks. As you know, the task is huge due to the immense insurance protection gap but it is a noble and profitable cause to pursue.?
Cornerstone Insurance Plc of Nigeria emerged as the most innovative firm of the year while two other African companies also clinched awards as insurance company of the Year and Insurance CEO of the Year.
The statement said Cornerstone won because of its use of technology, breakthrough in products and service delivery, innovative distribution channels, methods introduced in the sale of insurance products to reach the grass roots and specially the adoption of Airtel insurance to mount the grass roots in Nigeria.
It said, ?Beyond the award winners, we will be celebrating our individual and collective efforts and successes of the year 2015, one of the most difficult of recent years due to the tough macro-economic environment faced by many African countries.?

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Nigeria to adopt flexible FX regime, details to follow

Nigeria's central bank abandoned its naira peg to the dollar on Tuesday in favour of a flexible currency regime, a policy U-turn designed to boost local manufacturing and exports and stave off a recession.
However, Governor Godwin Emefiele sparked confusion in Africa's biggest economy by declining to say how the shift from a naira fixed at 197 to the dollar would be implemented.

Details would be published in a few days, he said after a Monetary Policy Committee (MPC) meeting in the capital, Abuja.
"The MPC voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate," he told a news conference.
He added that the central bank would "retain a small window for funding critical transactions". Again, he sowed confusion by saying details would only be released "at the appropriate time".
Analysts questioned the wisdom of announcing a major shift in policy without spelling out how to implement it.
"Any real liberalisation would be accompanied by some tightening, as a stabilisation measure, at least in the short term," said Razia Khan, chief Africa economist at Standard Chartered in London.
"That does not appear to have been considered. This is at best curious, at worst very worrying."
The bank's de facto peg of 197 naira per dollar had become increasingly unsustainable due to a shortage of hard currency stemming from the slump in oil revenues.
Africa's top crude producer relies on oil for nearly three-quarters of its government revenue and more than 90 percent of foreign exchange.
On the black market, the naira is trading 40 percent below the official rate as manufacturers and imports pay massive premiums to avoid hefty official currency curbs now blamed for tipping the economy towards recession.
The dollar-hungry industry and manufacturing sectors shrank 5.5 percent and 7 percent respectively in the first quarter, helping pushing the economy into a 0.4 percent contraction, its worst performance in years.
Tens of thousands of contractors have been laid off as businesses have either closed down or shelved their investment plans.
President Muhammadu Buhari, a 73-year-old former military ruler elected last year, has resisted calls for devaluation throughout his first year in office.
But Vice President Yemi Osinbajo hinted at change this month, saying a more flexible approach was needed to spur growth. Buhari's spokesman declined to comment on the central bank's change in stance.
Osinbajo's comments, on the same day fuel prices were lifted by up to 67 percent to remove costly fuel subsidies, intensified speculation about an imminent change of heart.
On Monday, the oil minister stoked that further, saying it would use a lower rate of 285 naira per dollar for petrol imports rather than the pegged official rate of 197.
Emefiele admitted the economy was also likely to contract in the second quarter, falling into official recession, but blamed delays in implementing this budget for much of the decline.
He also kept its benchmark interest rate on hold at 12 percent and maintained the central bank's existing cash reserve ratios for commercial banks at 22.5 percent.
*First published by Reuters News

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South Africa's Tiger Brands reviews strategy, digests harsh Nigeria lessons

South Africa's biggest consumer foods maker, Tiger Brands, pledged a sweeping overhaul of its operations on Tuesday, after a botched investment in Nigeria and mounting difficulties in its home and exports markets force a re-think.
New chief executive Lawrence MacDougall, who is just two weeks into the job, faces shrinking demand in African export markets such as Nigeria and Mozambique, and a bleak outlook in South Africa, Tiger Brands' largest market, where consumer confidence is near 14-year lows.

Dangote

"Being able to focus our attention and being able to prioritise where we spend our money is going to be critical to a good set of results," MacDougall said.
"We need to know which buttons to push and which to prioritise," he told reporters after a interim results presentation for the company, which makes bread, breakfast cereals and energy drinks.
Tiger Brands warned that tough trading conditions would persist for the rest of the year, echoing its smaller rival Pioneer Food Group, which said on Monday a severe drought and rising interest rates were heightening concerns over South Africa's economic outlook.
Inflation in South Africa is expected to average 6.7 percent in 2016, the central bank said last week, while low growth is set to persist.
NIGERIA LESSONS
It was partly to offset slow growth at home that Tiger Brands paid nearly $200 million for a 65.7 percent stake in Nigeria's Dangote Flour Mills in 2012. But it failed to stem losses at the venture and sold it for just $1 in December last year.
Nigeria's economy has been hit hard by the oil price slump and currency shortages.
Chief operating officer Noel Doyle told Reuters the company would tread more cautiously in uncharted markets and currency and inflation concerns could dampen the appeal of any acquisitions in the near future.
"If we brought a big acquisition today to the market in Africa shareholders would quite rightly have a lot of questions about it and there would be some resistance," he said.
Currency devaluations in export African markets such as Nigeria and Mozambique have hit demand and threaten to permanently hurt operations.
Operational challenges in Tiger Brand's Deli Foods -- its last remaining business in Nigeria -- and in Mozambique have also prompted the firm to buckle down and focus on fixing problems rather than growing its footprint.
"They need to tighten up and do a thorough review so that they don’t make the same kind of mistake they made with Nigeria in future," Absa Wealth investment analyst Chris Gilmour said.
Tiger Brands posted total sales up 9 percent to 15.9 billion rand and declared an interim dividend of 363 cents per share. They reported flat headline earnings per share (EPS) of 978 cents on continuing operations but a 14 percent rise in headline earnings per share (EPS) to 974.6 cents on continuing and discontinued operations.
*First published by Reuters

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Nigeria claws back oil output under the shadow of militant threats

Nigeria was clawing back lost oil production this week after militant attacks on pipelines and an accident at an export terminal hobbled the country's crude exports.
A spate of militant activity in Nigeria's oil-producing region slashed output by some 40 percent, to more than 22-year lows, and an ExxonMobil terminal accident forced it to cut output of Qua Iboe, the country's largest export stream.

An oil rig

On Tuesday, Italy's ENI confirmed it issued a force majeure - suspension of deliveries because of events beyond its control - on Brass River crude, leaving at least four crude streams under force majeure on Tuesday.
But both current and planned exports have already begun to edge higher, according to traders and early July-loading programmes.
"The Nigerian issue seems to be easing," one trader said.
Planned exports of Qua Iboe were set at 337,000 barrels per day (bpd) for July, the highest since January. Already this week, traders said Exxon Mobil's production was approaching 300,000 bpd, close to the initially planned May exports of 317,000 bpd.
Bonny Light exports for July were also pegged at 240,000 bpd, the highest of 2016. Even as both grades remained under force majeure, traders said cargoes were loading with less than two weeks of delay.
"Cargoes are loading," a trader said, adding the forces majeure were largely just delaying the loadings of Bonny Light, Qua Iboe and Brass River.
Traders said that even Forcados, which has been under force majeure since February, was loading in small amounts via alternative export pipelines.
Shell declined to comment, but a spokeswoman referred to earlier comments from Osagie Okunbor, managing director of Shell Petroleum Development Company of Nigeria Ltd (SPDC), saying it was looking for "viable alternatives of crude exports" while it repaired the primary Forcados pipeline.
Still, the prospect of further attacks cast a shadow on Nigeria's oil production, and traders said the loading delays and unpredictability of exports made some buyers reluctant to buy the country's oil.
"There is a strong likelihood that the high frequency of attacks on oil infrastructure will continue at least in the short to medium term, resulting in depressed oil output over much of 2016," PGI Intelligence, a UK-based risk management company, said in a note.
It added "the government's handling of its crackdown on militants will be key to determining whether violence will escalate".
*First published by Reuters

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Nigerian naira falls ahead of central bank rate decision

Nigeria's naira currency weakened slightly in the parallel market on Tuesday ahead of an interest rate decision and a possible announcement that the central bank will review its foreign exchange policy.
The local currency was quoted at 346 to the dollar on the parallel market, weaker from 345 at Monday's close.
At the official interbank window, commercial lenders were quoting 199 naira to the dollar, close to its peg of 197.
Analysts are expecting the central bank to raise its benchmark interest rate at 1345 GMT to fight inflation and further support the naira.
After the government said it would use a lower rate of 285 naira per dollar for petrol imports rather than the pegged official rate of 197, analysts said the central bank could also introduce a new parallel exchange rate

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Nigeria FX reserves down 2.7 pct as markets eye rate decision

Nigeria's forex reserves fell 2.7 percent to $26.56 billion by May 20 from a month earlier, central bank data showed, as analysts awaited a rate decision on Tuesday, which many believe could include a revamp of exchange rate policy.
Analysts are expecting a rate hike to fight inflation and further support the naira, currently trading on the black market about 40 percent below the official market level.
The bank could also introduce a new parallel exchange rate, analysts say, after the government's move to use a lower, 285 naira per dollar rate for petrol imports rather than the pegged official rate of 197.
A plunge in oil prices has eaten into the foreign reserves of Africa's biggest economy, forcing the central bank to introduce currency controls, which has frustrated businesses and caused the economy to contract.
Nigeria's dollar reserves were down 10.7 percent from a year ago when they stood at $29.77 billion.

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Buhari's Lagos no-show dismays Nigerian business

A year into term, Buhari yet to visit commercial hub
Business leaders say currency curbs crippling economy
GDP contracted in first quarter, factories hit hard
Central bank policy decision due on Tuesday
At least the taxi drivers of Lagos are happy, even if businessmen in Nigeria's commercial capital are not.

Buhari and Ambode

A year after becoming president, Muhammadu Buhari pulled out of his first official visit to Lagos on Monday, averting citywide gridlock but angering business leaders who say the 73-year-old former military ruler is deaf to their plight.
With Africa's largest economy now contracting, the foreign exchange market frozen by red tape and a new Niger Delta insurgency sending oil output to a 20-year low, it is a plight that gets worse by the day.
Yet businessmen say Buhari, who swept to power in an election a year ago, remains oblivious and continues to sacrifice short-term growth in pursuit of his long-term dream of overhauling the way Africa's most populous nation works.
To many, sending Vice President Yemi Osinbajo, a Lagos commercial lawyer, to the meeting in his place - despite thousands of posters welcoming "the People's President to No1 Africa's mega city" - is another sign of his disdain.
"It is rather unfortunate that the federal government would raise the expectations of the people... only to cancel the presidential showing, seemingly with no obvious cogent reasons being given," said Yemi Adeleke, director of World Trade Center, a trade and investment agency.
Buhari's spokesman Garba Shehu said the president, who is based in the capital, Abuja, was forced to postpone his visit after being "faced with scheduling difficulties". Buhari will visit the port city after the Muslim fasting month of Ramadan which ends at the start of July, he added.
Foremost among private sector complaints are foreign exchange curbs initially introduced to protect currency reserves hammered by the decline in the price of oil, but which are now a pillar of Buhari's vision of a transformed economy.
SHOCK
In order to keep the naira at 197 to the dollar, the central bank has scuppered the interbank foreign exchange market, blocking access to dollars for anybody not armed with a valid overseas invoice.
Buhari argues that this is about ending speculation, as well as a decades-long cycle of devaluations that has hit ordinary Nigerians in the form of high inflation and discouraged the investment needed to build a serious domestic factory sector.
"It is extraordinarily frustrating for those of us in the business community who supported him that he has chosen to be intransigent about something it seems as if he doesn't really understand," said Timi Soleye, president of CRYO Gas and Power.
Critics, including the International Monetary Fund, point to a currency trading at almost half its official value on the black market, fuelling expectations of a devaluation that are now so widespread that investment has dried up.
This view received support on Friday, when the National Bureau of Statistics revealed the economy shrank 0.4 percent in the first quarter, with industry and manufacturing shrinking 5.5 percent and 7 percent respectively.
"It is now clear that the adverse effects of the oil price shock have filtered through to the demand side of the economy, and we maintain our view that Abuja's current policy framework only serves to exacerbate the oil shock," Cape Town-based NKC African Economists said.
"The economy might still find itself on a slightly firmer footing towards year-end, but this will largely depend on Abuja abandoning some of its unconventional economic policies."
"COMMAND AND CONTROL"
Vice President Osinbajo hinted at changes when he called this month for a "substantial" review of foreign exchange policy, but there are few signs of this filtering down to the Central Bank of Nigeria, which announces its latest monetary policy decision on Tuesday.
Over the last year, Governor Godwin Emefiele's speeches have chimed closely with Buhari's views on the economy and currency, and this month the bank explicitly denied an online media report of an imminent devaluation to 290 to the dollar.
One-month deliverable forwards - essentially a view on the currency one month out - hit 245 to the dollar on May 16 after the devaluation report, but have retraced to 224 this week, reflecting a more sober analysis of the chances of a weaker naira.
All but one of 12 analysts polled by Reuters this month said the currency would be devalued, with a median expectation of a 15 percent weakening - although many were reluctant to be pinned down on the timing.
Analysts also say Buhari's actions now closely mirror his behaviour as a military ruler in the early 1980s.
Besides sending in soldiers with bullwhips to bring order to chaotic queues at bus-stops, he tried to stimulate domestic manufacturing by banning imports and rebuffed IMF pressure to devalue the currency.
Still locked in a military mindset - he came to power in a coup and left via the same route - diplomats say he is unlikely to respond in a conventional manner to public or political criticism.
"Buhari doesn't do politics. He does command and control," said one Abuja-based diplomat. "And so far it's working."
*First published byReuters

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Eyes on FX policy as Nigeria uses lower dollar rate for petrol imports

Kachikwu, oil minister

Nigeria's government has used a lower currency rate than its official central bank rate for petrol imports, the junior oil minister said on Monday, signalling what analysts believe could be a move towards a two-tier exchange rate regime.
Emmanuel Ibe Kachikwu said the government, which increased petrol prices in mid-May, used a conversion of 285 naira to the dollar to set prices, compared with the official rate of 197.
Retail petrol stations could therefore charge as much as 145 naira ($0.73) a litre, up from 86.5 naira before.
The increase has come at a time when Africa's biggest economy is contracting due to lower world oil prices, amid rising domestic inflation and a pegged currency. The naira is trading at some 40 percent below its official rate.
The central bank is set to announce a decision on interest rate on Tuesday, with analysts predicting a hike to fight rising inflation and a devaluing naira over the next few months.
President Muhammadu Buhari has thus far rejected calls by the International Monetary Fund for a more flexible exchange rate.
"We think the exchange rate of 285/$1 used to arrive at the petrol price ceiling of 145/litre suggests a two-tier exchange rate may be a possibility," Yvonne Mhango, economist at Renaissance Capital said.
Kachikwu said the government looked at 197 naira while determining the new petrol price but "moved away from that because it didn't solve the problem".
"I have told you about the 285 conversion as the foreign exchange rate, the only component that was changed on the (petrol price) template," he told a briefing in Lagos.
Nigeria depends on imports for consumption of most goods including petroleum products, due to inadequate refining capacity. Last year the central bank curbed access to dollars for a range of goods to preserve dwindling foreign reserves, frustrating businesses and households.
In the two-tier forex market, a fixed rate of 197 could apply to essential imports, while luxury goods may be left to a managed float that trades around 250, analysts and business leaders have speculated.
Kachikwu said government-owned NNPC stations have capacity to sell petrol at 120 naira or below but it did not want to encourage private firms to divert products for profits.
*First published byReuters

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Ghana forecasts increase in 2016/17 cocoa crop

Ghana expects to produce 900,000 tonnes of cocoa in the 2016/17 season starting in October, up from 850,000 this season, cocoa industry regulator Cocobod said on Monday.
The forecast comes as the government seeks to improve crop yields by distr

Cocoa beans

ibuting high-yield seedlings free of charge and subsidising fertiliser deliveries to farmers.
"For the first time, we have almost finished the distribution of fertilisers to farmers ahead of time and we have also begun distributing high-yielding hybrid seedlings," said Cocobod spokesman Noah Amenyah.
Ghana, the world's second-largest cocoa producer behind Ivory Coast, runs a two-cycle cocoa season comprising the major October-May harvest, which is mainly exported, and the light crop production, which is discounted to local grinders.
Cocoa output so far this season, which was hampered by a dry start, is estimated at about 720,000 tonnes. The West African nation is on course to meet its 850,000 tonne target, government and Cocobod sources told Reuters.
Cocobod plans to raise up to $2 billion from a syndication of international lenders for 2016/17 crop purchases, deputy Finance Minister Cassiel Ato Forson told Reuters on Monday, up from $1.8 billion previously.
"We have laid the papers before Parliament for approval so we can proceed with the negotiations for the loan," Forson said.
Ghana runs a semi-liberalised cocoa marketing system in which Cocobod distributes money to licensed purchasers to buy the crop on its behalf on a commission basis.

*First published by Reuters

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Nigerian interbank rate rises on low liquidity, MPC meeting

Nigeria's overnight interbank rate rose marginally on Friday to an average of 9 percent, up from 8.5 percent at last week's close, due to lower banking system liquidity and expectations of a possible hike in the benchmark interest rate next week.
Nigeria's rate-setting Monetary Policy Committee (MPC) is scheduled to meet on Tuesday to take a decision on benchmark interest rates and other financial tools to curb accelerating inflation in the West African country.
Annual inflation in Nigeria quickened to a near six-year high of 13.7 percent in April, up from 12.8 percent the previous month, in part due to rising petrol and electricity prices, the National Bureau of Statistics said on Monday, stoking expectations of another rate hike.
"We now expect the central bank (CBN) to tighten its policy rate by 100 bps to 13 percent at the May meeting," Razia Khan, chief economist at Standard Chartered Bank, said in an email to Reuters.
With the level of banking system liquidity at around 141.7 billion naira on Friday, down from 183.59 billion naira last week, dealers said, interbank rates are expected to square up with the expected benchmark rate hike at the end of the MPC meeting on Tuesday.
Even though the central bank sold 110.93 billion naira in short-dated treasury bills at an auction on Wednesday, no cash left the system because the same amount of treasury bills also matured, resulting in a rollover.

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Nigeria raises 111 bln naira in T-bills at higher yields

Nigeria sold 110.93 billion naira ($557.44 million) worth of short-dated Treasury bills at an auction on Wednesday with higher yields than at the previous sales reflecting the sharp spike in inflation growth in Africa's biggest economy, central bank data showed on Thursday.

Emefiele, CBN governor

The bank sold 32.43 billion naira in the three-month paper at 8.10 percent, compared with 7.99 percent at the last auction on May 4.
A total of 22.82 billion naira of the six-month bills were sold at 9.20 percent against 9 percent previously, while 55.68 billion naira of the one-year debt was sold at 12.48 percent compared with 11.05 percent previously.
Investors demanded a total of 216.5 billion naira against 261.52 billion subscription at the last auction.
Annual inflation in Nigeria quickened to a near six-year high of 13.7 percent in April, from 12.8 percent the previous month in part due to rising petrol and electricity prices, the National Bureau of Statistics said on Monday, stoking expectations of another rate hike.
Nigeria's rate-setting Monetary Policy Committee (MPC) is scheduled to meet on Tuesday to take a decision on benchmark interest rates and other financial tools to curb growing inflation in the West African country.

*First published by Reuters

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British fraud investigator widens Rolls-Royce probe to Nigeria

Britain's Serious Fraud Office (SFO) has widened its investigation into Rolls-Royce to examine allegations of suspected bribery in Nigeria, the Financial Times reported on Thursday.
Rolls-Royce, the world's second-largest maker of aircraft engines, said in 2013 the SFO had launched a formal investigation into concerns about possible bribery and corruption in China and Indonesia.
The FT said on Thursday this had now spread to examine Rolls-Royce's former energy operations in Nigeria.
"We are co-operating with the authorities," a Rolls-Royce spokesman said. "We do not comment on the subject of ongoing investigations nor on the countries in which those investigations are being conducted.
"We have made it clear that Rolls-Royce will not tolerate business misconduct of any kind."
The SFO declined to comment on the report but said its investigation continued.
The FT cited people familiar with the situation as saying the SFO was investigating whether Rolls and its agents were involved in any bribery of government officials in Nigeria up to the year 2013.
Rolls has over the last two years been hit by cancelled orders from oil industry customers for power systems after a plunge in the oil price, and a slowdown in demand for the high-margin aftermarket servicing it provides for older aircraft engines. It downgraded profit forecasts three times last year.
*First published by Reuters

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Nigeria looks to sukuk for infrastructure funding needs

Nigeria hopes to use a proposed Islamic bonds issuance programme to help fund big infrastructure needs in Africa's biggest economy, aiming to tie the transaction to one of several projects, a Nigerian finance official told Reuters.

Adeosun, Finmin

Nigeria plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources, to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira.
The federal government is working on a sovereign sukuk with details expected within the year as part of diversifying its funding sources, Alhaji Mahmoud Isa-Dutse, Nigeria's permanent secretary of finance, said on Wednesday.
"We want to use debt more efficiently than we used to in the past. We are looking to borrow, but tied to infrastructure projects," Isa-Dutse said on the sidelines of the annual meeting of the Islamic Development Bank in Jakarta.
The government wants to primarily access concessionary sources to fill its funding needs, but any shortfall would be covered through the capital markets, he added.
"Out of those debt plans, hopefully sukuk will be one of the sources - either domestic or foreign," he said, adding sukuk could be linked to a wide range of projects, from power plants to railways.
Issuance of a sovereign sukuk is part of a strategic plan developed by the country's debt management office to develop alternative sources of funding and to establish a benchmark curve for corporates to follow.
In 2013, Nigeria's Osun State issued 10 billion naira ($62 million) of sukuk, but no other sukuk transactions have followed.
*First published by Reuters

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Nigerian union goes ahead with fuel protest strike; few early disruptions

A Nigerian union defied a court ban to launch a general strike on Wednesday in protest at a planned hefty increase in fuel prices, though many businesses and government offices opened as normal.
The government hopes lifting costly fuel subsidies, causing prices to rise by up to two thirds at the pumps, will help alleviate the worst crisis in decades in Africa's biggest economy.

NLC protest

A wave of strikes ensued the last time Nigeria tried to introduce a similar measure in 2012, and authorities eventually reinstated some subsidies.
This time around the Nigerian Industrial Court blocked industrial action due to the risk of civil disorder, but late on Tuesday the Nigeria Labour Congress (NLC) said it would go ahead with its planned indefinite strike anyway, starting on Wednesday.
"The government was not ready to accede to our demands, so we walked out of the meeting," Chris Uyot, deputy general secretary of the Nigerian Labour Congress (NLC), told Reuters.
A second union, the Trade Union Congress (TUC), abandoned its strike plans in response to the court ruling.
Reuters witnessed government offices, shops and banks in the capital Abuja mostly opening as normal on Wednesday.
Some 300 union activists gathered there to stage a march, and some 200 protested in the commercial capital Lagos, where some banks and many shops were also doing business.
'LEFT WITH NO CHOICE'
A fall in oil prices has eaten into the foreign reserves of Nigeria, which relies on crude sales for around 70 percent of national income. The central bank has adopted a fixed exchange rate to protect further depletion of reserves.
On Tuesday, vice president Yemi Osinbajo said President Muhammadu Buhari had been "left with no choice" but to raise petrol prices.
"What can we do if we don't have foreign currency? We have to import fuel," Osinbajo said.
Nigeria needs to import almost all of its fuel as its refineries are largely out of action after years of neglect and mismanagement.
There were some flight delays on Wednesday as airlines struggled to get jet fuel, but airports in Lagos, Abuja and Port Harcourt in the oil-producing Niger Delta were operational.
*First published Reuters

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Nokia returns to mobile phones with brand-licensing deal

Nokia said it has signed an exclusive 10-year licensing deal with Finnish company HMD Global Oy to create Nokia-branded phones and tablets, manufactured by a subsidiary of Taiwan's Foxconn.

Nokia Phone

Once the world's biggest maker of mobile phones, Nokia was wrongfooted by the rise of smartphones and sold its entire handset business to Microsoft in 2014.
It however held on to its phone patents, and started to prepare a comeback by brand-licensing, although it has had to wait due to a non-compete deal with Microsoft.
Nokia, which currently makes most of its sales by telecom network equipment, said on Wednesday it will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights.
"Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets," said Ramzi Haidamus, head of Nokia's patent unit.
Earlier on Wednesday, Microsoft announced it would sell its entry-level phone assets to Foxconn's subsidiary FIH Mobile and HMD for $350 million.
As part of that deal, HMD is buying from Microsoft the rights to use the Nokia brand on basic phones until 2024.
"Together, these agreements will make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets," HMD said in a statement.
HMD, a newly-established firm, is owned by Smart Connect LP, a private equity fund managed by former Nokia executive Jean-Francois Baril, and its management.
Nokia declined to give any timetable for new devices. The deal between Microsoft and HMD is expected to close in the second half of 2016.
Microsoft has struggled with the phones business and last year wrote off $7.5 billion from the former Nokia unit.
However, Microsoft on Wednesday said it will continue to develop its Lumia smartphones.
Shares in Nokia rose 1.3 percent by 1003 GMT.
*First published by Reuters

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Trump would talk to N.Korea's Kim, wants to renegotiate climate accord

United States (US) Republican presidential candidate Donald Trump said on Tuesday he is willing to talk to North Korean leader Kim Jong Un to try to stop Pyongyang's nuclear program, proposing a major shift in U.S. policy toward the isolated nation.

Trump

In a wide-ranging interview with Reuters, Trump also called for a renegotiation of the Paris climate accord, said he disapproved of Russian President Vladimir Putin's actions in eastern Ukraine, and said he would seek to dismantle most of the U.S. Dodd-Frank financial regulations if he is elected president.
The presumptive Republican nominee declined to share details of his plans to deal with North Korea, but said he was open to talking to its leader.
"I would speak to him, I would have no problem speaking to him," he said.
Asked whether he would try to talk some sense into the North Korean leader, Trump replied, "Absolutely."
North Korea's mission to the United Nations did not immediately respond to a request for comment on Trump's remarks.
Trump, 69, also said he would press China, Pyongyang's only major diplomatic and economic supporter, to help find a solution.
"I would put a lot of pressure on China because economically we have tremendous power over China," he said in the interview in his office on the 26th floor of Trump Tower in Manhattan. "China can solve that problem with one meeting or one phone call."
A Chinese official said dialogue was needed to resolve issues on the Korean peninsula.
“China supports direct talks and communication between the United States and North Korea. We believe this is beneficial,” Foreign Ministry spokesman Hong Lei told reporters.
Trump's preparedness to talk directly with Kim contrasts with President Barack Obama's policy of relying on senior U.S. officials to talk to senior North Korean officials.
Obama has not engaged personally with Kim, but he has pushed for new diplomatic overtures to Iran and Cuba that produced a nuclear deal with Tehran and improved ties with Havana.
Sitting at his desk with an expansive view of Central Park, Trump spoke at length about his economic and foreign policy ideas in the half-hour interview. Facing him on his desk is a framed photograph of his father, the late Fred Trump. A wall displays framed photos of Trump with various celebrities, as well as numerous magazine covers on which he has appeared.
On Russia, Trump tempered past praise of Putin, saying the nice comments the Russian leader has made about him in the past would only go so far.
"The fact that he said good things about me doesn't mean that it's going to help him in a negotiation. It won't help him at all," he said.
An adviser to Hillary Clinton, the leading Democratic presidential candidate, criticized Trump's foreign policy comments, noting they came soon after Trump said he was unlikely to have a good relationship with British Prime Minister David Cameron.
"Let me get this straight: Donald Trump insults the leader of our closest ally, then turns around and says he'd love to talk to Kim Jong Un?" Clinton's senior foreign policy adviser, Jake Sullivan, said in a statement.
Trump "seems to have a bizarre fascination with foreign strongmen like Putin and Kim. But his approach to foreign policy makes no sense for the rest of us," he said.
In the Reuters interview, Trump said he thought Cameron's criticism of him was inappropriate but "I'm sure I'll have a good relationship with him."
CLIMATE ACCORD
Trump said he is "not a big fan" of the Paris climate accord, which prescribes reductions in carbon emissions by more than 170 countries. He said he would want to renegotiate the deal because it treats the United States unfairly and gives favorable treatment to countries like China.
"I will be looking at that very, very seriously, and at a minimum I will be renegotiating those agreements, at a minimum. And at a maximum I may do something else," he said.
A renegotiation of the pact would be a major setback for what was hailed as the first truly global climate accord, committing both rich and poor nations to reining in the rise in greenhouse gas emissions blamed for warming the planet.
Trump has been criticized for offering far fewer specific policy proposals than Clinton, his likely rival for the Nov. 8 presidential election.
The New York billionaire said he planned to release a detailed policy platform in two weeks that would propose dismantling nearly all of Dodd-Frank, a package of financial reforms put in place after the 2007-2009 financial crisis.
"Dodd-Frank is a very negative force, which has developed a very bad name," he said.
Trump took a dim view of Clinton's stated desire to put her husband, former President Bill Clinton, in charge of building up the U.S. economy.
"The wife wants to make him in charge of the economy," he said.
Clinton described Trump's idea of dismantling Dodd-Frank as reckless. "Latest reckless idea from Trump: gut rules on Wall Street, and leave middle-class families out to dry," she said on Twitter.
FINANCIAL BUBBLE?
Trump said he perceived a dangerous financial bubble in the tech start-up industry, with some companies selling shares at high valuations without ever turning a profit.
"I'm talking about companies that have never made any money, that have a bad concept and that are valued at billions of dollars," he said.
Silicon Valley investors responded on Twitter by poking fun at Trump's campaign slogan "Make America Great Again!" by repeating the phrase, "Make Bubbles Great Again."
On the U.S. Federal Reserve, Trump said that while he eventually wants a Republican to head it, he is "not an enemy" of current chair Janet Yellen, who was appointed by Obama.
"I'm not a person that thinks Janet Yellen is doing a bad job. I happen to be a low-interest rate person unless inflation rears its ugly head, which can happen at some point," he said, adding that inflation "doesn't seem like it's happening any time soon."
The real estate mogul said he would maintain the current level of benefits for Social Security recipients, a position championed by former Republican presidential candidate Mike Huckabee. Trump said he would not raise the retirement age or impose a sliding scale of benefits depending on income levels.
Some Republican lawmakers have pushed for structural reforms to Social Security to extend its solvency.
The depleted Social Security Trust Fund, Trump said, would be replenished by the increased tax revenue that would flow into the government from the higher job growth spurred by his economic policies.
Click here for excerpts from the interview with Trump
*First published by Reuters

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China says to support steel exports as U.S. imposes hefty tariff

China said it would persist with controversial tax rebates to steel exporters to support the sector's painful restructuring programme, defying a United States move to impose punitive import duties on Chinese steel products.

A steel plant

A worldwide steel glut has become a major trade irritant, with China under fire from global rivals who say it is dumping cheap exports after a slowdown in demand at home.
In a marked escalation of the spat, the United States on Tuesday said it would impose duties of more than 500 percent on Chinese cold-rolled flat steel, which is widely used for cars body panels, appliances and construction.
However, China's Ministry of Finance, said it would "continue to implement a tax rebate policy on steel exports" as it tries to finance a costly capacity closure plan.
China, by far the world's largest steel producer, plans to eliminate 100-150 million tonnes of annual production - more than U.S. produces per year - over the next five years.
The ministry said China was making special funds available to curb overcapacity in both the steel and the coal sectors, and would reward local authorities for exceeding their targets and meeting them early.
The policy document, though dated May 10, was published just hours after the U.S. tariffs were announced. It is the latest policy announced by different departments including the Ministry of Human Resources and Social Security to push forward the overcapacity cut.
The U.S. Commerce Department said on Tuesday the new duties effectively will increase by more than five-fold the import prices on Chinese-made cold-rolled flat steel products, which totaled $272.3 million in 2015. It found that products were being sold in the U.S. market below cost and with unfair subsidies.
China's commerce ministry expressed its "strong dissatisfaction" with ruling and said the United States should rectify its mistakes as soon as possible.
"The United States adopted many unfair methods during the anti-dumping and anti-subsidy investigation into Chinese products, including the refusal to grant Chinese state-owned firms a differentiated tax rate," the ministry said in a statement posted on its website.
The Group of Seven rich nations plans to address the steel glut when it meets in Japan later this month, in a move seen likely to add to pressure on China.
CHINA DENIES FLOODING MARKETS
Analysts said the potential closing off of the U.S. market would not substantially reduce China's exports, accounting for just 2 percent of its total shipments.
"The duty will not have a big impact on China's overall steel exports because the volume to the United States is very small... but because of anti-dumping, export destinations are becoming more and more dispersed," said Kevin Bai, an analyst with CRU in Beijing.
While a flood of cheap Chinese steel has been blamed for putting overseas producers out of business, China has repeatedly denied its mills have been dumping their products on foreign markets, stressing that local steelmakers are more efficient and enjoy far lower costs than their international counterparts.
China has also denied there are any inducements in place that encourage steelmakers to sell their products overseas, saying trade flows are determined by the market.
"Global demand is increasing, and Chinese steel products are very competitive, so exports are increasing a little, but the steel sector is mainly used to satisfy domestic demand and there has never been any policy support for large volumes of exports," CISA chairman Ma Guoqiang said at a conference this week.
However, a vaguely-worded statement from the central bank and several other government bodies last month said China would encourage exports and provide financing for steel and coal firms looking to move overseas.
While the government has offered as much as 100 billion yuan ($15 billion) to help handle worker layoffs, China's debt-ridden steel sector cannot afford to abandon the financial lifeline provided by exports.
Foreign sales reached a record 112.4 million tonnes last year, up 19 percent, though total value fell 10.5 percent to $62.8 billion as a result of plunging prices.
More than half of large steel mills still made losses last year, according to the China Iron and Steel Association (CISA).
Steelmakers have called on more proactive support for the export business, with Chen Ying, the general manager of Jiangsu Shagang, telling a conference on Monday that boosting foreign sales would help speed up the country's restructuring efforts.
"China should support exports - steel product exports and moving projects and plants abroad," she said.
*First published by Reuters

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Burberry to overhaul retail operations after 10 pct fall in profit

British luxury brand Burberry said it would overhaul its retail operations and simplify its product range after full-year profit fell 10 percent in a tough market that is set to persist this year.
The group, famous for its trench coats, said it expected profit to come in towards the bottom of market forecasts in the year to March 2017, and be more weighted to the second half than last year.

Burberry has been hit by a slowdown in Chinese tourists visiting its stores in Europe, and weak demand in Hong Kong. It said last month that underlying revenue for the year fell 1 percent to 2.5 billion pounds.
The group said that after successfully relaunching its trench coat and scarves it would next focus on bags, a category which is growing faster than clothing and an area of weakness for Burberry compared with its peers.
It will also seek to improve its retail operations to lift sales online and through its stores, where analysts believe it underperforms industry leaders. Areas of focus will include retail basics such as customer service, availability of products and in-store logistics.
"While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to driver Burberry's outperformance," said Christopher Bailey, who combines the roles of chief designer and chief executive.
The efficiency programme will cut the group's operating costs by about 10 percent excluding fixed rent and depreciation, it said on Wednesday, and deliver cost savings of at least 100 million pounds by 2019. Only around 20 million pounds of savings will come through in the current year, however.
Burberry reported adjusted pretax profit of 421 million pounds ($609 million) for the year to end-March, broadly in line with analysts' forecasts.
*First published by Reuters

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Suzuki says it used wrong mileage tests for Japan models; shares slide

Suzuki says 16 Japan models affected by improper mileage testing
Discrepancies do not apply to vehicles outside Japan
Suzuki sees no impact on group operating results for now
Suzuki shares end down 9 pct
Mitsubishi president quits over its scandal

Suzuki Motor Corp said it had used improper fuel economy tests for its cars in Japan but that proper testing subsequently had shown the mileage data did not need amending, in a widening of a scandal that has already engulfed Mitsubishi Motors.
Mitsubishi, which admitted last month that it had manipulated fuel economy for four minivehicle models, said on Wednesday its President Tetsuro Aikawa will step down to take responsibility for the scandal.
The admission prompted the automaker to agree to sell a one-third controlling stake to Nissan Motor Co, and Japan's transport ministry to ask domestic automakers to re-submit fuel economy readings on all their vehicles by Wednesday.
Suzuki, Japan's No.4 automaker, said 2.1 million vehicles were affected but Chief Executive Osamu Suzuki told reporters that his workers did not intentionally use improper data.
"The company apologises for the fact that we did not follow rules set by the country," he said.
Shares in Suzuki ended down 9.4 percent after the company said it had used improper tests but before it briefed media. At one point they fell as much as 15 percent to their lowest level since November 2013.
Suzuki specialises in minivehicles, which have engines of up to 660cc and get preferential tax treatment under Japanese law. It commands roughly one-third of the country's minivehicle market.
The automaker said it plans to continue sales of its cars given that new readings had not deviated much from those previously submitted, adding that it did not see much impact on earnings for now.
The impact has been much greater on Mitsubishi.
Mitsubishi said on Wednesday that "shortening of time spent on R&D, and expectations that high fuel-efficiency be achieved" led to data manipulation.
"There was no direct order from top management in this incident," Mitsubishi Chief Executive Osamu Masuko told reporters.
"But top management did not have a firm grasp on the proceedings at the R&D department," he said, adding there were several chances to stop its workers from using improper testing methods but that they did not stop.
Emissions and fuel economy have come under increasing scrutiny from regulators globally after Germany's Volkswagen admitted last year that it used "defeat devices" on 11 million diesel vehicles to lower emissions during tests.
France, which ordered tests on a random sample of about 100 diesel cars last year, said last month some vehicles made by Renault, Fiat I, Mercedes, VW, PSA Peugeot Citroen, Nissan, Opel and Ford failed to comply fully with its emissions regulations.
South Korea, which has tested 20 diesel vehicle models, said on Monday it would punish Nissan with a fine and a recall of its Qashqai diesel sport utility vehicles, accusing it of manipulating emissions. Nissan denied the allegation.
In the United States, the Justice Department is investigating Daimler, the maker of Mercedes vehicles, over emissions testing.

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