Business

FG May Ban Palm Oil Importation

Published

11 years ago

March 2, 2015

There are indications
that the Federal Government may ban the importation of palm oil due to the reduction in crude oil price that is affecting the country.
This was made known by Guaranty Trust Bank PLC (GT Bank) in its 2015 macro-economic outlook that was made available to Journalists in Lagos, recently.
According to the paper, as the price of oil is expected to fall till mid-2015, it expected forex supply to suffer a significant decline, which will include some of the agricultural items like palm oil, rubber and groundnut among others.
In the first two quarters of 2014, Nigeria recorded year-on-year Gross Domestic Product (GDP) rates above six per cent in the midst of decling worldwide growth trends, and that oil revenue currently accounts for more than 75 per cent of government’s revenue and close to 90 per cent of foreign exchange income,” it stated.
According to the statement, the trend continued in the third quarters as Nigeria recorded year-on-year GDP growth of 6.23 per cent driven by non oil sector which grew by 7.5 per cent, adding, “Inspite of governments efforts to diversify the economy and to reduce demand for forex, we do not see this taking effect in the short-term. We are however, confident in the Central Bank’s ability to hold the current official exchange rate steady, for oil prices above $55 per barrel.
“In addition to previous import substitution initiatives restricting the importation of fertilizers, sugar, cement and other items, the Federal Government in 2014 placed restriction on the importation of certain classes of vehicles and automobiles spare parts through increased tariffs and levies”.
“The Federal Government expects that the policy would create jobs, reduce the dependence on imported vehicles, thereby reducing the demand for forex for the purpose of vehicle ownership. Faced with dwindling oil revenue, we expect the Federal Government to ramp up efforts in this regard”, the paper further stated, adding that “Given the international variable contributing to the weakened state of oil prices and OPEC’s intent to maintain current supply, even if prices go to as low as $20 per barrel, we do not expect a reversal in the direction of oil prices in the first half of 2015″.
The report also noted that in 2014, declining oil prices had set the base for monetary policies of the country to be very tight, stressing that the combined effect of the declining oil prices, gradual capital flight, a reduction in forex supply and the import dependent nature of the economy of the country could lead to sustained pressure of the naira, which could further force the government to take another action.

Business

FG Flaggs Of Renewed Hope Employment Initiative

Published

1 week ago

September 12, 2025

The Tide

As part of its programme to empower Young Nigerians with the necessary employability skills, the Federal Government, through the National Directorate of Employment (NDE), has flagged off the second phase of the “Renewed Hope Employment Initiative” (RHEI).

Performing the ceremony in Port Harcourt, the Director General of NDE, Silas Ali Agara, said the second phase of the programme will absorbed over 41,307 youths across the country.

Agara said the first phase of the programme, which was flagged off December 2024, successfully trained 32,692 unskilled and unemployed Nigerians in demand-driven skills across the 36 states and the Federal Capital Territory (FCT).

According to the DG, who was represented by the Rivers State Coordinator of the Programme, Matthew Amala, “The strategic goals were increasing trainee employability, supporting small scale enterprises, promoting agricultural productivity, improving rural infrastructure and providing transient jobs.”

He said, over 5000 beneficiaries were resettled with loans and starter packs, while linkages to credit institutions for those that could not be accommodated under the Directorate’s soft loan scheme was ongoing.

“As we reflect on the achievements of the first phase of the Renewed Hope Employment Initiative, I’m excited that the second phase is being flagged off today.

“In the second phase, NDE will train 41,307 persons in over 30 skills set, ranging from vocational, entrepreneurial, agricultural, ICT, and activities in the public works sector.

“We have improved and digitalized our processes through a robust registration portal fully equipped with scalable backends and geofenced capabilities.

“This has made our processes more transparent, fair, equitable, as well as providing us with a credible database”, he said.

The DG said at the end of the training, a total of 14,457 will be resettled with starter packs to help them establish themselves in their chosen fields.

“It’s our sincere expectation that the participants would be equipped positively with skills to enhance their employability, foster entrepreneurship mindsets in them and improving livelihoods to contribute to their community and the economic growth of the Nation”, he added.

He said despite the challenges of limited budgetary resources, the NDE remains committed to equipping unemployed Nigerians with demand driven skills in order to empower these individuals to become employers of labour and future wealth creators.

John Bibor & Edidiong Johnson

Business

Kachikwu Makes Case For Increased NCI Fund To US$1bn … Timeline For Developing Oil Blocks

Published

1 week ago

September 12, 2025

The Tide

Former Minister of State for Petroleum Resources, Prof. Emmanuel Ibe Kachikwu, has canvassed that the $450m Nigerian Content Intervention Fund (NCI Fund) be increased to US$1bn.

He said the increase will be deployed to cater for the funding of mega oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.

Kachikwu also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, saying same condition should also be for firms that win industry contracts based on commitments of investments.

He made these recommendations on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).

The Tide gathered that the webinar drew nearly 500 participants via Zoom and the Board’s YouTube page.

The former minister, who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.

According to him, the fund should include contributions from operators, and other investors in the sector and not just government resources, expressing dismay that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land which has caused huge losses to the nation.

“I like to advise the Government to cancel oil blocks that are not developed after a prolonged period. We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally. We need to begin to produce those equipment.

“You’ve to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology? You need to give a timeline”, he said.

Speaking on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that there was a lot of money waiting to be tapped, saying that however it is only going to countries where there is a perception of regularity.

“Nigeria’s image needs to improve, while the Government also needs to create the right investment climate to attract investment. There’s enough investment money out there if you have a holding of hands.

“They need to portray Nigeria as the place you can put money and get good returns. Government should consider co-investing with private companies if there are good prospect of returns”, he added.

The erstwhile Petroleum Minister lauded the transformation in the oil and gas sector with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs).

“Mere ownership transfers are insufficient without enhanced output, management, revenue returns and compliance with extant laws.

“My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue. There’s the need to involve local communities to avoid past disconnects that fueled conflicts”, Kachikwu said.

He also commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, for upholding the agency’s mission and recording significant strides since assumption of office.

Reflecting on the NCDMB Scribe’s pivotal role in shaping the Board, Kachikwu emphasized that advancing local content was a core pillar of his tenure as Minister and chairman of the NCDMB Board, noting that local content is not just a slogan, but rather a tool for industrialisation, job creation, and knowledge transfer.

“There should be consistency of policies. For too long, foreign companies dominated every segment of the sector, while our people remained bystanders.

“My message to young professionals is clear: the oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.

“The industry is not just about barrels and dollars. it’s about national survival, community welfare, and the environment. Achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial.

“Confidence in yourself and your abilities will fuel your progress and help you overcome challenges. Principles matter: Let your ethics and integrity be a guiding light. Build relevant skill sets. Equip yourself with the skills that make you competitive and adaptable in the job market”, the former Minister urged.

Earlier in his welcome address, the Executive Secretary of the NCDMB’s Director of Capacity Building, represented by the Director of Capacity Building, Engr. Abayomi Bamidele, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence.

Hee said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.

In his closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.

He also thanked the guest lecture for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.

“NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content. The Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series.

“We want to assure you that this Mentorship series will continue as a key platform for engaging and educating stakeholders of the industry. I also want to urge interested listeners to visit NCDMB’s YouTube channel to watch the recording of the webinar”, he said.

Ariwera Ibibo-Howells, Yenagoa

Business

FG Embarks On Sanitizing Mining Industry

Published

1 week ago

September 12, 2025

The Tide

The Federal Government has embarked on sanitizing the mining industry, as concrete steps are being taken through the Mining Cadastre’s office to put things in order.

Already, some of the mining licences have been revoked, and more mining licences will be revoked, as part of ongoing efforts to sanitise the solid minerals sector, as well as to protect investors from fraudsters.

Director-General (DG) of the Mining Cadastre Office, Obadiah Nkom, who disclosed this on a live conversation on X (formerly Twitter), said the move was aimed at driving transparency and order in Nigeria’s solid minerals sector.

According to the DG of the Federal Government agency, the clean-up exercise, which covers expired, speculative, and inactive titles, is necessary to make room for genuine investors and ensure compliance with the law.

Nkom disclosed that the agency had identified about 4,709 licences, including 1,400 expired titles, 2,338 refused applications, and 971 notifications of grant where applicants failed to pay, which led to an outright revocation by the Minister of Solid Minerals Development, Dele Alake.

The DG stressed that the revocation was not punitive but part of a deliberate sanitisation process to weed out speculators who hoard licences without adding value to the economy.

Nkom explained that the exercise had already boosted investor confidence in the sector.

“When you talk about backlog, for now, the ministry has had reasons to clear or revoke close to 4,709 mineral licenses. There were implementations in terms of revoked expiring titles of up to 1,400 licenses.

“We have had reasons to refuse 2,338 applications in the system. We have had a mineral title notification of 971. Can you imagine 971 notifications of grants that were notified, but did not come to pay.

“There are even instances where some people have collected the grants, but they refuse to pay. So what do we do? So this cleaning exercise that we are doing is to be able to now create that space in the minefield for people.

“So, imagine having over 4,709 erased from our system by way of revocations implemented. It has sanitised our sector, and investors now know that if they are not going to be involved in exploration and value addition, there will be consequences.

“We are cautious. We follow the law. And this is why I repeat, we have had 100 per cent success in litigations because we are an agency compliant with the provisions of the Act.

“Where we are wrong, we do not shy away from trapping ourselves and doing the right thing. I would hope that at the end of the day, we will not have any risk by following the provisions of the Act”, he said.

Recall that the minister in 2024 revoked 924 licenses over failure to pay statutory charges and fees due for the Federal Government through the Mining Cadastral Office.

He warned licensees yet to resume work on their mining projects to do so immediately.

Corlins Walter