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Promoting Nigeria’s Economic Growth Via One LG, One Mineral Policy

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In the 1950s, Nigeria used
to be a major producer and exporter of columbite, tin and coal, and these minerals then contributed a lot to the national economy.
However, the nationalisation policy of the Federal Government in the 1970s and the discovery of crude oil provoked a dramatic decline in the productivity of the solid minerals sector of the economy.
For more than four decades, crude oil has been the mainstay of the Nigeria’s economy and concerned citizens moan that this development has induced the neglect of other sectors such as solid minerals and agriculture, among others.
The tacit abandonment of the solid minerals sector has brought about illegal mining, illegal trading of highly priced minerals, ecological degradation and advent of ailments such as lead poisoning due to the contamination of the environment, as well as loss of revenue due to smuggling.
The Minister of Mines and Steel Development, Mr Musa Sada, said that since the country’s return of democracy in 1999, various economic reform programmes, aimed at diversifying the national economy from a mono-product economy to a multi-product one, had been launched.
He said that the solid minerals sector, if developed in a well-coordinated way, had the potential to boost the revenue base of the country, reduce poverty and create more jobs, while having linkages with other sectors of the economy.
Sada stressed that as part of structured efforts to realise the potentials, the Federal Government had strengthened the solid minerals’ development programme via its “One Local Government; One Mineral Commodity’’ policy.
He said that the policy was particularly aimed at facilitating the development of at least one mineral in each of the country’s 774 Local Governments Areas, as part of the strategies put in place to diversify the national economy.
The minister said that the discovery of 44 solid minerals in commercial qualities across the country would facilitate the implementation of the policy in all the local government areas.
Sada said that Nigeria was richly endowed with a variety of solid minerals that were widely distributed across the different geographical belts of the country.
He, however, noted that the dominant role of crude oil in the nation’s economy did not allow past governments to tackle global challenges facing the development of the solid minerals sector.
He emphasised that the upsurge in mineral commodity prices, with the attendant global increase in solid minerals’ exploration, had necessitated the development of a policy framework that would ensure effective utilisation of the resources.
The minister said that the ministry was mandated to increase solid minerals’ production and value addition by strengthening the exploration, exploitation, processing, utilisation and marketing of the minerals.
He said that the government would implement the development of one mineral in each of the country’s local government areas under the second phase of the Subsidy Reinvestment and Empowerment Programme (SURE-P).
Sada conceded the project was to be supposed to be executed in the first phase of SURE-P but unfortunately, the first phase of SURE-P has been concluded when the ministry concluded its presentations.
“We are slotted for the second phase of SURE-P but what we did was not to sit back and wait for the second phase. We started selling the ideal to the state governments,’’ he said.
He said the Federal Government had planned to implement the programme in at least three local governments per geopolitical zone in the pilot stage but some budgetary constraints affected the plan.
Sada said that the ministry also sold the idea to all the states, adding that some of the states embraced it as a pilot project, while others took it as a whole programme.
He cited Katsina State as one of the states which had fully implemented the programme, adding that the state had commenced the exploitation of Kaolin in all its local government areas.
He said that Katsina State had abundant Kaolin reserves, covering almost all the local governments, while at the federal level, Kaolin was also one of the selected industrial minerals under the policy’s focus.
Sada said that 50 youths were trained in each of the local government areas of Katsina State to operate small-scale Kaolin mining activities, adding that some of them had established mining industries in Katsina and Kano states.
He also said that Katsina State had established some cottage industries which were producing either chalks or paints from Kaolin, adding this venture had created more jobs for the youth.
He said that as part of the strategies put in place by the Katsina State Government to keep the cottage industries in business, it had directed the use of their products across the state.
The minister said the state government had succeeded in the test run, production, mining of the Kaolin, as well as the manufacture and marketing of chalks and paints.
Sada said that Kaduna and Bauchi states had also implemented the programme as a pilot project, while several other states had indicated interest in the programme.
“The states are picking it up; we have the machines that would be used in mining processes but each state has to tell us the minerals they have and the ones they want to develop. So, the project is ongoing,’’ he said.
He stressed that the ministry would partner with the Ministry of Industry, Trade and Investment to promote the programme because it had a similar project tagged “One Commodity, One Local Government’’.
Sada said that the two ministries would jointly implement the programme, as the country was blessed with a lot of natural resources that could be used to feed local industries or processed for exportation.
“We are hoping to expand the programme and encourage all the states to pick it up. This is actually a project which we developed as part of our job-creation programme,’’ he said.
Sada said that the programme would also enhance the structured exploitation of solid minerals, while small and artisanal miners would be encouraged to improve and develop their mining activities.
He stressed that the country’s laws had spelt out how mining operators should relate with their host communities and other stakeholders so as to foster harmonious relationship between them.
The minister said that mining operators and their host communities must sign community development agreements in order to promote peace among the various interest groups.
He warned that mining companies might lose their mining titles if they refused to seek the approval of their host communities before commencing operations.
“Harmony, in terms of relationship, is vital and the law itself recognised that because mining cannot take place under chaotic relationships. Anytime an operator refused to follow the rules and regulations, he is likely to lose his licence.
“We bring in the trade and investment ministry to get market the products because if you produce all the products or materials and there are no buyers; there would be problems,’’ he said.
Sada said that the ministry would also collaborate with Small and Medium Enterprises Development Agency of Nigeria to sustain the programme because it involved small and medium-scale enterprises.
He said that the revenue generated from the solid minerals sector could be used to develop the country’s infrastructure and fund other vital sectors such as education and health.
He minister urged the incoming Buhari-administration to sustain the execution of the “One Local Government; One Mineral Commodity’’ policy, reiterating that it had several benefits, including employment generation.
Also speaking, Mr Dauda Awojobi, the Director of Mines Inspectorate, Ministry of Mines and Steel Development, said that Nigeria produced 209.66 million tonnes of various solid minerals between 2009 and 2014.
He said that the government received N6.70 billion as mining royalty from the minerals that were produced during the period.
The minerals include gold, coal, iron ore, lead/zinc, limestone, quartz, tin ore, tantalite, tourmaline, feldspar, clay, dolomite, clay, copper, columbite, granite, gypsum, kaolin and marble, among others.
Awojobi said that any nation that wanted to develop industrially ought to produce the raw materials it needed locally, underscoring the need for the government to place considerable emphasis on solid minerals exploitation.
Mr Salim Adegboyega, the Acting Director of Mines Environmental and Compliance Department in the ministry, underscored the need for mining companies to enter into community development pacts with their host communities.
He said that Sections 116 and 117 of the Mining Act provided that the companies should sign such community development agreements with their host communities before commencing mining operations.
Adegboyega stressed that signing of such agreements was imperative, as part of pragmatic efforts to avoid conflicts, ensure global best practices and assist the host communities.
Meanwhile, Alhaji Sani Shehu, the National President, Miners Association of Nigeria, has called on Nigerians to invest in the development of the mining sector, so as to avoid the indiscriminate “invasion’’ of the sector by foreigners.
He said that if more Nigerian entrepreneurs decided to invest in mining projects, there would be no need to seek foreign investors.
He, however, noted that Nigeria’s solid minerals sector was gradually becoming a viable destination for all investors.
All things being equal, the solid minerals sector will in the near future fetch Nigeria more revenue than the oil and gas sector, going by the nascent developments in the sector.
Sule writes for the News Agency of Nigeria (NAN)

 

Fatima Sule

Minister of Finance and Co-ordinating  Minister for the Economy, Dr Ngozi Okonjo-Iweala.

Minister of Finance and Co-ordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala.

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NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

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The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day  plant.
A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.
The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.
Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.
According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.
The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.
Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.
He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.
“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.
“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr  Ogbe said.
Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.
“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.
He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.
He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.
“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.
“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.
In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.
“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice.  As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.
Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.
High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.
The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.
The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.
In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.
Ariwera Ibibo-Howells, Yenagoa
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Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

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The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
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Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

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A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
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