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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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Traders Protest FG’s Move To Restore Festac Town

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The move by the Federal Government to restore Festac Town in Lagos to its original status has sparked up protest among traders occupying Agboju Amuwo Planks and Building Materials Market.
The traders on Wednesday, protested at the FHA office in Festac Town against the demolition of their market, following the demolition of illegal structures by the Federal Housing Authority (FHA) ahead of the restoration. 
The Tide recalls that there was a petition to the Minister of Works and Housing, Mr Babatunde Fashola, in 2020 about illegal structures that had taken over Festac Town.
Speaking at a stakeholders’ meeting on the restoration of Festac town organised by FHA, last year, its South-West Zonal Manager, Mr Akintola Olagbemiro, said, “This year, we commenced the restoration of Festac town, following the consent judgement from the court against illegal occupants of Festac land.
“Our action is to save the residents from the insecurity that has taken over the entire Festac town as a result of illegal structures everywhere”.
The chairman of allottees of First Gate to Third Gate, Mr Kole Olatunji, in his remarks at the meeting said the land from First Gate to Third Gate was allocated between 1985 and 1999, noting that with the consent judgment, original owners of the land as allocated should take over their plots.
But the chairman of plank market, Muhammed Bello, protested the seven-day notice given to traders to vacate the place without alternative arrangements.  
Bello said: “How do they expect us to remove our wares in seven days?
“What we want is that they should allow us to remain there and we will pay whatever amount they ask us to pay”.
Speaking in the same vein, the chairman of Cane Chair and Furniture Association, Emmanuel Okoye said: “We need freedom. Let them tell us where they want us to stay. That place was swampy. We filled the place with several millions of Naira which we got as loans.
“We also rely on loans to do our business. Whatever the government wants us to pay; we are ready to pay to remain there. We have been there for 27 years. What we lost to the demolition is over N300 million”.

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Fuel Tanker Explosion Kills Five, Injures Two In Ogun

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No fewer than five persons were on Wednesday burnt to death, while two others sustained first degree of injury in a fuel tanker explosion at Ajilete, along Owode-Idiroko road, in Yewa South local government area of Ogun State.
Eyewitness accounts revealed that a truck bearing 33,000 litres of petroleum product was descending the steep portion of the road when its tank suddenly detached from truck’s body and tumbled to the ground with a bang.
The explosion, the witnesses said, killed five persons on the spot, while two other persons were injured.
The Tide learnt that the seven victims were all residents of the area where the accident occurred.
Confirming the incident, the Federal Road Safety Corps (FRSC) Commander, Idiroko Unit, Akinwunmi Olaluwoye, said five deaths were recorded in the accident which occurred at about 8.15 am on Wednesday. 
According to him, the remains of the dead had been claimed by their families.
He disclosed that a bus and a motorcycle were also caught in a web of the explosion and razed.
He said, “no vehicle rammed into the tanker. The tank dropped off from the back of the tanker and exploded. The number of persons involved are seven; five dead, two injured.
“The driver had taken away the head of the truck as at the time we got there. But we have allowed the police to take charge and handle that aspect”.

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Travellers To Access $4,000  As CBN Boosts Forex Supplies

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Nigerians travelling abroad can now access a maximum amount of $4,000 foreign exchange from banks following the Central Bank of Nigeria’s (CBN) announcement to increase forex supplies.
The CBN had said in a recent statement that it had concluded plans to increase the amount of foreign exchange allocated to banks to meet legitimate needs.
This followed the warning by the CBN Governor, Mr Godwin Emefiele, to Deposit Money Banks to desist from denying customers the opportunity to purchase foreign exchange.
The purposes to access forex included Personal Travel Allowance, Basic Travel Allowance, tuition fees, and medical payments as well as Small and Medium Enterprises transactions or for the repatriation of Foreign Direct Investment proceeds, the CBN had stated.
Sources from some of the banks said those travelling on business trips could also access a maximum amount of $5,000 for each trip.
At a virtual Bankers’ Committee meeting last week, the bankers discussed how the CBN intended to assist with forex to ensure availability for the upcoming summer period and the return of students to school in September.
The CBN also said the BDCs would continue to have their weekly allocations.
The committee observed that the rates were going up.
It stated, “The CBN has said that all the banks must make availability at all times and anyone who wants to buy BTA, PTA, medical fees, student school fees and all the eligible invisible purchases to ensure that Nigerians are not forced to go and queue in the parallel market.
“So what the Central Bank is doing is to encourage all banks to make sure that there is available forex at all times, and that his information should be communicated on all our platforms.
“We are asking our customers to come to the branches and for BTA, for example, present the required documents, which are basically your international passport, your visa, your valid ticket and fill up the form in the bank.
“And what we have been instructed to do is ensure that we don’t turn anybody back and that we should request from the Central Bank once we exhaust the forex that we have.
“The idea is to have a hitch-free summer period and the resumption for children to go back to school. The idea is to ensure there is less pressure on the forex and then the rates will come down”.
Speaking during the virtual meeting, the Group Managing Director, Access Bank, Herbert Wigwe, said, “I think again as part of the Central Bank’s role in terms of price stability and the need to support small and medium enterprises, there was highlight of the need for banks to go and support SMEs who import small raw materials for them to set up their businesses”.
The Managing Director, Ecobank, Patrick Akinwuntan, said, “All banks are available to ensure forex need is met.”
Managing Director, Sterling Bank, Abubakar Suleiman, said the CBN had provided sufficient foreign exchange to meet the needs of all legitimate Nigerian travellers and therefore, the idea of going to any other market should not arise at all.

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