WordPress

Category: Economy

  • Analysis of food inflation in the last one year, experts views, FG’s intervention

     

    Analysis of food inflation in the last one year, experts views, FG’s intervention

     

    By Okeoghene Akubuike, News Agency of Nigeria (NAN)

    There has been a continuous increase in food prices in the last one year, making it difficult for many Nigerians to afford basic staples, leading to hunger and malnourishment.

    The latest Consumer Price Index (CPI) and Inflation report for April 2024 released by the National Bureau of Statistics (NBS) showed food inflation increased to 40.53 per cent on a year-on-year basis.

    The NBS said the April figure indicated a 15.92 per cent increase compared to the rate recorded in April 2023 at 24.61 per cent.

    The bureau said the rise in food inflation on a year-on-year basis was caused by increases in prices of food items such as Garri, Millet, Yam Tuber, and Water Yam, CocoYam.

    Others are dried fish sadine, Dried Catfish, Mudfish Dried, Palm Oil, Vegetable Oil, Coconut Oil, Beef Feet, Beef Head, Liver, Frozen Chicken, Mango, Banana, Grapefruit, Coconut, Water Melon, Lipton, etc.

    The NBS latest Selected Food Price report for April also confirmed the increases in various food items across the country.

    An analysis of the report showed that several food items had increased by over a 100 per cent in the last one year such as garri, rice, beans, maize, sweet potato, yams, tomatoes, onions, etc.

    The report said that the average price of 1kg of white garri increased by 134.98 per cent on a year-on-year basis from N362.50 recorded in April 2023 to N851.81 in April 2024 .

    Also it said the price of 1kg of local rice increased by 155.93 per cent from N546.76 recorded in April 2023 to N1, 399.34 in April 2024.

    The average price of 1kg of brown beans rose by 125.43 per cent on a year-on-year basis from N615.65 in April 2023 to N1387.90 in April 2024.

    Also, the average price of 1kg of white maize grain increased by 130.08 per cent on a year-on-year basis from N346.67 recorded in April 2023 to N797.61 in April 2024.

    The report revealed that the average price of 1kg of sweet potato increased by 182.04 per cent on a year-on-year basis from N286.26 recorded in April 2023 to N807.35 in April 2024.

    The average price of 1kg of yam tuber rose by 154.19 per cent on a year-on-year basis from the N444.69 recorded in April 2023 to N1,130.37 in April 2024.

    In addition, the average price of 1kg of tomatoes increased by 131.58 per cent on a year-on-year basis from N485.10 in April 2023 to N1,123.41 in April 2024.

    It showed that the average price of 1kg of onions increased by 128.04 per cent on a year-on-year basis from N446.79 in April 2023 to N1,018.83 in April 2024.

    The NBS said that the National Average Cost of a Healthy Diet (CoHD) per adult a day stood at N1,035 in April  2024 from its latest CoHD report.

    The bureau said CoHD had steadily increased since the first CoHD report by the bureau in October 2023.

    “The CoHD in April 2024 is 40 per cent higher than what was recorded in October 2023 at N703 and five per cent higher than CoHD in March 2024, which was N982.”

    The report said the food groups that had driven the increases in CoHD the most were vegetables, starchy staples, and fruits.

    The NBS also said that in April, the average CoHD was highest in the South-West at N1,406 per adult per day, while the lowest average CoHD was recorded in the North-West at N781 per adult per day.

    The bureau further said that at the state level, Ekiti, Ogun and Osun recorded the highest CoHD at N1,483, N1,447, and N1,417, respectively,  while Kogi and Katsina recorded the lowest CoHD at N709, followed by Kaduna and Nasarawa at N756 and N769, respectively.

    According to the World Bank’s most recent Nigeria Development Update report, The UN’s Food and Agriculture Organisation (FAO) warned that no fewer than 26.5 million Nigerians living in the states of Borno, Sokoto, and Zamfara, and the Federal Capital Territory (FCT), may face a food crisis between June and August.

    Also, the International Monetary Fund (IMF) said over the last decade, limited reforms, security challenges, weak growth and now high inflation had worsened poverty and food insecurity in Nigeria.

    The IMF said at the conclusion of its Executive Board’s 2024 Article IV Consultation with Nigeria that food insecurity could worsen with further adverse shocks to agriculture or global food prices.

    Economists have attributed the food inflation to several factors such as insecurity, exchange rate instability, and supply side shortages, as they proffered some solutions to addressing them.

    Paul Alaje, the Chief Economist, SPM Professionals, said there was a need to boost the supply side by coming up with a National Agricultural Development Programme.

    “In key local governments that have arable land, let us plant crops there, like cashew nuts in Kogi, cassava in the South-East, rice in Kebbi and potatoes in Jos and so on. We are blessed everywhere in Nigeria.

    But when we leave it in the hands of the private sector alone or local farmers to farm, there will be a big problem.”

    Alaje also recommended that the government should look at having corps members trained and participate in agro planting and harvesting, saying as we have an orientation camp for corps members we can have an orientation camp for farming.

    “I remember in the 1st Republic we had something like farming hubs developed by the Late Chief Obafemi Awolowo, we can repeat the same thing so we have increased output on the supply side for agro allied.

    He said the government would also need to be very deliberate in stamping out insecurity in the country, especially in the farm areas.

    “I know the government is trying and I respect and appreciate the efforts of security agencies but concerted effort must be given to farm areas.

    “Those are our food production centres, we can’t afford to ignore them even if it means getting support to protect those farm areas.”

    Alaje also said that the government must dedicate some regions as food regions.

    “If we do this and are able to boost our output, food inflation will come down. We are seeing demand and there is no supply that is why prices are going high.”

    He also said that the government needed to address the issue of logistics, which is the movement of goods from one place to another in the country.

    “Diesel has increased to an average of N1,400 per litre, petrol has also increased to an average of N700 per litre, this will have an implication of moving the goods and on the cost of food.

    Alaje said villages and urban centres should be connected by train, adding that a unique transport model should be in place where the roads are good and safe for people and goods to pass.

    “Nobody wants to produce food that nobody is buying. If they can boost the supply side I am very confident and statistics have proved it all over the world that prices can come down especially for food,” he said.

    Dr Ayo Anthony, an Economist said the factors responsible for food inflation were high exchange rates, and insecurity which had led to a drop in food supply.

    Anthony said that most of the food produced in Nigeria, especially manufactured or processed food, or prepackaged food had an import element.

    “When food produced has an import element, definitely the exchange rate will be a factor.

    “You don’t expect an economy with an exchange rate of about N1,500 per dollar to have stable food prices compared to the N700 per dollar in the preceding year.

    “So an increase in exchange rate is an increase in the cost of production which will be transferred to final consumers in the form of an increase in prices.’’

    Anthony said the government needs to boost the supply of forex through quality exportable goods and increases in Nigeria’s export base and export varieties.

    “Also, we can reduce the demand pressure on forex. Unnecessary imports should be reduced, health tourism should be reduced, let us patronise our health care facilities in Nigeria.

    “We should ration our limited forex to only more important items. Items that can be produced domestically, services that can be rendered domestically should not be purchased from outside.

    “This will reduce the pressure on forex and the forex should be channeled to more productive activities like production of food and other goods and services,” he said.

    A foodstuff trader, Mr Peter Okpara, said in the last one year, the prices of commodities had recorded an unprecedented increase, especially food items.

    Okpara attributed the continuous food inflation to the removal of fuel subsidy, insecurity, low supply and inadequate storage facilities.

    “Some of the economic policies of this administration, like the removal of fuel subsidy have caused a lot of problems. It has led to an increase in transportation cost.

    “Also, many farmers cannot even farm anymore because their farms are not secured.

    “Take cassava for example, the output of cassava this year cannot be compared to the output of last year.

    “So because there is high demand for cassava and the supply is low, we are witnessing an increase in the price of Garri almost on a daily basis.’’

    He said the government should give the “real local farmers” incentives, provide them with mechanised farming tools and provide adequate storage facilities, as they also address the insecurity in the country.

    In addressing the rising food inflation, President Bola Tinubu declared a state of emergency on food security and rolled out interventions to boost food supply in the near term and reduce the suffering faced by vulnerable households.

    Tinubu had on Feb. 8, 2024, directed the Federal Ministry of Agriculture and Food Security to release 42,000 metric tons of assorted grains to farmers and households from the Federal Government’s Strategic Food Reserve.

    Also, the Central Bank of Nigeria (CBN) donated 2.15 million bags of fertilisers valued at more than N100 billion to Nigerian farmers which it handed over to the Minister of Agriculture and Food Security, Sen. Abubakar Kyari in March.

    The CBN Governor, Olayemi Cadoso, said the contribution was aimed at amplifying food production capabilities and foster price stabilisation within the agricultural sector.

    Also, following the removal of fuel subsidy, the Federal Government approved N5 billion for each state and the Federal Capital Territory (FCT) to enable them to procure food items for distribution to the poor in their respective states.

    The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, said the ministry had procured and distributed 58,500 metric tonnes of milled rice to dampen escalating food prices in the country.

    Kyari said this during his presentation at the ministerial sectoral update in commemoration of President Bola Tinubu’s first anniversary.

    “We inaugurated the dry season farming with cultivation of 118,657 hectares of wheat in 15 states of the country in acceleration of all year- round farming.

    “We supported 107,429 wheat farmers with inputs resulting in output of 474, 628 metric tonnes.” (NANFeatures)

     

    ****If used please credit the writer and the News Agency of Nigeria (NAN)

     

     

     

     

     

     

     

     

  • CBN revokes licence of Heritage Bank

     

    Licence

    By Kadiri Abdulrahman

    Abuja, June 3, 2024 (NAN) The Central Bank of Nigeria (CBN), has announced revocation of the licence of Heritage Bank Plc with immediate effect.

    This is according to a statement issued by Hakama Sidi-Ali, the Acting Director, Corporate Communications Department on Monday in Abuja.

    Sidi-Ali said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act.

    This action became necessary due to the bank’s breach of Section 12 (1) of BOFIA.

    “The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

    “This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

    “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step,’’ she said.

    According to her, the CBN took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.

    “The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

    “We wish to assure the public that the Nigerian financial system remains on a solid footing.

    “The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,’’ she said. (NAN) (www.nannews.ng)

    KAE/EEE

    =======

    Edited by Ese E. Eniola Williams

     

  • Blackout-Labour unions shutdown national grid -TCN 

    Blackout
    By Constance Athekame
    Abuja, June 3, 2024 (NAN) The Transmission Company of Nigeria (TCN), says that the Labour Unions have shut down the national grid, resulting in black out  nationwide.
    Mrs Ndi Mbah, TCN’S General Public Affairs Manager, said this in a statement in Abuha on Monday.
    Mbah said that the national grid shut down occured at about 2.19 a. m this morning.
    She said at about 1:15 a. m, the Benin Transmission Operator under the Independent System Operations unit of TCN reported that all operators were driven away from the control room.
    Mbah said that members of staff that resisted were beaten while some were wounded in the course of forcing them out of the control room and without any form of control or supervision, the Benin Area Control Centre was brought to zero.
    ”Other transmission substations that were shut down by the Labour Unions include the Ganmo, Benin, Ayede, Olorunsogo, Akangba and Osogbo Transmission Substations.
    ”Some transmission lines were equally opened due to the ongoing activities of the labour unions,” she said.
    Mbah said that power generating units from different generating stations were forced to shut down some units of their generating plants.
    She said that the Jebba Generating Station was forced to shut down one of its generating units while three others in the same substation subsequently shut down on very high frequency.
    Mbah said that the sudden forced load cuts led to high frequency and system instability, which eventually shut down the national grid at 2:19 a. m.
    ”At about 3.23 am, however, TCN commenced grid recovery, using the Shiroro Substation to attempt to feed the transmission lines supplying bulk electricity to the Katampe Transmission Substation.
    ”The situation is such that the labour Union is still obstructing grid recovery nationwide.
    ”We will continue to make effort to recover and stabilise the grid to enable the restoration of normal bulk transmission of electricity to distribution load centres nationwide,”she said. (NAN)(www.nannews ng)
    COA/EEE
    ========
    Edited by Ese E. Eniola Williams

  • NDPHC partners stakeholders to light up Agbara

     

    Electricity
    By Constance Athekame
    Abuja, June 2, 2024 (NAN) The Niger Delta Power Holding Company (NDPHC) says it is partnering with other stakeholders in the electricity industry to Light Up Agbara in Ogun State.
    Mr Sanya Adejokun, Media Adviser to the Managing Director of NDPHC said this in a statement in Abuja on Sunday.
    Adejokun said that the Managing Director,  NDPHC Mr Chiedu Ugbo led other stakeholders in the electricity industry to the groundbreaking of the Light Up Agbara project.
    He said that Ugbo, who represented Vice President Kashim Shettima said that NDPHC was the catalyst as far as provision of electricity was concerned in the country.
    According to him, the  Federation has invested in NDPHC to the extent that the company has four thousand megawatts generation capacity built with people’s funds but it is grossly underutilised due to a number of factors outside its control.
    Ugbo said that in sspite the huge investment in the power sector,   Nigerians were still not getting the most benefit, saying NDPHC decided to take the lead by coming up  with the idea of Light Up Nigeria by rallying everybody in the industry together.
    “For many years, worried about what we can do to salvage the situation. I have been working with Transmission Company of Nigeria (TCN) and then few years ago, we started partnering with Eko Electricity Distribution Company (DisCo).
     ”We did a bilateral agreement and then we signed the framework agreement and I insisted that we must go to Agbara, being the industrial cluster in sub-Saharan Africa to salvage the situation.
    ”We must provide electricity to industrial areas.“What the sector needs is the synergy by every stakeholder from gas through generation, through transmission, through distribution to end users,” he said.
    According to the managing director, the issue is to seek out the load centres like Agbara and that this is a pilot phase for the Light Up Nigeria Initiative.
    ”We brought the vice president here, who himself is leading this charge on behalf of the president to ensure that we energise businesses to enable industrial growth,” he said.
    Ugbo said that Eko DisCo was brought into the Agbara scheme because it was the owner of the franchise area while NDPHC was a generation company.
     “For our electricity to be dispatched, there must be demand and it is that demand that we are working on. That demand has to be facilitated by effective electricity transportation and that is why we brought in TCN.
    ”That is why we have Federal Government of Nigeria power company to unlock the bottlenecks in the transmission,” he said.
    Ugbo said that Federal Government of Nigeria power has taken the first step by bringing the mobile transformer to install in Agbara.
    He said that NDPHC was also working with its distribution contractors who, would do the reticulation together with Millwater to the various customers.
    Giving an update on the Light Up Nigeria project, NDPHC Executive Director, Corporate Services, Ms Nkechi Mba said that aside Agbara, the company was also working assiduously to light other parts of Nigeria.
    Mbah said that NDPHC had inaugurated the light Up South East version with Vice President Kashim Shettima leading the charge.
    ”The North East version of the project will be inaugurated in Bauchi in July,” she said
    Mba urged stakeholders in Agbara industrial cluster to bear the delay in completing the project on schedule, explaining that it was due to certain unforeseen circumstances arising from the novelty of the project.
    She also commended FGN Power Company for generously providing the mobile transformer that was inaugurated.
    ”That we are at this stage today is because the Chairman of our Board, Vice President Kashim Shettima is bringing his influence to bear on this Initiative.
    ”Agbara will soon be replicated across Nigeria. After Bauchi and Kano, we plan to be in Port Harcourt,” she said.
    Also speaking on the capacity of the company to make the Light Up Nigeria a reality, NDPHC Executive Director, Generation, Mr  Kassim Abdulahi said that they have more than enough capacity to meet up with every obligation of the initiative.
    “We have enough available power in all our power plants. We have almost 3,000 Megawatts (MW)band ready to go but we are currently dispatching less than 1,000MW”, he said.b(NAN)(www.nannews.ng)
    COA/EEE
    ========
    Edited by Ese E. Eniola Williams

  • Nasarawa lawmaker’s wife empowers 800 indigent women with N2m

  • Electricity: GenCos urge govt, stakeholders to pay debts

    Debts
    By Constance Athekame
    Abuja, June 2, 2024 (NAN) The Power Generation Companies (GenCos), have appealed to the Federal Government and key stakeholders to settle electricity debts owned them for electricity generation to enable them remain in business.
    Retired Col. Sani Bello, the Board Chairman, Power Generation Companies said this in a statement in Abuja on Sunday.
    Bello said: ”GenCos are constrained to issue this release to draw the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them.
    ”And consumed on the national grid, which is currently threatening
    the continued operation of their power generation plants.
    ”GenCos are currently owed more than two trillion naira for power they generated, put unto the national grid, and consumed by end users.
    ”This is in addition to the more than 1.7 trillion naira funding gap created in the recent supplementary Multi Year Tariff Order (MYTO) 2024 without a designated fund to fill the gap,” he said.
    According to him, this huge debt is now greatly inhibiting GenCos ability to meet their obligations to enders, Operations and Maintenance (O&M) spare parts procurements, and employee related obligation.
    ”In the light of the severity of the issues highlighted above, the GenCos are
    requesting that immediate and expedited action is taken to prevent national
    security challenges.
     ”That may result from the failure of the GenCos to sustain steady generation of electricity of Nigerians,” he said.
    Bello said that GenCos liquidity challenges was further worsened by the various policies introduced such as the payment waterfall in the  Nigeria Electricity Supply Industry (NESI), which deprioritises payment to them.
    ”The implication of this, is that GenCos only get paid a portion of their invoices of nine or 11 per cent from whatever amount is left.
    ”This is an aberration as it is a clear departure from existing terms of the Power Purchase Agreement (PPA)
    guiding the contractual relationship between GenCos and the Nigeria Buk Electricity Trading (NBET).
     ”Which NBET as buyer has contracted to purchase the available capacity as agreed under the PPA.
    Bello said that the  GenCos expectations of being settled through external support such as the World Bank Poverty Reduction Supports Operation (PSRO) had also been dampened.
    He said that this was due to other market participants’ inability to meet their respective distribution inked indicators (DLIs), enshrined in the Power Sector Recovery Programme (PSRP).
    He said that access to forex was another problem given that major operation and maintenance needs in the generation subsector were dollarised.
    According to him, the importance of a specialised window or stable dollar allocation for GenCos cannot be over emphasised.
    ”GenCos are of the position that there is need for a coordinated approach by all
    stakeholders in the NESi to address the liquidity issue realistically and sustainably in the power sector.
    ”So that Nigerians can have access to reliable electricity supply,” he said. (NAN)(www.nannews.ng)
    COA/EEE
    ========
    Edited by Ese E. Eniola Williams

  • Reviving Nigeria’s textile industry: Current state, future goals 

    By Rukayat Moisemhe,  News Agency of Nigeria (NAN)
    The textile industry stands out as a potential catalyst for economic resurgence.
    Once vibrant, the industry now languishes, facing stiff competition from imported fabrics and struggling to regain its former glory.
    Historically, Nigeria boasted a thriving textile sector, with numerous mills spread across the country.
    However, today, many of these establishments are mere shadows of their former selves, grappling with economic downturns and infrastructural deficiencies.
    The decline of these industries has had far-reaching consequences, including mass unemployment and a heavy reliance on imported textiles.
    The consequences of this decline are palpable. Once cherished fabrics like Abada Aba, Isiagwu, Adire, and Aso-Oke are being overshadowed by imported alternatives.
    Mrs Lilian Ekpedeme, Founder, Colours of El, a fashion outfit, told NAN that the majority of her customers’ preference favoured indigenous fabrics.
    Ekpedeme noted that with a bold fashion statement by the entertainment industry, the fusion of Ankara and Adire, among others, notable prints are finding their way back into the Nigerian market.
    According to her, Nigerian brides will promote locally made fabrics to showcase their tribe, culture and beauty on their wedding day if given the chance, to become Nigeria’s cultural ambassadors with local fabrics.
    Mr Funsho Bailey, a home design enthusiast, said the adoption of locally manufactured textiles and prints such as brocade, Adire, and others can be utilised for curtains, window blind patterns, and other household decorations depending on users’ preferences.
    However, to stem the tide, as enumerated in the Bola Tinubu administration’s  ‘Renewed Hope Agenda’ for a re-birth of the industry and revitalisation, the Federal Government through the Bank of Industry (BoI) provided a N100 billion loan at four to six per cent interest rate to at the sector.
    This is in addition to the 3.5 billion dollar investment to the textile sector for the performance optimisation of the garments and apparel industry, according to Dr Doris Uzoka-Anite, Minister of Industry, Trade and Investment.
    However, Mr Ilyasu Saleh, Chairman of the Textile, Garments and Leather Sectoral Group at the Manufacturing Association of Nigeria (MAN),  said that in spite of the disbursement of loans by the Bank of Industry (BOI) to various stakeholders in the sector, numerous fiscal obstacles have hindered the industry’s recovery.
    Saleh noted that factors such as deteriorating infrastructure, insufficient energy supply, unpredictable fiscal and trade policies, reliance on imports, procurement difficulties, counterfeiting, lack of technical expertise, and a preference for imported goods by Nigerians have contributed to the sector’s decline.
    Saleh also said that the
     non-compliance of government agencies with Executive Order 003, which mandates the prioritisation of locally made goods and services in procurements, had further hampered the industry’s growth prospects.
    He emphasised the need for ongoing economic reforms to address Nigeria’s unique economic challenges, which had affected the textile sector’s struggles and undermined its competitiveness both domestically and globally.
    Saleh recommended that economic reforms should be implemented gradually and carefully monitored to prevent adverse effects on industrialisation.
    To revitalise the textile and garment industry, Saleh proposed several measures, including the full enforcement of Executive Order 003 to reduce excess inventory, addressing policy inconsistencies to provide investors with more certainty.
    Others, according to him, include the restructuring loan repayments by BoI for a more sustainable refund system, and revitalising the Ajaokuta steel complex to promote local manufacturing and reduce reliance on imported machinery and equipment.
    The Director-General, MAN, Mr Segun Ajayi-Kadir, disclosed that the textile, apparel and footwear sectoral group of the association in the first quarter of 2024 showed some unfavourable economic indices.
    He noted that the sector recorded a -15.83 per cent capacity utilisation, -15.16 per cent in volume of production, -6.28 per cent in investment, – 9.43 per cent in employment and -10.26 in sales volume.
    He added that reports from players in the textile sector revealed a 15.32 per cent increase in production and distribution costs and a 15.76 per cent increase in shipment costs.
    Ajayi-Kadir, however, stated that general manufacturing performance was beginning to gain moderate traction evidenced by the improvement in aggregate index score to 53.5 per cent from the 51.8 per cent recorded in the fourth quarter of 2023, indicating resilience.
    To bring home his arguments, Ajayi-Kadir recommended the setting of Key Performance Indicators for Nigerian diplomats and High Commissions aimed at doubling the country’s export value through effective marketing of Made-in-Nigeria goods.
    He also suggested a directive to the Nigeria Customs Service (NCS) to upload approved items of Chapter 99 on its platform and mobilisation of its services and other agencies,  among other recommendations.
    Others include the enactment of a law for the establishment of the Nigeria Office for Trade Development, review of foreign exchange rate for import duty assessment for production inputs and implementation of the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee (NAN Features)
    Edited by Olawunmi Ashafa
    ***If used, please credit NAN and the writer ****

     

     

     

     

     

     

  • We want solid minerals contribution to GDP to surpass oil – Alake

     

    Minerals
    By Martha Agas
    Abuja, June 2, 2024 (NAN) “The ministry is determined to ensure that the solid minerals sector’s contribution to Nigeria’s Gross Domestic Product (GDP) surpasses that of oil.”

    The Minister of Solid Minerals Development, Dr Dele Alake said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

    He said that the administration of President Bola Tinubu was putting in place policies and initiatives aimed at diversifying the economy and ensuring that it generates more revenue than oil in the near future.

    He said that the move was necessary, especially with the global upsurge of energy transition, which would reduce the demand of oil.

    “We have been totally dependent on oil for decades, everyone has been dependent on the free flow of petrol dollars on the economy.

    “And the critical sector of the economy such as agriculture and solid minerals was neglected.

    “Our objective is to make the solid minerals contribution to the GDP to surpass oil.

    “By the time all our policy initiatives goes through the gestation period and begins to manifest results, the revenue that will be accruing to Nigeria from this sector would be enormous.

    “We are going to recover trillions to the coffers of the Nigerian government and for the benefit of Nigerians at large” he said.

    He said that Nigeria possesses the critical minerals in commercial quantities across its states needed for energy transition, which the ministry was aggressively marketing to attract big players to invest in the sector.

    “ We embarked on an aggressive marketing to unlocking the richness of the potential, making sure we push out information on the number of minerals that we have, the type and their demand nationally and internationally, ” he said.

    According to him, negotiations are on going with an auditing firm to audit the sector aimed at sanitising it to ensure the appropriate accruals to boost the country’s GDP.

    “As we speak, we are far in our negotiations with an auditing firm to come and audit the entire sector, because we have lost a lot of money in the past.

    “ We know that operators will under declare what they are carting away, even the payment of royalties, they under pay, taxes they evade.

    “So we are in the process of engaging internationally recognised auditing firm that has done the same thing in other parts of the world, in more than 20 countries.

    “ So that they come and help us recover lost revenue and put some measures in place going forward so that we will no longer loose revenue.

    “We are going to recover trillions to the coffers of the Nigerian government and for the benefit of Nigerians at large, “ he said.

    NAN recalls that the minister had said that a German company, Geo Scan, conducted a preliminary survey that indicates that Nigeria has 750 billion Dollars’ worth of solid minerals underground, which had not been harnessed. (NAN)(www.nannews.ng) MAA/EEE

    ========

    Edited by Ese E. Eniola Williams

  • FG to deploy technology for surveillance of mining sites

     

    Surveillance
    By Martha Agas
    Abuja, June 2, 2024 (NAN) Dr Dele Alake, the Minister of Solid Minerals Development, says the Federal Government will deploy technology for the surveillance of mining sites across the country.

    Alake said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

    He said that the technology would be in addition to the 2,220 personnel of the Mining Marshal Corps drawn from the Nigeria Security and Civil Defence Corps (NSCDC) to combat illegal mining.

    The corps deployed across the 36 states and the Federal Capital Territory (FCT) were also trained on modern warfare by the military to secure Nigeria’s natural resources.

    “We are introducing some technology, we are not just relying on men and materials alone.

    “The satellite surveillance gadgets we are putting in there is to enable us see in real time in all mining sites in Nigeria.

    “So that when we notice any infraction, very quickly we can deploy the mining marshals to go there so we don’t even have to wait for any interpersonal communication.

    ” That reduces the time of knowledge and action. Right now we depend on people passing intelligence to us but when the satellite surveillance gadget is working, we will be able to see it ourselves.

    “ Which is a step forward on the right direction”, he said.

    The minister said that to attract investors to the sector, especially the big players, it was necessary to put in place policies and initiatives aimed at securing their investments.

    “We needed to put in place policy measures to ensure that when these investors come, they are not just coming into the darkness that we had here before.

    “They will ask some questions, what is the security of their operating environment, their investment, personnel and the ease of doing business in Nigeria and the sector”, he said.

    He said that the administration of President Bola Tinubu inherited a lot of security challenges such as banditry, kidnapping and terrorism, which were associated with the solid mineral sector.

    He explained that most mining activities were in the forests, where such crimes were being perpetrated.

    He said that the administration of Tinubu was determined to sanitise the sector, and reposition it to contribute significantly to Nigeria`s Gross Domestic Product (GDP) .

    According to the minister, concerted efforts are being deployed to curb the menace with other government agencies, such as the Economic and Financial Crime Commission (EFCC), the Nigerian Army and the Police for rapid result.

    “I had a meeting with Inspector General of Police on this issue and he is willing to give us more men to support those that we have on ground.

    “Even the EFCC is cooperating with us, they are also arresting, the army also enumerated the number of illegal miners that they have arrested, it is a holistic effort cutting across all security agencies.

    “But the mine marshals are just the face of the security apparatus that we are putting in place to combat illegal mining,” he said. (NAN)(www.nannews.ng)
    MAA/EEE

    ========

    Edited by Ese E. Eniola Williams

  • Mining: FG to expand Marshal Corps to 100 per state

    Mining
    By Martha Agas
    Abuja, June 2, 2024 (NAN) The Minister of Solid Minerals Development, Dr Dele Alake, says that plans sre ongoing to increase the number of Mining Marshal Corps from 60 to 100.

    The increase would be across the 36 states of the federation and the Federal Capital Territory (FCT).

    Alake said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

    He said that the move was part of efforts of the Federal Government to secure the mining operating environment aimed at attracting Foreign Direct Investments (FDIs) to boost the economic profile of the country.

    NAN reports that the Mining Marshal Corps inaugurated on March 21, were drawn from the Nigeria Security and Civil Defence Corps (NSCDC) to combat illegal mining.

    The corps has 2,220 personnel, who have been specially trained by the military in modern warfare as a rapid response squad with 60 deployed across the 36 states and the FCT.

    “We are looking at adding to the number to get a minimum of 100 in each state from the 60 on ground,” he said.

    He said that the President Bola Tinubu`s administration was determined to sanitise the mining sector and reposition it by putting in place policy measures to attract big players to the sector.

    Alake said that prospective investors would need assurance of the security of the operating environment, their investment, equipment and personnel.

    The minister said that the insecurity situation at mining sites across the federation prompted the president to establish an inter-ministerial committee on Jan.17.

    He explained that the committee was to produce a blue print for securing Nigeria`s natural resources, which comprised of mineral sites, marine economy and forests.

    The minister, however, said that while deliberations were still on-going by the committee on producing a comprehensive security architecture for the natural resources, the mining marshal corps was established in the interim.

    “Insecurity is rife in the forests where the solid minerals are deposited.

    “The inter-ministerial efforts are ongoing as set up by the president but I couldn’t wait because of the criticality in curbing the illegality in the sector,” he said.

    He said that the initiative was yielding the desired results, as more than 200 suspects had been arrested, with 133 being prosecuted and two foreigners convicted for illegal operations.

    According to him, many requests are being received from states for the deployment of marshals in areas identified as sites of illegal mining due to their success.

    “Every day, I receive requests from states asking for the deployment of these mining marshals to particular areas in their forests where they notice illegal operations going on.

    “And they have gone inside the forests, the operating field to arrest, more than 200 have been arrested, about 133 are being prosecuted right now in various courts across the various states of the country.

    “And recently, two foreign nationals were jailed, convicted of operating illegally in the mining sector in Nigeria”, he said. (NAN) (www.nannews.ng)
    MAA/EEE

    =========

    Edited by Ese E. Eniola Williams