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Category: Economy

  • Mining: FG to establish 6 mineral centres to boost sector

     

    Centre
    By Martha Agas
    Abuja, June 2, 2024 (NAN) The Minister of Solid Minerals Development, Dr Dele Alake, says plans are ongoing by the Federal Government to establish six mineral centres in the six geo-political zones.

    According to Alake. the aim is to boost the sector.

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

    He said that the plan was part of the President Bola Tinubus administration's commitment to diversify the country's economy, by developing key sectors such as the solid minerals industry.

    “Another one is the creation of six minerals centres in each of the six geo-political zones.

    “We have our minerals all over the country and we cannot concentrate the mineral processing centres in one centre, and as we speak those plans are ongoing in the zones”, he said.

    According to the Minister, the centres are also part of the government’s commitment to promote value addition to its minerals, aimed at facilitating multiplier effects on the economy.

    NAN recalls that minister had announced that no licence would be granted to mining companies to operate without presenting a comprehensive plan for value addition such as processing and refining.

    Alake said that investors in the past extracted raw mineral resources from Nigeria without adding value to them, which he described as a great loss to the country’s economy.

    “Our lithium is one of the finest qualities in the world, and it has other associated minerals like nickel, cobalt, and copper.

    “So when an operator takes an ounce of our Lithium out of Nigeria, perhaps he declares Lithium.

    “ But when he gets to his host country, he now has other associated minerals to his gain and to the loss of Nigeria.

    “So our major policy which we enacted is that, henceforth, we would no longer approve application from an investor that does not show us a concrete plan for local value addition.

    “Which means processing here to add local value addition, and this will generate a multiplier effect like local employment, technology and skills transfer,” he said.

    He said that the move was in line with plans to locally produce Electric Vehicle’s (EVs) batteries in Nigeria, which major ingredient is Lithium.

    “Our objective here is to begin to produce EVs batteries which the ingredient is Lithium and other associated minerals, ” he said.

    The Minister said that the local value addition policy had also been widely accepted by other African countries aimed at developing their local economies. (NAN) (www.nannews.ng) MAA/EEE

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    Edited by Ese E. Eniola Williams

  • Nigeria needs more diaspora investments, philanthropic contributions – PAAC chairman

     

     

    Nigeria needs more diaspora investments, philanthropic contributions – PAAC chairman

    Economy
    By Adeyemi Adeleye
    Lagos, June 2, 2024 (NAN) Prof. Olatokunbo Onabanjo, Chairman, Pan African American Chamber of Commerce(PAAC) has called for increased diaspora investments, remittances and philanthropic contributions to Nigeria and other African countries.

    Onabanjo stated this in a chat with the News Agency of Nigeria (NAN) on Sunday in Lagos while speaking on the forthcoming trade and investment conference with the theme “Hope for Africa” holding in the United States.

    The Hope for Africa conference being organised by the Pan African American Chamber of Commerce is scheduled for Sept. 9 to Sept. 13 in Atlanta, Georgia, U.S.

    According to him, disposal engagement has become crucial to bringing Nigeria out of its current socio-economic and security challenges.

    Onabanjo said the country needs an increased diaspora involvement in its development initiatives.

    He said that the conference would allow for engagement with the Nigerian diaspora and the African-American community, which could result in increased diaspora investments to Nigeria and other African countries.

    Onabanjo said: “This engagement will also facilitate knowledge transfer, technology exchange, and skills development, supporting economic growth and development.

    “The conference would provide a platform for Nigerian businesses to network with African-American entrepreneurs and explore potential partnerships, trade opportunities, and investments. This will lead to increased trade and economic growth for Nigeria.”

    He said that the conference would encourage knowledge sharing, cultural exchange, global exposure, trade and investments, capacity building, network and collaboration, promotion of African brands and products.

    Onabanjo, who was the Director of Computer Services during Tinubu’s administration as governor of Lagos State, said that the conference would feature panel discussions, workshops and presentations on business, entrepreneurship and economic development.

    “Nigerian participants can gain valuable insights and knowledge from industry experts, which can be applied to foster economic growth in Nigeria.

    “Participation in the conference will enhance Nigeria’s international visibility and reputation as a favourable destination for investment and business opportunities.

    “This will attract foreign investors and promote Nigeria as a hub for trade and commerce in Africa.

    “It will offer Nigeria significant economic, cultural, and diplomatic benefits, fostering growth and collaboration between Nigeria and the African-American community,” he said.

    Onabanjo, a seasoned project manager and member of Certified Project Management Professionals, said that the conference would lead to increased trade partnerships, investments, and business collaboration, promoting economic growth and job creation in Nigeria and across Africa.

    “The conference is aim at bringing together a diverse range of participants, including policymakers, business leaders, and professionals from Nigeria, Africa, and the African-American community.

    “This provides a unique opportunity for networking, fostering collaborations, and exploring new business opportunities.

    “These connections will lead to partnerships, joint ventures, and knowledge-sharing initiatives that contribute to economic growth.

    “The conference will serve as a platform for Nigerian and African businesses to showcase their products, services, and innovations to a global audience.

    “This exposure will enhance the visibility and marketability of African brands, leading to increased exports, foreign investment, and economic growth,” he added.

    He noted that the conference was also expected to enhance increased collaboration among African countries to foster regional integration and cooperation such as the African Continental Free Trade Area (AfCFTA).

    “Overall, the expectations for collaboration, innovation, and investment from Nigeria and other African countries towards the development of African economies are aimed at fostering inclusive and sustainable growth, reducing poverty, and unlocking the continent’s immense economic potential,” he said. (NAN) (www.nannews.ng)
    AYO/IKU

    Edited b Tayo Ikujuni

     

  • NAGAFF creates customs cargo facilitation group

    NAGAFF creates customs cargo facilitation group

     

    Establishment

    By Aisha Cole

    Lagos, June 1, 2024 (NAN) The National Association of Government Approved Freight Forwarders (NAGAFF) says  it has created a technical cargo and customs facilitation group to undertake multi-modal transport system for its members.

    In a statement on Saturday in Lagos, NAGAFF Founder, Dr Boniface Aniebonam, said that creation of the group followed complaints by its members and shippers in Kano and Kaduna states, as well as Abuja.

    “They specifically complained about the inherent problems associated with taking delivery of cargo from the mother ports of the South West and South East to the northern part of the country,” he said.

    Aniebonam  said that the members and shippers cited insecurity, bad roads and high cost of doing business.

    He said that the  group would come on stream in northern Nigeria to ensure customs trade facilitation.

    According to Aniebonam, NAGAFF decided to set up the group to engage agents in ensuring smooth facilitation of cargo logistics for its members and shippers.

    Aniebonam said that the primary responsibility of the group would be to interface with the Nigeria Customs Service (NCS), Nigeria Ports Authority (NPA), Nigeria Railway Corporation (NRC) and other relevant agencies of the government in that regard.

    He said that the group would be expected to link up with trade groups involved in import and export trades in  northern Nigeria and avail them  the opportunities provided at inland container terminals within the northern metropolis.

    “The good news is the emergence of DALA Inland Dry Port, the most modern inland container terminal springing up in Kano State.

    “The group is doing everything possible to make importers and exporters within the northern metropolis to become competitive in their businesses.

    “This means that every importer and exporter of  the northern extraction may not bother to come to Lagos or any of the mother ports in the south to take delivery or export their cargos.

    “Aside from reduction of cost, the safety of cargo and efficient time of doing business are guaranteed,” he said.

    Aniebonam listed some of the technical group members  as Chief Patrick Ogbo, Chairman;  Dr Arthor Igwilo, Technical Head; and Alhaji Muftau, Northern Zonal Chairman.

    He praised the managements of the NRC, NPA and NCS for ensuring  that the Kano inland container terminal received the first batch of containers through rail transport  on May 31.

    He urged port operators to  support President Bola Tinubu’s administration in actualising its Renewed Hope Agenda.  (NAN).

    AIC/IGO
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    Edited by Ijeoma Popoola

  • NGX weekly: Investors gain N954bn as bullish trend persist

    NGX weekly: Investors gain N954bn as bullish trend persist
     
    Gain
    By Rukayat Adeyemi
    Lagos, June 1, 2024 (NAN) Trading on the Nigerian Exchange Ltd. (NGX) this week closed higher by 1.73 per cent, following investors’ increased demand for banking, insurance, consumer as well as oil and gas stocks.
    Specifically, the All-Share Index and Market Capitalisation appreciated by 1.73 per cent to close the week at 99,300.38 and N56.172 trillion respectively, compared to 97,612.51 and N55.218 trillion recorded respectively last week.
    This translated into N954 billion profit for equity investors.
    Similarly, all other indices finished higher with the exception NGX Industrial Goods and NGX Growth which depreciated by 0.13 and 0.29 per cent respectively, while the NGX ASeM and NGX Sovereign Bond indices closed flat.
    Investors rally for Seplat, Oando, Dangote Sugar, Guaranty Holding Company(GTCO), FBN Holdings, FCMB, United Bank For Africa(UBA), Consolidated Hallmark Holdings Ltd., Guinea Insurance, LASACO Assurance, among other advanced equities perpetuated the positive performace.
    Meanwhile, investors turn around to insurance stocks was as a result of listed insurance companies’ strong year 2023 financial result released during the week, while seven of them proposed attractive dividend payouts.
    Also, 45 equities appreciated in price during the week higher than 24 equities in the previous week.
    25 equities depreciated in price lower than 53 in the previous week, while 84 equities remained unchanged, higher than 76 recorded in the previous week.
    A total turnover of 2.189 billion shares worth N31.303 billion in 39,362 deals was traded this week by investors on the floor of the Exchange, in contrast to 1.986 billion shares valued at N40.715 billion exchanged in 38,487 deals traded last week.
    The Financial Services Industry measured by volume led the activity chart with 1.914 billion shares valued at N23.922 billion traded in 21,717 deals; thus contributing 87.41 and 76.42 per cent to the total equity turnover volume and value respectively.
    The Oil and Gas Industry followed with 55.349 million shares worth N3.093 billion in 2,109 deals.
    The third place was the Agriculture Industry, with a turnover of 45.085 million shares worth N377.619 million in 1,615 deals.
    Trading in the top three equities namely: Abbey Mortgage Bank Plc, Access Holdings Plc and Zenith Bank Plc, measured by volume accounted for 1.129 billion shares worth N14.914 billion in 6,494 deals.
    This contributed 51.57 per cent and 47.64 per cent to the total equity turnover volume and value respectively.
    Meanwhile, the gainers’ table was led by Fidelity Bank, Dangote Sugar Refinery Plc, Nascon Allied Industries Plc, FCMB Group Plc, and United Bank for Africa(UBA).
    The losers’ table was led by C&I Leasing, NPF Microfinance Bank Plc, FTN Cocoa Processors, Learn Africa and FIDSON Healthcare Plc.
    Additionally, in the week under review, the May 2024 Issue of the Federal Government of Nigeria (FGN) Bonds worth N464.12 billion was listed on the NGX on Thursday.
    The details of the bond issued was: FGN May 2033 of 464.12 million units valued at N464.12 billion at a coupon rate of 19.89 per cent.
    Reacting in its weekly outlook, analyst at Cowry Asset, said that looking ahead, the current bullish trend at the domestic bourse is expected to persist.
    They predicted that this would be driven by profit-taking and portfolio rebalancing as the new trading month approaches.
    “Market pullbacks are anticipated to enhance the index’s upward
    potential, supported by the ongoing dividend earnings season.
    “However, we continue to advise investors to trade on companies’ stocks with sound fundamentals,” the analysts noted. (NAN)(www.nannews.ng)
    RUKY/AWA
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    Edited by Olawunmi Ashafa

  • Oando’s turnover grew to N3.4trn in 2023 – Tinubu

    Oando

    By Rukayat Adeyemi

    Lagos, June 1, 2024 (NAN) Oando Plc, an energy solution provider, has posted a turnover of N3.4 trillion in its 2023 full year-end unaudited financials.

     

    The figure represents an increase of 71 per cent when compared to N1.9 trillion posted in 2022.

    Mr Wale Tinubu, Group Chief Executive Officer, Oando Plc, said this in a statement on Saturday in Lagos.

    Tinubu said that over the last four years, the company consistently recorded a positive incline in turnover.

    According to him, the company’s turnover stood at N477.1 billion in 2020 and grew to N803.5 billion in same period of 2021.

    He also said that the energy company later posted N2 trillion as turnover in 2022 and N3.4 trillion in 2023 respectively.

    Tinubi said although the year 2023 saw oil and gas companies impacted by spikes in incidences of militancy and sabotage, the company was still able to also record a Profit-After-Tax (PAT) of N74.7 billion in the year under review.

    He stated that the result indicated a positive turn in the company’s fortunes in comparison to the preceding year when the company posted a loss after tax.

    Tinubu said that in spite of the persistent pipeline vandalism across the Niger Delta, which ccontinued to dampen crude production, the company achieved an outstanding profit in 2023.

    According to him, this was largely driven by increased trading volumes due to the company’s strategic global partnerships.

    Also, the net foreign exchange gains on the group’s foreign currency-denominated assets as against losses on its foreign currency-denominated liabilities drove the positive performance.

    Tinubu stressed that the year 2023 had seen Oando push forward with its growth agenda, recording positive highlights.

    This, he noted, included the signing of a Sale and Purchase Agreement (SPA) with Italian oil major, Eni.

    Tinubu explained that this would allow it to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Ltd.(NAOC).

    He added that the firm’s clean energy arm, Oando Clean Energy Ltd.(OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signalling that things were beginning to look up for the Indigenous giant.

    The group’s chief executive said that more significantly the release of the company’s 2023 financial results, albeit unaudited, finally brought the company a step closer to being in line with regulatory requirements for all listed companies.

    He stated that it indicated that by the end of the year, the company would have been on track with its peers in reporting results, giving confidence to shareholders and investors in the company’s current state and future.

    “Furthermore, our milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for our organisation.

    “It is poised to unlock substantial synergies soon.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders,” he said.

    According to him, while the country saw a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, the  Oando’s upstream operations saw an average daily production increase.

    Tinubu revealed that the energy company’s upstream operations average daily production increased marginally by  one per cent to 20,837 boepd in 2023, as against 20,703 boepd in 2022.

    He said these production numbers comprised oil production at 6,024 bbls per day, compared to 4,939 bbls per day in 2022.

    The group’s chief executive stated that natural gas production stood at 14,572boe per day in the year under review, compared to 15,292boe per day in 2022 financial year, while NGL production was 241bbls/MMscf/day, compared to 472bbls/MMscf/day posted in 2022.

    He said: “In its trading operations, Oando marked improvement, recording a 50 per cennt increase in traded crude oil volumes of 32.8 million bbls in 2023, compared to 21.8 million bbls in 2022.

    “The company however posted 15 per cent decrease in traded refined petroleum products which stood at 1,645,535 MT, compared to 1,937,833 MT recordes in 2022.”

    Tinubu noted that having weathered the storm of recent years, the 2023 results provided a foundation for the energy company to consolidate and build for the future.

    He stated that with its planned acquisition of NAOC, the company was positioned to take full operatorship and drive-up outputs, value and efficiencies.

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” he added. (NAN)(www.nannews.ng)

     

    RUKY/AWA

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    Edited by Olawunmi Ashafa