Economy

Construction of Nigeria’s First Gold Refinery Begins in Ogun

Published

6 years ago

13/12/2018

History was made in Nigeria on Thursday, as the country celebrated the ground breaking of its first gold refinery by the Minister of State for Mines and Steel Development, Mr Abubakar Bawa Bwari.

The refinery, being developed by indigenous minerals company Kian Smith Trade & Co Ltd. (Kian Smith) in Ogun State, is scheduled to start production in 2019, sourcing most of its ore from miners in the country.

“The present administration is determined to develop the mining sector to act as a catalyst for sustainable economic growth of the country,” said Mr Bwari at the groundbreaking ceremony.

“Part of our marching orders in the Mines and Steel Development ministry is that we are expected to develop the sector to increase its contribution to the nation’s GDP, improve its capacity to create jobs and engender sustainable mining,” the minister added, stressing that it was in keeping with his ministry’s mandate that a roadmap was developed for the growth and development of the mining sector.

“During the focus labs of the Economic Recovery and Growth Plan (ERGP) of this administration, we discovered that a well organised gold value chain can trigger an economic revolution like it did in India, South Africa, Switzerland and others,” he said further. He noted that the ministry has continued to work in this light to develop a gold value chain for the country.

The refinery will start with a production capacity of 3 tonnes per month of 99.99% gold and 1 ton per month production of 99.99% silver.

“We will be supplying the Central Bank, the Jewellery and the Electronic Industry,” said Nere Teriba Vice Chairman of Kian Smith at the groundbreaking ceremony. “We have already secured a significant monthly supply of gold from Zamfara, Kebbi, Kwara, Niger, Kaduna, Ibadan, Ile-Ife, Ilesha and about 100kg per month from other parts of Africa. We are presently finalizing supply agreements and terms from suppliers in Kano. Next week, we will be securing supply from Kogi State,” she added.

According to Teriba, the refinery when completed will provide more than 500,000 jobs in two years as it continues to support its suppliers in their bid to become registered business entities in the mining sector.

“There’s at presently at least 1,000,000 unregistered business participants in the Nigerian market (considering gold miners, sponsors, dealers, processors, aggregators and gold-workers). The formalization, organization and development we bring to the value chain will provide quick wins to the Nigerian economy,” Teriba said.

Also speaking, Governor of Ogun State, Mr Ibikunle Amosu, who was represented by the Commissioner for Agriculture, Mrs Adepeju Adebajo, expressed enthusiasm about the refinery project which she said was in line with the state government’s industrialization plan.

According to her, the project is a major boost to the Nigerian mining sector. “Apart from the fact that the strengthening of our mining industry will reduce importation of refined products, it will go a long way in affirming our country’s status as a world mining power.” The vice chairman of Kian Smith Nere Teriba said the refinery will be ready to start production by the end of the first half of 2019.

Economy

Naira Gains N10 to Trade N1,640/$1 at Parallel Market

Published

19 hours ago

27/12/2024

Dipo Olowookere

By Dipo Olowookere

The value of the Nigerian currency improved against its American counterpart at the parallel market on Boxing Day of 2024, Thursday, December 26.

Business Post reports that the domestic currency appreciated against the greenback during the session by N10 to settle at N1,640/$1 compared with the preceding session’s value of N1,650/$1.

The official market was closed yesterday due to the public holiday declared by the federal government to celebrate Christmas.

However, the black market was operational, and trading activities went smoothly.

The local currency firmed up on Thursday due to a decline in customer demand for forex. The country has continued to witness FX inflows from Nigerians in the diaspora, who returned to celebrate the period with their loved ones.

A few of the FX traders on the streets of Lagos informed this reporter that the demand for forex has significantly slowed because of the inflows, but expect a sharp rise from next month when most of the people will return to base.

“Market is a bit dull and it is understandable. We expect things to pick up from next week or so when most of those who returned from abroad are returning.

“Don’t also forget that new travellers will need forex. This is when we will know if the new system of the Central Bank of Nigeria (CBN) is effective,” one of the FX traders in Lagos, who asked not to be named, told this newspaper.

Recall that early this month, the central bank launched the Electronic Foreign Exchange Matching System (EFEMS) for forex trading at the official market known as the Nigerian Autonomous Forex Exchange Market (NAFEM).

This platform was created for transparency in the forex market, with a minimum trade value of $100,000 for interbank foreign exchange trading.

A few days ago, the CBN granted Bureaux de Change (BDC) operators temporary access to the official market as part of efforts to further strengthen the Naira in the currency market.

The CBN in a notice on Friday said BDC operators would have access to FX at the official market from December 19, 2024, to January 30, 2025, with a weekly cap of $25,000.

Economy

Oil Market Slows on Stronger Dollar, China Worries

Published

19 hours ago

27/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The oil market closed lower on Thursday in light holiday trade as the US Dollar strengthened and offset hopes for additional fiscal stimulus in China, the world’s biggest oil importer.

The price of Brent crude shrank by 32 cents or 0.43 per cent during the session to settle at $73.26 a barrel and the US West Texas Intermediate(WTI) crude went down by 0.68 per cent or 48 cents to trade at $69.62 per barrel.

Chinese authorities this week agreed to issue 3 trillion Yuan ($411 billion) worth of special treasury bonds next year, which would be the highest on record, as Beijing ramps up fiscal stimulus to revive a faltering economy.

The plan for 2025 sovereign debt issuance would be a sharp increase from this year’s 1 trillion Yuan, and it will come as China moves to soften the blow from an expected rise in U.S. tariffs on Chinese imports when Donald Trump takes office in January.

The proceeds will be used to boost consumption via subsidy programmes, equipment upgrades by businesses and funding investments in innovation-driven advanced sectors, among other initiatives.

Market analysts noted that injecting a stimulus into a nation’s economy creates increased demand, and increased demand pushes prices higher.

The World Bank on Thursday raised its forecast for China’s economic growth in 2024 and 2025, but warned that subdued household and business confidence.

The world’s second-biggest economy has struggled this year, mainly due to a property crisis and tepid domestic demand.

The World Bank sees China’s gross domestic product growth at 4.9 per cent this year, up from its June forecast of 4.8 per cent.

The US Dollar continued to edge up higher after hitting a milestone last week. A stronger Dollar makes oil more expensive for holders of other currencies.

The latest weekly report on US inventories, from the American Petroleum Institute (API) industry group, showed crude stocks fell last week by 3.2 million barrels on Tuesday.

Traders will be waiting to see if the official inventory report from the Energy Information Administration (EIA) confirms the decline. The EIA data is due on Friday, later than normal because of the Christmas holiday.

Economy

Nigerian Stocks Gain 0.82% as Investors Embrace Santa Claus Rally

Published

3 days ago

25/12/2024

Dipo Olowookere

By Dipo Olowookere

Christmas came early for the Nigerian Exchange (NGX) Limited as it extended its positive run on Tuesday with a 0.82 per cent growth.

The last trading session before Christmas was bullish as investors embraced Santa Claus rally, mopping up shares with sound fundamentals across the key sectors of the bourse.

During the session, the insurance index appreciated by 1.49 per cent, the banking space expanded by 0.98 per cent, the consumer goods counter improved by 0.49 per cent, the industrial goods counter gained 0.15 per cent and the energy sector jumped by 0.14 per cent.

Consequently, the All-Share Index (ASI) went up by 829.88 points to 102,186.03 points from 101,356.15 points and the market capitalisation grew by N503 billion to N61.944 trillion from N61.441 trillion.

MRS Oil gained 10.00 per cent to trade at N217.80, Ikeja Hotel improved by 9.95 per cent to N11.05, Multiverse advanced by 9.90 per cent to N5.55, SAHCO rose by 9.84 per cent to N30.70, and John Holt increased by 9.69 per cent to N6.45.

Conversely, Thomas Wyatt shed 10.00 per cent to quote at N1.71, Caverton shrank by 7.35 per cent to N2.27, Coronation Insurance declined by 5.03 per cent to N1.70, Haldane McCall slipped by 5.00 per cent to N4.75, and Livestock Feeds moderated by 5.00 per cent to N3.80.

When the market ended for the session to resume on Friday, 37 stocks were on the gainers’ chart and 21 stocks were on the losers’ table, representing a positive market breadth index and strong investor sentiment.

A total of 431.8 million shares worth N18.3 billion in 8,369 deals during the session compared with the 503.2 million shares valued at N16.3 billion in 12,490 deals, indicating a rise in the trading value by 12.27 per cent and a decline in the trading volume and number of deals by 14.19 per cent and 32.99 per cent, respectively.

The busiest equity for the session was UBA with 51.2 million units valued at N1.9 billion, Universal Insurance exchanged 49.6 million units for N25.1 million, C&I Leasing transacted 37.2 million units worth N134.0 million, Dangote Cement traded 34.3 million units worth N11.1 billion, and GTCO sold 17.4 million units valued at N1.0 billion.