Economy
World Bank Backs Nigeria’s Mining Sector with $150m
By Dipo Olowookere
Nigeria’s Ministry of Mines and Steel Development has secured a $150 million support from the World Bank for the Mineral Sector Support for Economic Diversification (MSSED or MinDiver) programme.
According to the Minister, Mr Kayode Fayemi, “We have secured support from the World Bank for the funding of $150 million Mineral Sector Support for Economic Diversification MSSED programme.”
He explained that a critical component of the support is to provide technical assistance for the restructuring and operationalisation of the Solid Minerals Development Mining Investment Fund, which would make finance available to ASM operators through development finance, micro-finance and leasing institutions.
Mr Fayemi, addressing newsmen in his 2016 end of year ministerial briefing and projections for 2017 in Abuja on Monday, said the Ministry was working with the Nigerian Sovereign Investment Authority, the Nigerian Stock Exchange and other institutions to assemble a $600 million investment fund for the sector by first quarter of 2017.
He spoke of plans for the mining sector new year, at the event which also featured the commissioning of 38 surveillance vehicles bought for mines officers, valued at about N322 million.
He said “The fund will also help to bring back on stream previously abandoned proven mining projects like tin ore, iron ore, coal, gold and lead-zinc among others.”
Mr Fayemi said the sector has witnessed some positive developments and productivity in the last one year, including a major improvement in the ministry’s contribution to the Federation Account to about N2 billion n in 2016, up from N700 million in 2015.
He added that increased productivity in the mining space had also led to significant discovery of mineral deposits, notably the large find of high-grade nickel a few months ago in Dangoma, Kaduna State by an Australian mining company operating in Nigeria.
The Minister further revealed that government had constructed 10 Prototype Mineral Buying Centres across the country for specific strategic industrial minerals.
“The centres are to serve as standardisation centres to enable ASM Cooperatives and operators receive fair premium for their labour. With renewed determination to strengthen collaborative efforts with State governments in natural resource governance, the PMBCs are being ceded to state governments,” he said
Mr Fayemi recalled that he had identified some challenges, including lack of geological data, weak institutional capacity and limited supporting infrastructure during his inaugural ministerial briefing on December 21, 2015, said he the ministry has recorded some remarkable achievements in tackling those challenges.
The Minister also inaugurated the Mining Implementation Strategy Team (MIST). Composition to be chaired by the Chairman, Nigerian Mining and Geosciences Society, Prof. Olugbenga Okunlola and Coordinated by the Special Adviser to the Minister on Policy and Strategy Prof. Okey Onyejekwe.
Presenting their Terms of Reference (TOR) the Minister said “these includes developing a logical framework matrix that spells out priorities, key performance indicators (KPIs),targets/benchmarks, time lines and result based action plans.
Others include developing a framework for monitoring and evaluating the implementation process and progress, developing resource base mobilisation, developing accountability framework and communication strategy for communicating the implementation process and progress.
While commissioning the surveillance vehicles, the Minister who remarked that that was the first time the ministry would procure such a large fleet of surveillance vehicles, urged the Mines Officers to use the vehicles and other surveillance gadgets to ensure effective inspection of mines activities.
The commissioning was witnessed by the Minister of State, Mr Abubakar Bawa Bwari, the Permanent Secretary of the Ministry, Mr Mohammed Abbas; the wife of Kebbi State Governor, Hajia Zainab Atiku Bagudu; and Commissioner for Commerce, Zamfara State, Hajia Fatima Umaru Shinkafi.
The Minister said: “The execution of this vehicle procurement project is therefore a clear demonstration of the commitment of this administration to our strategic goal of repositioning the Mining sector for greater productivity. One of our objectives is to strengthen our ministry with the requisite capacity and capabilities to deliver on our mandate to effectively regulate the sector”, he added.
Mr Fayemi stated that the fleet of vehicles cost Government about N322 million, which is no small expenditure in view of competing priorities.
He said the purchase of the vehicles has successfully addressed the challenge of the absence of logistical support for field operations of the technical departments of the Ministry. The progress will result in scaling up the capacity of the departments for effective discharge of their statutory duties and functions.
The Minister said beginning from January 2017, he expect to start seeing the positive impact of the investment in terms of increased revenue generation, reduction in number of illegal mining incidences, fewer cases of conflicts arising from mining activities, and timely rendering of periodic reports of mining activities from respective field stations.
He warned officers to use the vehicles strictly for the official duties they are meant for and on no reason should the vehicles be used for unofficial purposes except with express approval. He said to discourage arbitrary use of the vehicles other than the discharge of official duties, the vehicles have been installed with tracking devices that will enable the Ministry monitor their movements centrally from Abuja. That any officer that runs afoul of the ethical use of the vehicles shall be dealt with in accordance with relevant Civil Service Rules.
The Minister of State for Mines and Steel Development Mr Abubakar Bawa Bwari in a vote of thanks commended the Mr Fayemi for the passion shorn for the mining industry, the National Assembly for their understanding and cooperation for the industry, the Security Agencies for their cooperation and all stakeholders especially the International partners and Agencies and the Media for their support.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
By Adedapo Adesanya
The last trading session of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note for the Naira on Friday, May 15, as it lost N15 Kobo or 0.1 per cent against the Dollar to trade at N1,371.04/$1 compared with the previous day’s N1,370.89/$1.
However, it further appreciated against the Pound Sterling in the same market segment yesterday by N20.77 to close at N1,830.61/£1 versus Thursday’s value of N1,851.38/£1, and gained N7.91 against the Euro to settle at N1,595.07/€1 versus N1,602.98/€1.
At the GTBank FX desk, the Naira lost N2 against the US Dollar during the session to sell at N1,383/$1 compared with the preceding session’s N1,381/$1, and at the black market, it remained unchanged at N1,385/$1.
The Naira is forecast to be broadly stable, supported by Dollar sales by the Central Bank of Nigeria (CBN) amid steady, higher oil receipts, with the market settling into a balance.
Policy direction is also expected to give the market some boost as the CBN said the new edition of the FX market guidelines will deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
According to the Governor of the CBN, Mr Yemi Cardoso, the update is due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework. According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Meanwhile, the cryptocurrency market plunged into the red zone as rising bond yields hit risk assets across markets, while traders are increasingly betting the Federal Reserve may need to raise rates again. Rising energy prices and resurging inflation could force central banks back into tightening mode.
Cardano (ADA) shrank by 4.4 per cent to $0.2557, Dogecoin (DOGE) slid by 3.7 per cent to $0.1104, Ripple (XRP) depreciated by 3.5 per cent to $1.41, Solana (SOL) crashed by 3.5 per cent to $87.81, and Binance Coin (BNB) slumped by 3.4 per cent to $659.64.
Further, Bitcoin (BTC) declined by 2.6 per cent to $78,547.49, Ethereum (ETH) lost 2.1 per cent to quote at $2,209.19, and TRON (TRX) tumbled by 0.7 per cent to $0.3509, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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