Economy
LCCI Seeks Increased Productivity in Nigeria’s Solid Minerals Sector
By Adedapo Adesanya
*Targets 3% Contribution to GDP
The Lagos Chamber of Commerce and Industry (LCCI) has called for optimal performance in Nigeria’s solid minerals sector, which contributes less than 0.5 per cent of the country’s gross domestic product (GDP).
In a statement titled LCCI Statement on the Declining Performance of Nigeria’s Solid Minerals Mining Sector, the chamber observed that the National Bureau of Statistics (NBS) recent reports showed that the Nigerian mining industry has recorded low performance in the last two quarters.
“Despite Nigeria’s enormous mineral resources, the minerals sector is not a major engine of economic growth and receives little investment. The sector produces less than 0.5 per cent of GDP with a limited value chain in the economy. Nigeria’s solid minerals are exported with little or no value added. While Nigeria intends to capitalise on the mining sector’s potential, it faces numerous challenges in mineral beneficiation and value addition,” the organisation said.
According to the NBS data, the mining and quarrying sector’s productivity declined from 8.32 per cent in the third quarter of 2022 to 4.47 per cent in the fourth quarter of 2023 despite its immense potential.
It, therefore, urged, “The government to review the mining industry’s strategy to attract mineral exploration investments, reignite mining project development, accelerate new mineral discoveries, and encourage optimal utilisation of Nigerian mineral resources in line with the Environmental, Social, and Corporate Governance (ESG) principles for sustainable growth.
“Furthermore, we urge the government to address the sector’s funding issues and enable enhanced access to finance for processing value-added minerals-based products by establishing seed funds and special incentives to attract foreign and domestic investors.
“The government should seek innovative ways of revitalising the Ajaokuta Steel Company Limited (ASCL) and the Nigerian Iron Ore and Mining Company (NIOMCO). We have consistently advised that the model of the NLNG management can be adopted for this purpose.
“To ramp up investments in this sector, we need to deploy more relevant research and technology to trace more mineral deposits, and make more relevant data available to interested investors.”
The Director General of LCCI, Mrs Chinyere Almona, said many obstacles had hampered the mining sector, including inadequate infrastructure, regulatory inconsistencies, limited access to financing, and security concerns in mining locations.
Mrs Almona said the challenges have collectively contributed to the sector’s stifling growth, deterring investments, and impeding the sector’s ability to fulfil its role as a catalyst for industrialisation despite the mining roadmap in 2016 and other measures taken to ensure that the sector would contribute 3.0 per cent to GDP by 2025.
The chamber observed that regulatory and legal challenges, including inconsistent policies, unclear land tenures, and issues between federal and state governments, particularly in the collection of royalties and taxes from licensed miners operating in their domains were undermining the performance of the sector.
She said the government should learn from the hindrances presently experienced in the Niger Delta for the failure to allow small-scale crude refineries to operate under set supervision and standards.
She called on the government to “adopt an inclusive strategy on Artisanal and Small-Scale Mining (ASM) aligned with development plans at all levels of government and linked to other national rural sector strategies.
“This will make the solid minerals sector more integrated with other activities that generate more jobs in rural areas. We need to support the mining ecosystem with amenities like electricity, good roads, and water. Mining companies should be engaged to sign Community Development MOUs with the host communities that will help to create a sustainable operating environment.”
“The LCCI believed that these proposed measures could revitalise Nigeria’s mining sector and position it as a critical driver of economic growth and development if they are effectively implemented.
“Their successful execution requires concerted efforts and collaboration among government agencies, private sector entities, civil society organisations, and local communities.
“As stakeholders committed to advancing Nigeria’s mining industry, we stand ready to collaborate with all relevant stakeholders to overcome the existing challenges and unleash the sector’s latent potential for its contribution to our nation’s development,” she said.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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