Economy
Ministry of Mines Denies Spending N700m on Website
By Dipo Olowookere
Nigeria’s Ministry of Mines and Steel Development has denied spending N700 million to develop its new online portal, which was launched on Thursday, November 9, 2017.
In a statement issued in Abuja on Sunday, November 12, 2017, by the Permanent Secretary in the Ministry, Mr Mohammed Abbas, it was explained the amount was used on IT infrastructure, human capital and civil works and not mainly on developing the web portal.
Below is the statement issued by the Ministry.
The attention of the Ministry of Mines and Steel Development has been drawn to news making the rounds especially on the social media that the Ministry spent the sum of N700million creating a website for itself. The Ministry considers it incumbent to react swiftly to this misrepresentation and to set the records straight.
It is important for clarity to state that what the Ministry has acquired with the said sum of money is an integrated IT infrastructure which comprises two Data Centres, an off-site recovery centre, civil and environmental works on the Centres, running of the Centres till end of first quarter 2018, training of over 225 officials locally and internationally amongst other cost components of the entire infrastructure and programme. It is indeed disingenuous of anyone to reinvent and reduce all of these into an expenditure on a website.
When, last Thursday, 9th November 2017, our Ministers led other officials of the ministry and sectoral stakeholders to unveil the IT Integrated Automation & Interactive Solid Minerals Portal (IAISMP), we were really fulfilling one of the short-term pledges listed in our roadmap. These assets form critical pillars of our agenda to reform the mining and minerals sector, particularly as a key step towards our vision to lead the sector to shared mining prosperity where we make significant contributions to GDP in the country.
In realising aspects of this project as a turnkey solution, we have been careful to follow all laid down processes. Since the cost of implementing the project is above ministerial limits, we sought and obtained the concurrence of the Federal Executive Council after a detailed presentation in January 2017.
In the course of the project, we have emphasised the need for stakeholders’ interface, which included a facility inspection tour for reporters and journalists who cover the sector. We have no reason to commit public resources to projects that will not advance the cause of repositioning our sector and we believe that we did everything to intimate the general public about our activities in this respect.
For the records and for public information, our IT Integrated Automation & Interactive Solid Minerals Portal (IAISMP) project has the following key components:
Feasibility assessment, needs analyses and re-engineering of the IT processes within the ministry, departments and agencies;
Two nos data centres (a fully equipped on-premises centre within the ministry and another off-site centre for recovery and real-time backup in case of emergency), also covering civil and environmental works;
Enterprise Resource Planning (ERP) solution and Electronic Document Management System (eDMS) solution—Microsoft Dynamics AX: Financials, Supply Chain, Business Intelligence, Human Capital, Procurement (license and maintenance);
Basic and advanced IT (ERP & eDMS) and GIS training programmes for 200nos staff of the ministry and its agencies. Already 75 officials have been trained in Abuja;
GIS capacity building for 25nos management and lead technical staff with Esri;
Wide Area Network at the ministry’s headquarters and all its 10 agencies (including back up internet, disaster recovery hosting and DR site internet—installation and initial one-year subscription);
Procurement, supply and installation of a GIS laboratory with 20nos computer systems;
Building of GIS Web Portal with Business Automation System, Content Management System (CMS), Decision Support System and Side Stream along the minerals corridor;
Reordering and re-organisation of available geological data in the sector into geospatial database;
Online Mining Licensing and Mineral Title Application with tracking system for openness, transparency and accountability in compliance with global EITI standards for the extractives sector;
Online payment (royalties and fees) and blocking of revenue leakages by integrating/interfacing with Remita, GIFMIS and relevant revenue generating MDAs of the government;
Enterprise ArcGIS Solution license and maintenance for GIS Mining and Assets Management;
On-site project management and execution staff (26nos), including operationalisation of the project management office for upward of 10 months. Project staff to remain on-site till end of Q1-2018;
Procurement, supply and installation of various project equipment, complete with civil works;
Collaborative tools and help desk; and,
Strategic communications.
It is most important to state that acquired IT infrastructure, in all its ramifications, is an enabler of the serious work at repositioning the sector. For us, this is never an end in itself but a robust attempt to ease how the regulatory-cum-administrative systems interface with mining operators and stakeholders everywhere. It is noteworthy that only this past October [2017], the Mining Journal’s World Risk Report, which rated different mining jurisdictions on a range of indicators including legal, governance social, fiscal and infrastructure indicated that Nigeria is showing notable improvements in positions. In the two years that we have methodically and deliberately introduced reforms and implemented a roadmap, our sector now has better perception, lowered investments risks and improved opportunity index.
The import of this assessment, in light of the World Bank’s Report on the improved status of our country towards ease of doing business, cannot be far-fetched. Ours is a modest effort to consolidate the overall efforts of the Federal Government at increasing opportunities in other sectors of the economy.
We have done repeated due diligence to ensure that the implementation of the project does not only meet expected design but also fits into globally recognised systems and further help us to place our jurisdiction on the mining map. A phased approach has been adopted, with incremental deliverables which should be fully completed by end of first quarter of 2018.
We continue to be open to checks and to present ourselves to public scrutiny. We want to assure all Nigerians that we do not take lightly the confidence reposed in us or in our government nor would we do anything to undermine our reputation under whatever guise.
We come from a tradition of commitment to service and honour in the handling of all our public service roles. In superintending over this project, we are confident to declare that we have not let the ball down, therefore it is wantonly disingenuous for anyone to reinvent and reduce all of these into an expenditure on a website.
By Adedapo Adesanya
Nigeria has received the first tranche of its $5 billion derivatives financing arrangement with the First Abu Dhabi Bank (FAB), the United Arab Emirates’ largest lender.
According to a Bloomberg report published on Friday, the federal government drew about $1.5 billion over the past two weeks through a Total Return Swap (TRS) transaction with the lender.
The report stated that Nigeria will provide naira-denominated securities valued at 133.3 per cent of the loan amount as collateral for the transaction, while international financial institutions continue to express concerns about the risks associated with such derivative-based financing structures.
The financing is expected to support the government’s debt management strategy by replacing more expensive borrowings while helping finance the country’s fiscal deficit.
The first tranche is priced at 395 basis points above the Secured Overnight Financing Rate (SOFR), rising to SOFR plus 400 basis points thereafter.
The transaction further expands Nigeria’s financial relationship with First Abu Dhabi Bank, which had earlier provided about $1.2 billion to support the construction of a section of the ongoing Lagos-Calabar Coastal Highway.
The swap deal has come with much scrutiny from critics and international organisations. Recall that the International Monetary Fund (IMF), after a consultation visit, warned Nigeria against the deal, noting that such transactions are often opaque and complex.
“Our view is that the transactions in these types of structures carry risks. Usually they are opaque, so the terms are not always very transparent when we reviewed these instruments across countries,” according to the IMF’s mission chief in Nigeria, Mr Christian Ebeke.
Mr Ebeke said Nigeria could instead issue eurobonds to finance its deficits or other means to raise funding, including on concessional terms.
The Senate in April gave its approval to the agreement put forward by President Bola Tinubu, who said his administration intends to use proceeds from the total return swap to refinance expensive debt and pay for infrastructure.
By Adedapo Adesanya
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, yesterday clarified that the federal government is not increasing taxes but making efforts to raise the tax net.
Mr Oyedele made this remark on Thursday while receiving a delegation from the Chartered Institute of Taxation of Nigeria (CITN) at his office in Abuja.
He hailed the institute for introducing a National Tax Awareness Day and for supporting the current tax reforms of the federal government.
The minister charged the institute to double its effort in public enlightenment, stressing that many Nigerians still view taxation as a means for the government to take money from citizens.
He reiterated that the priority of the government is not to increase tax rates but to broaden the tax base by ensuring that all eligible taxpayers meet their obligations.
“We are still not getting enough revenue from taxes.
“It is not about increasing taxes but making sure that those who are supposed to pay taxes. We want to promote fairness in tax administration,” he said.
Nigeria is challenged by the inability to generate adequate revenue from taxation despite ongoing reforms, stressing that a significant number of eligible taxpayers have yet to fulfil their civic obligations.
He said the challenge facing the country was not necessarily about raising tax rates but ensuring that individuals and businesses that ought to pay taxes do so in a fair and transparent system.
The minister also commended the institute for supporting the federal government’s tax reform agenda and promoting public understanding of taxation, but urged it to intensify its advocacy efforts, noting that many Nigerians still harbour misconceptions about taxation.
According to him, many citizens continue to view taxation merely as a tool for the government to take money from the people rather than as a critical instrument for national development.
“We are still not getting enough revenue from taxes. It is not about increasing taxes, but making sure that those who are supposed to pay taxes. We want to promote fairness in tax administration,” he added.
Mr Oyedele stressed that if Nigeria succeeds in building an efficient and equitable tax system, the impact on infrastructure, public services and economic development would be transformative, challenging the institute to introduce annual awards for the country’s most tax-compliant individuals and organisations as a means of encouraging voluntary compliance and recognising responsible taxpayers.
By Modupe Gbadeyanka
Nigeria’s First Lady, Mrs Oluremi Tinubu, has given Nigerians business advice that may not involve a lot of money to start.
Speaking with newsmen recently, the wife of President Bola Tinubu said businesses like akara (fried bean cake), kulikuli (a crunchy snack from roasted peanuts or groundnuts) and roasted corn can be set up without breaking the bank.
She disclosed that to support her husband’s Renewed Hope agenda, she has provided funding packages to traders and others to the tune of N3.5 billion.
“To start akara business doesn’t take a lot of money. To start roasting corn and kuli-kuli doesn’t take much. We didn’t give them a loan; we gave it to them as a grant,” she stated.
She further said, “We’ve encouraged Nigerians as best as we could, what is within our hands, I have given, and I keep giving. Those are the things we’ve done.”
“I remember giving for TB (tuberculosis) when I heard of many TB cases; I gave N2 billion, to breast cancer, I gave N1 billion, and to [tackle] malnutrition, I gave N500 million.
“These are the things we’ve been doing to assist the government. So, we’ve had impact in agriculture, social investment, education (as scholarship and ICT training) and others. We are still open to doing more,” she disclosed.
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