Economy
BUA Group-Dangote Crisis: Edo Indefinitely Shuts Down Disputed Mines
By Modupe Gbadeyanka
The disputed limestone mines between Dangote Group and BUA Group have been shut down indefinitely by the Edo State government.
Governor of the state, Mr Godwin Obaseki, ordered the closure yesterday when indigenes of the community where the mines are located, Obu in Okpella area of the state, paid him a courtesy visit at the Government House in Benin City.
Mr Obaseki told newsmen that the directive became necessary in the interest of peace and tranquillity.
Consequently, he directed the Edo State Commissioner of Police and the Army Brigade Commander in the state to halt further operations at the Obu mines with immediate effect.
It would be recalled that the ownership of the mines has been a subject of dispute between the Africa’s leading cement manufacturers, Dangote Cement Plc and BUA Cement, which the Federal Ministry of Mines had asked to vacate the mines because it was an exploiting limestones in the area illegally.
During the visit on Monday, members of Ukhomunyio Okpella expressed reservation at the alleged use of youths as militia to enforce perceived rights to ownership of the mines and thus creating security threat to the peace of the people.
Governor Obaseki described Okpella as the mineral gem of Edo State and as such mineral resources ought to be a blessing to the people of the state “but regrettably, the situation on ground has degenerated to a security threat and therefore there is the need to nip it in the bud.
“The Federal Ministry of Mines, which has authority over the mines, has proclaimed that what we have there now is illegal mining and we don’t want break down of law and order. The situation has degenerated badly.
“Those of you were concerned have moved and tried to resolve the matter, we lost two of the people on the road to Benin while on the trouble shooting mission to Benin. We had a meeting in Abuja two weeks ago and we analysed the Obu mines issue.
“Two people cannot lay claim to one asset, until the court decides the ownership or the federal supervising agency, the Ministry of Mines says otherwise, I am closing down the Obu mines with immediate effect because we believe there is globally acceptable way of determining ownership in a contentious matter as this without recourse to self-help”
The Governor noted that mines were on the exclusive list of the federal government and the ministry said there is illegal mining going on there, “from today, there will be no further mining operations in Obu”
The Okpela Chiefs applauded the government decision and declared their loyalty to the state government saying the decision will bring relief to the people who have been living under fear.
Earlier, spokesman of the Okpella Chiefs, Mr Moshood Aliu, told the Governor that they were in his office to declared their support for the state government’s effort at industrializing the state and for him to intervene in the dispute between Dangote Cement and Bua.
The community heads disclosed that the youths of the community were being incited against one another in a bid to enforce perceived right to ownership of the mines, a situation he said generated tension in the area.
Mr Moshood explained that while the location of the mines was not in dispute, what is being disputed is the ownership.
“Obu mines was in the then Mid-West, later Bendel and now Edo State. We are the occupier of the area and we don’t want trouble, the unilateralism and use of youths as militia to enforce ownership right is condemnable,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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