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FG Yet To Award Coal Mining Licences—Fayemi

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coal mining licence nigeria

By Dipo Olowookere

Minister of Mines and Steel Development, Dr Kayode Fayemi, said that licences for mining of coal for power generation had not been awarded since the emergence of the current administration.

Mr Fayomi said this at a stakeholders and press meeting on pre-Sustainability in the Extractive Industries (SITEI) at the ministry on Wednesday in Abuja.

The Minister was represented at the event by his Technical Adviser/Chief of Staff, Mr Egghead Odewale.

He said the Federal Government had stated that coal mining licences would be issued only to companies interested in generating electricity from coal.

Mr Fayemi said the ministry would collaborate with the Ministry of Power, Works and Housing, to ensure that coal contributed in power generation in the country.

He said:” One of the processes for the issuance is applicants must have power generating licence before they can be granted licences for coal-mining in the country.

“We have dedicated that coal deposits in the country would only be awarded for power and licences for mining of coal deposits would only be awarded to those who want to generate electricity.

“Since the inception of this administration, no licences for coal has been awarded which is not for the purpose of power generation, so if you acquire a licence for mining coal you have to also have that for power.

On the licensing process, he explained that once application was filed and it did not have any legal or existing issues to the holder of the licence, it would be awarded.

He added that it must however be for power generation.

Dr Ogbonnaya Orji, Director of Communication, Nigeria Extractive Industry Transparency Initiative (NEITI), pledged the organisation’s support to the SITEI programmes and operations.

Orji said one of the challenges NEITI had faced was in disseminating reports that focused on the issues in harnessing the opportunities and potentials in oil, gas and mining sector.

“We have had very limited channels and platform to disseminate this information so when we come across very credible organisations like SITEI, we leverage and partner with them.

“We use their channels, their stakeholders and events that they organise such as the series of conferences they organise to reach out to those we cannot ordinarily reach.

He said NEITI would focus its partnership with the ministry to see how Nigeria could channel its energy and attention to the solid mineral sector that had been ignored over the years.

Earlier, Executive Director, CRS-in-Action and Convener SITEI, said this year’s SITIE, Ms Bekeme Masade was focused on revitalising the Nigerian economy beyond oil, prospects for a thriving export driven extractive sector.

She explained that at a time like this when Nigeria was in doldrums over the lack of funding in oil and gas, it was the prime time to look into the mining sector and resource governance.

“So this year, SITEI, we are looking at resource redistribution and the strengthening of institutions.

“Last year through our research we have said that there was a 3.5 billion dollar opportunity in this sector, so what are we doing to make that happen and how can we strengthen the institutions?

“So we are looking forward to SITEI 2016 releasing a set of principles that will guide the sector.

Prof. Okey Onyejekwe, Special Adviser to the Minister, said the ministry would partner with other actors in the sector to ensure an effective monitoring and evaluation strategy.

He also said the ministry would attempt to create a robust communication strategic framework that would allow regular engagement of key stakeholders in the mineral implementation framework.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Weekly Investment in Nigerian Stocks Drops to N17.3bn

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Nigerian Stocks1

By Dipo Olowookere

Last week, Nigerian stocks witnessed a sharp decline in investment as they only attracted N17.3 billion from local and offshore investors, data obtained by Business Post indicated.

In the week, investors bought and sold 1.278 billion shares in 21,052 deals compared with the 3.435 billion shares traded in 21,109 deals, which were worth N30.9 billion.

A breakdown showed that FBN Holdings, GTCO, Guaranty Trust Holding Company and Access Bank accounted for 470.7 million units worth N6.6 billion in 3,887 deals, contributing 36.82 per cent and 37.90 per cent to the total trading volume and value respectively.

It was further discovered that financial stocks led the activity chart by volume with a turnover of 984.5 million units valued at N10.3 billion traded in 11,029 deals, contributing 77.01 per cent and 59.09 per cent to the total trading volume and value respectively.

Consumer goods equities trailed with 78.7 million units worth N2.3 billion in 3,137 deals, while conglomerates shares recorded a turnover of 48.7 million units valued at N69.8 million carried out in 647 deals.

On the price movement log, 18 equities appreciated in price during the week, lower than 29 equities in the previous week, while 49 equities depreciated in price, higher than 36 equities in the previous week, with 89 equities closing flat, lower than 91 equities recorded in the previous week.

NEM Insurance was the highest price gainer with 18.42 per cent to trade at N2.25, Meyer gained 10.00 per cent to sell at 22 kobo, Linkage Assurance grew by 9.80 per cent to 56 kobo, Prestige Assurance rose by 8.51 per cent to 51 kobo, while Academy Press jumped 8.33 per cent to 39 kobo.

On the other hand, UPDC was the heaviest price loser with 24.43 per cent to quote at 99 kobo, Consolidated Hallmark Insurance moderated by 20.00 per cent to 44 kobo, UPDC REIT lost 18.81 per cent to settle at N4.10, FTN Cocoa retreated by 12.50 per cent to 35 kobo, while MTN Nigeria depreciated by 12.11 per cent to N167.00.

When the market closed for the week last Friday, the All-Share Index (ASI) and market capitalisation of the Nigerian Exchange (NGX) Limited depreciated by 2.63 per cent to 42,167.91 points and N22.003 trillion respectively.

Similarly, all other indices finished lower with the exception of the insurance index, which appreciated by 2.97 per cent, while the ASeM, growth and sovereign bond indices closed flat.

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Economy

NASD OTC Exchange Jumps 0.1% in 48th Trading Week of 2021

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NASD OTC market

By Adedapo Adesanya

The 48th trading week of 2021 at the NASD Over-the-Counter (OTC) Securities Exchange closed on a positive note with a marginal 0.1 per cent growth influenced by three companies.

The three securities responsible for the expansion posted by the alternative bourse were UBN Property Plc, NASD Plc and Friesland Campina Wamco Nigeria Plc.

UBN Property Plc appreciated week-on-week by 10.00 per cent to close at 99 kobo per share compared with 90 kobo per share it closed in week 47.

NASD Plc, on its part, appreciated by 7.0 per cent to N26.99 per unit in contrast to the preceding week’s N25.22 per unit, while Friesland Plc grew by 1.3 per cent to N121.00 per share versus N119.42 per share of the preceding week.

Business Post reports that the market recorded price losers in the week and they were just two led by Food Concepts Plc, which depreciated by 10.00 per cent to 81 kobo per unit from 90 kobo per unit of the earlier week.

The second price decliner was Mixta Real Estate Plc, which fell by 9.7 per cent to settle at N1.76 per share as against the previous week’s N1.95 per share.

But at the close of transactions for the five-day trading week, the NASD Unlisted Security Index (NSI) increased by 0.54 points to 745.44 points from 744.9 points recorded at the previous week, while the total value of stocks on the exchange expanded by N440 million to N615.86 billion from N615.42 billion.

In the week, the total value of shares transacted by investors increased by 141.2 per cent to N84.1 million from the preceding week’s N34.8 million, while the total volume of trades jumped by 896.6 per cent to 23.4 million units from 2.3 million units, with the number of deals closing flat at 30 deals.

At the close of the week, Food Concepts Plc was the most traded security by volume with 20.1 million units, NASD Plc traded 2.4 million units, UBN Property Plc exchanged 700,000 units, Mixta Real Estate Plc transacted 200,000 units, while FrieslandCampina WAMCO Nigeria Plc traded 23,079 units.

By value, NASD Plc was the most active with N63.9 million, Food Concepts Plc followed with N16.2 million, FrieslandCampina WAMCO Nigeria Plc posted N2.8 million, UBN Property Plc recorded N648,000, while Mixta Real Estate traded N352,000.

In the year so far, investors have traded a total of 12.8 billion units of securities worth N30.1 billion in 4854 deals.

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Economy

Dolidol Eyes African Market Dominance After Mouka $60m Deal

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Dolidol

By Adedapo Adesanya

Following its acquisition of top Nigerian mattress brand, Mouka Foam, Moroccan mattress maker, Dolidol, has set its sight on becoming a Pan-African beddings and mattress company by dominating the market.

According to a recent report, the transaction was backed by UK-based private equity firm Development Partners International and was priced at $60 million.

The deal is expected to present an immense growth opportunity, as Dolidol and Mouka Foam will bring together their highly complementary capabilities, banking on the large market share in Nigeria.

Dolidol will also bank on this and more by developing new products for Nigeria’s teeming youth population and growing middle class.

Speaking on this, Ms Sofiane Lahmar, a Partner at Development Partners International said, “As the most populous country in Africa, Nigeria shares many of the same trends as the continent, including positive demographics, a fast-growing middle class and rising consumer spending.”

“Dolidol’s acquisition of Mouka presents an exciting opportunity for growth, creating a greatly expanded addressable market, and enables the business to accelerate its growth in West Africa, while continuing to expand its footprint across the continent.

“We remain confident in the future of the business and look forward to working with both management teams to execute the company’s ambitious strategy and vision,” she further explained.

The Chairman of Dolidol, Mr Saad Berrada, also commented on the deal, describing it as an ‘important milestone’ for the company.

According to him, the deal would help Dolidol to position itself as a regional leader in both North and West Africa.

This will also further the company’s overall ambition to dominate Africa’s growing mattress and beddings market.

It should be noted that Dolidol was established in 1972 and is already present in five Francophone African countries, including Ivory Coast.

Mouka Foam, on the other hand, was established in 1974 and has three factories located across Nigeria.

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