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Economy

Ministry of Mines Denies Spending N700m on Website

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Kayode Fayemi NCMMRD

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.

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

FAAC Shares N1.678trn to FG, States, Councils From February 2025 Revenue

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FAAC

By Adedapo Adesanya

The Federation Account Allocation Committee (FAAC) shared a total of N1.678 trillion in March 2025 to the three tiers of government as federation allocation from the revenue generated by the nation in February 2025.

A statement from the Federation Accounts Allocation Committee (FAAC) after its meeting for this month, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed that the amount generated stood at N2.344 trillion, comprising Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), an argumentation of N178 billion and revenues from Solid Minerals.

It was revealed that the federal government was given N569.656 billion, the states received N562.195 billion, the local government councils got N410.559 billion, while the oil-producing states shared N136.042 billion as 13 per cent derivation of mineral revenue.

The statement further disclosed that VAT for the month was N609.430 billion versus N771.886 billion in the preceding month, with the federal government receiving N91.415 billion, the states getting N304.715 billion, and the councils sharing N213.301 billion.

FAAC presented N1.653 trillion as gross statutory revenue for last month, lower than the N1.848 trillion recorded a month earlier, with N61.449 billion used for the cost of collection and N736.249 billion for transfers, intervention and refunds.

When the balance of N827.633 billion was shared, the federal government got N366.262 billion, the states received N185.773 billion, and the councils got N143.223 billion, while the oil-producing states shared N132.374 billion as 13 per cent derivation revenue.

Also, the sum of N35.171 billion from EMTL was distributed, with the federal government receiving N5.276 billion, the states sharing N17.585 billion, and the local government councils getting N12.310 billion, while N1.465 billion was for the cost of collection.

Further, N28.218 billion was generated from solid minerals and the central government got N12.933 billion, the states received N6.560 billion, the LGCs got N5.057 billion, and the oil-producing states shared N3.668 billion.

In addition, from the N178 billion augmentation, the national government received N93.770 billion, the states got N47.562 billion, and the local councils received N36.668 billion.

It was observed that revenues from VAT, Petroleum Profit Tax, Companies Income Tax, excise duty, import duty and CET Levies declined in February, while earnings from EMTL and oil and gas royalty increased significantly.

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Economy

1.7 million Barrels of Dangote Refinery Jet Fuel Arrive US Ports

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Dangote refinery petrol production

By Adedapo Adesanya

The 1.7 million barrels of jet fuel exported from the Dangote refinery in Lagos, Nigeria, have arrived at US ports, according to data from ship-tracking service, Kpler.

It was reported that another vessel, Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29 with a load of about 348,000 barrels of jet fuel, the data showed.

US jet fuel imports are set to hit a two-year high in March after the refinery pushed barrels to North America and Europe.

Total US jet fuel imports so far in March stood at around 226,000 barrels per day, the most since February 2023, the data showed.

The development comes amid controversies surrounding the sale and availability of crude oil to the refinery and Premium Motor Spirit or petrol supply to the Nigerian market.

Nigeria’s decision to cancel the Naira-for-crude deal with the refinery has since created panic in the hearts of marketers and consumers alike.

The 650,000 barrels per day refinery has also suspended selling petrol in Naira to marketers.

It lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US Dollars.

“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the firm announced.

The announcement has since triggered a rise in the cost of loading petrol at private depots in Lagos to about N900 per litre from below N850 per litre before.

The Dangote refinery started production last January after years of construction delays and ramped up to about 85 per cent of capacity in early February, allowing it to sell more fuel to international markets.

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Economy

Four Securities Weaken NASD Index by 0.57%

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NASD Investors' Portfolios

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange crumbled by 0.57 per cent on Monday, March 24 after four stocks on the trading platform closed lower.

Okitipupa Plc gave up N22.66 during the session to settle at N285.00 per unit compared with the N307.66 per unit it was sold last Friday, FrieslandCampina Wamco Nigeria Plc lost 17 Kobo to trade at N37.00 per share versus N37.17 per share, Food Concepts Plc depreciated by 14 Kobo to close at N1.35 per unit compared with the preceding session’s N1.49 per unit, and Industrial and General Insurance (IGI) Plc declined by 2 Kobo to finish at 35 Kobo per share, in contrast to the preceding trading day’s 37 Kobo per share.

Conversely, Central Securities Clearing System (CSCS) Plc improved its value by 69 Kobo to sell at N23.53 per unit versus N22.84 per unit and UBN Property Plc gained 20 Kobo to quote at N2.20 per share, in contrast to the previous value of N2.00 per share.

When the bourse ended for the session, the NASD Unlisted Security Index (NSI) went down by 19.09 points to 3,339.52 points from the previous trading day’s 3,358.61 points, and the market capitalisation shrank by N11.03 billion to N1.928 trillion from N1.939 trillion.

The volume of securities traded at the NASD yesterday rose by 216.1 per cent to 961,456 units from the 304,188 units recorded last Friday, and the value of securities went up by 116.3 per cent to N22.1 million from N10.2 million, while the number of deals depreciated by 31.3 per cent to 22 deals from 32 deals.

Impresit Bakolori Plc remained the most active stock by value (year-to-date) with 533.9 million units worth N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 13.3 million units valued at N513.7 million, and Afriland Properties Plc with 17.6 million units sold for N360.1 million.

Impresit Bakolori Plc was also the most active stock by volume (year-to-date) with 533.9 million units valued at N520.9 million, trailed by IGI Plc with 70.0 million units sold for N23.8 million, and Geo-Fluids Plc with 44.1 million units worth N88.9 million.

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