Tag Archives: solid minerals

How Neglect Of Solid Minerals Robs Nigeria N8trn Yearly

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The recent figures released by the National Bureau of Statistics (NBS) rating youth unemployment/underemployment at 49.9 per cent, unemployment at 13.3 per cent and underemployment call for concern, considering the state of neglect of the country’s solid minerals sector, which is said to be capable of providing over 500,000 direct and indirect jobs.
A study commissioned by the United Nations Industrial Development Council (UNIDO) led by a former Vice Chancellor of the University of Ibadan, Prof. Femi  Bamiro, had proved that there are mineral resources in each of the 774 local councils in the country.
The Nigerian Extractive Industries and Transparency Initiative, (NEITI ) report suggests that there are about 40 different kinds of solid minerals and precious metals buried in Nigerian soil waiting to be exploited. The commercial value of Nigeria’s solid minerals is estimated to run into hundreds of trillions of dollars, with 70 per cent of these buried in the bowels of Northern Nigeria.
But despite these potential, the Nigerian solid minerals sector has performed below expectation, contributing 0.3 per cent to the country’s Gross Domestic Product (GDP)
Synopsis of NEITI 2013 audit report
According to the Minister of Solid Minerals, Mr. Kayode Fayemi, 619 entities made payments to the government in 2013 but the 2013 solid minerals audit reconciled payments by only 65 entities (63 companies and two buying centres) that made payments of N2 million and above. These 65 entities (10.5 per cent of 619) accounted for 90.49 per cent of the total payments for 2013 and six government agencies were covered by the audit.
Total production across the solid minerals sector increased to 46,280,996 tonnes in 2013 as against 37,808,063 tonnes in 2012. The 19 per cent increase was attributed to a 33 per cent rise in limestone production from 18 million tonnes in 2012 to 24 million tonnes in 2013. Also, solid minerals sector accounted for an average of 0.09 per cent of total export earnings for 2013 compared to 0.02 per cent for 2012, with lead ores accounting for over 50 per cent of the value of all solid minerals sector exports for 2013.
Low revenue flows to government
The NEITI report espoused further that a meagre N33.86 billion accrued to the Federation Account from solid minerals sector in 2013. Out of this, payments from cement manufacturing companies accounted for N30.47 billion (89.98 per cent); construction companies, N1.98 billion (5.83 per cent); mining and quarrying companies, N1.42 billion (4.19 per cent).
Stakeholders express concern
President of Miners’ Empowerment Association of Nigeria, Mr. Sunny Ekosin, disclosed that Nigeria loses a whopping N8 trillion annually in unexploited gold alone.  He also said that Ajaokuta remains the key to Nigeria’s industrialisation and that getting it back to work is a matter of patriotism for President Muhammadu Buhari and his team.
Ekosin had in a recent interview said: “If Nigerians were taking data seriously, we would have built a database, where we have authentic information. In 2012, the Permanent Secretary of the Ministry of Mines and Steel came before the nation and said that from our precious metals, specifically from gold exploitation alone, Nigeria is losing N8 trillion ($50 billion) annually.”
According to him, the failure of Nigeria, since independence in 1960, to put in place a structure that will make the benefits of the exploitation of solid minerals available to all Nigerians has been the bane of the nation.
Regrettably, he said at the moment mining of minerals in Nigeria accounts for only 0.3 per cent of its GDP due to the influence of oil resources.
The domestic mining industry, he said, is underdeveloped, leading to Nigeria having to import commodities it could produce domestically, such as salt or iron sheets and billets.
According to NEITI’s audit findings, solid mineral deposits are spread all over Nigeria, with more deposits in certain areas than others. Over 40 million tonnes of talc deposits have been identified in Niger, Osun, Kogi, Ogun and Kaduna states.
He explained that there are huge deposits of coal ranging from bituminous to lignite in the Anambra Basin of South-Eastern Nigeria.
Chief Executive Officer (CEO), Laurel School of Mines, Mr. Tope Adebanjo, said if Nigeria channels the required efforts towards gemstone development, the industry is capable of turning the fortunes of the economy around, maintaining that the multi-billion dollar industry has transformed many economies of the world.

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FG approves release of N30bn intervention fund for solid minerals – Minister

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The Minister of Mines and Solid Minerals Development, Dr. Kayode Fayemi, said on Tuesday in Abuja that the Federal Government had approved the release N30 billion intervention fund for molid Minerals development.

Fayemi disclosed this at the fifth Extractive Industries Conference held by CSR-in-Action.

The theme of the event was: “Revisiting the Nigerian Economy beyond Oil: Prospects for a thriving Export-Driving Extractive Sector.”

The minister, represented by Prof. Okey Onyejekwu, his Senior Special Adviser, said the fund would be used for geosciences data generation, improve mines-field security and monitoring.

According to him, this is in line with the enforcement of the Nigerian Minerals and Mining Act of 2007.

He explained that the ministry was partnering International Development Partners via AFDB, the World Bank, UNDP, UNIDO and donor agencies such as DFID and Ford Foundation to ensure development of the sector.

He said that the ministry had formulated a new roadmap for the sector since his appointment one year ago.

According to him, there has been an improved funding for the sector through activation of the 0.5 per cent mining sector component of Natural Resources Development Fund.

The minister promised to ensure the nation’s development partners were engaged to implement MoUs, especially those on geosciences data generation, integration, storage and dissemination.

He said government would ensure there was an improved revenue generation, collection through identification and plugging of leakages.

Fayemi announced plans to review the royalty rates to reflect current commodity prices and also review mineral licensing fees to discourage mineral title speculation.

He said the ministry would target five per cent contribution to the GDP by the year 2020 as against the current 0.34 per cent.

Fayemi promised to facilitate infrastructure development through collaboration with relevant ministries, departments and agencies.

He said the current works on the standard gauge rail line from Warri to Ajaokuta Steel Company Limited and Nigeria Iron Ore Mining Company Limited, Itakpe, were key to Nigeria‘s industrialisation.

According to him, the resolution of litigation and conclusion of final stages of mediation meant that Ajaokuta Steel Plant would soon be freed of encumbrances and government would give it to a competent investor.

The ministry had also revoked non-performing mineral titles in line with the Nigerian Minerals and Mining Act, to make the area financially and technically viable for investors.

Earlier, Waziri Adio, the Executive Secretary, Nigerian Extractive Industries Transparency Initiatives, said Nigeria’s problem was not its dependence on oil but the leaders refused to save for the rainy days.

According to him, Nigeria’s leadershp in the oil boom era failed to invest in other sectors like petrochemical which would have helped to diversify the economy.

Adio said: “If the nation should explore the economic recession well, diversify to solid minerals and do not make the same mistakes it made in oil sector, our economy will grow.”

The convener of the event, Bekeme Masade, Executive Director, CSR-in-Action, said SITEI conference started five years ago with the Deputy High Commission of Canada.

She explained that SITEI envisioned a platform that would unite the key drivers for change, not only within the industry but for the entire nation.

FG Approves N30bn Intervention Fund For Solid Minerals- Minister

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The Minister of Mines and Solid Minerals Development, Dr. Kayode Fayemi, said on Tuesday in Abuja that the Federal Government had approved the release N30 billion intervention fund for solid minerals development.
Fayemi disclosed this at the fifth Extractive Industries (EITEI) Conference held by CSR-in-Action.
The theme of the event was: “Revisiting the Nigerian Economy beyond Oil: Prospects for a thriving Export-Driving Extractive Sector.’’
The Minister, represented by Prof. Okey Onyejekwu, his Senior Special Adviser, said the fund would be used for geosciences data generation, improve mines-field security and monitoring.
According to him, this is in line with the enforcement of the Nigerian Minerals and Mining Act of 2007.
He explained that the ministry was partnering International Development Partners through AFDB, the World Bank, UNDP, UNIDO and donor agencies such as DFID, and Ford Foundation to ensure development of the sector.
He said that the ministry had formulated a new roadmap for the sector since his appointment one year ago.
According to him, there has been an improved funding for the sector through activation of the 0.5 per cent mining sector component of Natural Resources Development Fund (NRDF).
The Minister promised to ensure the nation’s development partners are engaged to implement MoUs, especially those on geosciences data generation, integration, storage and dissemination.
He said government would ensure there was improved revenue generation and collection through identification and plugging of leakages.
He said the ministry would target five per cent contribution to the GDP by the year 2020 as against the current 0.34 per cent.
He said the current works on the standard gauge rail line from Warri to Ajaokuta Steel Company Limited and Nigeria Iron Ore Mining Company Limited, Itakpe, were key to Nigeria‘s industrialisation.
According to him, the resolution of litigation and conclusion of final stages of mediation meant that Ajaokuta Steel Plant would soon be freed of encumbrances and government would give it to a competent investor.
Earlier, Waziri Adio, Executive Secretary, Nigerian Extractive Industries Transparency Initiatives (NEITI) said Nigeria’s problem was not its dependence on oil but the leaders refused to save for the rainy days.
According to him, Nigeria’s leadershp in the oil boom era failed to invest in other sectors like petrochemical which would have helped to diversify the economy.
The ministry had also revoked non-performing mineral titles in line with the Nigerian Minerals and Mining Act, to make the area financially and technically viable for investors.
“If the nation should explore the economic recession well, diversify to solid minerals and do not make the same mistakes it made in oil sector, our economy will grow’,’ he said.

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Solid Minerals Operators Rush To Beat License Deadline

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The Federal Government has raised more than N500m as licensees and leaseholders in the solid minerals sector struggle to beat Thursday’s deadline for them to activate their operations or lose their licenses.
Investigation by our correspondent on Wednesday showed that the Mining Cadastral Office handling the regularization of the licenses was besieged by the beneficiaries of leases and licenses due to the revocation threat.
As a result, it was learnt that more than N500m had been paid into the government coffers as the beneficiaries had been going to the banks to pay necessary fees that had accrued from holding dormant approvals granted by the Federal Government.

FG To Free $1bn For Solid Minerals Investors

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The Federal Government hinted yesterday that it has resolved to provide $1 billion ( about N200 billion) as solid minerals development fund for potential investors in the mining sector.

It, however, noted that only serious investors who look certain to bring profit and success to the country would be allowed to access the fund which had been given legislative backing.

The minister of Mines and Solid Minerals, Dr Kayode Fayemi said Federal Government’s plan is to fully activate the solid minerals development fund, which is already provided for in existing legislation, as a way to kick start investment.

Speaking on the sidelines of an African Mining Conference in Cape Town, South Africa, Fayemi who said the legislation pegs the development fund somewhere in the region of about 200 billion naira ($1 billion) fund that could be accessed by serious investors with bankable plans.

“Frankly by the first quarter of next year I would really like to see this fund in place”, he added, even as he hinted that the federal government has completed a review of its mining licenses and will publish the results next week.

Credit: Leadership

Fayemi Seeks America’s Help To Develop Solid Minerals Sector

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The Minister of Solid Minerals Development, Mr Fayemi Kayode, is requesting the assistance of the United States of America for the development of the sector.

He has asked the American government to provide technical assistance as well as create international market for produce as the federal government is determined to develop the sector to provide alternatives to the nation’s dwindling oil revenue.

Meanwhile, the United States Ambassador to Nigeria, Mr James Entwistle, during a courtesy visit to the Ministry of Solid Minerals Development, gave an assurance of the cooperation of the American Geological Survey.

Credit: ChannelsTV

FG To Create Jobs For Youths In Agriculture, Solid Minerals, Teaching – Buhari

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The Federal Government will explore the potential in agriculture, solid minerals and teaching in solving the unemployment challenge confronting the country, President Muhammadu Buhari has said.

 

Buhari, who said this at his maiden media chat on Wednesday in Abuja, noted that there were abundant deposits of solid minerals across the country.

 

According to the president, agriculture and solid minerals are the quickest ways of providing employment for able bodied people in Nigeria.

 

“We will make sure we get the machinery, fertilizer, and other inputs and ask people to go to the farm so that we do not import food.

 

There are lots of solid minerals in commercial quantities in virtually all the states; there are companies that know about it and they are prepared to come.

 

In terms of teachers, there is a teachers institute in Kaduna; and another one in Ibadan.

 

We are trying to mop up the unemployed youths; do a crash programme in teaching; post them to teach in primary schools and junior secondary schools.

 

So that the quality of education will start from the bottom; all these things will not be there over night but we have to start it,’’ he said.

 

Buhari said that if the opportunities in solid minerals and agriculture were properly harnessed, the problem of unemployment would be minimised.

 

 

(NAN)