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Nigeria Still Imports 75% Of Requirements For Cement Production – NSME

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  • Nigeria Still Imports 75% Of Requirements For Cement Production

The president, Nigerian Society of Engineers (NSE), Dr Ebenezer Damisa, has stressed the need for Nigeria to strengthen its mining institutions to curb illegal importation of raw materials as he says the country still imports 75 per cent of its requirements for cement production.

The president stated this while speaking with journalists at the 16th Annual General Meeting and Conference of the NSME which started in Abuja, yesterday, with the theme, “Mining Industry and Nigeria’s Economic Diversification.”

According to Damisa, “As at today about 75 per cent of the requirement of gypsum used for cement production is still imported into the country and we think that the money used to the importation, if given to local miners, will produce more and after a while there won’t be need for importing.

“I stress the need to strengthen the institutions because once that is done they will be able to monitor what is going on around them. If you go to the mines’ offices all over the country there are no vehicles to do the job required of them. First of all, I think that there is the need to strengthen mining institutions, such as the ministry as there are departments in the ministry that were created and yet for one reason or the other are not functioning optimally. Examples are the Mines Inspectorate Department, Mines Environmental Compliance and Artisanal and Small Scale Mining Department (ASM). I want the ASM to be strengthened and artisanal miners formalised so that they can form cooperatives because as at now very few of them have formed cooperatives. When this is done we can conveniently monitor their activities and ask them to pay taxes. If government can ensure this then the country can benefit maximally from their activities.

“Not much proper mining is going on today most mining activities going on in the country today are carried out by artisanal miners, but what we require to move on are big time mining companies that should come in and then contribute much more to the government. The artisanal miners do not pay taxes, but big companies must because they are the ones known and from their activities will have money to generate revenue for the government.

“Before the discovery of oil, solid minerals was the major contributor to the gross domestic product (GDP) of our country and in terms of employment, it was only second to agriculture. Today, unfortunately, it is no longer like that. This is unacceptable and we must do everything possible to ensure that it takes its rightful place again in contributing much more than that.”

Speaking on the neglect of the sector, he said, “We can start from the time the country had the indigenisation policy in the early 1970s. The expatriates left Nigeria with their technologies and since then things have not been the way they should be. At that time the solid minerals contributed nothing less than 5 per cent to the GDP, but today, it contributes less than 1 per cent. In actual fact, it contributes less than 0.33 per cent. In 2015 the sector contributed just about N450 billion to the economy.”

Speaking on government’s commitment to develop the sector, the NSE president stressed the need for government to be committed to implementing the road map as well as ensure the effective disbursement of the N30 billion solid minerals development fund.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

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The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

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Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

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Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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