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FG Plan to Partner Private Sector on Solid Minerals

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miner
  • FG Plan to Partner Private Sector on Solid Minerals

The federal government has promised to deepen its diversification process through partnership with private sector to further open up the solid minerals sector. The government said it has also recognised the need to put in place sound policies and programmes to promote the metal processing industry in order to maximise the gains in the sector.

Speaking at a two-day conference organised by Kian Smith Gold Refinery on Gold West Africa in Lagos, the Director, Investment Promotion Department, Federal Ministry of Industry, Trade and Investment, Nigeria, Olukemi Abimbola Arodudu, said the country was serious about attracting sustainable investor in the area of gold mining and processing in Nigeria, hence the need to create an enabling environment for investors. The theme of the conference was: The future of African Gold – developing the West African Gold Economy.”

Arodudu who spoke on behalf of the Permanent Secretary in the ministry, disclosed that federal government had designed a zero per cent import duty on machinery in the sector as well as allowing tax exception for miners. She, however, admitted that bureaucracy has remained a clog in the work of government but assured stakeholders that everything would soon be firmed up to enhance a seamless operation.

“As we all know, a lot of things must be put into process in formulating government policies and this also slow down processes. Even though the process is slow, with understanding and cooperation of all stakeholders, we will soon get there because government is committed to further open up the solid mineral industry.

“Much as I understand the fact that gold mining and processes are not where they should be in Nigeria, I know there is no policy gap that cannot be bridged. Therefore, very soon, stakeholders in the Gold industry will be proud of their collaboration with government.

“One of the critical areas of focus of the Economic Recovery and Growth plan (ERGP) selected to achieve the diversification of the Nigerian economy is the solid minerals sector because of the huge deposit of the mineral resources in the country which include the Gold deposits. We will therefore support every policy and strategy aimed at promoting industrial processing of solid minerals in the country,” she said.

The director further added that the importance of promoting the gold sub sector in Nigeria and indeed West Africa cannot be over emphasised.

“It is no secret that currently, activities in the sub sector is centred on countless artisanal miners and that the gold mined by these miners are mostly exported through middle men thereby denying the country of the economic benefits in the gold value chain.”

Speaking on the challenges facing the industry, Vice Chairman, Kian Smith Gold Refinery, Nigeria, Nere Teriba, expressed concern over lack of data to guide the government on the potential of The Gold industry in Nigeria.

According to her; “The Gold industry in Nigeria has potentials but unfortunately there is no data to rely on due to abandonment of the industry by the government. As a player in the industry, I can confidently say that the demand for Gold in Nigeria is big but no data to back it up. To effectively explore the industry there is need for policy review as well as designing an effective monetary policy for the sector. ”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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