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FG Realises N52.75bn From Solid Minerals In 2017

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  • FG Realises N52.75bn From Solid Minerals In 2017

The Federal Government earned about N52.75 billion from solid minerals in 2017, the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed.

The amount indicated an increase of 21 percent as against the N43.22 billion realised in 2016.

NEITI’s on Sunday noted that its report followed an audit on independent reconciliation of company payments and government receipts in the sector.

“From the sector’s total revenue contribution of N52.75billion, payments to the Federal Inland Revenue Service (FIRS) accounted for N49.162 billion which is about 93 percent of the total revenues realised during the period under review.

“Payments to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) amounted to N1.59 billion and N2.08 billion or about three and four per cent respectively of the total revenue from the sector.

“Except for revenue from MID, there was a significant increase in revenue from all other streams in 2017,’’ it added

Giving a breakdown, the reports showed an increase in revenue accruing to the Federation from the solid minerals sector from 2013 to 2017. 2016 however witnessed a decrease of 31.02 percent compared to 2015.

Other revenue flows from the solid minerals, include sub-national payments, according to the NEITI report.

These, it noted were direct payments to states and local governments as a result of national laws, contractual obligations or local regulations which were disclosed as unilateral disclosures by the extractive companies.

“The total payment was ₦2.877 billion representing about 5.45 per cent of total government revenue from the sector,’’ it said.

On production, the report disclosed that 35.33 million metric tons of minerals valued at N32.78 billion was produced in Nigeria during the same period.

It noted that the production data was based on minerals either used or sold during the year.

A breakdown of the production showed that Limestone, Granite and Laterite accounted for 85.72 percent of the total minerals produced with Limestone alone contributing about 55 percent of the production volumes.

The report indicated that in value terms, Granite and Limestone contributed 37.28 and 35.57 percent respectively.

On state-by-state contribution, the report highlighted that Ogun State produced the highest quantity of minerals in terms of both volume and value.

“The state accounted for over one-third of total production quantity and 23 per cent of the total minerals production value.

“The contributions by Ogun and Kogi states put together accounted for over half of the total production quantity,’’ the report revealed.

Further analysis showed that the two states led in Limestone as major minerals produced in the states.

However, in terms of production value, Ogun, FCT and Kogi states accounted for 23, 20 and 18 per cent respectively.

The report also showed that with the exception of the FCT, there was a material decline in states production in terms of both quantity and value.

It noted that total production quantity decreased from 41.87million metric tons valued at N34.09billion in 2016 to 35.33 million metric tons valued at N32.78billion in 2017.

The figure, it added represented a decline of 15.64 per cent in production volumes and 3.83 per cent in production value in 2017.

The report also revealed that Dangote Cement dominated activities in minerals production in 2017.

The company alone, it said, was responsible for about 46 per cent of the total minerals production that year.

“Other big players in the sector included Lafarge Cement Plc., CGC Nigeria Limited and Julius Berger Plc.

“The four companies produced over 27 million tons of minerals, representing 77.31 per cent of the total minerals production quantity and over 60% of the production value”, the report said.

On employment, it said that the sector’s contribution to employment in 2017 was about 0.3 per cent of Nigeria’s total employment, the same as the figure recorded in 2016.

The report also affirmed that artisanal and small-scale miners currently dominate the sector.

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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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