Commodities

Investors Can Make $1bn from Palm oil, Says Adebayo

Published

3 years ago

October 1, 2021

The Minister of Trade, Industry and Investment, Niyi Adebayo has announced plans by the Federal Government to collaborate with investors to implement backward integration programme across key selected priority products.

These products include, palm oil, sugar, cassava starch, cotton textiles and garments.

Adebayo disclosed this on Thursday, during his address at the second Andersen Africa-Europe Bridge Conference held virtually, a statement issued by his spokesperson, Ifedayo Sayo said.

The statement was titled ‘Nigeria’s Economic Diversification Agenda achieving positive results – Adebayo’.

It read, “He announced the implementation of the ministry’s backward integration programme across key selected priority products, namely palm oil, sugar, cassava starch, cotton textiles and garments, saying the government was prepared to collaborate with investors to achieve its mandate.

“For palm oil, Adebayo said there was a domestic market opportunity of about $1bn which potential investors could take advantage of.”

On cassava starch, he said while Nigeria remained the largest producer in the world, the ninister said a significant domestic supply gap existed with more than 95 per cent of cassava starch still being imported.

He said the government focus was on bringing in large scale investors to bridge the gap and increase production of cassava starch.

Speaking on cotton, the minister told the gathering that the government strategy was to leverage on the special economic zones for garment production for both local market and export.

He declared that the government was committed to the establishment of special agro-processing zones across the country so as to reduce post-harvest losses, increase value addition to farmers and enhance rural employment.

Adebayo said the government was partnering with the African Development Bank to achieve its goals in this regard, adding that the ministry would be willing to collaborate with potential partners in different areas of this project.

He said, “Similarly, we aim to build at least one agro-processing facility in each of the country’s 109 senatorial district by leveraging available government funding and exploring innovative financing methods such as public-private-partnership and grants.

“Nigeria’s agribusiness sector is full of opportunities across multiple value chains, especially in the area of processing.

“The outlook report from the Organisation of Economic Cooperation and Development and the UN Food and Agriculture Organisation states that the sector will undergo robust growth projected to rise 30 per cent between 2018 and 2028.”

Adebayo also declared that the Federal Government’s diversification agenda was achieving positive results with the recent growth in the country’s Gross Domestic Product largely driven by the non-oil sectors.

He added that despite the view that Nigeria’s economy has historically been driven by oil, recent growth has been driven primarily by the non-oil sectors.

He said, “Despite the view that Nigeria’s economy has historically been driven by oil, recent growth has been driven primarily by the non-oil sectors, such as financial services, telecommunications, entertainment, and of course agriculture. This shows that our diversification agenda is working.”

The minister said the previous year was difficult for the country, he added that the country’s economy was getting back strong and open for business with the investment climate improving.

“In the first half of this year, investment announcements were at $10.1bn, an increase of 100 per cent in 2020.

“Investors from places as diverse as Europe, China, Morocco, and the UK are making strong commitments.”

He added the present regime was working tirelessly to ensure that the commitments turned into ventures, enterprises, and businesses that positively impacted the nation.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Commodities

Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

Published

1 day ago

October 2, 2024

Bassey Marshall

The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

Commodities

Osun Government Seals Off Gold Mining Company For Allegedly Evading Tax

Published

3 days ago

September 30, 2024

Ugwoke Ogbodo

The Osun State Government said it has sealed up the business premises of Segilola Resources Operating Limited over alleged tax evasion.

A statement by the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, on Monday, said the action followed a court order permitting the state to seal the company for “various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.”

“Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the State as a subsidiary of Thors Explorations Limited listed on London and Toronto Stock Exchanges.

“After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations. The Attorney-General of Osun State approached the court and consequently obtained an Order of the Court to seal up the Company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government Account.

“The state notes with regret that while some companies make billions of naira in the state, especially in the mining sector, they are not ready to give the state its lawful dues.

“While the issue of shareholding values due to the acquisition of Osun state interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions,” he said.

Recall that the gold mining company, in a statement by its Country Manager, Austin Menegbo, had denied the allegations by the state government, claiming that it has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.

Commodities

Osun Government Tackles Gold Mining Company Over Alleged Tax Evasion

Published

1 week ago

September 26, 2024

Ugwoke Ogbodo

The Osun State Government has raised serious concerns about the operations of the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange.

According to Prof. Lukman Jimoda, the Special Adviser to the Governor on Mining and Mineral Resources, the state’s investigation revealed various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.

The companies involved—such as SINIC Engineering, ATF Consulting, Monurent Nigeria, and others—are reportedly engaged in outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.

Prof. Jimoda highlighted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.

He emphasised that the Segilola project, despite its significant production since 2019, has resisted complying with extant laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA) which govern tax levies.

He also expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.

The state government is therefore demanding the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.

The Special Adviser stressed that Osun has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.

“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests”, the Special Adviser noted.

Also speaking, the Financial Consultant to the Office of Mining and Mineral Resources, Dr. Wale Bolorunduro while presenting his report said the allegations against Thor Explorations Ltd and its subsidiaries mark a significant moment for Osun State, as the government seeks to reclaim its financial rights and ensure compliance with tax regulations.

Particularly troubling is the claim that Osun State’s interests in Tropical Mines Ltd were strategically diminished without due financial compensation, raising questions about the fairness of the company’s practices in Nigeria versus its compliance with international standards in the UK and Canada, where it is publicly listed,” Bolorunduro stated.

Governor Ademola Adeleke’s administration has emphasized the need for due payments to be made, while also ensuring that business operations continue smoothly. This balanced approach underscores the state’s willingness to foster investment, but not at the expense of its fiscal health or integrity.

Responding to the allegations that the Adeleke Dynasty is involved in the management of the Segilola Gold Project, Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi denied the report, noting that those holding a stake or the other in the gold firm areas shortchanged the Osun state government.

Denying the allegations, the company noted that it has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.

Segilola Country Manager, Austin Menegbo, said, “We maintain detailed records and have receipts for all royalty payments made to the Federal Government, as well as tax remittances to the State Government. These documents are readily available for verification.

“The claims of environmental and operational non-compliance are not true as we have sufficient evidence to prove that we have followed all necessary protocols for environmental assessments and regulatory filings, including environmental compliance monitoring and mitigation of potential environmental impacts. In addition, we are regularly audited by the Federal Ministry of Environment and the Ministry of Solid Minerals Development and to date, there has been no claim of pollution or environmental violations against the company.

“As one of Nigeria’s leading mining companies, we remain committed to contributing to the economic growth of the state and the country while adhering to the highest ethical and operational standards. We shall continue to maintain an open line of communication with relevant authorities to ensure that our operations are aligned with both federal and state laws.”