Connect with us

Business

Investors Losing Interest in Nigeria’s Mining Businesses as Insecurity Bites Harder

Published

on

Business gurus and investors are gradually losing interest in investing in the mining sector of Nigeria.

Investors King discovered, through a presentation document by the Minister of Mines and Steel Development, Olamilekan Adegbite, at the ninth edition of President Muhammadu Buhari’s administration.

The president has been rendering his scorecard that spans from 2015 to 2023. The programme is being organised by the Ministry of Information and Culture.

In the mineral sector, there are mining, exploration, quarry, and small-scale mining industries, of which have been serving as the country’s money spinners after the oil and gas industry.

But, growing insecurity in the mining environments has been the bane of the sector.

The sector had suffered no fewer than 363 casualties during different attacks and clashes between 2016 and 2022.

During the attacks on the mining sites, communities and miners across the country, activities have been affected as workers abandoned some areas considered dangerous.

Number of casualties including those killed, kidnapped, or injured during attacks and clashes has been on the rise

The 363 casualty figure is contained in a data obtained from the daily incidents recorded by the Nigeria Security Tracker, a project of the Council on Foreign Relations, an American think-tank, during the period under review.

Flowing from this disturbing incidents, it was gathered that there have been a decline in the figure of licences issued to interested investors in the sector.

The document presented by Adegbite showed that 2815 mineral titles were issued in 2016, while 1438 were issued in 2021.

Also, the total number of mineral titles issued to mining companies has dropped by 36.63 per cent within a period of five years.

Adegbite said that 2,258 mineral titles were issued in 2016, 2429 in 2017, 2124 in 2018, and 1,620 in 2019.

He added that 1,438 mineral titles were issued between January and October 2022, which is a 48.92 drop per cent from what was issued in 2016.

However, the Director-General of Nigeria Mining Cadastre Office, Mr Obadiah Nkom, during a State House briefing organised by the Presidential Communications Team, had said that 3,402 titles were revoked for defaulting on the terms of their licences.

The mining rights of companies that were not using their licences were said to have been revoked, leaving NMCO to generate over N3.7bn in 2022.

It was gathered that aside the revocation of the licenses owing to default, the mining sector has been characterised by insecurity.

Recall that the Federal Government had banned mining activities in Zamfara State in March 2021 owing to incessant attacks.

Buhari approved the recommendation that mining activities in the state should stop while declaring a no-fly zone on Zamfara.

The Federal Government was considering a ban on the use of motorcycles and mining activities sequel to the terrorist attacks on the Kuje Correctional facility on July 5 as well as others witnessed nationwide.

Stakeholders including industry players under the auspices of the Miners Association of Nigeria, had urged the government to address the issue of worsening insecurity rather than banning mining activities even as sector witnesses low patronage.

 

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending