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Economy & Politics

1,759 illegal mining sites operate in Nigeria – Minister of Mines and Steel 

A total of 1,759 illegal mining sites operating in Nigeria have been uncovered

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FG sets up committee to boost revenue in mining sector , FG reiterates commitment to rejig steel sector, moves to ban steel importation, 1,759 illegal mining sites operate in Nigeria - Minister of Mines and Steel , Chinese dominated mining sector adding little or no value - Minister 

The number of illegal mining sites in operation all over Nigeria has been set at 1,759, according to Vanguard.

This information was disclosed by Minister of Mines and Steel Development, Architect Olamilekan Adegbite while speaking at an event that brought stakeholders in the sector together in Ekiti.

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The Details: Giving details about the illegal sites, Adegbite noted that the government had been engaging mining operators in these communities to lure them into formally registered cooperatives for the purpose of safely mining the nation’s resources.

Mining, FG sets up committee to boost revenue in mining sector

Adegbite words: “A total number of 1,759 Artisanal and Small Scale Miners, ASM, sites have so far been identified across Nigeria. With consistent interventions by the Federal Government through the Ministry of Mines and Steel Development 1,346, artisanal mining operators have been drawn into forming registered Artisanal Mining Cooperatives, AMCs, in readiness to access SmalI-scale Mining Licenses, SML.

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“Each of the 1,346 mining cooperatives comprises over 10 members; with additional 20 mine workers for each cooperative.

It is a continuous process from the operators who have been organised into groups, they can come forward and apply for loans, it is not for us to go out and distribute money, everyone is aware that the money exists, people should come up with plans, cooperative bodies that are fully registered will be able to serve as guarantors to individuals. On the artisanal sites have been discovered like we did, we can approach them and teach them safer methods of mining,” he added.

[READ MORE: FG sets up committee to boost revenue in mining sector]

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In addition to continued engagements, Adegbite noted that the Ministry would pay attention to these communities while making sure they benefit from the Community Development Agreements in line with the provisions of the Nigerian Minerals and Mining Act, 2007.

What you should know: The government has been trying to revive the sector in recent times. As published by Nairametrics, Pedro Omontuemhen, a partner at PricewaterhouseCoopers disclosed that in some African countries, the contribution of mining to the GDP hovers around 15-25% but Nigeria’s contribution is less than 1%.

Solid Minerals, Mining in Nigeria, Globelink China Investment, Hudson Mining

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Despite the host of the mineral resources in Nigeria, the mining sector has been classified as non-performing. Hopefully, with the new revival of the sector, mining will start to play significant roles in the economy as the Minister looks to engage communities illegally mining the nation’s resources.

Patricia

Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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Economy & Politics

Nigeria only hit 56% of its target revenue in first five of months of 2020 

Nigeria’s earnings in the period were N1.48 trillion which is 56% off its main target.

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Zainab Ahmed, Pres. Buhari to review Finance Bill, tax reform yearly to finance budget 

Nigeria’s Minister of Finance, Zainab Ahmed revealed that Nigeria was only able to meet 56% of its target revenue from January to May as the global oil price crash affected government revenue due to the COVID-19 pandemic. 

Nigeria’s earningin the period were N1.48 trillion which is 56% off its main target, crude oil revenues accounted for half of Nigeria’s revenues, while non-oil revenues made up the rest in the first 5 months of the year. 

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On Friday, President Muhammadu Buhari signed the new 2020 revised budget of N10.8 trillion with the crude oil benchmark reduced from $57 per barrels in the earlier budget to $25 in the new budget.

The Minister said the budget had to be revised because of the effects of the COVID-19 pandemic on Nigeria’s economy. She added that Nigeria’s crude oil production would be an average of 1.86 million barrels per day next year and rise to 2.09 million the following year. 

 “Although Nigeria’s total production capacity is 2.5 million barrels per day, current crude production is about 1.4 million barrels per day — in compliance with the Organization of the Petroleum Exporting Countries’ production quota – and an additional 300,000 barrels per day of condensates, totaling about 1.7 million barrels per day,” she said. 

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Economy & Politics

2021 Budget: FG projects spending plan of N11.86 trillion and deficit of N5.16 trillion

This tops 2020 budgeted expenditure of N10.8 trillion.

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FG projects spending plan of N11.86 trillion and deficit of N5.16 trillion,IMF, International monetary fund, Zainab Ahmed, Nigeria's Minister of Finance, Budget and National Planning

The Federal Government is projecting to spend N11.86 trillion for 2021. This was disclosed by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed at a virtual presentation of the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) held on Friday.

According to the finance minister, the government is planning to spend N11.86 trillion against revenue of N6.98 trillion meaning the government will have to grapple with a fiscal deficit of  N5.16 trillion.

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Zainab Ahmed;

“The 2021-2023 MTEF&FSP is the pre-budget statement that provides the framework for the development of the 2021 budget. It is being framed against the backdrop of challenging global macroeconomic environment as well as domestic factors.

“We aim to keep the deficit within the three percent ceiling over the medium term and are therefore working on identifying new revenue sources and or cost of reduction.”

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The minister noted that the 2021-2023 draft had been prepared against the backdrop of heightened global economic uncertainty.

Earlier today President Buhari signed the revised 2020 national budget of N10.8 trillion, which was passed by the National Assembly in June. The National Assembly passed a revised budget of N10.8 trillion on the 11th of June after the Federal Executive Council (FEC) approved a revised budget of N10.523trillion in May. 2020 Budget is based on a revised oil benchmark of $25 per barrel as against $57 while crude production was reduced from 2.18 million to 1.94 million barrels per day  Budget deficit for 2020 is estimated at N5.365 trillion.

As of March 2020, the FG was running a 52% shortfall in the first quarter of the year with actual revenue collected of N950 trillion compared to budgeted revenue  N1.96 trillion.

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What this means: Nigeria is facing an unprecedented revenue crisis exacerbated by the Covid-19 pandemic and the crash in oil prices. At N5.16 trillion, Nigeria’s projected budget deficit will be 43% of spending and about 3.6% of GDP if the budget is passed. A budget deficit means the government will have to borrow heavily next year to fund its expenditure programs.

The government received a $3.4 billion funding from the IMF in April and expects another $3.5 billion from the World Bank in August 2020. The government also revealed it has no plans to access the commercial market for foreign debts as it takes advantage of lower interest rates in the domestic market.

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Economy & Politics

Buhari appoints new Ag. Chairman of EFCC, gives reason for Magu’s suspension

The statement revealed why Ibrahim Magu, was suspended by the President.

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Ibrahim Magu, Buhari appoints new Ag. Chairman of EFCC, gives reason for Magu's suspension

President Muhammadu Buhari has approved the appointment of Mohammed Umar as the new acting Chairman of the Economic and Financial Crime Commission (EFCC).

Umar who is EFCC’s Director of Operations was asked to take charge and oversee the operations and activities of the anti-corruption agency pending the conclusion of the ongoing investigation on the allegations against Ibrahim Magu and further directives in that regards.

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This was disclosed by the Special Assistant Media and Public Relations to the Attorney General of the Federation and Minister for Justice, Dr Umar Gwandu, in a press statement on Friday, July 10, 2020, in Abuja.

The statement revealed that the former acting Chairman for EFCC, Ibrahim Magu, was suspended by the President in order to allow for an unhindered probe by the Presidential Investigation Panel which is headed by Rtd Justice Ayo Salami under the Tribunal of Inquiry Act and other relevant laws.

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READ ALSO: Senate to probe FG over reduction of MTN’s $8.1 billion fine

The presidential panel was set up to investigate various cases of official misconduct and financial irregularities against Ibrahim Magu, who has been in detention since Monday, July 6, following his invitation for questioning by the panel.

The allegations were made by the Attorney General and Minister for Justice, Abubakar Malami, who demanded for his removal as the acting Chairman of the EFFC in a memo to President Muhammadu Buhari.

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