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FG begins process to allow CBN buy all golds from local miners 

The FG has begun the process which will make the Central Bank of Nigeria buy all the gold from local miners at an international price.

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Border closure: A boost to our clientele base - Palm Oil producer, FG begins process to allow CBN buy all golds from local miners 

The Federal Government has begun the process that will make the Central Bank of Nigeria (CBN) buy all the gold from local miners at an international price.

This comes some months after the CBN joined forces with Thor Explorations Limited, a Canadian company that sees Nigeria as a new frontier for a gold rush at a period gold miners face the dearth of new discoveries across the globe.

In a new report, it was disclosed that the Nigerian government was registering artisan miners as the Presidential Artisanal Gold Mining Development Initiative Biometric Exercise commences.

This initiative, which has the backing of the CBN, is expected to integrate artisanal and small-scale gold mining activities in the country and formalize the market.

Mining, FG sets up committee to boost revenue in mining sector, FG begins process to allow CBN buy all golds from local miners 

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The initiative was designed to create support for Nigerian gold miners with Kebbi and Osun states serving as pilot states. The registration for the Presidential Artisanal Gold Mining Development started in Yauri Local Government Area of Kebbi State on February 22.

Why is CBN/FG buying these golds? This exercise will enable the CBN to buy gold produced by Nigerian miners at an international price. The purchase of the gold will prevent the local miners from foreign merchants who exploit them during the transaction.

(READ MORE: U-turn: CBN clarifies order on domiciliary account transfers)

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Also, it was disclosed that the acquisition of all the golds would curb smuggling activities which is a threat to the growth of the sector. Mining made up between 4% and 5% of Nigeria’s gross domestic product in the 1960s and 1970s before foreign operators left the country and oil dominated the government’s agenda for obvious reasons.

Now, metal ores account for less than 0.1% while crude exploration makes up 8% to 10% of GDP and brings in 90% of export earnings. FG has promised to increase mining’s contribution to GDP to 3% by 2025. In order to boost its contribution, Nairametrics had reported that experts urged the government to reform its laws to encourage investors to carry out exploration throughout the country as witnessed in the Democratic Republic of Congo and Zambia in the early 2000s.

In October 2019, Nigeria’s mining sector received a boost after Thor Explorations Limited renewed interest in boosting Nigeria’s efforts to persuade investors that it could become a mining destination for metals in West Africa. Also, Africa Finance Corporation, which is backed by the Central Bank of Nigeria and a group of local banks, is investing in the Thor project through a $78 million debt-equity financing package.

This means Nigeria could be on the cusp of getting its first industrial-scale gold mine from Thor that is developing a project capable of producing 80,000 ounces per year in Osun State, Nigeria targeting to start operations early 2021.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Obituaries

Just-in: Diego Armando Maradona is dead

Argentine football star, Diego Armando Maradona is dead.

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Argentine football star, Diego Armando Maradona is dead.

This was disclosed by the Premier League via its Twitter handle on Wednesday evening.

It tweeted, “We are deeply saddened to hear of the passing of footballing great, Diego Maradona, an extraordinarily gifted footballer who transcended the sport.

“Our thoughts and sincere condolences to Diego’s family, friends and those who knew him.”

He reportedly died of a heart attack on Wednesday at his home in the outskirts of Buenos Aires.

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Maradona, 60, had recently battled health issues and underwent emergency surgery for a subdural haematoma several weeks ago.

 

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Details soon …

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Energy

FG to begin online registration, monitoring of petrol stations, depots

The DPR has stated that it will commence the remote monitoring, registration, and accreditation of all petroleum products depots.

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FG to begin online registration, monitoring of petrol stations, depots

The Department of Petroleum Resources (DPR) has revealed that it plans to automate and begin remote monitoring, registration, and accreditation of petroleum products depots, retail outlets, and the entire downstream oil and gas industry, with the launch of the newly established Downstream Remote Monitoring Systems (DRMS).

While disclosing a statement in Abuja, the Head, Public Affairs of the DPR, Paul Osu, pointed out that the newly established Downstream Remote Monitoring Systems is expected to take off on December 1, 2020, after the launch in Abuja.

READ: Nigeria’s 5,000 BPD refinery will produce 271 million liters of petrol every year

According to a report by Vanguard, Osu explained that the DRMS is a web-based solution designed to provide intelligent regulatory and inventory management system for petroleum products supply and distribution from depot to retail outlets and also as a regulatory tool to monitor retail outlets and depot activities.

He said, “Other features of the application include retail outlets accreditation and re-registration, nationwide automated product inventory management, retail outlets coordinate recording for mapping purposes and transactions management and report generation of dealers nationwide.

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READ: NNPC says local operators must improve capacity to achieve low cost of oil production

“The establishment of DRMS is another strategic initiative of DPR to continue to create opportunities and enable business in the oil and gas industry in Nigeria.”

It can be recalled that the DPR had a few months ago, launched the National Production Monitoring System (NPMS), another online platform to assist the oil and gas regulator accurately monitor national crude oil production and exports, through the provision of a system for direct and independent acquisition of production data from oil and gas facilities in Nigeria

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READ: House of Reps summon Emefiele, NNPC GMD over unremitted N3.24 trillion

This is to ensure timely and accurate reporting of production figures and export data. This is also expected to guard against the crude oil theft that is prevalent in Nigeria’s upstream oil sector or reported cases of crude oil that is sold but unaccounted for.

The NPMS is an initiative that is developed as a replacement for the current paper-based report and ensures ready production reporting to the Federal Inland Revenue Service (FIRS) and the Nigeria Extractive Industries Transparency Initiative (NEITI) and other agencies.

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Financial Services

Era of backlog of unsettled claims is over – NAICOM boss

NAICOM has stated that it will monitor and sanction insurance companies who fail to settle claims as at when due.

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NAICOM

The National Insurance Commission (NAICOM) is out to seriously sanction any insurance companies with huge unsettled claims.

This disclosure was made by the Commissioner for Insurance, Mr. Sunday Thomas, at the on-going 2020 Insurance Directors’ Conference, jointly organized by NAICOM and the College of Insurance & Financial Management (CIFM), held at the Oriental Hotel in Lagos.

READ: EFCC gives reason for unspent N4 billion in 2020 budget

Mr. Thomas reiterated the need for the operators, post-pandemic, to appropriately strengthen their human and financial capital for effective participation in big-ticket risks to take advantage of the obvious gains of the domestication policy in the Nigeria Content Development Act 2010.

In his words, Mr. Thomas stated, “More businesses especially in the oil and gas and the Aviation sectors are now being reinsured abroad. Of more concern is the declining participation of life companies in the annuity business, which is the emerging business for our industry.

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READ: SEC issues pre-notice on cancellation of certificates of 157 inactive CMOs

“These are the areas where the industry can impose itself on the economy through the control of funds for national development. The industry must invest handsomely in technology, one of our key drivers for developing the market.

“The Institutions should be prepared to digitalize their processes, procedures, and systems, in order to make their operations seamless and real-time. The Commission is investing heavily in automating its processes and expects nothing less from the insurance institutions. An industry Information Technology Guideline has been issued for the operators and the Commission requires your support and cooperation for effective compliance.”

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(READ MORE: FG seeking FDI to develop Special Economic Zones – Trade Minister)

Why this matters

Prompt settlement of claims should be a top priority for the insurance operators in achieving an excellent and responsive customer service experience. Settlement of claims has been a serious nightmare for quite a number of customers, resulting to the abysmally low insurance culture in Nigeria.

READ: Fidelity Bank Plc must cover the chink in its curtains to keep rising 

Customers are more likely to patronize the insurance companies that are prompt in claims settlement and by extension improve the industry penetration in the market.

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