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Business News

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 

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)

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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Corporate Press Releases

NIFIAN elects JAIZ Bank MD, Hassan Usman as first President

…Inaugurates pioneer EXCO members.

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The Non-Interest Financial Institutions Association of Nigeria (NIFIAN), yesterday in Abuja elected the Managing Director of Jaiz Bank Plc. Hassan Usman as its pioneer President.

Usman was inaugurated alongside other six EXCO members to steer the affairs of the umbrella body of all corporate organisations offering non-interest financial and related services in the country for a first term of 2 years.

Those elected includes Hajara Adeola, Managing Director/CEO, Lotus Capital Limited as Vice-President; Norfadelizan Abdulrahman, Managing Director/CEO of TAJBank Limited as Treasurer; and Fatai Ola Bakare, an astute in-house legal counsel and Islamic Finance expert of SunTrust Bank Nigeria Limited as the Secretary-General.

Other EXCO members inaugurated yesterday include Thaibat Adeniran, Managing Director/CEO, Cornerstone Takaful Nigeria Limited; Aminu Tukur, Managing Director/CEO, Noor Takaful Limited and Dr. Basheer Oshodi, CEO, TrustBank Arthur Limited.

In his opening address, Babayo Saidu, Chairman of NIFIAN’s Board of Trustees said the Association was registered on 28th August 2020, and duly incorporated at the Corporate Affairs Commission under Part C of the Companies and Allied Matters Act.

Parts of the objectives of NIFIAN is to promote common interest of member-organisations towards developing the non-interest financial services industry in Nigeria, creating an enabling regulatory environment through advocacy as well as deepening financial inclusion through market engagements and financial literacy. In addition, the Association aims to improve market resilience by fostering collaboration across the industry, promoting policies and programmes on Financial Inclusion, and sensitization of the populace for the economic development of the country through non-interest financial services offering.

The Executive Council is expected to steer the affairs of the Association towards the realisation of its objectives for the advancement of financial inclusion through non-interest finance in Nigeria.

In his inaugural address, Hassan Usman said the journey started more than a decade ago with Nigeria Islamic Finance Working Group, a multi-institutional platform under the auspice of EFInA (Enhancing Financial Innovation and Access.)

Usman said: “As today marks a new chapter in our pursuit, I would like to reiterate the fact that we are not there yet. This course is a journey and not a destination. While the overarching objective remains constant, the detailed operational and strategic initiatives of the Association shall continue to evolve to meet the requirements of the day.

“To this end, I pledge that over the course of my tenure, I will work with my colleagues in the Council to push some prominent initiative including promotion of sound Islamic banking and financial system and practise in Nigeria; growth and development of requisite market infrastructures such as an efficient non-interest inter-bank system.

“Pursuit of harmony in Shariah pronouncements (fatwas); represent the interest of members locally and internationally; provide advice and assistance to members pertinent to the development of their institution and deepen public awareness. I look forward to working with members to make Nigeria the Islamic Finance Hub of Africa.”

In addition, the President singled-out EFInA for the role played as the founder of what becomes NIFIAN today through its concerted support for the propagation of financial inclusion initiates through the non-interest finance industry. With the inauguration of persons of track records into the Executive Council of the Association, NIFIAN is therefore set to take on the charge towards developing the Nigerian financial markets.

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Consumer Goods

Unilever to spin off Tea business such as Lipton, Brooke Bond in major restructuring

Unilever wants to split its Tea business as a separate entity.

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Unilever Overseas increases stake in Unilever Nigeria Plc

Leading personal care and consumer goods company, Unilever announced plans to spin off its tea business into a separate legal entity.

The company announced this via a press release published on the website of the Nigerian Stock Exchange. The announcement is coming at least 6 months after its parent company, Unilever Global announced plans of a spin-off of its Tea business.

According to a press release seen by Nairametrics, by the company’s management through Abidemi Ademola, the Company Secretary, the strategic review which includes leading brands such as Lipton, Brooke Bond and PG Tip will go through the normal approval process, adding that the process is expected to be concluded by the end of 2021.

The planned separation will take full effect on all the balance of Unilever’s tea brands and geographies and all tea estates outside India and Indonesia, as the company will be retaining the tea businesses in India and Indonesia.

What they are saying

Prior to the recent disclosure, Unilever made the planned separation of the company’s tea business known on the 5th of August 2020.

The Global Chief Executive Officer of the leading consumer goods brand, Alan Jope, explained that it is – “important to strengthen the strategic future of the company by announcing proposals to unify its dual-headed legal structure.”

He noted that the strategic review of the company’s global tea business would help the company to make new commitments that are expected to drive efforts to help protect the climate and regenerate nature.

What you should know

  • The tea and savoury segment (food products) of Unilever Nigeria Plc made a total of N34.71 billion in 2020.
  • This, however, is higher than the revenue of N31.91 billion the company made in 2019 through the sales of tea and savoury.
  • In total, the tea business which will be separated, generated revenues of €2 billion globally in 2019 for the company.

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