Fresh N2tn Fraud Uncovered In NNPC

The Nigeria oil and gas as well as the solid minerals sectors Nigerian Extractive Industries Transparency Initiative NEITI audit report for 2013 has been published.

The Minister of Solid Minerals and Chairman of the NEITI Board, Kayode Fayemi, said the audit, which focused on all aspects of the extractive industries, showed that total revenue flows into the Federation Account from the oil and gas sector in 2013 was about $58.07 billion.

The figure represented about eight per cent decline when compared to the $62.9 billion realised in 2012.

Mr. Fayemi said the decline was attributed to the drop in oil and gas sales following divestment of federation equity in some oil mining leases, OMLs, crude oil losses as a result of destruction of production facilities, pipelines vandalism and crude oil theft.

Details of the report revealed that the Nigerian National Petroleum Corporation, NNPC and its sub-units during the year either lost or refused to remit a total of N2.23 trillion, consisting
$9.75 billion and N378.67 billion, to the federation account as earnings from various aspects its operations in 2013.

FG Projects N25bn Revenue From Mining By 2025

The Federal Government on Sunday said that over $25bn could be generated from the mining sub-sector of Nigeria’s economy when properly harnessed with continuous investments.

The Minister of Solid Minerals, Dr. Kayode Fayemi, said this at the groundbreaking ceremony for the construction of Okpella Cement Plc by Dangote Group. The cement plant is valued at over $1bn, with six million metric tonnes per annum capacity in Okpella, Etsako East Local Government Area of Edo State.

At the ceremony were the Emir of Kano, Alhaji Muhammad Sanusi; Kano State Governor, Dr. Abdullahi Ganduje; a former governor of Ekiti State, Niyi Adebayo; a former governor of Ogun State, Chief Olusegun Osoba; and the Chairman of Forte Oil, Chief Femi Otedola.

Fayemi, who lamented that only 0.34 per cent of the country’s gross domestic product comes from the mining industry, hinted of plans by the Federal Government to meet with the 36 state governors to fashion out strategies to make land accessible to investors in the mining industry.

“Today, mining represents 0.34 per cent of our total gross domestic product. If more entrepreneurs pursue the example we have seen here today, mining will directly and indirectly contribute over $25bn or N5tn to our national economy by the year. That will mean new jobs for everyone.

“It will mean more tax revenue for host states such as Edo. For the Federal Government, it will mean more local content development. It will mean a greater level of industrial sophistication for our economy. It will mean less reliance on oil for our survival and it will mean greater conservation for our foreign exchange in the country,” he said.

While commending Dangote Group and the Edo State Government for embracing Federal Government’s industrialisation policy and desire to unlock the full potential of the sector, Fayemi urged the company and other investors in the industry to fulfil their obligations to their host communities.

This, he said, would engender smooth mining operations.

On his part, Edo State Governor, Adams Oshiomhole, described the new plant as a vote of confidence on the state government.

Ajaokuta To Be Private-Sector Driven – Minister

The Federal Government has reinstated its resolve to make the Ajaokuta Steel Company work in the bid to step up the country’s technological development.

The Minister of Solid Minerals Development, Dr. Kayode Fayemi, disclosed this while speaking at the 2016 Kaduna Economic and Investment Summit in Kaduna on Thursday.

Fayemi assured the participants, mainly investors and business owners, of the Federal Government’s commitment to making the Ajaokuta Steel Company work.

“Ajaokuta will work, but in a manner that is private-sector driven,” the Minister said.

He explained that government was prepared to give the steel company to any serious-minded investor with a workable plan and provable evidence of finance, capable of turning the enterprise around.

Dr. Fayemi said the technical and financial abilities of the investor as well as his commitment to make the steel company work effectively are of greater importance to the government than the amount the government would get from its sale.

He noted that aside serving as a major support for the technological base of the country, the company, when in full operation, would also generate thousands of employment opportunities.

The minister said it was unacceptable for government to keep footing the huge wage bill arising from maintaining the work force at the company.

Fayemi lamented that oil had blinded the country for a long time from looking the way of other viable economic resource corridors for diversifying the revenue base of its economy.

Fayemi, who hailed Governor Nasir el-Rufai’s investment drive in Kaduna State, said the Federal Government is set to partner with state governments in a strategic manner to ensure inclusive development.

He urged state governments from the same geopolitical zone to collaborate to create recourse corridor to take full advantage of mineral deposits around them.

Governor el-Rufai had had earlier remarked that Kaduna State had more gold reserve than South Africa and decried the loss from informal mining activities as well as illegal export of precious minerals that are unaccounted for.

He said the state will deepen the working relationship with the Ministry of Solid Minerals Development in turning the state’s mining activities into a huge success, adding that he was optimistic the Ministry would provide solutions to the illegal activities in the sector.

Nigeria Loses 10kg Of Gold Daily – Fayemi

About 100 kilogrammes of gold leaves the country every day without any record, Minister of Solid Minerals Development, Dr. Kayode Fayemi, has said.

Fayemi said this in a lecture delivered on Friday at the National Defence College, Abuja, according to a statement issued on Sunday by the Special Assistant to the Minister on Media, Mr. Olayinka Oyebode.

The minister, who spoke on ‘Solid Minerals and National Development in Nigeria,’ lamented that the country was losing a lot to illegal mining activities being carried out by some citizens aided by some foreigners.

He said the ministry was collaborating with relevant security agencies to ensure that the ugly trend was stopped.

He said, “Many of them do not recognise these minerals. So, in most cases they do not know the value of what the person is taking out illegally.

“So, we are partnering with security agencies, the Customs, Immigration, Police and Civil Defence to assist us.

“Once we get the regulatory framework right and create conducive environment for investment to thrive, we shall witness huge investment in the sector, create wealth and employment opportunities.”

Fayemi challenged security agencies in the country to come up with technology that could be deployed to track the use of explosives for which permits were given in the country.

He said part of his tasks as minister in charge of the solid minerals was to sign explosives permits for use in quarries and mining sites, adding that it was important to track their use as part of efforts to curtail activities of insurgent groups and violent crimes in the country.

Mining Licenses: Solid Minerals Operators In Rush To Avoid Revocation

The Federal Government has raised more than N500m as licensees and leaseholders in the solid minerals sector struggle to beat Thursday’s deadline for them to activate their operations or lose their licences.
Investigation by our correspondent on Wednesday showed that the Mining Cadastral Office handling the regularisation of the licences was besieged by the beneficiaries of leases and licences due to the revocation threat.
As a result, it was learnt that more than N500m had been paid into the government coffers as the beneficiaries had been going to the banks to pay necessary fees that had accrued from holding dormant approvals granted by the Federal Government.
Further investigation also showed that more than 500 companies might not be able to beat the deadline and would have to face the wrath of the government for failing to regularise their licences.
The Minister of Solid Minerals Development, Dr. Kayode Fayemi, had at his maiden press briefing in December 2015, given owners of dormant licences up till March 1 to use or lose them.
At the expiration of the deadline, the ministry published the names of the defaulting companies in national newspapers and gave them a grace period of 20 working days to regularise the licences or they would be revoked.
Solid minerals is one of the main sectors that the Federal Government has pencilled down for more activities as it preaches diversification of the economy following the dwindling fortunes of oil and gas as a result of falling prices in the international market.
Sources at the ministry confirmed to our correspondent that the failure of the licensees and leaseholders to utilise their approvals was denying the country about 8,000 jobs that could have been created if the licences had been put into use.
Another concern of the government is that the acquisition of dormant licences may have denied more serious operators the opportunity of space, while the government continues to lose taxes and revenues that would have been paid had the licences and leases been put into use.
Fayemi had at a recent forum said a situation where four out of every five mining licences issued by the Federal Government remained unused was no longer acceptable.

States To Enjoy 13% Derivation On Solid Minerals

The Minister of Solid Minerals, Dr. Kayode Fayemi has said that solid minerals-producing states would enjoy 13 per cent derivation as crude oil-producing states as part of the efforts to encourage the development of solid minerals in the country.

Speaking in Lagos at the recent Economic Summit organised by New Telegraph, Fayemi, who was responding to a question by a former Governor of Delta State, Dr. Emmanuel Uduaghan, insisted that the solid minerals-producing states would enjoy 13 per cent derivation as oil-producing states.

He said the incentive would boost the development of solid minerals in the country.

“They (solid minerals-producing states) will enjoy 13 per cent derivation as oil-producing states. Just that 13 per cent from solid minerals is small for now because of the non-development of the sector. But with time, it will grow,” the minister said.

Fayemi predicted that crude oil was bound to become more and more irrelevant in Nigeria’s future, given the fact that the country was no longer the sole source of the commodity in the sub-saharan Africa.

He said with many countries emerging as oil producers, coupled with the efforts of the major buyers of Nigerian crude to become energy independent, Nigeria’s dependence on oil for revenue would not work for the country any more.

The minister said before crude oil became the dominant source of revenue for Nigeria, the country was the centre of Coal and Tin in Africa, stressing that many cities in the country had prospered from solid minerals before the country shifted focus to oil.

“Many may not remember when Petroleum Resources was just a small department in the Ministry of Mines and Power. Those who recall the years of Alhaji Shettima Ali Monguno, the then Commissioner in charge of the Ministry of Mines and Power, petroleum was just a tiny part of that ministry. There was a time Nigeria was a Tin centre and a coal centre in Africa and cities grew out of coal and Tin. That was how Enugu and Jos have prospered and even Port Harcourt, as the destination for solid minerals,” Fayemi explained.

Fayemi said the story had changed in 1972 after the Arab oil embargo when Nigeria abandoned the solid minerals sector, adding that the Indigenous Decree of 1972 contributed largely to the fall of mining as all the foreign experts in the sub-sector left the country after the Decree was promulgated.

The minister also noted that even the Nigerian banks have neglected the mining sector as only Stanbic IBTC and First City Monument Banks are the only banks in Nigeria that have mining desk, apart from the Bank of Industry (BoI).

According to him, only less than one per cent of the loans offered by the banking sector go to mining.

Fayemi however added that with his intervention and that of the Central Bank of Nigeria (CBN) many banks had increasingly shown interest in the mining sub-sector, having realised that the sector was a major focus of this present administration.

He also restated President Muhammadu Buhari’s determination to take Nigeria back to her glorious days, given the abundant opportunities in the solid minerals sector.

Osun Firm Nets N2.2trn From Gold

As the Minister of Solid Minerals, Dr. Kayode Fayemi, has given indication that the Federal Government will soon extend to other solid minerals the backward integration policy on lime stone that transformed Nigeria from a net importer of cement to net exporter in less than 10 years, a geologist at the Obafemi Awolowo University, Ile-Ife, Osun State, Dr. Abraham A. Adepelumi has said that one single company exploring gold in the state netted N2.2 trillion in one year. Adepelumi, who spoke at the first New Telegraph Newspapers Economic Summit, in Lagos, on Thursday, stressed the need for immediate commencement of exploration of the over 44 solid mineral deposits in the country.

According to him, diversification of the economy into this very rich sector would hasten the rebound of the Nigerian economy which has been stressed by dwindling revenue from oil. Speaking on the topic: “Nigeria Beyond Oil: Opportunities in Solid Mineral Resources”, he said that Nigeria is endowed highly with several minerals that include coal, gold, tantalite, bitumen, galena, sphalerite.

“These minerals have transformed the economic landscape of some countries. These minerals have to be mined in order to contribute significantly to the economy. Nigeria has an enormous amount of solid minerals which can be harnessed for our economic well being.

These minerals have remained untapped over the years. “Nigeria is endowed with the solid mineral sector. We have well over 44 mineral types both on occurrence and deposit scales. Occurrence means you have discovered but not done further works to prove if it is economic or not. So, we have minerals at both scales in over 800 locations in the country.

Kayode Fayemi (South-West): Former governor of Ekiti state,
Kayode Fayemi, Minister for Solid Minerals

There are still hundreds of places of these minerals that haven’t been discovered. Of the 44 types, at least 20 are of economic value.” Adepelumi added that the extensive exploration and evaluation of mineral deposits in Nigeria from the colonial time to date by the geological survey of the country, has revealed mineral deposits across the whole nation and has recently been compiled state by state in various researches conducted by experts He said the mineral wealth extraction would lead to job creation, production of raw materials and commodities for trade, and significant revenue for development, if well-managed.

He alluded to one Segilola Gold Limited, a gold exploration company with operational base in Osun State which exports over 620,000 ounces of gold annually which amounts to over N2.2 trillion turnovers as an indication of the amount of money which can accrue to the country from that sector.

Adepelumi added that bearing in mind the fact that gold and several solid minerals deposits abound around Zamfara, Kebbi, Niger, Kwara and Osun axes, immediate exploration of these, coupled with useful rail line as means of transportation will return Nigeria to the good old days of a buoyant economy.

New Telegraph

FG Plans To Generate 4,000MW With Nuclear Energy

President Muhammadu Buhari has appreciated the support of the International Atomic Energy Agency, IAEA, for Nigeria’s quest to generate 4,000 megawatts of electricity using nuclear energy.

This came as Ministers of Power, Solid Minerals, Health, Science and Technology told President Buhari that Nigeria would soon start a program that will help the country realize the objective.

According to them, it will commerce with 1000MW of electricity in the first instance and increased later to 4,000 megawatts.

The ministers told the President that preparatory steps had been taken to train doctors and other medical specialists to prepare for unforeseen circumstances, establish specialist medical centres and procure necessary equipment aimed at protecting the health of the citizens.

Speaking while receiving Mr. Yukiya Amano, the Director-General of the IAEA at the presidential villa yesterday, President Buhari said he was happy that the organization was developing a program from which Nigeria would benefit.

President Buhari charged the IAEA to do more to support Nigeria, in view of the long years of its association and support for the nuclear regulatory agency.

The meeting which had the ministers also attracted the presence of the Vice President, Yemi Osinabjo.

Addressing the President, Mr. Amano said he was pleased to see that Nigeria was taking the correct steps toward a safe usage of nuclear energy for peaceful purposes.

Minister Seeks Increased Exploitation Of Solid Minerals From States

The Minister of Solid Minerals Development, Dr Kayode Fayemi, has asked states in Nigeria to develop their solid minerals deposits to develop and improve the economy.

Dr. Fayemi stressed that the misconceptions of the states on the constitutional provision should not be an impediment to complement the Federal Government’s effort in their states.

The Minister gave the admonition on Wednesday while giving a keynote speech at the opening ceremony of Annual Conference of Nigerian Mining and Geo-sciences Society in Ilorin, the capital of Kwara State.

It was held at a banquet hall opposite the Government House.

Mining engineers and geo-scientists across Nigeria gathered to deliberate and find working solution on how the governments could diversify the economy from oil to other mineral resources which abound in the country.

The President of the Nigerian Mining and Geosciences Society, Professor Gbenga Okunlola, decried the abandonment of solid minerals for crude oil which has been experiencing deep turbulence in the world market.

He thanked the present administration for showing interest in diversification and urged President Muhammadu Buhari to intensify efforts in the implementations of the proposal submitted in order to improve the economy.

The Minister in his keynote address, explained that the aspect of the constitution which gave the exclusive control of the mineral resources to the Federal Government should not be misunderstood by states.

“The states can enter into joint venture to develop mineral resources in their states.

“The Federal Governments is ready to partner with states in the development of their mineral resources to improve the economy,” Dr Fayemi told the gathering.

He further asked state governments to monitor the holders of mining licences in their various states to ensure proper monitoring of the nation’s solid minerals.

In his remarks, the State Governor, Abdulfatah Ahmed, noted that solid minerals had the potential of generating significant revenue for the country but had been largely underexplored due to reliance on crude oil.

He added that 30 per cent of the world mineral resources and 40 per cent of gold and diamond were found in Africa but not tapped.

The Minister and some state government officials later paid an inspection visit to a factory in Ilorin where he was shown round the nail, motor spare parts and other sections of the industry.

He expressed the determination of the Federal Government to continue to encourage and support the local industries to grow and reduce importation of items that Nigeria could produce.

Reps To Probe Shortfall In Mining Sector

Why is Nigeria earning a paltry N31.449billion annually from the solid minerals sector when it could actually earn as much as N50 trillion?

This is the mystery the House of Representatives is determined to solve as it braces to probe the loss of almost N50 trillion annually in the mining sector.

The House yesterday mandated its Committee on Solid Minerals Development to invite all stakeholders involved in the process of mapping, licensing, mining and exportation of solid minerals in order to determine the extent of compliance with the Mining Act, 2007.

The House’s resolution followed the adoption of the prayers of a member, Hon. Lovette Ederin Idisi entitled: “Call for an End to the Violation of the Mining Act of 2007 by Mining Companies, Individuals and Regulatory Bodies.”

According to the House, the Committee should also determine the number of licensed miners against the number of unlicensed miners and the number of prosecutions, if any, and convictions secured with regard to the violations of the Act.

The committee will again ascertain the data and value of exploited and exported solid minerals and where they are located, and report back to the House within four weeks for further legislative action.

Meanwhile, the Federal Government said it is currently focused on ensuring that the solid minerals sector improves its contribution to the Gross Domestic Product (GDP) of the country, from 0.3 per cent to at least 10 per cent in the near future.

To acheive this, the government will reposition the solid minerals sector to meet its plan to diversify the economy and create employment through the sector.

Minister of Solid Minerals Development, Dr. Kayode Fayemi, said a lot of innovations are being put in place to overcome all the blockages that could hinder the attainment of the goal.

Fayemi who spoke yesterday while delivering a keynote address at the 52nd Conference of the Nigerian Mining and Geosciences Society (NMGS) in Ilorin, Kwara State, said the industry has great opportunities for diversification and linkages to the development of other sectors of the economy.

His Special Assistant (Media), Yinka Oyebode in a press statement quoted Fayemi as saying:

“We strongly believe that the only way minerals development can be sustainable is through economic linkages. We shall promote the development of industrial minerals and encourage down stream linkages leading to the processing of these minerals for our local industries.”

While moving the motion, on the floor of the House, Idisi said “illegal mining and exportation of gold and barites are going on in the country in clear violation of Section 7 of the Act, which requires any person wishing to export solid minerals to obtain a permit.”

He noted that the Mining Act of 2007 which repealed the Minerals and Mining Act No. 34 of 1999, prohibits unauthorised exploration/exploitation of solid minerals in the country and vests on the Federal Government, the responsibility of implementing the provisions of the Act by creating an enabling environment for the exploration, exploitation and sustainable development of these resources for the benefit of the nation.

Ekiti 2014 Poll: Bamidele Urges APC To Learn Lessons, Denies Causing Fayemi’s Loss

A Legal Practitioner and member of the seventh House of
Representatives, Hon. Opeyemi Bamidele, has urged the All
Progressives Congress to learn a lesson from the colossal loss
suffered by the party during the June 2014 governorship poll in Ekiti
State .

Bamidele reiterated that the main take away for all members of the
party should be that there is need to build a strong internal
democracy and foster unity among all members, saying no individual can
unilaterally win an election without the contributions of others.
Governor Ayodele Fayose defeated the then incumbent, Dr Kayode Fayemi
in the poll, winning in all the 16 local government areas of the

He said this in Ekiti at the weekend while addressing party
supporters during a reunification rally, formalizing his return to the

APC with his teeming supporters, where he was received by the Acting
State Chairman of the party, Mrs Kemi Olaleye and the State Working
Committee .
Bamidele praised the national leader of the party, Asiwaju Bola
Tinubu , former Governors, Niyi Adebayo Segun Oni and Fayemi, over
their roles at ensuring that the party bounce back to reckoning in the
future elections.

He said his defection to Labour Party to realise his ambition was only
constitutional and borne out of the necessity created by the
circumstances of that time.

The former federal lawmaker was emphatic that this should not be
mischievously misinterpreted to mean that he was out to play a
spoiler’s role against his friend, Fayemi.

“I pray that God will return all our losses and this could only happen
when we are one and united. APC has lost elections persistently
because we are divided. Whoever knows me well will realize that I am
not a desperado , nor a traitor. I have always believe strongly in the
will of God.

“There was nothing the then President Goodluck Jonathan didn’t do to
ensure that I stepped down for Governor Fayose before the governorship
election, but I stood my ground as a progressive. That was why I
didn’t defect to PDP in the first place, because I was conscious of my
background in politics.

“But I want to apologize to whoever I must have offended by my
defection to LP to contest at that time .In politics, differences can
come in diverse ways. It has come for us in APC and we lost an
election, so what should be paramount to us now is reconciliation and
how to restructure our party”, he stated.

The State Acting Chairman, warned the old member against
discrimination , assuring that “both the old and the new will enjoy
the same privileges. We are not like other parties that usually
stipulate number of years before you can contest. You enjoy full
privileges the moment you are accepted.

“I want to tell all our members that the storm is over. Ex-governors
Oni and Fayemi fought for so many years, but they are now best of
friends. Whatever happens has become history and we have to forge
ahead”, Olaleye said.