Solid Minerals
Nigeria loses $1bn annually to unmined coal as demand rises
ABUJA – Even though Nigerian coal is currently in high demand in the international market on account of its low sulphur and moderate ash content, it is still in low supply, leading to the loss of $1 billion annually, information from the Nigerian Bureau of Statistics (NBS) has revealed.
The loss is attributed to abandoned coal mines and lack of necessary and modern infrastructure needed to drive the long-neglected sector, which has the export capacity or potentials of 15 million tonnes per annum.
‘’The high demand for Nigerian coal is attributed to its low sulphur and moderate ash content. When the necessary infrastructure is put in place and the abandoned mines reactivated and modernised, coal export can yield the nation about US$1 billion per annum,’’ NBS, the country’s data management bureau, said.
Coal is found in commercial quantities in states such as Anambra, Enugu, Ebonyi, Kogi, Benue, Gombe, among others. According to experts, Nigerian coal is also adequate and suitable for use as boiler fuel, high calorific gas, domestic heating, formed coke and in the manufacture of a wide range of chemicals.
Current uses for coal in the country are in cement production, brick factories, foundries, laundries and bakeries, tyre manufacture, battery manufacture, and domestic cooking fuel . According to Global Menthahe, an online energy research paper, it is projected that as much as 200,000 tonnes of Nigerian coal could be directed to supply coke to the Ajaokuta Steel Plant per year.
In spite of these domestic noeeds, analysts say part of what is consumed domestically is still imported, owing to utter neglect of this sector.
‘’The domestic coal market is latently large. Besides the potential for power generation, Nigeria currently imports coals of various grades and qualities including coke, pellets, briquettes, anthracite, coking coal and form coke, ‘’ said I.F Odesola, Eneje Samuel and Temilola Olusoga, in a paper entitled ‘’Coal Development in Nigeria: Prospects and Challenges’’ recently presented at the University of Ibadan.
Following this trend, experts have called on the government to take coal mining business seriously, especially now that the need for economic diversification has become most necessary. They also point at employment generation and creation capacities of coal business as an important potential benefit the nation stands to derive from same.
“There is the need to revitalise coal mines in order to provide employment and diversify the economy now that crude oil is beginning to fail, ‘’ said Chukwunonso Iheoma, economist at African Heritage International.
coal-However, the NBS has said the government has not rested on its roars in its bid to revamp the sector, citing incentives and creation of investment climate as policies geared towards luring investors to coal mining business.
‘’Government is encouraging private investment by offering various incentives including joint venture. The Nigerian Coal Corporation is being reinvigorated and equipped and some of its obsolete equipment replaced, to enhance increased production.
‘’The Federal Government has embarked on formulation of well-articulated policy objectives and programmes, the implementation of which will avail the nation of the enormous opportunities offered by our mineral wealth. The focus of these programmes is the development of the solid mineral sector, with a view to improving its economic importance relative to other sectors of the economy.
They are also designed to facilitate favourable climate for foreign investors in all their ramifications. The creation of the Ministry of Solid Minerals Development and the restoration of the pride of place to the sub-sector is commendable, ‘’NBS said.
– BUSINESS DAY
Business
Nigeria set to boost Naira value and foreign reserve with local gold production, as Tinubu receives gold bar
IN a significant move to strengthen Nigeria’s economy, President Bola Tinubu received a symbolic gold bar on Sunday from the Minister of Solid Minerals Development, Dele Alake.
This gesture marks the commencement of the National Gold Purchase Program (NGPP), aimed at boosting the naira’s value and enhancing the country’s foreign reserves.
Minister Alake expressed gratitude to President Tinubu for his support of reforms in the solid minerals sector.
He highlighted that the NGPP, which involves sourcing gold from artisanal and small-scale miners and refining it to meet the London Bullion Market Association’s Good Delivery Standard, will substantially contribute to Nigeria’s economic stability.
Alake stated “This initiative will significantly increase our foreign reserves and strengthen the naira. The refined gold will be supplied to the Central Bank of Nigeria, marking a crucial step in our economic strategy.”
The presentation also underscored the first commercial transaction under the NGPP, establishing a centralized gold purchasing system that integrates small-scale miners, cooperatives, and production units across the nation.
This program is expected to provide a structured market for gold, fostering economic growth and stability.
He said, “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness. It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy. This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”
Alake added that the initial commercial transaction under the program resulted in a +US$5 million boost in Nigeria’s foreign reserve assets.
The transaction involved refining over 70 kilograms of gold to meet the London Bullion Market quality standard and aggregating locally mined gold, thereby infusing approximately NGN6 billion into the rural economy.
President Tinubu expressed appreciation for the Ministry’s accomplishment in advancing the government’s goal of economic diversification by acknowledging and displaying the symbolic gold bar
The Nigerian Government has threatened to come down heavily on foreigners sponsoring bandictory as a way of sustaining illegal mining activities in parts of the country.
The warning was handed down in Abuja by Minister, Solid Minerals Development, Dr Oladele Alake, while receiving a delegation of the Nigeria-China Chamber of Mines led by its National President, Dr. Olugbenga Ajala.
Details of these were contained in a statement released by Head, Press & PR, Ministry of Solid Minerals Development, Alaba Balogun over the weekend.
The statement cited, Dr Alake, thus, “The government will come down firmly on these unscrupulous foreign operators sponsoring banditry to perpetrate illegal mining: let me use this medium to appeal through you to tell those sponsors to desist or face the full wrath of the law.”
According to Dr Alake, the Ministry is committed to establishing a multi-agency task force that will end the activities of illegal miners and their collaborators.
The Minster made it clear that the FG had given illegal miners a 30-day-ultimatum to legitimise their businesses, quit Nigeria or incur the wrath of the law.
According to him, this will help “to streamline and structure the Small-Scale Artisanal Miners for maximum yield to the Federal Government.”
The delegation paid a courtesy call on the Minsiter at the Ministry’s headquarters in Abuja.
By Edozie Obasi-Eze
Amidst heightening uncertainties in the domestic petroleum products market characterised by scarcity and irregular pricing, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that there’s no intention to review pump prices upwards.
This was contained in an advisory issued by General Manager, Corporate Communications, NMDPRA, Kimchi Apollo.
He stated that the Nigerian National Petroleum Corporation Limited (NNPCL) had imported PMS with current stock levels sufficient for 34 days.
In an attempt to address panic buying and speculations which have seen price of Premium Motor Spirit (PMS) oscillate between N180-N250 in the Lagos area, Apollo assured that there was enough quantity of the product in the country already.
He said, “Consequently, marketers and the general public are advised to avoid panic buying, diversion of products and hoarding.
“In keeping with the Authority’s responsibilities as outlined in the Petroleum Industry Act (PIA), the Authority assures the public that it would continue to monitor the supply and distribution of petroleum products nationwide, especially during this holiday season.”
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