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World Bank appraises Nigeria’s application of $120m mining credit

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ABUJA – The World Bank has declared as satisfactory the implementation of about $120 million Sustainable Management of Mineral Resources Project for the revitalization of Nigeria’s minerals and metal sector.

The Bank with all it’s meticulous vetting and assessment of its programmes and projects in developing countries unabashedly praised Nigeria’s shot at a mining renaissance three decades after the demise of the sector. But, the commendation was largely anchored on what the bank regards as the prudent and judicious use of a $120 million grant it had extended to Nigeria as an incentive to resuscitating Nigeria’s solid minerals sector.

The grant, known as the Sustainable Management of Mineral Resource Project (SMMRP), is a home-grown intervention which was conceptualized after a National mining Policy dialogue in 2004. It became effective in April 2005 and was implemented through a seven-year period with an original closing date of June 2010. But the World bank granted an extension as compensation for some implementation delays which occurred earlier in the life of the project.

Mining in NigeriaThe $120m credit which has a 30-year repayment term with a 0.75 percent commission was taken as part of government’s emphasis on developing the non-oil sector to diversify the economy. It also conforms to the World Bank Group 2004 Joint Interim Strategy for Nigeria which was aimed at improving economic governance, creation of conditions for rapid private sector-led poverty reducing growth and enablement of local communities to take charge of their own development.

However, according to the agreement, the Federal government is expected to put in $7 million as counterpart funding, which sadly, till date, it has not.

In a document entitled: “Implementation, Completion and Results Report”, the global bank noted that in all the 15 financial and procurement audits conducted between the inception of the project in 2005 and its conclusion in May 2012, the SMMRP was satisfactory in all except the audit conducted in March 2007, in which it was rated moderately satisfactory.

The document jointly signed by the Vice President of the World Bank, Muktar Diop, Nigerian Country Director, Marie Nelie, Sector Manager, Christopher Sheldon, Project Team Leader, Ekaterina Mikhaylova, and the Primary Author, Sabine Cornelius, defended the overall satisfactory rating of the Federal Government’s Project Management Unit (PMU) which handled the project, noting that, “Despite the multiple disruptions and considerable constraints, the Project continued to function well.”

It further revealed that in the financial management of the credit, all audits were unqualified and cases of fraud were uncovered, adding that during implementation of the procurement, two-thirds of project’s procurement performance ratings were mostly satisfactory.

The report commended the Federal Government for taking over the funding responsibility of SMMRP-supported projects such as the Mining Cadastre Office and the Nigerian Institute of Mining and Geosciences, NIMG, Jos.

The Project which was flagged off in April 2005 had two main objectives, namely to increase government’s long-term institutional and technical capacity to manage Nigeria’s mineral resources in a sustainable way, and to establish a basis for poverty reduction and rural economic renewal in selected areas of the country through the development of income generating opportunities through small-scale and artisanal mining and diversifying away from oil sources of income.

According to the report, the project achieved improved governance and transparency outcomes in the well-performing state-of-the-art cadastre system, efficient management of mining licenses, strengthened institutional and technical capacity, legal and regulatory framework as well as private sector-led development, increased mining activities and increased annual royalty collection value among others.

The bank observed that the SMMRP has strengthened the capacity of key government institutions to better manage the sector. It has also improved governance and transparency which is largely responsible for the commendable inflow of foreign investments into the sector.

On governance and transparency, the report noted that the SMMRP had funded the establishment of a “well performing and world class Mining Cadastre Office. it is remarkable that Nigeria has one of the best Cadastre systems in Africa,” it stated, adding that at the closure of the Project, over 10,056 mining licenses had been issued. “This is more than twice the projections that was envisaged at the inception of the SMMRP,” it added.

The report further noted that the project has made very significant progress towards achieving its development objectives. This includes the completion of the airborne geophysical work and geo-chemical mapping studies of the country. It added that prior to the SMMRP, “the newly restructured Ministry of Mines and Steel Development (MMSD), which was housed in dilapidated physical premises and lacked adequately skilled staff.”

Indeed, the rejuvenation of mining into a tangible economic activity in Nigeria largely lies in the hands of small scale and artisinal miners, whose total number, according to a recent survey, may well be practised by two million Nigerians. But, their activities are haphazard, uncoordinated and destructive to the environment with no reclamation and add almost zero value to the central economy, as there has been no way of regulating them. The SMMRP looks at this challenge as one of its key area of focus.

In this regard, the report commended the Project Management Unit of the Ministry of Mines and Steel development for their exemplary efforts in supervising the implementation of small grants programmes in accordance with the recommendations of the World Bank safeguards audit, which has safety measures for workers as well as proper documentations for the $10 million grant given by the Project for the formalization of Artisanal and small scale miners (ASMs).

So far, not less than 400 mining co-operatives have been formed, all aimed at securing the $10 million grants. A workshop was organised for them in Jos last June so they could be taught how to draw from the grant.

It is believed that, when this category of miners get to work, according to the new mining regulation, blue chips mining firms would easily be wooed to bring in the big capital.

The Director of the Sustainable Management of Mineral Resources Project office, Mr Linus Adie, who was at the meeting, told the gathering that “this is the largest World Bank mining project, not only in Africa, but in the whole world. It came immediately after the Extractive Industry Review of the country.”

According to him, the 0.75 percent credit tied to the grant spread over 30 years repayment period, means it would be of very little burden to repay.

Industry watchers believe that Nigeria is making steady progress towards revamping the mining sector. All that is needed is a transparent running and regulation of the sector and the development of basic infrastructure that encourage big time miners to come in.

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Energy

NCDMB, Starzs Gas, Upbeat About Industrialisation At Integrated CNG Project Groundbreaking Ceremony

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NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

 

The Nigerian Content Development and Monitoring Board (NCDMB) and Starzs Gas Limited were upbeat about growth prospects of Nigeria’s gas subsector and the potential boost to industrialisation as the groundbreaking ceremony for a Compressed Natural Gas (CNG) Mother Station got underway in Iwhreken, Ughelli South, Delta State, on Thursday.

At the event, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the General Manager, Corporate Communications and Zonal Coordination, Barr. Esueme Dan Kikile, commended Starzs Investments Company Limited, parent company of Starzs Gas, for pushing industry boundaries with its expansion into the gas subsector.

Engr. Ogbe described Starzs Gas Limited, whose offerings cut across natural gas compression, CNG fueling and refueling stations, conversion workshops and training centres, motorised CNG tube skids for sale and distribution, as well as engineering, construction and procurement solutions, as a veritable vehicle “to drive industrialization and expand Nigeria’s economy.”

He was particularly elated that the multimillion-dollar Integrated CNG Project, which is slated for commissioning in the first quarter of 2026, has come at a time that the Federal Government’s Decade of Gas programme is going full steam, with the NCDMB itself acting as an enabler to numerous gas development and utilisation projects across Nigeria.

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On the Board’s performance in implementation of its core mandate, the ES disclosed that local content hit 56 per cent in the last quarter of 2023, up from five per cent in 2010, when the Nigerian Oil and Gas Industry Content Development (NOGICD) Act came into force, noting that more and more Nigerian assets and resources are being utilised in oil and gas operations in Nigeria.

Engr. Ogbe urged the host community, Iwhrekan, to cooperate with Starzs Gas Limited, so as to enjoy maximum benefits and also facilitate unhampered production activities at the company.

He said he was encouraged by the enthusiasm of the House of Representatives member for Ughelli North, Ughelli South, Udu Federal Constituency, Hon. Francis Waive, who was present at the ceremony, which could facilitate NCDMB’s sustainability programme for protection and security of the company’s facilities.

According to the Chairman and Chief Executive Officer of Starzs Investments Company Limited, Greg Ogbeifun, the establishment of Starzs Gas Limited signalled “a generational shift,” as the Starzs Group, a conglomerate with such leading companies as Starzs Marine and Engineering Services Limited, Starzs Shipyard Limited, and Starzs Investments Company Limited, had for decades focused largely on the maritime industry.

He said Starzs Gas Limited was the culmination of unrelenting pressure by his daughter, Miss Iroghama Ogbeifun, that the global clamour for elimination of gas flaring and reduced carbon footprint, which form the basis of President Bola Tinubu’s initiatives on gas utilisation, be considered as a challenge to entrepreneurship.

He noted that it yielded and provided the necessary material support for the new company, whose focus is on gas for industrial applications, gas-to-power, and gas as auto fuel.

The company is also engaged in engineering, procurement and construction (EPC) projects within the gas subsector.

The Starzs Group Chairman announced the immediate promotion of Iroghama Ogbeifun to the position of Vice Chairman of the conglomerate in appreciation of her exceptional capabilities in visioning and implementing the blueprint for the new business organisation and her energy and drive.

Earlier in a Welcome Address, Ogbeifun, Managing Director of Starzs Gas, expressed profound gratitude to guests among whom were top executives of the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries, Chief Executive Officer, ND Western, Engr. Olanrewaju Kalejaiye, represented by the company’s Commercial Manager, Engr. Sunday Okunbor, Rt. Rev. Feb Idahosa, Hon. Waive, of the House of Representatives, the Council of Chiefs of the community, and President of the Nigerian Gas Association, Engr. Aka Nwokedi.

She said the event of Thursday was “Not just groundbreaking… but setting the stage for cleaner energy and development for the host community,” pointing out that the NNPCL Gas Marketing Limited (NGML) has 15 percent equity in the project, and that her company would leverage the partnership and expertise of the NNPCL.

“We are embarking on a journey that will drive industrial development,” Ogbeifun assured the audience, adding that the Integrated Gas Project would significantly facilitate attainment of objectives in Federal Government’s Decade of Gas programme.

In a goodwill message, Hon. Francis Waive said Thursday (day of the groundbreaking ceremony) was a very important day for him, adding, “This is my place, my community, my constituency.”

He told the community, “Let us work with Starzs to achieve success,” noting that development was coming to them if the people would refrain from disruptive activities.

The Chief Executive Officer of ND Western, Engr. Kalejaiye, expressed happiness at the initiative of the Starzs Group, pointing out that “Gas is not just fuel but an enabler of economic prosperity.”

He described the project as most valuable as it broadens Nigeria’s energy mix, while calling for collaboration between policymakers, producers and other key stakeholders.

The President, Nigerian Gas Association, Engr. Nwokedi, said the project being undertaken would reduce carbon footprint and bring about other economic benefits.

He commended the partnership between the NNPCL Gas Marketing Limited and Starzs Gas as well as the focus and tenacity of the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, for developments in the subsector.

In a related goodwill message, the Managing Director of NNPC Gas Marketing Limited, His Royal Highness Justin Ezeala, described the Integrated Gas Project as a timely response to the Federal Government’s charge to the private sector to invest in gas infrastructure to promote resource development and utilisation.

HRH Ezeala, who spoke as representative of the Minister of State for Petroleum (Gas), Rt. Hon. Ekpo, and Group Chief Executive Officer of NNPCL, Mele Kolo Kyari, said the Federal Government “believes in the vision of Starzs” and that “It is reassuring that the National Assembly is making the right laws and Government is making the right policies.”

Starzs Gas Limited is building a CNG Compression Station adjacent to the gigantic NAZ 3 Gas Plant at Utorogu, Delta State. The Compression Station, by design, has an initial capacity of two million standard cubic feet per day (mmscfd), which is scalable to five mmscfd within 18 months. It is envisaged to expand from CNG to domestic LNG production.

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Energy

Shell Optimistic About Nigeria’s Deep-water Production

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There is a high possibility of Nigeria meeting her oil production targets and implementing ambitious development programmes from deep-water oil and gas operations.

The Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Ronald Adams in making the assertion, predicated it on Nigeria forging ahead with policies to encourage investments and boost output in the sector.

He said, “Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes.”

Adams shared his views at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) which began in Lagos on Tuesday.

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According to Adams, Nigeria’s deep-water fields are home to some of the world’s most promising associated and non-associated gas reserves, with vast untapped potential that could play a vital role in powering Nigeria’s future, supporting cleaner energy and contributing to global emissions reduction.

“This will require a favourable investment climate to attract capital and innovation to develop these gas resources responsibly and sustainably, ensuring long-term benefits for the country in meeting its energy and global sustainability goals,” he said.

Adams welcomed reforms by government to attract investments especially the signing of three executive orders in February last year on tax incentives, local content compliance requirements and reduction of petroleum sector contracting costs and timelines.

Tax credits were also announced for new investments in deep-water oil and gas.

The reforms, he noted, should be part of a renewed strategy to attract investments “through fiscal and regulatory policies that are fit-for-purpose, forward-looking and competitive.

He said that, for Nigeria to consistently reap the benefits from deep-water operations, it must address regulatory bottlenecks through streamlined and faster approval processes and consistent and fair policy enforcement.

Adams, who spoke on Shell’s vision for unlocking Nigeria’s deep-water potential, assured that the company would continue to leverage its expertise since it pioneered production at the Bonga field in 2005 which achieved 1 billion barrels export milestone in 2023.

Further developments include the FID on the $5-billion Bonga North deep-water project announced last year.

He pointed out that SNEPCo’s deep-water achievements have resulted in the payment of taxes and royalties to government, development of indigenous businesses through contract awards and implementation of social investments across the six geopolitical zones in Nigeria.

Adams added, “Shell has powered progress in Nigeria and our vision is to build on our support and help the country to achieve energy security and economic development. We will do this by continuing to take innovative approaches to deep-water development, reducing costs and ensuring better and quicker returns for all stakeholders.”

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Verheijen Clarifies Position On 65% Electricity Tariff Hike

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Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has refuted media reports suggesting an imminent 65 percent increase in electricity tariffs, stating that her comments were misrepresented.

Verheijen’s remarks, initially reported on January 30, were widely interpreted as advocating for a 66 percent rise in power prices to align with the actual cost of electricity supply.

However, in a statement released on Monday, she clarified that her comments were taken out of context.

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“It has become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs,” Verheijen said.

“This is a misrepresentation of what I actually said in a recent press interview. I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal Government continuing to subsidize the difference.”

She emphasized that while the government remains committed to fairer pricing in the long term, the immediate priority is to increase electricity supply, reduce outages, and protect vulnerable Nigerians.

Verheijen also outlined the Federal Government’s ongoing initiatives to improve the electricity sector:

Presidential Metering Initiative (PMI)

The Presidential Metering Initiative (PMI) aims to deploy 7 million prepaid meters nationwide this year.

According to her, the initiative is expected to end estimated billing, ensuring transparency in electricity charges and boost revenue collection, attracting the investment required to strengthen Nigeria’s power infrastructure.

Targeted Electricity Subsidies

The government currently spends over ₦200 billion per month on electricity subsidies. However, a significant portion of this support benefits the wealthiest 25 percent of Nigerians rather than low-income households.

To address this, the government is developing a targeted subsidy system to ensure the most vulnerable Nigerians receive the most support.

Settlement of Legacy Power Debt

A key challenge in the sector has been accumulated debts owed to power generation companies, which have hindered investments and service improvements.

The government is working to clear these debts, allowing power companies to reinvest in infrastructure and enhance electricity supply.

Reducing Costs for Alternative Power Generation

Recognizing the economic impact of high energy costs, the government has introduced fiscal incentives, including VAT and Customs Duty Waivers, to lower the cost of alternative power sources like Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).

Verheijen assured Nigerians that the Federal Government remains committed to addressing power sector challenges while ensuring that electricity remains affordable and accessible.

“Every policy is designed with the Nigerian people in mind—eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity,” she said.

She added that these ongoing reforms are aimed at delivering better service, expanded access to electricity, and greater economic prosperity for all Nigerians.

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