Nigeria’s gold market is worth £4 billion with high prospects of profitability for all players in the subsector, the Managing Director of Heritage Bank, Ifie Sekibo, has said.
Sekibo, who stated this in Abuja at the Nigeria-Canada Investment Summit over the weekend, said the enormous potential of the industry was one of the reasons why Heritage Bank delved into the mining sector despite enormous risks. He said the bank has Dukia Gold as its partner that would facilitate access to local miners and artisans to get value for their commodity at international market price.
Sekibo, who was represented by the Team Lead, Agric Finance and Export, Adelana Ogunjirin, said that prior to now, local miners of Gold found it difficult to trade their commodities favourably but with the involvement of Dukia and its partner, Heritage Bank, a Quality-and-Quantity test will be conducted based on the arrangement they made with Dukia Gold and that will lead to additional value to the small holder miners. He explained that this will leverage the small miners the opportunity to also trade their commodities at international market price.
He further stated that a metric tonne of Gold is currently valued at $30million adding that it is worth investing in the industry, especially as gold is a kind of commodity that does not easily lose its value.
He said: “Mining sector is an area which has not been fully tapped in terms of the potentials around it, as there are quite a lot of opportunities around that sector. Recently we secured $1 billion funding line with our funding partner AfreximBank, which also is to support areas like solid minerals.
“Now with respect to this we have looked at the value chain of this space and we have looked at the opportunities that are there. A lot of fund providers have not really delved into this and it is because of the lack of understanding of the market.
“In terms of value, gold is an area where you can enhance the value. You hardly see Gold losing value and you see that in different exchanges you even trade those commodities.
“Looking at it in terms of trend, you see that gold is something that will appreciate definitely. So in terms of the profitability of this business, we have looked at it, the crunch, the numbers we see that is a space that the Bank will definitely earn a lot of income.”
He also expressed optimism that other banks would like to come into the Nigerian mining sector, but may be studying to understand the sector properly.
“Definitely other banks will come into the sector. For us we are leading, but the truth is they need to play in an area and space that they understand, as not everybody would be able to play in that space.
“Heritage Bank has already carved a niche for itself in agribusiness space, just like the Gold commodity, this would be exported. So, in terms of export proceeds too, there are opportunities to be explored. Generally, looking at the Nigerian outlook, on the long run, this will also enhance the country’s external reserves. There are multiplier effects of what we are doing today and that is why we are also moving in this direction,” the MD noted.
Also , Managing Director, Nigeria Export-Import Bank, NEXIM, Abba Bello, revealed that the bank had gone into high level discussions with heavy equipment manufacturers and suppliers that would lease equipment to miners for exploration and processing, adding that this was expected to make the equipment accessible and affordable.
Bello said, “For equipment supplier or outright purchase of equipment, we have gone into discussions with Bluecare and now Mantrac for the supply of heavy equipment for gold processing or exploration on lease basis and, it is something that does not exist currently within the industry.
“Barrick Gold and Bullion Mart is something that happen in the mining world. You don’t have to own the equipment, but there are vendors who supply the equipment for explorers to hire.
“Discussions have gone very far with the equipment suppliers and very soon we will announce the programme.”
Meanwhile, the Country Manager, ITM, Nigeria, Habibah Waziri, raised concerns on human resources development that would sustain the sector.
Waziri also said there is need to formalize the sector and also invest in human capital in the sector for growth and development.
Adesina Wins African Of The Year Award
African Development Bank President Dr Akinwumi Adesina received the African of the Year Award from the All Africa Business Leaders Awards (AABLA™), Thursday night, in recognition of his bold leadership and the innovation of the Africa Investment Forum which “opened up billions of dollars of investment into the continent.”
The ninth edition of the awards, organized by AABLA™ in conjunction with CNBC Africa, seeks to honour leaders who have contributed and shaped the African economy.
The Africa Investment Forum (https://AfricaInvestmentForum.com/), inaugurated in 2018, has been a trailblazer in tilting investments into the continent. The second edition of the Forum which was held in Johannesburg, South Africa ended on 13 November. It was attended by over 2,000 delegates and secured investor interest worth $40.1 billion – up from $37.1 billion the previous year.
“It is indeed a great honour,” Dr Adesina said in remarks during the exclusive gala dinner held at the Sandton Convention Centre in Johannesburg, at which the awards were announced. Adesina added that he was overwhelmed to follow in the footsteps of his “big brother” President Paul Kagame of Rwanda, who won the award in 2018. “My heartbeat is to serve the people of Africa,” Adesina said.
The event was attended by an A-list of business leaders, government representatives including David Makhura, Premier of Guateng Province, who gave the opening address. The event also attracted some of South Africa’s leading personalities. Vibrant music was provided by The Muses, a south African all-female string quartet and “Dr Victor And The Rasta Rebels.”
The awards are decided by a jury of continent-wide judges led by Sam Bhembe, CNBC Africa Non-Executive Director, following evaluation of a shortlist of finalists to determine the overall category winners.
Bhembe said the award reflected how the winner would “shape the future of the African continent,” and that the winner would brace the cover of a special edition of Forbes Africa.
In other categories of the 2019 awards, Nigerian Co-Founder of Kobo360, Obi Ozor won Young Business Leader of the Year; Naspers CEO: South Africa, Phuthi Mahanyele-Dabengwa took the Business Woman of the Year award; while Nedbank, won the Company of the Year award.
Adesina dedicated his award “to the people of Africa who inspire me… I do not work alone.” He also said it was very rewarding to be at the helm “of an organisation that paves the way to progress.” Enditem
SOURCE: African Development Bank Group (AfDB)
Nigeria Earned N275bn From VAT In Q3 — NBS
The country earned a total of N275.12 billion from Value Added Tax in the third quarter of this year, figures released by the National Bureau of Statistics have revealed.
The NBS in its VAT report which was released on Monday said the N275.12 billion earnings represents a decline of N36.82 billion when compared with the N311.94 billion generated in the second quarter.
The report stated that during the period, professional services generated the highest amount of VAT with N32.09 billion.
This is closely followed by other manufacturing which generated N30.27 billion; while commercial and trading activities generated N14.47 billion.
It added that mining generated the least and it was closely followed by textile and garment industry, pharmaceutical, soaps and toiletries with N44.30 million, N253.83 million and N291.06 million generated respectively
The report stated that out of the total amount generated in 2019, N150.74 billion was generated as Non-Import VAT locally while N63 billion was generated as Non-Import VAT for foreign. The balance of N61.37 billion was generated as NCS-Import VAT.
Dangote Refinery Takes Delivery Of World’s Largest Crude Distillation Column Equipment
The world’s largest crude distillation column equipment designed for crude oil processing for Dangote Refinery has arrived Lagos, its location, Business Day reports.
The Crude Distillation Column is the largest in terms of distilling capacity which is 650 thousand barrels per stream day. Rajen Sachar, Head, Maritime and Ports Infrastructure of Dangote, told newsmen during the arrival of the facility in Lagos on Sunday that the equipment is the biggest single-train facility used for refining crude.
The equipment weighs 2250MT. It is 112.5m long, 14.036m wide, and 13.752m high.
The above-mentioned weight does not include the weight of the internal trays which is approx. 536 MT.
It is the largest diameter, longest length and the heaviest single-unit equipment in domestic export equipment, Sachar said.
”It will be installed in the world’s largest single-series refinery – the 32.5 million tonne/year Dangote refinery in Nigeria.
”It will be installed in the world’s largest single-series refinery – the 32.5 million tonne/year Dangote refinery in Nigeria,” he explained.
The refinery equipment which was manufactured by Sinopec in China is the primary unit processor of crude oil into fuels.
He said that crude oil processor took 14 months in construction by Sinopec company in China and eight weeks to bring it down to Nigeria.
Sachar said the crude oil consists of various chemical components that have different molecular sizes, molecular weights, and boiling temperatures.
He added that the crude distillation column works on the principle of fractional distillation leading to separation of various components in the mixture on the basis of their different boiling points.
”Crude oil enters the top of the column, where the inlet temperature is 165 °C, gradually increasing to 357 °C at the bottom of the column.
“During this passage the crude and its vapours pass through a complex web of internal trays to increase the contact time and surface area within the column with the hot vapours travelling upwards through bubble caps which allow the vapour to pass through the tray with
the cooler liquid flowing downward the column.
“When the vapour reaches the height within the column where its boiling point is equal to the temperature of the column at that height it condenses to form a liquid.
“The liquid then collects on various trays in the column at differing heights from where it is extracted out of the column.
“It is therefore critical to control the heat load of the column to optimize the crude crack.
“These separated fractions are mainly middle distillates namely, Naphtha, Jet Fuel, Kerosene, Gasoline and Gas Oil,” Sachar added.
The company’s captain said that the refinery when completed will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.
He said that the crude column will enhance the Nigerian economy and all neighbouring countries in Africa by making available refined petroleum products meeting world standards emission norms of Euro 5 and Euro 6.
The captain said the strategic location of Nigeria in West Africa will help in reducing the transportation costs of these fuels to other countries in the African subcontinent.
“Thereby providing cost-effective, high-grade petroleum products to them.
“This Refinery with a capacity of 650 kbpsd is higher than the total demand of Nigeria, thus catapulting Nigeria’s position from a net importer of petroleum products to a net exporter,” he said.
He said the technology would bring positive multiplier effect to the company and Nigeria through supply to a large market. Sachar added that the project was expected to generate over 9,500 direct and 25,000 indirect jobs.
”We decided to ship it through vessel from China to avoid it being damage and also to avoid traffic congestion if using roads from Apapa.
”Dangote refinery also invested heavily in dredging to sea from refinery to Apapa for easy passage of the vessel.
He said that the President of the company, Alhaji Aliko Dangote is passionate about technology transfer to Nigerians, adding that he has given a standing instruction to train seven Nigerians be ship Captains.
Sachar said Dangote Oil Refinery Company is currently training about 150 young Nigerian engineers in Indian on refinery operations in preparation for the take-off of its Lagos refinery and petrochemical plant. The engineers are currently undergoing training Mumbai, India, he said.
The training is a continuum as more engineers would be trained to work effectively in the fertilizer plant and refinery being built by the company, Sachar added.
In his remarks, Lawal Fagbo Saheed, Pilot Grade 1 of the Nigerian Ports Authority (NPA), commended the vessel crew who brought it from China, adding that it took seven hours to drive the vessel from Apapa to Dangote Refinery due to the heavy equipment.
According to Saheed, “It took an experienced and patient pilot to move the vessel to the final destination due to sea waves.
”We are happy today that am also part of progress and am proud to be associated with such landmark achievement.