Economy
Cooking Gas Hike: FG Worried Over Increasing Demand for Firewood
By Tony Obiechina, Abuja
Following the spiraling cost of domestic gas in the country, the Federal Government has expressed concerns over increased cutting down of trees as a substitute for cooking gas.
Minister of State for Environment, Sharon Ikeazor, stated this at the weekly ministerial press briefing organized by the Presidential Media Team at the Presidential Villa in Abuja on Thursday.
There has been steady rise in the cost of cooking gas with public outcry against the unannounced deregulation in the sub-sector.
The minister who noted that the situation is worrisome to the government, said, “I am extremely worried because the rate of cutting down trees has increased.
”Daily Asset reports that a 12.5kg cylinder is sold for N10,000 depending on the location while the 20 metric tonnes LPG is sold for N11.6million as against N3.8 million which was the price in January.
Nigeria has the ninth largest gas deposit in the world, with over 207 million cubic feet of gas which it flares and wastes every day.
The rising cost of gas has forced many families to adopt alternative source of fuel for cooking with a step back to firewood.
The development has increased tree felling, which are done to enable these trees to get dry preparatory to the production of charcoal or burning them directly.
On the environmental devastation in the Niger Delta as a result of oil spill, Ikeazor said there are plans to institute stiffer punishments for companies involved in oil spillage in the country.
She also said that the level of devastation in the Niger Delta is massive and has planned to meet stakeholders in Ogoni land on the ongoing clean-up exercise to get their own assessment on how far government has gone.
According to her, the ministry is engaging other relevant government agencies to achieve this.
She pointed out that a bill is being worked out to amend the law establishing the National Oil Spillage Detection and Response Agency (NOSDRA) to build its capacity and give it “the needed teeth to bite.”
She said the operating company of the OML29 in Nembe, Bayelsa state has blamed the most recent oil spillage in the country on sabotage by the locals.
She however announced that the Santa Barbara spillage has been brought under control after weeks the incident occurred with necessary personnel and equipment deployed to begin recovery and remediation efforts.
Ikeazor stressed the need to put an end to artisanal refineries, which she said had continued to cause pollution in the Niger Delta.
The minister also lamented the high rate of deaths from smoke especially among women in the country, which she noted is the highest in the world.
She said something must be done about the ongoing gas flaring, noting that the country cannot be committed to zero net emission and be flaring gas at the same time.
She said government is working hard and creating alternative for the people in the devastated Niger Delta area in order to move them away from further polluting the environment.
Economy
Value Addition is new Standard in Mining Operations – Alake
The Minister of Solid Minerals Development, Dr Dele Alake has declared value addition as the new indispensable standard for mining operations in the country.
Alake made the declaration in a statement issued by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.
The minister had earlier said that the federal government had resolved to ensure compliance to value addition before permitting investors to operate.
He said that his seven-point agenda for the ministry had placed the mining sector on the global front burner since assuming office, which had generated renewed interest from the international community in Nigeria`s mineral resources.
According to the statement, the minister lauded a mining company, African Natural Resources and Mines Ltd.
(ANRML), during an inspection tour in Kaduna State, for its 600 million dollar facility dedicated to the mining and processing of magnetite iron-ore.He described the move as in line with the government`s resolve for value addition, which is especially apt given President Bola Tinubu`s quest to develop the solid minerals, to boost Nigeria`s economic profile and to meet the global upsurge in energy transition.
“The company aligns with our vision of value addition and beneficiation through its processing of iron-ore, and I urge other mining companies to take a cue from them, “ he said.
He reiterated the government`s commitment to abstain from granting mining licenses to companies that lack the necessary plans for value addition.
The minister acknowledged that resilience, courage and laying a solid foundation were critical in contributing to the company success.
He added that such factors also serve as guidelines for President Tinubu`s administration in its efforts for economic transformation.
“ We have set our minds in this administration and invariably in Nigeria to achieve success, that is why Mr President is restructuring the economy.
“When this company (ANRML) started seven years ago, we saw one of the foundations through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice.
“That is what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “he said.
The minister had stated that no license would be granted to companies wishing to enter the mineral sector without presenting a plan for value addition, such as processing and refining which has multiplier effect on the economy. (NAN)
Economy
Life Insurance Records 95% Net Claims in Q4 2023-NAICOM
The National Insurance Commission (NAICOM) says Life insurance business recorded about 95 per cent net claims of the total claims in the fourth quarter of 2023.
A report by NAICOM in Abuja on Tuesday hinted that the record was due to the direct reflection of the ongoing regulatory measures by the Commission regarding claims settlements.
NAICOM said the insurance market average stood at about 71.
4 per cent of the N536. 5 billion gross claims reported at the close of the fourth quarter.The Commission said the market also recorded retention of about 87.7 per cent for the life business, 54 per cent for non-life while the aggregate market average retention stood at 66.
7 per cent for the period.It showed that the insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter.
According to NAICOM, the insurance market recorded a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.
”Major growth drivers in the non-life segment of the market were oil and gas and fire Insurances contributing 27.3 per cent and 24.1 per cent respectively.
”In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continues to decline.
”The premium posted 1.6 per cent as outstanding of all the premiums generated in the market during the period.
”Statistics also shows that the market recorded total assets of about N2.67trillion and capitalisation of N851billion in 2023,” NAICOM said. (NAN)
Economy
No Mining License without Mineral Value Addition Plans-Alake Warns
The Minister of Solid Minerals Development, Dr Dele Alake has warned that no mining license would be issued to prospective investors without requisite plans for value addition on minerals.
Alake gave the warning in a statement by his Special Assistant on Media, Segun Tomori on Tuesday.
He said the Federal Government had resolved to ensure compliance before permitting investors to operate.
He said that his Seven -Point Agenda for the ministry had placed the mining sector on global front burner since assuming office, which had generated renewed interest from the international community in Nigeria’s mineral resources.
He said the support of the executive and the legislature had enabled the ministry to showcase the solid minerals sector globally, resulting in his election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.
According to him, with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent regarding the issue of local value addition.
“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition, like processing, refining and this has a multiplier effect on the economy.
“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell.
“These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, ” he said.
Reports says that the minister had earlier received members of the House Committee on Solid Minerals who were on oversight visit to his office.
The minister commended the lawmakers for their support in repositioning the mining sector, stressing that boosting the economic profile of Nigeria required joint task by both the executive and legislature.
He acknowledged the significant contribution of sub-nationals to mining development, emphasising that state chairmen of Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments. (NAN)