Connect with us

Business Analysis

Counting Cost of Illegal Gold Mining on Nigeria’s Wealth

Published

on

Share

By Femi Ogunshola

At the recently concluded Green Economic Summit, Governor  Muhammed Bago of Niger spoke extensively about the illicit gold trade in the state where according to him, dealers rake in an astonishing 1.

2 billion Naira daily.

A recent report by Nigeria Extractive Industry Transparent Initiatives (NEITI) estimated that Nigeria loses about 9 billion dollars annually to illegal mining and smuggling of gold.

This revelation highlights a deep-rooted issue that has severe implications for the nation’s economy and environment.

Bago, speaking at the inauguration of the Mohammed Umar-Bago International Gold Market in Minna, emphasised that: “in spite of the staggering daily turnover in the black market gold trade, the government gains nothing from it.”

This assertion underscores a critical challenge: How do we halt the illegal trade? Can we bring perpetrators to book? What is the implication of their actions on the economy?

How can a state with many impoverished citizens afford to forfeit N1.2 billion daily to illegal miners?

Experts argue that unless Nigeria takes serious action to combat the menace of illegal mining and profiteering, the nation’s economy will continue to languish.

It’s worth noting that a significant portion of these illegal miners are alleged to be foreign nationals, such as Chinese and Lebanese, who collaborate with locals.

These unscrupulous actors strip the country of its precious resources, perpetuating a cycle of exploitation.

Fortunately, some state leaders are beginning to recognise the gravity of the situation hence the attempt by Niger government to inaugurate a gold market

Bago’s commitment to a gold market aims to ensure that gold mining benefits the state economically. This step holds promise for revenue generation and development.

In Zamfara, illegal mining has become a rampant issue, further exacerbating the state’s poverty index.

Like Bago, Governor  Dauda Lawal has initiated measures to combat this problem, as illegal miners have been linked to increased insecurity in the region.

He understands the urgent need for the state to regain control over natural resources and protect its citizens from ‘gold thieves’.

Worried by the activities of illegal miners, Zamfara government on Sept. 23 announced a ban on all illegal mining activities in the state.

He directed law enforcement officers to take stringent actions against violators, including shooting those involved on sight.

Lawal said he was ready to tackle illegal mining, a trade often linked to financing criminal activities and exacerbating insecurity.

In Osun, illegal mining has stifled the state’s potential to profit from its natural resources.

The damage caused by these illicit activities is severe, affecting farmlands and water sources. Residents are concerned that the state government has failed to address this crisis.

Sola Rotimi, a concerned indigene of Osun Indigene, said that in Osogbo, Ijesha, and other communities, the extent of the damage done by illegal miners to farmland is monumental.

He said the rate at which they also pollute their water sources and remains a serious health concern for them.

Rotimi said it appears the state government was helpless as illegal miners operate with audacity and do not care about the impact of their actions on the economy and environment.

He said in Osun State, illegal miners, displaced from Zamfara due to military actions and other exploiters, have reportedly swarmed areas like Arimoro and Isale General in Ilesa.

According to him, they also operate in rural communities spanning Obokun, Atakumosa East, Atakumosa West, and Oriade local government areas.

The Federal Government seems poised to rescue the sector from non-state actors.

The Minister of Solid Minerals Development, Dele Alake, has issued a 30-day ultimatum to illegal mines align with government’s mining policies or face severe legal consequences.

He said mine police, comprising officers from the Nigerian Police Force, would be deployed to apprehend perpetrators.

He said the Ministry is introducing a security task force with mine police as a component to combat illegal mining and smuggling nationwide.

The overarching question is how long will federal and state governments allow these elements plunder our commonwealth?

Mining stakeholders urge governments to match their words with action and ensure that the nation’s solid minerals, gold in particular, is used for the good of all as is the case with oil and gas. 

Business Analysis

Nigeria Customs Generates over N1.75trn Revenue in 2025

Published

on

Share

By Joel Oladele, Abuja

The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.

The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.

According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.

“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.

I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.

He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.

Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.

 “I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.

“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected N1,347,705,251,658.31.

“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.

In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.

He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.

“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.

Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.

Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.

Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.

“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

Continue Reading

BUSINESS

NSIA Net Assets Hit N4.35trn in 2024

Published

on

Share

By Tony Obiechina Abuja

The Nigeria Sovereign Investment Authority (NSIA) yesterday disclosed that its net assets grew from N156bn in 2013 to N4.35 trillion in 2024.

Similarly, the Authority has remained profitable for 12 consecutive years, leading to cumulative retained earnings of N3.

74 trillion in 2024.

Managing Director and Chief Executive Officer of NSIA, Aminu Umar- Sadiq made these disclosures at a media engagement in Abuja, highlighting its audited financial results for the 2024 fiscal year.

According to him, the results underscored the resilience of the authority’s investment strategy and the strength of its earnings, driven by a well-diversified revenue base and robust risk management practices, despite a challenging global macroeconomic and geopolitical environment.

Total operating profits, excluding share of profits from associates and Joint Venture (JV) entities, increased from N1.17 trillion in 2023 to N1.86 trillion in 2024, driven by the strong performance of

NSIA’s diversified investment portfolio, infrastructure assets, gains from foreign exchange movements, and derivative valuations.

In addition, Total Comprehensive Income (TCI), inclusive of share of profits from associates and JV entities, reached N1.89 trillion in 2024, reflecting a 59 per cent increase from N1.18 trillion in 2023.

Core TCI (excluding foreign exchange and derivative valuation gains) rose by 148 per cent to N407.9 billion in 2024 compared to N164.7 billion in 2023, supported by robust returns on financial assets measured at fair value through profit and loss, including collateralised securities, private equity, hedge funds, and Exchange-Traded Funds (ETFs).

Umar-Sadiq said the authority’s outstanding financial performance in 2024 reflected the “strength of our strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement.”

He said, “By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns but also created value for our stakeholders

“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians.”

The CEO reaffirmed the authority’s commitment to managing the country’s SWF, and delivering the mandates enshrined in the NSIA Act.

He said NSIA remained poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and large-scale infrastructure projects, and enhancing the desired social outcomes.

He noted that NSIA was committed to its mandate of prudent management and investment of Nigeria’s sovereign wealth.

“In adherence to its Establishment Act, NSIA prioritises transparency, disclosure, and effective communication with all stakeholders and counterparties,” he said.

He pointed out that in the year under review, a new board, led by Olusegun Ogunsanya as Chairman, was appointed by President Bola Tinubu, in accordance with the provisions of the NSIA Act.

The new board will provide strategic direction and oversight, in addition to playing a pivotal role in critical decision making.

He remarked that under the guidance of the Board, the Authority will retain focus on its primary mandate of creating shared value for all stakeholders based on its continued adoption of corporate governance practices.

“NSIA prides itself an investment institution of the federation established to manage funds in excess of budgeted oil revenues and its mission is to play a pivotal role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of the county’s infrastructure, and providing stabilisation support in times of economic misadventure,” he added.

Continue Reading

Business Analysis

A Peep Into Dangote’s Refinery, The World’s Engineering Wonder

Published

on

Share

By Cletus Akwaya

Call it Dangote Republic and you would not be wrong, for that is what it means in real sense.

The ultra-modern Dangote Refinery and Petrochemical complex located at the Lekki Free Trade Zone in Lagos is the World’s Engineering wonder.

A guided tour for top Media executives in the country  by the President,  Dangote Industries Group himself, Alhaji Aliko Dangote on July 14, provided a rare privilege and opportunity to appreciate the project that has emerged as the World’s largest  single train petroleum refinery.

Dangote, the Kano-born business mogul and Africa’s richest man, whose vision for the industrial transformation of Nigeria led to the initiation of this project is certainly a fulfilled person, having accomplished such a gargantuan task in the spelt of just about 10 years.

The refinery, which is  built and equipped with the latest technology in the industry. It is a behemoth sitting on a huge land space of 2, 735 hectares, approximately seven times, the size of Victoria Island, the octane section of Lagos, which has become the abode for the very rich in the nation’s commercial nerve – centre over the decades.

The land was provided by the Lagos state government after the payment of $100million dollars by the Dangote Group as cost of the land.

The edifice didn’t come easy as the engineers had to reclaim 65million cubic metres of sand  through dredging of the Atlantic coastline to pave way for the construction of the refinery and its accompanying facilities especially the Jetty.

The Dangote refinery is not a stand-alone project as it has a coterie of associated industries and infrastructure making it a self-reliant complex.

For instance, the company has a fully developed port (jetty)for maritime operations for both in-take of crude and discharge of refined products. This perfectly compliments the huge pipeline network that lands into the Atlantic for intake of crude and loading of refined products to ships.  Its Jetty, which stretches 9KM into the international waters in the Atlantic Ocean and 12.5 KM from the refinery is perhaps one of the most modern in the world built with sand piles that shield the final landing points from the violent oceanic waves, thus providing for safety and stability of ships, barges and oil tankers.

The complex is accessed by 200KM network of concrete under-lay and well asphalted road network to ease vehicular traffic. The refinery has its dedicated steam and power generation system with standby units to adequately support operations of the various plants in the complex.

 It has successfully completed a 435 MW power generating plant for its operations. The power generated from this plant surpasses the entire distribution capacity of Ibadan Electricity Distribution company, which supplies electricity to five states of the Federation including Oyo, Osun, Ondo, Ekiti and Kwara.

The Dangote refinery with a capacity of 650,000 bpd of crude oil is designed to handle the crude from many of the African countries, the Middle East and the US light crude. Its petrochemical plant is designed to produce 77 different high-performance grades of polypropylene, which is the major raw material for numerous industries and other refineries. With a huge refining capacity, Alhaji Dangote said the products from the refinery company would easily meet 100 per cent the needs of  Nigeria’s demand for gasoline, diesel, Petrol and Aviation Jet with 56 per cent surplus for export, from which the company projects to earn a princely $25billion  per annum from 2025.

The company has facility to load 2,900 trucks with its various products in a day by land and millions of litres of products through the waters depending on where the orders come from. The $25million projected revenue in 2025 could translate to a huge relieve for the nation in dire need of foreign earnings to shore-up the value of the nation’s currency.

The associated industry, the Dangote Fertilizers Limited also situated in the complex utilises the raw materials from petrochemicals to produce different varieties of fertilzers especially Urea, NPK and Amonia grades of fertilizers. Apart from the local market, Dangote is already exporting its fertilizers to other countries including Mexico, a testament to its high quality that meets world standards.

This feta,  the President of Dangote industries explained was possible because of the high quality, the company has opted to pursue. In between the refinery and the fertilizers complex lies a 50,000 housing estate, which provided accommodation for the construction workers at the time of construction especially during the COVID-19 lockdowns of 2020, when workers remained encamped on the project site to continue with the work.

What stands out the Dangote Refinery is perhaps not in its sheer size and capacity but in the fact that  it is  perhaps the only of such projects whose Engineering, Procurement and construction(EPC) was done directly by the company without engaging the world renowned refinery constriction companies  like Technip Bechtel (USA)Technip (France)Aker Solutions (Norway)Chiyoda Corporation (Japan)SNC-Lavalin Group (Canada)J. Ray McDermott (USA)JGC Corporation (Japan)Hyundai Heavy Industries (South Korea)Foster Wheeler (USA) and Daelim Industrial Company (South Korea)

“The design of the refinery was handled by dozens of Engineers and technical experts assembled in India and Houston, Texas, USA to execute engineering designs of the refinery,” said Edwin Kumar, the Executive vice President, Oil and Gas for the Dangote Group who midwifed  the birth of the refinery complex.

“We didn’t give out contracts to anybody, we bought every single bolt and equipment ourselves and had it shipped into the country,” Dangote explained to his guests.

Part of the equipment imported into the country was the procurement of over 3,000 cranes to handle the evacuation of huge consignments of machinery from the wharf and for subsequent installation at the construction site. The cranes have become an unusual assemblage of such equipment to be found in one place on the African continent.

If there was any doubt that Alhaji Aliko Dangote is Africa’s richest man, the successful completion of the refinery and petrochemical complex at the cost of about $20billion has further confirmed his status as Africa’s leading businessman and entrepreneur.

However, Dangote does not really accept that he is the richest man on the continent,
“When you are rich, you accumulate cash, but when you  wealthy, you create wealth” he told the top Media executives on tour of the huge project, explaining that he would rather  prefer to be referred to as a “Wealthy man.”

And consistent with his business philosophy, Dangote hinted of plans to list the refinery on the Nation’s stock exchange by the first quarter of 2025. His vision is to avail the public of 20 per cent of the shares so as to ensure participation by Nigerians and even international portfolio investors.

The refinery company and the entire of Dangote Group at the moment provides direct employment to about 20,000 Nigerians and much indirect jobs to Nigerians, making it the highest employer of labour outside the government.

Most interestingly, the highly technical operations of Dangote refinery is operated by over 70 per cent of local manpower who work in the refinery control, centre, the numerous production and quality control laboratories among others. Some of the staff who explained their tasks to the visiting media executives said they were graduates of Engineering and allied disciplines recruited mostly from Nigerian universities and trained in various institutions abroad for periods ranging from sixth months – one year to master refinery operations. Through this strategy, Dangote has ensured transfer of technology to thousands of Nigerian youths.

“We don’t  know where they come from as long as they are Nigerians and if they decide to leave and join international oil companies for better job opportunities, we have no problem with that,” Dangote responded to a question on the strategy to retain the technical manpower for stability of the refinery’s operations.

The Dangote Refinery is a Republic of some kind,  at least an economic or industrial Republic.

But the man who presides over this ‘industrial empire’, Alhaji Dangote says his only ambition is to boot the nation’s economy and ensure netter life for Nigerians.

“When you import any product into Nigeria, you are importing poverty and exporting our jobs to those countries from where you are importing” Dangote said  adding “this is why I want economic nationalism in Nigeria.”

Dangote’s vision even goes beyond Nigeria as he has cement factories and other business concerns in about 13 African countries including Ghana, Ethiopia, Tanzania, Uganda, etc. This signifies his continent-wide  dream to transform Africa’s economies.

There has been attempts by some international oil companies to frustrate the successful take-off of the refinery, through over pricing and in some instances outright  denial of crude supplies for processing. This made Dangote to commence importation of crude from the US. However, the cheering news that the Nigerian National Petroleum Company Limited (NNPC) has finally approved a supply arrangement has raised hopes that full operations will commence and that the long-awaited Dangote oil products will reach consumers around the country from August.

At last, the Dangote Group may have achieved its objective to serve as the elixir to Nigeria’s industrialisation effort. This is perhaps the greatest legacy of Africa’s richest man to his country of birth.

Continue Reading

Advertisement

Top Stories

NEWS1 day ago

Tinubu To Commission Fruit Juice Factories, BIPC Motorcycle Assembly Plant In Benue

ShareFrom Attah Ede, Makurdi  President Ahmed Bola Tinubu is set to visit Benue State to commission the newly built ultra modern Bensono Concentrate Plant, Benva Juice Factory, and the Motorcycle Assembly...

NEWS1 day ago

Dangote Refinery Surpasses Capacity Target, Eyes 1.4m bpd Expansion

ShareBy David Torough, Abuja Dangote Petroleum Refinery and Petrochemicals has achieved a major operational milestone by increasing its crude oil processing capacity to 700,000 barrels...

Uncategorized2 days ago

Alia Appoints New Acting Head of Service in Benue

ShareFrom Attah Ede, Makurdi Benue State Governor, Rev Fr .Hyacinth Alia has approved the appointment of Dr. Ihu Eunice Ogbenyi as new Acting Head of Service (HoS)...

SPORTS2 days ago

Oshonaike Hails Steady Progress of Nigerian Table Tennis Players

ShareSeven-time Olympian Olufunke Oshonaike said Nigerian table tennis players are making steady progress in spite of the challenges they face in competing...

Foreign News2 days ago

Poland Bans Smartphones in Primary Schools

SharePoland plans to ban mobile phones in all primary schools from next academic year under draft legislation approved by the government on Tuesday. The...

NEWS2 days ago

Reps Minority Picks Ugochinyere as New Leader

ShareBy Ubong Ukpong, Abuja Following the defection of the former minority Leader of the House of Representatives, Kingsley Chinda, the minority caucus has nominated Hon. Ikenga...

NEWS2 days ago

Kano Revokes Private School Licences over Sexual Abuse

ShareFrom Aliyu Askira, Kano The Ungogo Local Government Area of Kano State has withdrawn the licences of all private schools within its jurisdiction following allegations that...

NEWS2 days ago

CBN Approves Regular Commercial Operations for Abbey Mortgage Bank 

ShareBy Tony Obiechina, Abuja Abbey Mortgage Bank Plc, one of Nigeria’s longest‑standing primary mortgage banks, has secured regulatory approval from...

NEWS2 days ago

Owo Church Massacre: Court Sentences Four to Death for Terrorism

ShareBy David Torough, Abuja More than three years after the gruesome attack on St. Francis Xavier Catholic Church, Owo, Ondo...

security2 days ago

Terrorists Abduct Adelabu’s Sister, Twin Sons, kidnap Six Students in Zamfara

ShareBy Eze Okechukwu, Abuja and Ifeanyichukwu Nwannah, Gusau The nation’s worsening insecurity came into sharp focus on Wednesday,   as separate incidents of...