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Kalu Says Insecurity, Inadequate Infrastructure Stalling Nigeria’s Mining Sector Growth

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By Gloria Ikibah

The Deputy Speaker of the House of Representatives, Rep. Benjamin Kalu has said that insecurity, inadequate infrastructure, and lack of skilled labour have continued to act as bottlenecks hampering the growth of Nigeria’s mining sector.

Kalu stated this at a Public Policy Dialogue on Nigeria’s Minerals and Mining Legislation, organized by House Committee on Solid Minerals, on Monday in Abuja.

According to him, the nation’s vast mineral resources have remained largely untapped, and undeservedly overshadowed by our too much reliance on oil.

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Kalu added that despite boasting over 40 commercially viable minerals, the mining sector contributes a mere 0.3 percent to the country’s GDP, which he said is unacceptable and urged all hands to be on deck to turn the tide.

The Deputy Speaker who made reference to a Bill he co-sponsored with the Chairman, House of Representatives Committee on Solid Mineral, Hon. Jonathan Gbefwi titled Nigerian Minerals and Mining Act (Amendment) Bill as well as eight other mining bills, said the bills when passed into law will represent a turning point for the nation’s mineral wealth.

He further noted that governments hold many of the levers to deal with the great challenges, adding however, that businesses have the innovation, technology, and talents to deliver the needed solutions.

Kalu also opined that the governing philosophy in the mining sector in Nigeria should henceforth be approached with a private-sector-led lens, stressing that it is through this crucial partnership that the true potential of Nigeria’s mining sector can be unlocked.

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He said: “This public policy dialogue is engineered to create the appropriate right of way for the necessary adjustments and policymaking creativity that is required to optimize the promising prospects of Nigeria’s mining sector. Today, I stand before you not only as Deputy Speaker of the House of Representatives but also as a co-sponsor of the HB.751: Nigerian Minerals and Mining Act (Amendment) Bill so ably sponsored by Hon. Jonathan Gbefwi. This legislation if passed will represent a turning point for our nation’s mineral wealth.

“There are indications of a renewed vigor in our mining industry, fueled by a collective will to diversify our economy, create jobs, and unlock the immense potential that lies beneath our soil. The 2016-2025 mining industry development roadmap, aiming to increase the sector’s GDP contribution to 3% by 2025, is already showing progress. Projects like the Segilola Gold Project in Osun state governed by a private-sector-led lens are injecting millions of dollars into our economy and attracting much-needed investment.

“They are not just amendments; they are a comprehensive reform package designed to address these challenges and propel our mining sector into the future. Here’s what these bills aim to achieve: Enhanced security: By fostering collaboration between mining companies, communities, and security agencies, we can create a safer environment for investment and development. Infrastructure development: We are committed to investing in critical infrastructure like roads, railways, and power, making mine operations more efficient and cost-effective. Skilled workforce development: We are building partnerships with educational institutions and industry leaders to equip Nigerians with the skills they need to thrive in this sector. Streamlined regulation: The new legislation will simplify bureaucratic processes, reduce red tape, and create a more transparent and predictable regulatory environment.
I urge all stakeholders– government, businesses, communities, and civil society– to join hands and work together to make this vision a reality. Let us leverage the power of partnerships, innovation, and technology to unlock the true potential of our mineral wealth. The time for action is now”.

“To demonstrate this concisely, in the 3rd quarter of 2023, the Segilola Gold mine in Osun state, Nigeria’s first industrial-scale gold mine posted $118 million in revenue for its owners, Thor Explorations Limited after reporting $71.7 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2022 according to its publicly available financial statements for 2022 and 2023. Initiatives like the simplification of licensing and competitive royalty regimes attract global players like Thor Explorations, showcasing the potential for an industrial-scale mining sector. However, challenges remain. Insecurity, inadequate infrastructure, and a lack of skilled labor continue to act as bottlenecks. This is where the HB.751 and eight other mining-related bills currently under consideration come in.

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Customs Service Auctions Impounded Fuel At N630 Per Litre In Oyo State

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The Nigerian Customs Service (NCS) on Saturday auctioned about 20,000 liters of Premium Motor Spirit (PMS), commonly known as petrol, at N630 per liter in Ibadan, the Oyo State capital.

The product, intercepted from smugglers, was sold to the public at Afoo Filling Station, Masfala area.

The National Coordinator of Operation Whirlwind, Comptroller Hussein Ejibunu, who flagged off the sale, revealed that the tanker carrying the petrol was seized alongside 30 kegs containing 25 liters each during a smuggling attempt.

The total duty-paid value of the seized 30,750 liters was estimated at N42.75million.

According to Comptroller Ejibunu, the auction followed a court condemnation order after the items remained unclaimed. He stated that the Comptroller General of Customs, Bashiru Adeniyi, directed the sale to improve public access to fuel during the festive season.

Comptroller Ejibunu explained the government’s commitment to ensuring that citizens receive their entitlements promptly, highlighting that auctioning seized goods to Nigerians aligns with government policy.

He cautioned smugglers to abandon their illegal activities, warning that offenders would face prosecution.

Reflecting on a similar operation two months earlier, he noted that seized petrol was sold to the public in Yola, Adamawa State, at the regulated price. Specifically, 25-liter kegs of petrol were auctioned at ₦10,000 each.

He added that legal proceedings against a suspect apprehended during that operation were already underway.
Ejibunu urged Nigerians to support the Nigeria Customs Service by providing information on economic saboteurs, pledging the agency’s dedication to curbing smuggling under the directive of the Comptroller General.

He further explained that a collaboration between the Oyo/Osun Area Command and the Commander of Operation Whirlwind to enhance security, strengthen the economy, and deter smuggling.

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85 Chinese accused of cybercrime released on bail

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Eighty-five Chinese nationals who were remanded at Kuje Custodial Centre in Abuja over alleged cybercrime have been released on bail, Sunday PUNCH has gathered.

The spokesperson for the Nigerian Correctional Service, Federal Capital Territory Command, Adamu Duza, who disclosed this to our correspondent said the Chinese were released on Friday, December 20, 2024.

The suspects were part of a group of 113 foreign nationals arraigned before the Federal High Court, Abuja, on November 24, 2024 on charges of cybercrime, money laundering, and unlawful residency in Nigeria.

The group includes individuals from Vietnam, Thailand, Indonesia, Brazil, the Philippines, Myanmar, and Malaysia, as well as 17 Nigerian collaborators.

Justice Ekerete Akpan, who presided over the case, had initially ordered the remand of the male defendants at Kuje prison and female defendants at Suleja prison.

The charges stem from the allegations that the accused persons used sophisticated computer systems to facilitate hacking activities and operate fraudulent gambling platforms such as 9f.com, c2.top, and 8pg.top.

They were also accused of overstaying their business permits and remaining in Nigeria without valid residency or visas.

The suspects were arrested on November 3, 2024, in Katampe District, Abuja.

Duza confirmed to Sunday PUNCH that the release of the 85 Chinese nationals was supervised by the FCT Controller of Corrections, Ajibogun Olatubosun, to ensure all protocols were followed and their personal properties were returned.

He said, “85 Chinese in our detention facilities have been released on bail. The Controller was on ground to ensure their release and their properties intact.”

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Yuletide: FG plans 60 buses for inter-state routes

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The Federal Government is set to unveil a total of 60 buses any moment from now as part of its commitment to ease the transportation of Nigerians travelling by road during the yuletide season.

This initiative is part of an agreement signed with transport unions under the Ministry of Transportation’s free transportation programme.

The Chairman and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, disclosed this during an interview with Sunday PUNCH, on Friday.

On Friday, the government, through the Nigerian Railway Corporation, declared free rides for 340,000 train users travelling to their hometowns for the Christmas and New Year celebrations.

Providing further updates on the scheme, Oluwagbemi said the buses for the programme would soon be launched for the benefit of Nigerians.

He explained that the buses would transport passengers travelling between Abuja and neighbouring states, as well as to Lagos, Ibadan, Abeokuta, and other surrounding areas.

Oluwagbemi said, “There is an agreement on the mass-transit programme. You all already know that in Abuja today, we have those 15 buses running interstate from here to Gwagwalada, to Keffi and Nyanya, as well as Zuba in Niger State.

“That programme is already ongoing, and it will be expanded to interstate routes this week. So, we are going to put an additional 60 buses to run interstate here in Abuja and neighbouring states, as well as Lagos, Ibadan, and Abeokuta and neighbouring states.

“These buses will be providing free transportation till the beginning of next year as part of the Ministry of Transportation’s free transportation programme.”

Oluwagbemi also stated that the government planned to reduce transportation costs by converting cab drivers’ vehicles to CNG by the end of January 2025.

He added, “We signed a number of those agreements, but mainly two types of agreements, the transporters-vehicle agreement, where we are converting their vehicles.

“I believe a lot of them are now converted and before the end of January, they should be able to apply those discounts when they reach the benchmark targets.”

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