Rivers State Governor, Siminalayi Fubara, yesterday said Edison Ehie resigned from the House of Assembly for the sake of peace.
Ehie was the leader of four members of the House that identified with Fubara during the crisis.
He quit his position as a member representing Ahoada-East Constituency II, notifying the Independent National Electoral Commission (INEC) in a December 29 letter.
Addressing dignitaries including former Governor Peter Odili and his wife, Mary, at the first state banquet he hosted at the Government House in Port Harcourt on Monday night, Fubara said Ehie’s resignation indicated the extent he could go to achieve peace in Rivers.
Referring to Ehie as the immediate past Speaker, Fubara said: “Most of you were worried why the Speaker resigned. It is to tell you what we can do for peace.
“It is not about what we want to gain. It is not about the power we want to exercise. But at the end of the day, ask what are we leaving for our people.
“So, we took those decisions, not out of fear, but because at the end of the day when we leave here, we want you to remember us not as leaders with fear but remember us for our simplicity, our care, that we are prepared to give in anything for the interest of our dear state.”
The governor said he never wanted to speak on the matter but decided otherwise because of what he read somewhere.
He insisted that all the decisions he took were not borne out of fear, but were compelled by the state’s interest and respect for elders.
The governor, whose speech intermittently drew applause from the crowd, said though everyone would not like the content of the peace agreement, it was in his place as a leader to enforce it.
Fubara insisted that he would not like to be involved in any dirty political fight because of its negative implications for peace and development.
Fubara said: “I had planned not to say anything this night. I have said too much already. But I read something and it will be improper if I don’t, at least, respond to it on a special day like this.
“First, let me wish every one of you or all of us that are here a very fruitful and prosperous new year.
“This is because every decision that we have taken is not borne out of fear but because we have the interest of our people in mind and we have respect for elders.
“The president requested that we do certain things. In as much as it might not be very comfortable with everyone here, it is the place of the leader to say let us go along with it. Because if we don’t have peace in the state, there won’t be that meaningful development that we desire.
“So, I’m speaking to everyone, let us embrace the peace. We need this peace because our intention for our state is not because of our interest, it is for the interest of everyone; the interest for the development of our state.
“So, when we were faced with this type of situation, we considered the actions and reactions, who is going to suffer, Fubara will not suffer, I can assure you that. But one million supporters will suffer.
“So, those decisions are decisions we took because we want you to feel you’re with me. We want you to see me as your governor and be happy.”
On why the state hosted the banquet, the governor said: “So, our new year message to our dear State, and more especially this our first inaugural banquet is to show that the government is alive.
“I want to leave you with only this message. We will not disappoint you. We, also, will not be involved in any dirty fighting because we know that we are going to be the losers.
“The year 2024 is for all of us. If I could survive, you that don’t have any problems, you’ll survive better than me.
“So, I am wishing every one of us here a fruitful and prosperous 2024 to the glory of God.”
Edo State Deputy Governor Comrade Philip Shaibu has declared that it is his turn to be Edo governor from November 12, 2024, thereby succeeding his boss, Governor Godwin Obaseki, who opts for a Lagos-based lawyer, Asue Ighodalo, who hails from Esanland in Edo Central Senatorial District.
Shaibu, from Edo North Senatorial District, also said his ambition to succeed Obaseki on the platform of the Peoples Democratic Party (PDP) was borne out of divine conviction to serve the state and take governance back to the people.
He expressed remorse over his choice of words against a former National Chairman of the All Progressives Congress (APC), Comrade Adams Oshiomhole, an ex-governor of the state, in the past, insisting that the representative of Edo North Senatorial District remained his father, despite their political differences.
He spoke yesterday on a private television station.
Shaibu, who shared his thoughts on a wide range of issues, including his political ambition, conflict between him and Obaseki, governance and security, among other concerns, said his ambition to succeed his boss was driven by a divine cause to take Edo State to the next level.
She said the extension was in response to the heartfelt concerns raised by religious clerics, State Pilgrims’ Welfare Boards, agencies, commissions, governors, and other stakeholders on the closure of the 2024 Hajj registration.
“The National Hajj Commission of Nigeria (NAHCON) is pleased to announce Federal Government’s approval for an extension of the deadline.
“The new date is set for January 31, providing an additional opportunity for individuals to participate in this sacred pilgrimage.
“The overwhelming request for extension from various religious communities underscores the significance of ensuring accessibility to a broader spectrum of the faithful eager to embark on the spiritual journey of Hajj,” the statement said.
Usara said NAHCON was confident that before expiration of the new deadline, with the support of its sister agencies, the commission would have determined the total cost of this year’s hajj.
“The extension, therefore, provides a window for new registrant to do so and, by the end of January, those who need to balance up payment would be able to do so as well.
“NAHCON seizes this chance to remind intending pilgrims and other stakeholders that the Saudi Arabian Ministry of Hajj and Umrah has slated February 25 as end date for signing all contracts, signaling the end of payments into IBAN accounts.
“With this extension, NAHCON has barely a month to finalise payment of all Hajj deposits into its IBAN account for the 2024 Hajj,” she said.
The NAHCON spokesperson noted that the extension, even though overstretched the commission’s preparatory timeline, reflected its Chairman Jalal Arabi’s commitment to accommodating the concerns of all stakeholders.
“Arabi expressed gratitude to religious leaders, state boards, and governors for their advocacy on behalf of the pilgrims.
“He described this collaborative effort as a testament to the shared commitment to facilitating a meaningful and inclusive Hajj experience for all.
“He prayed all Hajj handlers would utilise this opportunity well for success of 2024 Hajj operations,” Usara added.
Few knew about the arrival in this world on July 21, 1956, of a baby, who was later known as Rotimi Odunayo Akeredolu, SAN, CON, popularly known as Aketi. However, millions knew about his departure in the early hours of Wednesday, December 27, 2023, exactly one week ago. He was 67 years old.
The publicity of his death stemmed from three major factors: (1) his status and role as the incumbent Governor of Ondo state; (2) controversies over the temporary governance crisis in the state due to his illness and subsequent disagreements between him and his Deputy; and (3) negative perception of the role of his family over his illness and in the affairs of the state.
Preoccupation with these issues have led to mischaracterisation of Akeredolu as a person and as Governor. Yet he was a rounded figure: Christian, unionist, Kegite, lawyer, politician, husband, father, and cherished anchor to his network of friends. He would be remembered for his legacies in these roles.
However, the two roles for which he was widely known were lawyer and politician. He birthed both roles at the University of Ife (now Obafemi Awolowo University). As a law student at Ife, while I was teaching there, Akeredolu was popularly known as an activist and a strong member of the Student Union. He successfully ran and won the election as Vice-President of the Student Union in 1975/76. Akeredolu was also a visible and proud Kegite (that is, a member of the Palm Wine Drinkards Club) of which he later became a Grand Patron. It was also at Ife that he met Betty, who would later become his wife. The coterie he developed as an undergraduate remained as his permanent friends till death.
The commingling of law and politics at Ife would persist throughout Akeredolu’s life. After a stint as Attorney General in Ondo State, he contested and won the presidency of the Nigerian Bar Association. After joining other top lawyers, including his law partner, Akin Olujimi, SAN, and Wole Olanipekun, SAN, to help rescue the stolen mandate of a number of politicians in the progressive fold, Akeredolu opted for the rough terrain of “real” politics. But it was not until the second attempt in 2016 that he won the governorship election in Ondo state under the banner of the All Progressives Congress.
I did not support Akeredolu on both occasions. Nevertheless, I supported his administration and reelection in 2020. I also had several conversations with him throughout his tenure, admonishing or praising him and offering tips, where necessary. For example, I admonished him over the scuffle with Osun delegates in Akure in 2017 and advised him to close ranks with then Governor Rauf Aregbesola of Osun state just as I also advised Aregbesola to do the same. They both met in Abuja and closed ranks.
Regardless of the assessments of armchair columnists and social media bugs, Akeredolu’s stewardship as Governor was good in comparative terms. His stellar projects featured over 500 kilometres of roads, including a virgin link road between Akure and Idanre via Ijoka and dualised roads in major towns; the Ore flyover at the intersections of Sagamu-Benin Expressway and Ondo-Okitipupa roadways; the flyover at the Onyearugbulem junction in Akure; the ODIRS Building Complex; the Technology Hub; the conversion of two major State Specialist Hospitals in Akure and Ondo to Teaching Hospitals and the construction of a 200-bed Complex in each one; the development of Ore Industrial Hub; and advanced plans for the construction of a deep seaport in the state.
Akeredolu’s stature grew beyond the state, when he took on herdsmen encroaching on farmlands and the state’s forest reserves. He pushed against open grazing and the detectable activities of herdsmen, notwithstanding criticisms from Northern quarters and even the presidency. He gave the herdsmen a seven-day ultimatum to vacate Ondo forests; banned under-age, night, and highway grazing in the state; and, as Chairman of the Southwest Governors’ Forum, he ultimately led other Southwest Governors to establish the Amotekun Corp to defend their states against criminality.
Another national issue he boldly took on was the advocacy for political parties to honour the established convention of zoning the presidential ticket to the South in the name of equity, justice, and fairness after an eight-year tenure of a Northerner. These major positions on national issues came as a capstone of Akeredolu’s preoccupation with fairness, equity, and justice, all of which he honed during his undergraduate days at Ife.
Nevertheless, all was not rosy for Akeredolu. Like most others, he had his own albatross to contend with. What was exceptional in his case was the conjunctive pressure of three albatrosses, namely, a debilitating illness; over-ambitious Deputies; and an immediate family beyond control.
The details of Akeredolu’s illness were never officially revealed. Rumours pointed to leukemia and prostate cancer, but the family only named the latter after his death. If that was the case, Akeredolu should have known that prostate cancer was detectable through periodic medical checkups and was treatable. However, like breast cancer, it had to be caught early before it spread beyond the prostate. Even leukemia is treatable, if diagnosed early, usually before blood blasts begin to accumulate.
Akeredolu’s first Deputy, Agboola Ajayi, was so over-ambitious that, like Atiku Abubakar, he was planning to supplant his boss during the latter’s reelection in 2020. Once the details of his plans were uncovered, he got ostracised from government until he resigned from the APC and later joined the Peoples Democratic Party. He jumped over to the Zenith Labour Party, when he lost the PDP primary. He eventually performed woefully in the election.
Ajayi’s replacement, Lucky Aiyedatiwa, allegedly took advantage of his boss’s illness to spy on his medical records and to begin planning to replace him, hoping that he might die sooner. He also began to plan his election in 2024 once power was transferred to him while his boss was on medical leave between June and September. His actions paralysed governance in the state for three months. Aiyedatiwa’s media aides, who broadcast all sorts of negative stories about Akeredolu’s illness, were dismissed on Akeredolu’s return from medical leave in September. The relationship between the two men became so frosty that President Bola Ahmed Tinubu had to intervene twice.
It was during Aiyedatiwa’s latest stint as Acting Governor that Akeredolu never returned as Aiyedatiwa had long hoped. His anxiety to become Governor became even more evident when he greeted his supporters in Yoruba, “A ku ori ire” (roughly, we thank God for His blessings) as soon as he was inaugurated as Governor on the day Akeredolu died.
It was also during Akeredolu’s illness that the shenanigans of his wife and son, Babajide, became even more evident than before. However, I will not go into the details here in deference to Akeredolu’s memory and the agony of family members, who just lost a dear one.
The Adedejis and the Martins were not just families. They were stewards of family businesses deeply rooted in their community.
As they journeyed through life, they faced the critical task of planning for the succession of their businesses, ensuring a seamless transition from one generation to the next.
For the Adedejis, their family bakery has been a beacon of comfort and joy for generations.
The tantalising aroma of freshly baked bread and the warm smiles that greeted customers were part of the bakery’s legacy.
Similarly, the Martins’ factory had served their community for decades, providing affordable household items, employment, and an irreplaceable sense of community.
These businesses were not just sources of income; they represented the labour of love the families had poured into them.
The families realized that preparing for the future of these businesses was not only a financial matter but also a matter of preserving their legacies.
This is where succession planning comes in.
Business succession planning involves planning and executing the transfer of leadership and ownership of a business from one generation to the next.
It’s a journey fraught with challenges and emotions because of financial considerations, family dynamics, and the preservation of the business’s values and traditions.
The Adedejis and the Martins recognized that a well-thought-out succession plan would secure their businesses’ future, strengthen their family bonds and honour the work of previous generations.
One key aspect of business succession planning is preparing the next generation to take over the reins.
This process requires deliberate efforts to impart knowledge, skills, and values.
The Adedejis’ eldest daughter, Kikelomo, showed a keen interest in baking from an early age. Knowing this, her parents encouraged her to learn every aspect of the business, from baking techniques to financial management.
Similarly, the Martins’ son, Daniel, spent his weekends at the factory, learning about different products and engaging with the workers and distributors.
This hands-on experience equipped him with practical skills and helped him to nurture a sense of ownership and responsibility.
It is important to note that family dynamics play a critical role in business succession. The reason is simple. Emotions can run high as family members grapple with their dual roles as business partners and relatives.
The Adedejis and the Martins understood this and the importance of open communication and conflict resolution, so regular family meetings became a forum for discussing business decisions, clarifying expectations, and addressing concerns.
With these meetings, it was easy to set clear roles and responsibilities for each family member involved in the business, prevent misunderstandings, and foster a sense of unity.
Furthermore, both families recognized that seeking professional advice was essential to navigating the intricacies of succession planning.
So, they engaged with business consultants and legal experts in business succession planning. These professionals helped them create comprehensive plans that addressed legal, financial, and emotional aspects.
For instance, the families explored different business structures, such as partnerships, limited liability companies (LLCs), or corporations, to determine the most suitable fit for their circumstances. They also addressed tax implications, ownership percentages, and contingency plans for unforeseen events.
The Adedejis and the Martins also wanted their businesses to remain integral parts of the community, continuing to provide the same quality and personalized service that had endeared them to their customers.
Consequently, they integrated their family values and mission statements into their succession plans. This included guidelines for maintaining product quality, customer relationships, and community involvement. These elements served as guiding principles for the next generation, anchoring the businesses’ legacy in the face of change.
Finally, as the Adedejis and the Martins embarked on their respective journeys of succession planning, they realised that the process was about business, love, dedication, and a commitment to something greater than themselves.
By thoughtfully grooming the next generation, fostering open communication, seeking professional guidance, and preserving the businesses’ core values, they were securing their families’ financial futures and ensuring that their legacies would continue to flourish.
The Adedejis and the Martins remind us that beyond the products or services our businesses provide, they are a testament to the determination, passion, and love the founders pour into them.
As we celebrate the success of our businesses, let us also recognise the importance of succession planning and the role it plays in upholding these cherished legacies for generations to come.
•Seun-Oloruntuga, a lawyer who specialises in estate planning, is also a career and executive coach. She can be reached at bso@morecraftlaw.com
Lagos State Governor Babajide Sanwo-Olu yesterday ordered the arrest of a soldier and some commercial motorcyclists (Okada riders) for driving against the traffic on the Lagos-Badagry expressway.
The governor gave the order while returning from the Lagos State University (LASU), Ojo where he had gone to inaugurate a project sponsored by the Chief of Staff to the President, Mr. Femi Gbajabiamila.
Sanwo-Olu, on sighting the traffic offenders, stopped his convoy and went after the riders. While some of the riders ran and left their motorcycles and passengers, some were apprehended by the governor’s team.
The apprehended military personnel told Sanwo-Olu’s security that he was a soldier. Upon hearing this, Governor Sanwo-Olu became infuriated and said ‘that’s the more reason why I’m going to lock you up. I’m going to lock you up. Useless boy, you’re telling me you’re a soldier. “Put him there; let your father come and rescue you. You’re telling me you are a soldier; that is the reason I am going to lock you up. “
The governor also addressed a female passenger, saying: “You people are the ones causing this. Maybe I should arrest the two of you and put you in the guardroom. You are patronising Okada riders and they are taking one way. Is it good? And they will hit you and you die; they will say the government killed you.”
Multiple accidents yesterday claimed the lives of 11 persons in Kwara State.
Seven sustained injuries in the crashes, which occurred about 4:50am at Aiyere, along Bode Saadu-Ilorin route in Moro Local Government.
The auto crash involved a DAF truck and a Toyota Hiace bus.
The accident was reportedly caused by wrongful overtaking and speed violation.
The state Sector Commander of the Federal Road Safety Corps (FRSC), Stephen Dawulung, said: “Preliminary investigations showed that the Toyota Hiace bus coming from Gombe en route to Lagos wrongfully overtook another vehicle, resulting in a head on collision with an oncoming DAF truck.
“Eighteen people (men) were involved, 11 of them sadly lost their lives, while seven others were rescued with injuries and have been taken to a private hospital in Bode Saadu, where they are receiving treatment.”
Dawulung directed full investigation into the crash.
He sympathised with the bereaved families and wished the injured quick recovery.
He advised drivers to drive within the stipulated speed limits, avoid night journeys and long hours of driving without adequate rest.
Seven months after the Bola Tinubu administration took off, a group, the Bola Ahmed Tinubu Solidarity Vanguard (BATS-V), Nigeria and Diaspora has scored it high, saying so far, it has fulfilled some of his campaign promises.
The group’s Global Chairman, Ambassador Dare Owotomobi, stated this at a world press conference on the ‘State of the Nation’ in Lagos.
In a statement, the group’s chairman of Southeast BAT-V, Nze Anyaehie Anayo Simeon, admitted that though it was too short a time to make any meaningful appraisal, “considering the milestone so far attained by our principal, we are forced to do so”.
He noted that during his inaugural speech on May 29, this year, President Tinubu “did not mince words on his unalloyed resolve to frontally confront the hydra-headed monster that is used as a conduit pipe to drain the country’s earnings through its major revenue earner – crude oil. This he did by instantly removing oil subsidy, which has been, hitherto, handled by successive governments without transparency. It is, therefore, no doubt that such restructuring of the old order will be received with mixed reactions by the populace”.
Owotomobi recalled that the government had appealed “to Nigerians that the attendant skyrocketing price of fuel, and by implication, its trickle-down effects on other sectors of the economy will come with excruciating effects, which must be borne with a little patience because there is light at the end of the tunnel”.
“The high prices of fuel after the subsidy removal is expected, which could not have been different if any of the other two front-line contenders to the Presidency Atiku Abubakar and Peter Obi, had won as they had also promised to remove fuel subsidies.
“Hard as that decision was, we should still thank God for the choice of Asiwaju Bola Ahmed Tinubu as the solution to these problems. This is an endemic problem that needs to be tackled headlong to usher in lasting relief in all facets of our national life.
“The ongoing economic sagacity, diplomatic and enigmatic globetrotting coupled with administrative competence of our president has now endeared the nation as the pride and bride of the Bretton Wood organisations – International Monetary Fund (IMF), and World Bank and indeed our regional development bank – African Development Bank (ADB). This has, no doubt, rekindled hope in Nigeria by other world powers and major economic players around the globe,” the chairman said.
He urged Nigerians to be patient with the government, saying that it is not true that “President Tinubu has not come to punish Nigerians” as some people are insinuating, “but rather he has come with the goodwill he had created for himself in business, public and private institutions. This, he earlier exemplified in his stewardship and the solid foundation he laid as the governor of Lagos State”.
He added: “No wonder the president himself said he should not be pitied because he asked for the job and the job he has gotten. So, he is ready to return the country to its place in the comity of nations. All that is needed is the cooperation of every Nigerian, irrespective of our political affiliation, tribe and religious affiliations.”
Despite its status as a major producer of exportable mineral and agro raw materials, Nigeria grapples with the paradox of exporting these resources in their raw form, devoid of significant value addition that can propel industrialisation, economic diversification, and, ultimately, elevate revenue generation and employment opportunities. This approach results in the loss of employment opportunities and deprives the nation of potentially billions of dollars that could be gained by processing these resources into semi-finished or finished goods for export. Assistant Editor CHIKODI OKEREOCHA explores the consequences, including job losses and missed economic opportunities, prompting calls for government to address the high-cost environment that renders processing unprofitable and invest in processing facilities to reverse this disheartening trend
Nothing better illustrates the sad tale of Nigeria’s bumpy road to achieving sustainable industrialisation and economic diversification than the perplexing paradox in her non-oil export business where, despite parading generous exportable mineral and agro raw materials, they are being exported in their raw form, with minimal or no value addition. Take cocoa, one of the highly sought-after cash crops in terms of export value, for instance, and the depressing reality of Nigeria’s wobbling non-oil export enterprise forced by lack of value addition comes into bold relief. Nigeria, according to the United Nations Food and Agriculture Organisation (FAO), is world’s sixth largest cocoa producer, behind Cameroun, Brazil, Indonesia, Ghana, and Ivory Coast.
But, out of Nigeria’s total production volume of 248, 000 tonnes of cocoa beans, only 30 per cent is processed into cocoa derivatives such as cocoa powder, cocoa butter, and cocoa paste; the remaining 70 per cent is exported without processing. Yet, the processing of cocoa into cocoa derivatives, according to industry experts, is the highest value adding activity in the cocoa value chain.
It has the potential to generate significant export revenues both to the government and cocoa farmers. For instance, at the last count, the Nigerian Export-Import Bank (NEXIM) put the global value of raw cocoa export at $10 billion, while the total value of all finished goods from cocoa was $200 billion annually, with chocolates alone accounting for half of that market value, i.e. $100 billion.
Sadly, however, Nigeria, despite being ranked world’s sixth largest cocoa producer, is currently in no position to claim a chunk of this huge market share. Africa’s third largest cocoa producer does not boast a vibrant chocolate industry to process cocoa into chocolate and other finished products. Curiously, The Netherlands, a non-cocoa producer, has one of the largest cocoa producing industries in the world. The processing and exportation of cocoa derivatives generated $4.2 billion for the Dutch economy in 2016, for instance. In comparison, Nigeria, which ought to have been a global powerhouse in cocoa processing and export, generated only $144 million from the exportation of cocoa derivatives to neighbouring countries like Ivory Coast, Cameroun and Ghana.
A recent report by multinational professional services company PricewaterhouseCoopers (PwC), titled “Transforming Nigeria’s Agricultural Value Chain: A Case Study of the Cocoa and Dairy Industries,” ranked The Netherlands as the third largest exporter of chocolate in Europe. The report, which was made available to The Nation, listed The Netherlands, Germany, Indonesia, Malaysia and Belgium as major export destinations for Nigeria’s fermented cocoa beans.
The report pointed out that in 2018, The Netherlands imported N30.3 billion worth of fermented cocoa beans from Nigeria. This figure, according to the report, surpassed the combined two-year export value of the other top four importers, noting that the significant cocoa demand from The Netherlands is driven by the boom in that country’s chocolate market fueled by increased popularity of specialty chocolates.
Even Switzerland, which is also one of the largest producers of chocolate globally, with estimated 180,000 tons of chocolate per year, earns around $1.5 billion from the cash crop. Switzerland also relies on African countries like Ghana and Ivory Coast to get its major raw material which is cocoa. However, Nigeria’s embarrassingly woeful outing in the non-oil export business, where her inability to add value to her exportable agro and mineral raw materials is not limited to cocoa. There is also sesame seed, another cash cow, literarily, and is second to cocoa in terms of export value. Nigeria is Africa’s second largest producer of sesame seeds after Sudan.
Sudan’s output in 2019, for instance, was 11.2 million tonnes. The country alone accounts for 45.8 per cent of the total output of the top six African countries put together. Nigeria’s output makes up 18.2 per cent of the total, making her Africa’s second-largest sesame producer. In the first quarter of 2018, sesame was Nigeria’s most exported non-oil commodity, contributing 0.57 per cent to the total export value and 36.39 per cent of agricultural exports.
Again, sadly, the snag is that about 95 per cent of sesame output in Nigeria is exported for processing, according to the Nigerian Institute of Food Science and Technology. In the Institute’s reckoning, if Nigeria had the facility to process even half of the 90 –95 per cent exported sesame seed, the country would have reaped bountifully from its several derivatives both in terms of revenue earning and job creation across the product’s value chain.
Sesame seed is used in confectionery, biscuits, and in bread making. Also, oil extracts from sesame seeds have a wide range of applications. It is used for cooking, used in medicine for treating ulcers and burns, used in making aerosols, and in manufacturing margarine. The low-grade oil of sesame is also used locally in manufacturing soap, paints, lubricants, and illuminants.
The by-product from processing sesame seed is also used in making animal feeds. Sesame is also used in different countries for their local dishes and delicacies, and this must be why the market for sesame seeds is quite vast, with Japan and China as the major importers. Had Nigeria latch on her natural endowment in sesame, where about 26 states across the country are said to be blessed with this cash crop, the quantum of revenue accruing to these states, the farmers and other operators across its value chain would have been huge, so also the number of jobs that would have been created from the upsurge in processing activities.
The Nation learnt that apart from Jigawa State that has the highest area of production and total production of sesame in the country, followed by Benue State, other states in the sesame seed belt include Adamawa, Bauchi, Benue, Borno, Gombe, Kaduna, Kano, Katsina, Kebbi, Kogi, Nassarawa, Niger, Plateau, Sokoto, Taraba, Yobe, and Abuja.
The situation in the solid minerals sector is probably more heart-wrenching. Nigeria is endowed with over 44 strategic solid minerals in about 450 locations across the country. This puts her mining sector in a vantage position to dislodge oil as major revenue earner and economic diversification driver to create jobs and significantly cut down Foreign Exchange (forex) spending.
The Minister of Solid Minerals Development, Dr. Dele Alake, put the country’s mining sector’s huge but largely untapped potential in perspective when, on the sideline of the United Nations General Assembly (UNGA) held in New York, towards the end of last year, he told investors that Nigeria’s minerals deposit was worth $700 billion. Apparently encouraged by what is arguably, Nigeria’s goldmine and next ‘crude oil’, Dr. Alake boasted that Nigeria, despite being behind some African countries in mining, had the potential to take the lead soon based on the over 44 assorted solid minerals in all the 774 local government areas of the 36 States and the Federal Capital Territory (FCT), Abuja.
The Minister also buoyed the hopes of a possible rebound of the mining sector when, in his New Year message to Nigerians, he said the sector will experience a major leap this year. A statement by his Special Assistant on Media, Segun Tomori, quoted the Minister of reiterating that President Bola Tinubu’s vision of diversifying the economy through renewed focus on solid minerals was on course. Some of the 44 solid minerals upon which Dr. Alake anchored his excitement over the prospects of repositioning Nigeria as Africa’s mining destination, and assuring that his ministry would contribute substantially to the nation’s GDP, include coal, limestone, lead/zinc, bitumen, barite, gold, iron ore, tantalite, tin, columbite, barites, gypsum, sapphire, emerald, granite tourmaline, sandstone etc.
But unless and until President Tinubu and Dr. Alake make good their promise to halt the exportation of these raw solid minerals without any value addition, their hope of positioning Nigeria to take the lead in mining in Africa, including latching on reforms to force the sector to “yield tremendous results in the new year,” according to industry experts and operators, remain what it is: wishful thinking.
Recall that President Tinubu had at the ‘Nigeria Mining Week’ held towards the end of last year, declared that the era of exportation of raw minerals and similar resources from the county was over. In other words, the policy of value addition has come to stay. He also expressed his administration’s commitment to making solid minerals rival oil in revenue generation and foreign exchange earnings for the country.
The Nigeria Mining Week is an annual event that brings together stakeholders in the mining industry, including policy makers, investors, operators, service providers, academics and civil society with the aim of showcasing the potential and opportunities in the mining sector and foster collaboration and partnerships for its growth and development. The event was yet another reminder of the sorry state of Nigeria’s mining sector where much of her mineral commodities are at present illegally mined and exported in crude form to European and Asian countries at give-away prices, without any value addition, to the disadvantage of the national economy.
Indeed, about 80 per cent of mining activities in the country are said to be illegal, depriving the various tiers of government of billions of Naira in supposed royalties annually. Between 2016 and 2018 alone, Nigeria reportedly lost about N353 billion in gold alone smuggled out of the country and sold in the international market without any revenue accruing to the government.
Within the three-year period, about 18 tons of gold were smuggled out of the country. The former Minister of Mines and Steel Development, Arch. Olamilekan Adegbite, brought the reality of Nigeria’s thriving illegal mining enterprise nearer home when he said illegal miners operate in about 1,759 mining sites across the country.
Illegal mining thrives in six states including Niger, Plateau, Zamfara, Ebonyi, Enugu and Imo. According to a report by the Nigeria Extractive Industries Transparency Initiative (NEITI) titled: “Improving Transparency and Governance for Value Optimisation in Nigeria’s Mining Sector,” Niger and Plateau states topped the illegal mining list; while Niger State had 10 illegal mining sites, Plateau had seven.
The illegal miners, allegedly with their foreign collaborators, have been pillaging the nation’s solid mineral commonwealth, much to the chagrin of the Federal Government, the Ministry and Nigerians generally. However, if the current administration walks its talk on prioritizing value addition by pulling the breaks on the exportation of solid minerals, it means a push back on the thriving illegal mining industry.
It also means, by extension, brighter chances of the ministry, under Alake’s charge, of making good its target of adding at least 50 per cent to the economy, including attracting Foreign Direct Investment (FDI) to the country. And more importantly, hopes of meeting Nigeria’s target of leveraging mining to earn forex, create jobs and boost the sector’s contribution to GDP to three per cent by 2025 will be brighter.
Why operators, investors shun local processing
The Nigeria Export Promotion Council (NEPC), which is in charge of promoting non-oil exports, has been quite vociferous in its position that local raw materials in their natural forms do not have any value and would not attract any market demand hence, there is need to process them to meet internationally accepted quality and standards for use by manufacturers and for export.
However, because of lack of access to capital to set up processing facilities, process technology and techniques, and spare parts, including poor infrastructure particularly electricity supply, among others, existing and prospective operators and investors who would have thrown their hats in the raw materials processing ring as canvassed by the NEPC and other stakeholders have continued to hold back.
The Nation learnt that because of the capital intensive nature of establishing and running local processing plants, including regular supply of the raw materials and the challenge of marketability viz-a-viz imported products, manufacturers are focused on proceeds they get from exporting the raw materials.
Some of them who ventured into processing, even without any incentives by government, were said to have got their fingers burnt because of the prevailing high cost environment. The thing is that Nigeria’s high cost business environment foisted on processors, largely as a result of poor electricity supply and other binding constraints such as lack of access to finance, makes processing a highly unprofitable venture.
However, by by-passing value addition to these products because of the afore-mentioned issues, both the government and operators are losing billions of dollars in export revenue including jobs.
This must be why the Senior Partner of KPMG Nigeria, an audit, tax and advisory services provider, Mr. Kunle Elebute, said Nigeria and other African countries are simply the domain for the global economy to take out commodities and process, and their lack of capacity for processing and manufacturing results into poor export receipt laced with uncompetitive ability.
Elebute, who was former Chairman, KPMG Africa, therefore, advised that African countries adopt value addition practices as this will enhance the competitiveness of their products while boosting regional trade activities and reducing reliance on imports from foreign countries.
The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, could not agree less on the need to prioritize value addition on exports, pointing out that it is one sure way to reduce Nigeria’s over-dependence on importation and also boost her competitiveness, among others.
“By focusing on value addition and local sourcing, we can reduce our reliance on imported raw materials and improve the overall competitiveness of our products. This will also contribute to the growth of Small and Medium-sized Enterprises (SMEs) and empower local entrepreneurs to participate actively in the manufacturing value chain,” she said.
The Minister spoke at the opening ceremony of the 7th edition of the Nigeria Manufacturing Equipment Expo (NME Expo) co-located with the 9th Nigeria Raw Materials Exposition (NIRAM Expo), which held in November last year, with the theme, “Future Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria.”
At the NME-NIRAM Expo organised by MAN and Raw Materials Research and Development Council (RMRDC), she stated that the future of manufacturing in Nigeria, among other things, relies on prioritizing the development of the raw materials sector to support the nation’s manufacturing industry, assuring that the Federal Government, through her ministry, was dedicated to fostering a conducive environment for manufacturers to flourish. “Our commitment extends to the implementation of policies and programs that facilitate ease of doing business, improve access to finance for manufacturers, and enhance infrastructure and logistics to bolster the growth of the manufacturing sector,” Dr. Uzoka-Anite said.
For Manufacturers Association of Nigeria (MAN), incentivizing investment in the development of raw-materials locally through backward integration and resource-based industrialisation is the way to go to improve the performance of the manufacturing sector. At the core of the Federal Government’s Backward Integration Policy (BIP) is the need to create a competitive supply value chain and reduce dependence on imported raw materials. Resource-based industrialization, on the other hand, is the utilisation of the country’s abundant natural resources in producing goods needed in the country.
The Project Manager, Strategy Implementation Task Unit (SITU), Raw Materials Research and Development Council (RMRDC), Sir Henry Chukwudi Eteama, said converting raw materials into something more useful through added value increases the price of finished products, making manufacturing a very profitable part of the business chain.
Delivering a paper titled ‘The Future of Manufacturing and Strategies for Global Competitiveness in Raw Materials and Products Development in Nigeria’ at the NME-NIRAM Expo, Eteama, however, said challenges to local sourcing of raw material abound and cannot be taken lightly as major hindrance to sustainable industrialisation. He listed some of them to include but not limited to very high propensity among Nigerian industries and business for consumption/utilization of foreign raw materials and product; emphasis on oil and gas to the detriment of development of agriculture and geo-extractive/mining sectors and businesses.
Others are lack of synergy and strategic alliances between industries/business in Nigeria and the academia/Research and Development (R&D) institutions in the identification, exhortation, value addition and adaptation of raw materials and products of Nigeria; poor technological and scientific know-how required to engage in fruitful and profitable development of available raw material potential in Nigeria.
The Project Manager at RMRDC also decried the inadequate fiscal policy measure for protection of local businesses engaged in local sourcing of raw materials; lack of incentive to business and researchers who venture into local production and development of raw materials; increasing insecurity in the several locations where agro and mineral raw materials are sourced especially in the farmlands and mining sites etc. He insisted that all over the world, nations strive towards the zenith of industrialisation for sustainable development and growth by leveraging local sourcing of raw materials for powering their industrial activities in a manner that reduces their needs of foreign raw materials. “We need to lay emphasis on indigenous industrialisation whereby industries and businesses are in strategic alliances with the academia and R&D institutes,” Eteama recommended.
Arts, Culture and the Creative Economy Minister Hannatu Musawa yesterday visited ailing Nollywood actor Zack Orji at a private hospital in Abuja.
The minister was received by the wife of the thespian, Ngozi Orji, and some family members.
According to the minister, the visit was to support the veteran actor, wish him quick recovery and as well convey the Federal Government’s goodwill to him and his family.
She said: “This is a man that has given his time, his effort not only to make us laugh but to entertain Nigerians for decades.
“He is one of the individuals that laid the foundation of the film industry in Nigeria. And unfortunately, he is having health challenges and had a Neuro surgery.
“The least that we can do as an administration is to give him all the necessary support to ensure that he recovers quickly.
“Neuro surgery is very delicate, so it was important for me not only as a minister of arts, culture and the creative economy, but as a Nigerian to visit him.
“For me, it was just a matter of coming to see him and his wife, and we are able to talk today, by God’s mercies, he is alive.
“I want Nigerians to pray for him and do what we can to give the family the necessary support to save his life,” she said.
Musawa explained that the President Bola Tinubu-led Federal Government understands the pivotal role of the creative industries to national economic growth and was committed to the welfare of stakeholders in the sector.
The minister said: “The ministry of Arts, Culture and the Creative Economy, under my watch, is working painstakingly towards ensuring that programmes and policies are in place towards the welfare of industry players.
Musawa, who made a personal donation of an undisclosed amount to support the medical bills of the ailing actor, assured that better lay ahead for Nigerian creatives.
She said: “One of the main initiatives that we have within our ministry is to give welfare, not only to veterans in the industry, but to see how we can give welfare to all members of the industry.
“We understand that the issue of mental health is key in determining the quality of life of members of the society, especially members in this particular industry.
“One of our initiatives in the ministry is to ensure that we look at and interrogate the different policies in terms of the kind of welfare that we give them and we will be able to run that very soon.
“I can assure you that members of the entertainment industry and of course, members of the arts, culture and creative economy will have full support from this particular administration.
“It is part of the renewed hope agenda of Mr. President to ensure that we give the best and achieve the best in terms of what the industry has to offer.”
Orji, 64, reportedly slumped and was admitted at the Intensive Care Unit of the National Hospital in Abuja, before he was transferred to a private hospital for the surgery.
