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Tag: exporters

  • Exporters seek Fed Govt’s intervention to check export rejection

    Exporters seek Fed Govt’s intervention to check export rejection

    Exporters have called on the Federal Government to take urgent steps to address rejection of products from Nigeria.

    Stakeholders in the export business laid their complaints and demands before the Minister, Trade and Investment, Dr. Jumoke Oduwole yesterday at an interactive session tagged ‘Ministerial Export Consultation.’

    Oduwole, who came with heads of parastatals in the ministry, including SON, NEPC, NEXIM and the Nigerian Customs Service (NCS), said she organised the forum to afford her and the team, the chance to get firsthand information on what was required to drive and grow the export segment of the economy.

    The stakeholders raised issues on rejection of agricultural commodities by destination countries, saying most of the challenges stemmed from the use of pesticides by farmers in product preservation. They also cited the absence of lack of storage facilities in farming communities as one reason farmers are in a hurry to sell their harvests for peanuts, leaving the middlemen with much gain.

    Among other requests, the stakeholders called for the resuscitation of the Export Expansion Grant (EEG), tax exemption for exporters and the resolution of the repatriation of forex proceeds by exporters.

    On the role of the NCS and the challenges faced with tariffs and goods clearance and certification, the Comptroller General of Customs, Adewale Adeniyi, said the issues were receiving attention, adding that some of the measures already agreed to will become operational in the course of 2025.

    Adeniyi said there exists the opportunity to consolidate on the progress being made on the economy and also the necessity to sustain the momentum with respect to addressing regulatory overlaps, documentation, as well as processes and procedures.

    Read Also: Exporters need incentives to compete

    He said: “Our eyes are now open, we’ve seen the potential and we will support the President. This is a call for action and a commitment to perform, it’s a process of introspection and we’ve started “Adeniyi said there will be no more emphasis on imports at the expense of exports and promised the use of scanners from next year.

    The role of the NCS, Adeniyi said, has to do with facilitating  export development in Nigeria. “Indeed, there are a number of challenges. It affects the role of customs and involves the use of scanners. That has been taken care of. “In 2025 most of our operations will be automated. The other issue is the implementation of the African Continental Free Trade Agreement (AfCFTA. There was a conference in Rwanda, a month ago. There, we made a presentation on a number of initiatives we have made to facilitate its success. Our efforts were welcomed by members of the private sector.

    “When we launched the GTI pilot there were some issues with the receiving countries. Those who were part of the pilot said they were issues with it in Ghana. When it came to the receiving countries there were issues with market access and all that. What it means is that one customs administration cannot singlehandedly address the issue of exports.   What is outward clearance in one side may be inward clearance in the other side.

    “One thing I also did during that conference was to rally the support of other customs administrations in Africa to ensure the implementation of AfCFTA. It was the promise I gave to the Secretary-General that in 2025, I will push for a meeting of all customs administrations on the continent, specifically with regards to the implementation of the AfCFTA,” he said.

    Lagos State Commissioner for Commerce, Cooperatives, Trade, and Investment (MCCTI), Folashade Ambrose-Medebem, who was represented by the Permanent Secretary Dr Olugbemiga Aina, said Lagos contributes over 30 per cent to the nation’s Gross Domestic Product (GDP), and host Africa’s largest city economy. She added that the administration of the Governor had prioritised initiatives that would enhance the state competitiveness on the global stage.

    Mrs. Ambrose-Medebem restated the commitment of the Lagos State Government to creating the enabling environment where businesses would thrive, support trade competitiveness, ensure the sustainability of cooperative societies, and expand the state’s reach in the global marketplace.

    Ambrose-Medebem who disclosed this at the Export Consultation with the Minister for the Federal Ministry of Industry, Traded and Investment, in Lagos said with the unwavering support of Governor, Babajide Olusola Sanwo-Olu remarkable strides had been made in fostering trade and investment, empowering exporters, supporting cooperatives, and aligning the initiatives with the Federal Government’s diversification goals.

    Earlier in the year, in collaboration with a private partner; African Import and Export Solutions, Lagos State through MCCTI embarked on an ambitious export training programme, equipping over 2,000 exporters with the skills, knowledge, and resources to penetrate global markets. The Commissioner said the programme was designed to address challenges such as compliance with international trade regulations, export financing, and product quality standards.

    “We recognise that a vibrant export ecosystem is critical to economic diversification. The export training programme is part of a broader effort to ensure that Lagos-based exporters, particularly in sectors like agriculture, manufacturing, and technology, are prepared to compete effectively in international markets. These efforts are not just about empowering individuals; they are about positioning Lagos state as a global player in trade.

    Lagos is set to launch its Export Readiness Programme in January 2025. This initiative will focus on capacity building, export readiness assessments, and facilitating market linkages for businesses looking to expand internationally. The programme underscores our commitment to supporting the Federal Government’s agenda to accelerate economic diversification and reduce reliance on oil exports”, Mrs. Ambrose-Medebem said.

    By providing targeted support, including access to export financing and addressing logistics challenges, Lagos State is ensuring that exporters are not just ready but competitive. She informed the forthcoming programme would also include partnerships with international trade organisations and private sector stakeholders to foster deeper collaboration and unlock new opportunities for businesses.

    “Infrastructure is the backbone of commerce, and under Governor Sanwo-Olu’s leadership, Lagos State has made unprecedented investments in projects that will redefine our economic landscape,” she stated.

    She said the foundation of the administration’s commitment to economic transformation was the Lekki Deep Sea Port. According to her, as the first deep sea port in Nigeria, this state-of-the-art facility is designed to enhance Lagos’ capacity as a trading hub, reduce bottlenecks in cargo handling, and facilitate seamless trade. Complementing this project are the Free Trade Zones, which provide investors with an environment tailored to business growth, including tax incentives, infrastructure, and streamlined regulations, she added.

    Ambrose-Medebem noted these investments would not only enhance the state’s appeal to investors but also create jobs, stimulate local economies, and attract foreign direct investment adding they are a testament to Governor’s vision of a Lagos that is globally competitive.

    She said the Lagos state government had also prioritised investments in transport and logistics infrastructure. According to her, the commissioning of the Blue and Red Lines rail systems, and the construction of modern road networks would ensure that labour and goods could move more efficiently within Lagos and beyond adding the seamless connectivity is critical to supporting trade, attracting investors, and improving the overall ease of doing business in the state.

  • 30,000T of cocoa stuck on Lagos port roads, say exporters

    About 30,000 metric tons (Mt) of cocoa are trapped on their way to ports in Lagos as roads in a state of disrepair delay access to ships, the cocoa exporters body said.

    Travel to the Apapa and Tin Can Island ports that previously took hours, now takes as much as four weeks as trucks struggle through cratered and water-logged roads to get there,  President, Cocoa Exporters Association of Nigeria (CEAN), Pius Ayodele, said.

    The affected cargoes are either in traffic jams or stored in transit warehouses in Lagos.

    “A greater part of this travel time is spent at the epicenter of the congestion which is just 6 kilometers (3.7 miles) to the ports,” Ayodele said by phone from the Southwestern cocoa-trading center of Akure.

    Nigeria currently ranks a joint fifth with neighboring Cameroon among the world’s biggest cocoa producers, with the International Cocoa Organisation (ICO) estimating its 2017-18 output at 240,000 Mt. Access roads to the ports were left to decay by a succession of governments over the past two decades, now slowing everything ranging from cocoa exports to gasoline imports, escalating costs and taking a significant toll on economic activity, according to the Lagos Chamber of Commerce and Industry.

    Haulage costs have gone up “about 400 per cent because of the turn-around time to get to the ports, to get loaded and get out of the ports,”  Director-General, Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said in an interview in Lagos.

    This will either erode the profit margins of companies or get passed on to consumers, Yusuf said.

    Shipment delays are making it difficult for exporters to get credit from banks to finance their operations, according to Akin Olusuyi, president, Cocoa Processors Association of Nigeria, who said 1,760 tons of cocoa butter and cake are held up in the gridlock to the ports.

    “Most of them have been in the traffic to the ports for close to three weeks and are still far away from its gates. “The cargoes that would have translated into export proceeds for us are locked up in that horrific traffic,” he said.

    Farm-gate cocoa prices have dropped as purchases have slowed because of the difficulties in reaching the ports, according to local buying agents.

    Prices have fallen from N800,000 ($2,208) per ton in July to N640,000, according to the Managing Director,  Agrotrack Ltd. Wale Shittu, a cocoa-buying company.

    Cocoa futures closed Friday at $2,364 per ton for December deliveries, after gaining 1.16 per cent from the previous day, according to data compiled by Bloomberg.

     

  • Yam exporters to ship another consignment to UK, U.S

    Yam exporters to ship another consignment to UK, U.S

    Chairman, Technical Committee on Yam Exportation, Prof Simon Irtwang, has said exporters are finalising the exporting another consignment of yams to the United States (U.S) and United Kingdom (UK) in the first quarter of this year.

    According to him, the committee has been touring major yam markets, especially in the Southwest, to inspect the quality of yams available.

    It would be recalled that when the Federal Government flagged off yam exportation to the UK and U.S. last July, it was greeted with much fanfair. It almost had a backlash as it led to a hike in the price of the staple food in many homes. However, before long, the quality of the export was called to question as consignments were rejected in Europe and America.

    But Irtwang assured that the second export would not attract publicity as the flag-off had already been celebrated last year, adding that the exporters and the technical committee were also mindful of the Export Prohibition Act.

    He said until the Act is repealed the committee and yam exporters will carry out the export quietly, adding that the committee was in touch with the companies that produced cartons for packaging the yams and those that received them abroad.

    According to Irtwang, having learnt from the challenges of the first consignment, the committee was hopeful that the second one would achieve 100 per cent success. “Not all species of yam are good for export. So, yam farmers and traders need to know the species that are good for export.

    “They also need to know how to select, store and preserve them to increase their freshness and ability to stay long without decaying.

    “We also have to let yam farmers know the seed yams they will plant that will be good for export,’’ he said.

  • Exporters hail govt on exportation from Ikorodu terminal 

    The Federal Government has been given the tumbs up for exporting agricultural produce through the Ikorodu Lighter Terminal.

    Over 30 export laden containers were moved by barges from the terminal to Lagos sea port as part of measures to decongest the ports and boost the economy.

    The gesture, exporters said, would enable Nigerians to maximise the facilities at the moribund terminal.

    Speaking during the flag-off of using barges to ferry over 31 containers laden with agricultural produce from Ikorodu to Apapa port,  NPA’s Managing Director, Ms Hadiza Bala Usman, said her agency has the mandate to ensure effective utilisation of the Ikorodu terminal for export.

    President Muhammadu Buhari administration, she said, is committed to encouraging export promotion through the terminal while NPA would ensure adherence to occupational health and safety as panacea to efficient port services in line with international best practices.

    She urged Nigerians to come forward and avail themselves of the emerging opportunities in the agricultural export market to boost foreign exchange earnings and  strategically position the country on the global business community

    They said they were happy that a major infrastructure at Ikorodu, which was idle for decades, came alive again under the initiative of Nigerian Ports Authority (NPA), Managing Director Ms Hadiza Bala Usman.

    An exporter, Mr Ken Adeyanju,  said  the rejection of Nigerian commodity and produce at the international market would soon be a thing of the past.

     

  • Exporters seek modular refineries in free zones

    The Association of Nigerian Exporters (ANE) has called for the establishment of modular refineries in the oil and gas free zones.

    Its President Chief Sunny Jackson Udoh made the call during a courtesy call on the Oil and Gas Free Zones Authority (OGFZA) Managing Director Mr Umana Okon Umana in Abuja.

    Chief Udoh explained that locating modular refineries in the free zones would cut the cost of such investments because of the regime of incentives that exempts free zone enterprises from import duties and other taxes.

    He advised the Federal Government to appoint OGFZA the lead agency for the establishment of the modular refineries in the oil producing areas to replace the “illegal refineries,” adding that they should be modelled on the United States’export-oriented refineries to produce special products such as aviation fuel and industrial raw materials.

    He said the advocated policy on modular refineries should go with the establishment of oil and gas free zones in all oil producing states to diversify the economy.

    The association also called on the Federal Government to allow OGFZA to benefit from the seven per cent import surcharge fund set aside for port-based agencies of the government. Recalling that the Presidency in 2006 approved the inclusion of OGFZA in the sharing of the import surcharge fund following the recommendation of the National Council on Commerce, Chief Udoh said the income would enable OGFZA to provide facilities in the free zones to enhance the ease of doing business.

    He praised the Federal Government on the policy that allows goods manufactured in the free zones to be exported into the Customs territory, irrespective of whether such goods are on the import prohibition list.

    The ANE chief also praised the OGFZA leadership for  changes in the free zones, such as review of excessive tariffs; licensing of a new oil and gas free zone developer; the drive to facilitate the birth of new free zones to generate more jobs; and collaboration between OGFZA and the Nigerian Content Development and Monitoring Board to ensure higher level of value addition in free zone manufacturing processes.

    The association made other advocacies, including that the government should set up a “dedicated statutory fund” for OGFZA to finance infrastructure development in the free zones.

    It called for ANE-OGFZA collaboration in promoting investment roadshows, and expressed support for the ongoing process to amend the OGFZA law.

    Umana expressed appreciation to the ANE for “the patriotic support of the programmes and policies of the Federal Government with regard to the attraction of FDI”, which he said, is at the core of the mandate of OGFZA.

    Umana said his management decided to review charges in the free zones to prevent erosion of incentives provided by law for investors, and to provide a level-playing field for all licensees in the free zones. He said similar patriotic intention informed the support of his management for the amendment of the principal law of the Authority to remove ambiguities that tended to promote confusion and conflicts with sister agencies and reduce its effectiveness as a regulator.

    Umana expressed support for ANE’s call for an infrastructure development fund in the free zones, adding: “We should provide amenities that investors would benefit from when they come.” He lauded the ANE leadership for its “support of government efforts to restructure the economy and generate more exports, particularly in agriculture”.

    He added that OGFZA was looking forward to working more closely with ANE in the years ahead.

  • NSC to importers, exporters: don’t breach palletisation policy

    NSC to importers, exporters: don’t breach palletisation policy

    The Executive Secretary, Nigerian Shippers’ Council (NSC), Hassan Bello, has urged importers to obey the cargo palletisation policy of the Federal Government or face sanctions. The policy, Bello said, has come to stay.

    Speaking at a stakeholders’ forum in Lagos on the need for seamless operations at the Inland Dry Ports, he warned any importer against violating the order.

    The NSC helmsman said: “The palletisation issue is already on, there is no going back on it and the concerns of the critical stakeholders would always be noted and we will ensure that some of the issues are addressed,” Bello said.

    He urged stakeholders in the export and import trade value chains to be  acquainted with the export and import guidelines to avoid sanction.

    The Minister of Finance, Mrs. Kemi Adeosun, had said the palletisation of cargoes coming into the country would aid manual examination of consignment, while the country awaits the acquisition and installation of functional scanners at the seaports and land borders.

    She gave January 1, 2018 as the take-off date for the new policy.

    ”In order to ensure quick clearance of import at the Nigerian ports and borders, the additional responsibilities assigned to the relevant government agencies would be carried out in a well-coordinated and collaborated manner, while the sanctions specified for non-compliance with the provisions of the guidelines would be strictly and impartially applied across board,” Mrs Adeosun said.

    Bello urged stakeholders to work together for effective operations of the Kaduna Inland Dry Port (KIDP).

    He said that such synergy would complement the Federal Government’s efforts on the Ease of Doing Business.

    According to Bello, “if we do not work together, there is no how we can achieve the benefits of the IDP.

    “Over 10 years ago, we have been on the issue of the dry ports, including railways.

    “All efforts actually come to reality with the support of President Muhammadu Buhari who told the private sector to synergise to achieve effective dry port in the country.

    “We have been working with operators and the idea is to establish modern inland dry ports and the ease of doing business must be instituted in the ports,’’ he said.

    Also speaking at the event, the Chairman of the Kaduna Inland Day Port; Mr. Tope Borishade, pleaded for stakeholders’ cooperation for him to achieve his mandate as a dry port operator.

    Borishade said that the KIDP would not compete with sea ports, but will collaborate to improve the ease of doing business.

    He said that Nigeria was already losing cargo to neighbouring countries and promised that KIDP would improve government’s revenue by attracting more cargo into the country.

    “Over the past decades, there have been ICNL, Kaduna State government, the Nigerian Shippers Council and the stakeholders have been working in developing this dry port. We can only take it forward with our support and cooperation. So after this, I believe we are going to have feedback from stakeholders so that we can make this work for everybody. We are not in competition with the seaports”, he said.

    The ICNL Port Manager, Mr Rotimi Rahimi, urged  the Customs to secure the recognition of dry ports by the Central Bank of Nigeria (CBN) through inclusion in the list of ports of origin and destination on the Form ‘M’ e-platform.

    “The Nigerian Ports Authority (NPA) should develop invoice rating models for seaports and terminals as well as shipping companies that would encourage use of dry ports.

    “NPA should also engage seaport concessionaires to provide separate access for both inward and outward movement of dry port cargo.

    “Shipping companies should operate through Bill of Lading from ports of Origin to ports of Destination to process shipping documents for import and export release at the dry ports.

    “Shipping companies must have their presence in Kaduna to provide shipping services to shippers, while the terminal operators should allow shipping companies to move cargo from the ports without hindrance.

    “The concessionaires should allow 30-day rent passage for dry port cargo and should also grant priority terminal access for trucks hauling dry port cargo,” Rahimi said.

    The Managing Director, Nigeria Railway Corporation (NRC), Mr Freeborn Okhiria, said that all efforts must be geared toward improving cargo delivery.

    Okhiria urged importers and exporters to make adequate use of the dry port to boost economy.

    He expressed the commitment of the NRC to ensure 24-hour cargo delivery service at the dry port

    Okhiria said that the corporation would purchase about 10 container wagons before June to facilitate the smooth operations of the IDP, adding that the NRC would ensure that “importer and exporters enjoy the services they pay for’’.

  • Importers, exporters urge Fed Govt to establish Maritime Bank

    Importers, exporters urge Fed Govt to establish Maritime Bank

    Finance Minister Mrs Kemi Adeosun and the Central Bank of Nigeria (CBN) have been urged to facilitate the establishment of a maritime bank to boost trade.

    Speaking at a forum organised by over 600 cargo owners, importers, exporters and shippers in Lagos, a maritime lawyer, Mr Dipo Alaka, pushed for the establishment of the bank with the Cabotage Vessel Finance Fund (CVFF) to address inadequate funding of the sector.

    Alaka said such bank had become imperative because only few banks were responding to cargo owners, importers, exporters and manufacturers’ needs.

    He said over 12 years after the passage of the Cabotage Act, the sector was still under-funded.

    The Federal Government, he said, should use the Cabotage funds domiciled with the Nigerian Maritime Administration and Safety Agency (NIMASA) to empower Nigerians wishing to acquire vessels.

    He called on Transportation Minister Rotimi Amaechi and NIMASA Director-General Dr. Dakuku Peterside to facilitate the establish-ment of the bank.

    A cargo owner from Belgium, Mr Rasheed Muritala, said the bank would eliminate the funding problems in ports’development and operations, ship building and acquisition, ship repairs, marine safety and environmental protection, among others.

    Muritala pointed out that the reason Nigeria could not compete in the supply of shipping services at the ports and in multi-modal transport services in the sub-region was yet to be addressed.

    He said despite banks’consolidation, they were yet to appreciate the maritime sector’s peculiarity and adequately support its funding.

    An industrialist, Chief Raphael Johnson, said it was time for the Federal Government, in collaboration with stakeholders, to drive the right policies that would enable Nigeria become a hub of ship finance companies as was presently the case in Singapore.

    He stated a confluence of critical stakeholders, government, shipowners and the finance sector was imperative to induce the much-needed development in indigenous shipping.

    Johnson said many stakeholders, government, banks, shipowners, who ventured into ship-financing either shied away from it or traded blames having had their “fingers severely burnt”.

    To move the industry forward, he said parties should return to the drawing board and provide for holistic, unbiased appraisals, deliberations and resolutions geared towards the advancement of the sector.

    “In Belgium, Netherlands, United Kingdom and the United States, they have maritime development banks that give out money to the industry at almost one  per cent interest rate. But contrary to what is obtainable in those countries, in Nigeria, you have banks giving loans at interest rates of between 20 and 25 per cent per annum,” he said, adding: “Nigerian banks must forgo short-term profits and support long-term maritime projects.”

    Banks, he  said, must take long-term view of funding projects and recognise the value that sustained investments would have on the sector.

     

  • ‘Investors, exporters forex window records $1b weekly turnover’

    The Investors’ & Exporters’ (I&E) Forex Window launched by the Central Bank of Nigeria (CBN) in April last year now attracts weekly transaction volume worth $1 billion, a report released yesterday by FBN Capital, said.

    The I&E Forex window, seen as willing buyer, willing-seller window allows foreign investors to bring in dollars into the economy at any price of their choice, provided they could find buyers at such rate. The forex window has added over $12 to the economy since inception.

    The report by FBN Capital, a subsidiary of FBN Holdings, showed that Purchasing Managers’ Index (PMI) rose strongly in December to 68.7 from 60.1 the previous month. A headline reading of 50 signifies neutral.

    For Nigeria, all five sub-indices rose in December, the highest was 73 (stocks of purchases), which has been above 50 since March. The principal driver, it said, was the CBN’s use of multiple foreign exchange (forex) windows, which has transformed liquidity. Manufacturers, or indeed any users of forex, now have reliable access to forex provided that they are comfortable with the price.

    It said the positive impact on forex access gained momentum since July. “Weekly turnover on the Investors’ and Exporters’ Forex window has risen to about $1 billion. A more recent boost in both October and December has been the seasonal rise in demand for the year-end celebrations. The readings in December have been particularly strong although we should caution that a similar surge the previous year was followed by a sharp fall in January 2017,” the report said.

    It said manufacturing expanded by 2.6 per cent quarter-on-quarter in September 2017. We can see the momentum of the improved forex availability in the growth of the two largest sub-sectors: food, beverages and tobacco (0.6 per cent), and textiles, apparel and footwear (7.5 per cent).

    The PMI was found in developed markets like in the United States, larger emerging markets such as China, India and Brazil, and a few other frontiers and is based on manufacturers’ responses to set questions on core variables in their businesses.

    It described PMI as forward-looking indicators of sentiment in all economies, which have the proven capacity to move financial markets in developed economies. To reinforce the point, the latest national accounts cover the third quarter (July-September) and the latest PMI the third month of the fourth. It said respondents were asked whether output, employment, new orders, suppliers’ delivery times and stocks of purchases have improved on the previous month, are unchanged or have declined.

    “A headline reading of 50 is neutral. We have posted nine negative readings since our launch in April 2013, the latest in January 2017. Our sample is an accurate blend of large, medium-sized and small companies. We have added “trigger” questions, which apply when the respondent has the same answer on a sub-index for two months and then changes it for the third,” the report said.

  • Agro exporters lose $25m to Apapa traffic

    • seek refund of excess charges from APMT

    Traffic congestion along Apapa Ports link roads is costing agro exporters approximately $25 million in losses in productivity, following delay in shipment. Last year, cashew export provided revenue of $253 million to the economy.

    The figure is expected to dip with exporters struggling to access the ports. This is despite the fact that cashew exporters this year increased annual volume meant for export to 170, 000 metric tons from 160,000 tons.

    Publicity Secretary, National Cashew Association of Nigeria (NCAN), Mr. Sotonye Anga said the farmers have cultivated more land with a view to boosting exports to raise annual earnings. He said this was not going to be possible with traffic challenges.

    Speaking after a news conference in Lagos yesterday, Anga said traffic congestion increased the time each vehicle spends on the road as cargo meant for exports now spend an average of seven days on the road.

    He said exports have   grown in the last two years due to surging demand in United States and Europe but the industry has not got a  boost in terms of improvement in storage and transport facilities.

    President, NCAN, Tola Fasheru said agro exporters  have   suffered wastages of  commodities  due to inadequate cold storage, supply chain infrastructure and  delayed transportation time to Apapa ports.

    Despite the hardship, Faseru  said a  terminal  operator, APMT  has increased its terminal charges.

    He said APMT increased its charges from N4000 to N40,000 for 20 ft. containers, and  N6,000 to N60,000 for a40 ft. containers.

    “This is an  increase of almost 1000 per cent. All the excess collections should be refunded back to exporters.This increase is not supportive of the economic diversification of the Federal Government,” he said.

    Because of the  challenge of getting access to the port, Faseru said an exporter that can ship 1,700 tons of commodities per day when the Apapa port access roads  were in good condition now manages to only ship between 100 to 25 tons of commodities  which he lamented is bad for business. “Our drivers are idling away on Apapa road, waiting in their trucks for as long as seven days to get into the port as against four hours,” he said.

    Faseru urged the government to expedite work on the repairs of the road to prevent  lost time and productivity.

  • ‘No plan to ban exporters of unprocessed minerals’

    The Federal Government will not ban individuals or companies that export unprocessed solid minerals until it grows the sector to its full potential, an aide to the Mines and Steel Minister, Mr. Yinka Oyebode, has said.

    He said the Ministry had neither penciled any institution for proscription nor used any of its agencies to stop people from exporting unprocessed mineral resources Europe or other continents as claimed in some quarters.

    He said instead, the government was focusing on how to develop the sector by providing incentives to local and foreign investors, who want to build plants for processing solid minerals into other products in the country.

    In an interview with The Nation in Lagos, he said the Ministry and the Federal Government were interested in making the sector a major contributor to the nation’s Gross Domestic Product (GDP) by welcoming investors into the industry.

    Oyebode said such incentives include equipment leasing, funding, expertise, less stringent import requirements, access to funding, and tax holiday.

    He said investors might enjoy tax holiday, a development, that would exclude them from paying taxes over  time. According to him, investors will be provided with information that would aid excavation.

    He added that the idea would enable investors to know where, how and why the plants should be sited at a location.

    He said mining equipment were expensive, adding that the incentives would help investors to mitigate their costs.

    Oyebode, a Senior Special Assistant(SSA) Media, Dr Kayode Fayemi, said a conducive environment was vital to the sector’s growth, adding that the idea would enable the Federal Government to achieve its goals of diversifying the economy by not depending only on crude oil.

    He said: “Though the government is not happy that its people are exporting unprocessed minerals, it is not interested in banning the firms that engage in such activities. Rather, the government is concentrating on how to grow the sector by providing incentives to investors that intend to build processing plants in the country. By so doing, Nigeria would be enjoying some value additions where the solid minerals are taken for processing and not countries abroad.

    “Venezula extracts petrochemical materials from Nigerian crude oil, among deriving other value additions. To prevent this in solid minerals, the Federal Government wants investors to build plants for processing of minerals such as gold and other minerals into finished products.

    “For instance, if a mining processing plant is cited in Ibadan (South west) or Kaduna in the North and it creates 1,000 jobs or more, it will have a multiplier effect on the economy as many people will benefit from it.’’