The Role of the Mining Sector on the Nigerian Economy

Nigeria is a country blessed with various resources ranging from population, fertile land, forest, rivers, iron ore, uranium, coal, barites, limestone, crude oil, lead-zinc, gold, etc. However, the country has about 44 solid mineral commodities that can be found in about 450 locations nationwide. Seven of these minerals are considered strategic minerals by the Nigerian Ministry of Mines and Steel for accelerated development. These are Gold, Coal, Barytes, Tantalite, Iron ore, Bitumen, and Lead/Zinc. Currently, the Nigerian government relies immoderately on crude oil, and this has resulted in very little concentration of government in mining activities and it contributes to slowing the sector’s growth. The contribution of the mining sector as a percentage of GDP in Nigeria is only 0.33 percent. This shows sluggish improvement in the sector, as the domestic mining industry is underdeveloped, leading Nigeria to import some of the mineral commodities that it could produce within the country.

In the North-western part of Nigeria, there are abundant mineral resources such as Butyles, Kaolin, Marble and Salt, Gassiterite, Copper, Gemstone, Tantalite, Glass-Sand, Lead/Zinc, Pyrochinre, Tourmaline, Tentalime, Topaz, Graphite, Flosper, Asbestos, Amethyst, Kyanite, Aqua Marine, Superntinite, Mica, Rock Crystal, Sihnite, Sapphire, Ruby, Coal, Gypsum, Laterite, Limestone, Phosphate, Flakes, Clay, Potash, and Gold. But most of such resources are left unexploited and negligence occurs throughout the mining sector where the government and individuals are more concerned about revenue from the oil and gas sector. In a country like Zambia, Mining accounts for 12% of the country´s GDP and more than 70% of total export value. The sector is also a significant source of government revenue and formal employment, both directly and indirectly due to the massive investment made by the Zambian government and private sector.

Looking at the North-eastern region of the country also, there are precious natural resources such as Magnesite, Kaolin, Gypsum, Bentonite, Wolfram, Limestone, Coal, Lignite, Iron-ore, Cassiterite, Gold, Clay, Diatomite, Lead/Zinc, Soda Ash, etc. Sadly, with all these natural resources the Nigerian government has not put more emphasis on mining activities. Many Nigerians are living below the poverty line as they unknowingly sleep on the untapped mineral resources. The mining sector has been experiencing an ongoing resurgence despite the negligence of the past decades, but still, Nigeria has so far not secured the growing benefits from these resources despite their potentials as a major source of government revenue. In South Africa the mining sector contributes 7.3 % to GDP, it attracts valuable foreign direct Investment and huge revenue to the government, almost a half million people are earning income from the sector due to the efforts made by the South African government in mining activities.

The North-central part of Nigeria has blessed with plentiful natural resources includes Cassiterite, Clay, Marble, Dolomite, Lead/Zinc, Tantalite, Gold, Cole, Gypsum, Feldspar, Dolomite, Iron-ore, Talc, Kaolin, Columbite, Mica, Gold, Galena, Barite, Barytex, Chalcopyrite, Limestone, Sapphire, Tourmaline Quartz, Zireon, Bauxite, Bismuth, Betonite, Coal, Fluoride, Emeral, Granite, Gemstone, Molybdenite, Tin, Wolfram, Phrochlore, etc. Despite all of these mineral resources, Mining at large-scale operations exist only in a few places, but the sector is dominated by artisanal and small scale mining operations, mostly informal, working with unsophisticated methods and limited technical training. In Ghana, the mining industry accounts for about 5 percent contribution to GDP and increases government revenue and employment prospects due to the commitment of the Ghanaian government in developing the mining sector.

In the South-west region of the country alone, there are many mineral resources such as Bitumen, Lignite, Phosphate, Marble, Clay Dolomite, Limestone, Gypsum, Gold, Iron-ore, Granite, Syenite, Feldspar, Kaolin, Oil/Gas, Glass-sand, Cassiterite, Barytex, Chalcopyrite, Barite, Amethyst, Gemstone, Limestone, Dimension stone, Talc, Coal, Tourmaline, Aquamarine, Tantalite, Clay, Silimonite, etc. But despite the uncertainty, loss of oil revenue, and rising debt rates in Nigeria, the government has still depended immoderately on oil revenue and failed to diversify its economy. Mining is now a global phenomenon with various countries competing for exploration funds. The dominant strategy of foreign competition indicates that mining companies and their investment funds will only go to those countries where the enabling environment will allow the private sector to flourish unhindered. In Burkina Faso mining is one of the most dynamic sectors that create employment in the country, the gold sub-sector’s contribution to GDP is 10.6 percent in 2018 as a result of Burkina Faso’s incentive policies implemented for the mining sector.

Moving to the South-east part of the country where it has available of valuable natural resources such as Oil/Gas, Gold, Lead/Zinc, Limestone, Iron-ore, Lignite, Glass-sand, Clay, Gypsum, Phosphate and salt, Coal, Marcasite, etc. Many solid mineral mining operations are carried out illegally in Nigeria. Gold and other valuable minerals are smuggled into neighboring countries from where the raw materials find their way to the Middle East. Nigeria needs to plan and shift focus to mining as the oil value is shrinking in the Global market. The economy of Botswana is largely dependent upon mining. Diamond mining contributes 50 percent of government revenue mainly through its joint venture strategy with the private sector. The mining sector can be a major source of revenue and employment especially in countries with numerous mineral resources such as Nigeria.

The South-South region of Nigeria is blessed with natural resources such as Uranium, Oil/Gas, Lignite, Limestone, Lead/Zinc, Clay, Manganese, Gypsum, Glass-sand, Marble, Iron-ore, Kaolin, Bitumen, Phosphate, Dolomite, Gold, Barite, Salt, etc. Mining is primarily a source of mineral commodities that some of the African countries consider essential for revenue generation and improvement in the standard of living. Mining is seen as a stream of revenue for countries engaged in mining activities for economic development. It offers job opportunities, sources of revenue, business opportunities, trained workforce, increased GDP, and foreign-exchange sources. It is good for Nigeria to put more emphasis on mining due to the abundant mineral resources available in the country. Unlike countries like Ghana and Burkina Faso, Nigeria does not have a well developed large-scale mining industry, and the majority of the country’s gold mining is carried out by small-scale and artisanal miners. Out of 36 states in Nigeria and capital territory, there is no single state without mineral resources.

The country is undoubtedly blessed with vast natural resources but Nigeria’s lack of capacity to develop the mining sector is what restrained the country from earning huge revenue from the mineral resources. Nigeria needs to rethink its development strategy because oil revenue failed to make the country economically buoyant. The mining sector will help the country by ensuring an effective increase in the country’s economic growth that will in turn provide export value and jobs for the Nigerian increasing population. It is believed that several factors affecting mining in Nigeria such as security, poor fiscal policy, lack of good transportation facilities, illegal mining, the old method of mining, poor investment in the mining sector, etc.

Therefore, the Nigerian government projection of growth for the country’s mining sector from the current 0.33 percent contribution to GDP to 3 percent by 2025 can only be achieved if the government does something tangible in improving the mining sector. To improve the mining sector, there is a need for the government to reform laws and policies for mining, create a safe working condition for mining investment, build special centers and modern laboratory for mining activities, make a commitment to research and development, provide adequate finance, and infrastructure that attracts investment in the mining sector.

SGX Nifty Indicates Muted Opening; FIIs’ Continues Buying Spree

Yesterday, Nifty, after a gap-up opening, witnessed profit booking and traded toward the day’s low of 12,571 in the first half of the trading session. However, in the second half, it staged a sharp reversal and closed above 12,750, holding robust gains. Volume was higher than the previous day. Nifty has now extended gain for the eighth consecutive session and is currently trading 6.6% and 9.4% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap continue to lag behind the general market and closed 0.4% and 0.7%, respectively.

On the sectoral front, barring Nifty Media (-0.3%) and Nifty PSU Bank (-0.5%), all other sectors closed in the green. Metal and Pharma stocks led the rally, resulting in Nifty Metal and Nifty Pharma gaining the most for the day. Both the sectoral indices advanced 3.5% and 3.6%, respectively. Market breadth remained in favor of advancers. FIIs’ net buying was Rs 6,207 crore, while DIIs’ net selling was Rs 3,463 crore. In just eight sessions in November, FIIs’ net buying was more than Rs 29,000 crore.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.

Key News

Apollo Hosps.Enterprise reported Q2 FY21 results. PAT was down 30% y/y to Rs 60.3 crore and revenue was down 3% y/y to Rs 2,760.7 crore. The board has approved the raising of Rs 1,500 crore through preferential issue/QIP.

Indraprastha Gas reported Q2 FY21 results. PAT was down 8% y/y to Rs 380.45 crore. CNG sales fell 20% y/y to 255M kilograms, while piped natural gas supplies were down 4% y/y to 146M cubic meters. Total sales volume was down 16% y/y to 506M standard cubic meters.

Power Grid Corp. Of India reported Q2 FY21 results. PAT was up 30% y/y to Rs 3,094 crore, while revenue was up 7% y/y to Rs 9,831 crore.

Things to Keep in Mind Before Applying For Gold Loan And Personal Loan

Here are sure checkpoints to assist you with benefiting the ideal loan choice as far as cost and quick access:

Loan amount
The loan amount will basically rely upon your pay, tenure, the loan type, and the estimation of the pledges submitted assuming any. For instance, the loan amount in the event of a standard loan against a credit card will simply be the extent of your endorsed credit limit.
Be that as it may, many credit card backers have begun offering loans once again or more your credit limit. The loan amount if there should be an occurrence of ordinary personal loans can run between Rs 50,000 and Rs 40 lakh, contingent upon your reimbursement limit. On account of gold loan, the loan amount can go up to 75 percent of the estimation of the gold swore with the moneylender.
Processing time
As money related emergencies require snappy admittance to reserves, loans requiring longer turnaround time for disbursals may not end up being a lot of value. Loans against a credit card, gold loan, and personal loan have the speediest processing and disbursal among the different credit choices.
While loans against credit cards and gold loans are normally prepared around the same time of a loan application, a personal loan may take around 2 to 7 days for disbursals. In any case, a few moneylenders guarantee to dispense personal loans around the same time of utilization.
Interest rate
The interest rates of your financing choices will essentially rely upon the sort of loan you decide on and your credit profile. Typically, made sure about loans have lower interest rates than the unstable ones. Also, those with a decent credit score and utilized with presumed corporates have higher odds of benefiting loans at lower interest rates.
Processing charges
Gold loans accompany one of the most reduced processing charges among all loan choices. A few banks charge a level processing expense of as low as Rs 10 on their gold loans though others charge anyplace between 0.10 percent and 2 percent of the loan amount as a processing charge. Fullerton India processing fees is up to 6% of the whole loan amount. This is a one-time charge which will be obviously referenced in the loan understanding. This amount is the personal loan ROI for all the administrations including loan application, record confirmation, legitimate methods, client care, and different administrations engaged with processing the loan
Loan tenure
The tenure of your loan assumes a significant part in deciding your EMI and by and large interest cost. Longer tenure would mean lower EMI yet would prompt higher interest cost and the other way around. Personal loans and loan against credit cards typically accompany loan tenures of 1-5 years.
Fullerton India’s personal loan interest rates start at 11.99% for salaried and independently employed candidates for a limit of 60 months, which implies you can get EMI as low as ¹ 2,224* every month. The interest rates and processing charge (Between 0% – 6% of the loan amount) compensate for the complete cost of the loan.

4 Things Successful Consultants Can Do to Diversify and Make More Money

For many years of my nonprofit consulting practice, I lived a “feast or famine” lifestyle. Have you been there and done that as well? Then you know exactly how it feels to be snowed under with so many deadlines that you can hardly see straight OR you’re desperately cold calling every agency in town hoping they need what you have to sell. And – you’re willing to offer your services at a deeply discounted rate if they’ll just pay you something.

In 2009, after a long-term contract with a nonprofit that I dearly loved ended because the new board president felt that my job could easily be absorbed by the executive assistant (I know, right?!), I knew that I had to rethink my consulting strategy. I had become too self-reliant on just one revenue stream and I never knew where my next client was coming from.

In 2010 I launched my first website. I treated it not as just an “online brochure” but one built to make money for me in addition to my consulting jobs. Pretty soon, I was able to ditch the “done for you” service model of my consulting practice and now run the business coaching others how to do the work they were paying me to do instead of me doing it for them.

This model works so much better because it eliminates the income ceiling of trading dollars for hours, I can serve many more clients and I have much more freedom. This is considered more of a coaching model of doing business.

Want to turn your present model of consulting around on its head and make money a new, much more fun way? Here are four tips to help you make that transition:

Get clear on what it is you can do for people – Get clear on who you want to work with and what you want your client to have as a result of your coaching. Spend some time thinking about what it is you enjoy doing for people and the result that you always want them to come away with.

Instead of you trying to find clients to do a service for, you’re now concentrating on finding clients that instead want you to teach them what you know so they can do the job themselves.

Build a community – Find others that are wanting to learn what you know and build your own following to always have someone to market to. I continue to do this by offering something of value to my potential clients and marketing that through social media channels, blog posts, forum postings and articles. In exchange for them getting this valuable information I had to offer, I only asked for their name and email address on my website. This quickly built my list. It also gave me permission to market my coaching services.

Keep in touch – So, if you have a list of potential clients then the next step is for you to keep in touch with them. Continue to offer good information through a newsletter or the sharing of your blog posts. Show your community that you care about them.

Consistently make offers to your list – While all the while being of value to your community, you’ll also make offers. Instead of offering “done for you” services though you’ll be offering some sort of coaching package where instead of you doing the work for someone, you’re now training them how to do the work for themselves. You’re empowering them to do what you already know how to do.

What I just shared is really just the tip of the iceberg – so much to teach you, young grasshopper! In the resource box, you’ll find how to find out more and receive much more information. I hope that you’ll seriously consider a new way of doing business.