FULL TEXT OF PRESIDENT MUHAMMADU BUHARI'S 2016 BUDGET ADDRESS AT THE NATIONAL ASSEMBLY TODAY.

PROTOCOLS
I am honoured and privileged to present the 2016 Budget proposal. This is my first address before this joint session of the National Assembly. I have come here today, not only to address members of the National Assembly, but also to speak directly to the men and women who placed us here.

2. I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years. From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore, as we plan for the future.

3. By June 2014, oil prices averaged $112 per barrel. But as at today, the price is under $39 per barrel. This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations. The small business owners and traders have been particularly hard hit by this state of affairs.

4. Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has ever been.

5. The answers to our problems are not beyond us. They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.
6. This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians. We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.

7. In the medium to longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy. It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come.

2015: A Year of Global and Domestic Challenges
8. Today, it is widely acknowledged that the global economy has slowed down. This is particularly the case with emerging markets such as Nigeria. However, despite the weak emerging market growth rates, our domestic security challenges, declining oil prices, and the attendant difficulties in providing foreign exchange to meet market demands, the Nigerian economy grew by 2.84% in the third quarter of 2015.

9. We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing.

10. Upon the inauguration of this administration on 29th May 2015, we engaged key stakeholders from various sectors of our economy and interfaced with the heads of Ministries, Departments and Agencies (MDAs) in order to understand the true state of our nation. What we found prompted us to take certain strategic decisions.
11. On the economy, we injected new leadership at the helm of our revenue generating agencies including the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Communications Commission (NCC), and the Nigerian Customs Service (NCS). We implemented the Treasury Single Account (TSA) which, so far, has provided greater visibility of Government revenues and cash flows. We intervened to support States to navigate their fiscal challenges by restructuring their commercial bank loans and by providing facilities to enable them to pay salary arrears.

12. We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face. On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.

2015 Budget Performance
13. Distinguished and honourable members of the National Assembly, I now present a review of the 2015 Budget. That Budget was based on a benchmark oil price of $53 per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the US$.

14. The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the North East, the Government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill.

2016: Budget Assumptions
15. After reviewing the trends in the global oil industry, we have set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016. We have focused on non-oil revenues by broadening our tax base and improving the effectiveness of our revenue collecting agencies.

16. Also, with the full implementation of the Treasury Single Account, we expect significant improvements in the collection and remittance of independent revenues. To further support the drive for increased remittances, we will ensure that all MDAs present their budgets in advance, and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act.

17. We are determined to ensure that our resources are managed prudently and utilized solely for the public good. To set the proper tone, one of our early decisions was the adoption of a zero based budgeting approach, which ensures that resources are aligned with Government’s priorities and allocated efficiently. This budgeting method, a clear departure from previous budgeting activities, will optimize the impact of public expenditure.

18. In addition to the proper linkage of budgeting to strategic planning, we are enhancing the utilization of the Government Integrated Financial Management Information Systems (GIFMIS) to improve financial management. The recently established Efficiency Unit is working across MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies. We engaged costing experts to scrutinize the 2016 budget proposals. They have already identified certain cost areas that can be centralized for economies to be made.


19. We have directed the extension of the Integrated Personnel Payroll Information System (IPPIS) to all MDAs to reap its full benefits. We will also strengthen the controls over our personnel and pension costs with the imminent introduction of the Continuous Audit Process (CAP). These initiatives will ensure personnel costs are reduced. Our commitment to a lean and cost effective government remains a priority, and the initiatives we are introducing will signal a fundamental change in how Government spends public revenue.

2016: Laying the Foundation for Sustainable Growth
20. The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs.

21. We aim to ensure macroeconomic stability by achieving a real GDP growth rate of 4.37% and managing inflation. To achieve this, we will ensure the aligning of fiscal, monetary, trade and industrial policies.

22. As we focus on inclusive growth, we are conscious of the current rate of unemployment and underemployment. This is a challenge we are determined to meet; and this budget is the platform for putting more Nigerians to work. I can assure you that this administration will have a job creation focus in every aspect of the execution of this budget. Nigeria’s job creation drive will be private sector led. We will encourage this by a reduction in tax rates for smaller businesses as well as subsidized funding for priority sectors such as agriculture and solid minerals.
23. As an emergency measure, to address the chronic shortage of teachers in public schools across the country, we also will partner with State and Local Governments to recruit, train and deploy 500,000 unemployed graduates and NCE holders. These graduate teachers will be deployed to primary schools, thereby, enhancing the provision of basic education especially in our rural areas.

24. We also intend to partner with State and Local Governments to provide financial training and loans to market women, traders and artisans, through their cooperative societies. We believe that this segment of our society is not only critical to our plan for growing small businesses, but it is also an important platform to create jobs and provide opportunities for entrepreneurs.

25. Furthermore, through the office of the Vice President, we are working with various development partners to design an implementable and transparent conditional cash transfer program for the poorest and most vulnerable. This program will be implemented in phases. Already, the compilation of registers of the poorest persons is ongoing. In the coming weeks, we will present the full programme, which will include our home-grown public primary school feeding and free education for science, technology and education students in our tertiary institutions. Indeed, this will mark a historic milestone for us as a nation.
The 2016 Budget
26. Distinguished members of the National Assembly, I now present, the 2016 Budget proposals of the Federal Government. Based on the assumptions I presented earlier, we have proposed a budget of N6.08 trillion with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion.

27. The deficit, which is equivalent to 2.16% of Nigeria’s GDP, will take our overall debt profile to 14% of our GDP. This remains well within acceptable fiscal limits. Our deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion totaling N1.84 trillion. Over the medium term, we expect to increase revenues and reduce overheads, to bring the fiscal deficit down to 1.3% of GDP by 2018.


28. In 2016, oil related revenues are expected to contribute N820 billion. Non-oil revenues, comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, will contribute N1.45 trillion. Finally, by enforcing strict compliance with the Fiscal Responsibility Act, 2007 and public expenditure reforms in all MDAs, we have projected up to N1.51 trillion from independent revenues.


29. Although we are working to diversify our economy, we will not lose sight of the need to restructure the oil and gas sector which has been marred by corruption and plagued with inefficiencies.Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components. We believe this can lower input costs and attain efficiency savings that will enable PPPRA to keep the selling price for all marketers of petrol at N87 per liter for now.

30. The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.

31. I have also directed the NNPC to explore alternate funding models that will enable us to honour our obligations in Joint Ventures (JVs) and deep offshore fields. We are confident that these measures can be achieved and will lower the burden that the traditional cash calls have imposed on our budget and cash flows as well as contribute towards shoring up our national reserves.



32. To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget. Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30% of our total budget. In future years we intend to raise the percentage allocation for capital expenditure.


33. This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government’s commitment to sustainable development. This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing – N433.4 billion; Transport – N202.0 billion; Special Intervention Programs – N200.0 billion; Defence – N134.6 billion; and Interior – N53.1 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.

34. We will invest to safeguard lives and property.

35. We will invest in equipping our farmers with the right tools, technology and techniques.

36. We will invest in empowering and enabling our miners to operate in a safe, secure and humane environment.


37. We will invest in training our youths, through the revival of our technical and vocational institutions, to ensure they are competent enough to seize the opportunities that will arise from this economic revival.

38. Indeed, the future looks bright. And I ask that we all work together to make this vision a reality. The 223% year on year growth in capital expenditure demonstrates our desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country.
39. In fulfillment of our promise to run a lean government, we have proposed a 9% reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016. Furthermore, we have budgeted N300 billion for Special Intervention Programs, which takes the total amount for non-debt recurrent expenditure to N2.65 trillion.

39. As I mentioned earlier, the Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%. Distinguished and honourable members, this budget will be executed to provide optimum value by ensuring every naira spent by this Government, counts.

40. We will devote a significant portion of our recurrent expenditure to institutions that provide critical government services. We will spend N369.6 billion in Education; N294.5 billion in Defence; N221.7 billion in Health and N145.3 billion in the Ministry of Interior. This will ensure our teachers, armed forces personnel, doctors, nurses, police men, fire fighters, prison service officers and many more critical service providers are paid competitively and on time.


41. Distinguished and honourable members of the National Assembly, our 2016 borrowings will be principally directed to fund our capital projects. Furthermore, the sum of N113 billion will be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. This calls for prudent management on our part, both of the debt portfolio and the deployment of our hard earned foreign exchange earnings.

42. I am aware of the problems many Nigerians currently have in accessing foreign exchange for their various purposes – from our traders and business operators who rely on imported inputs; to manufacturers needing to import sophisticated equipment and spare parts; to our airlines operators who need foreign exchange to meet their international regulatory obligations; to the financial services sector and capital markets who are key actors in the global arena.

43. These are clearly due to the current inadequacies in the supply of foreign exchange to Nigerians who need it. I am however assured by the Governor of Central Bank that the Bank is currently fine-tuning its foreign exchange management to introduce some flexibility and encourage additional inflow of foreign currency to help ease the pressure. 

44. We are carefully assessing our exchange rate regime keeping in mind our willingness to attract foreign investors but at the same time, managing and controlling inflation to level that will not harm the average Nigerians. Nigeria is open for business. But the interest of all Nigerians must be protected. Indeed, tough decisions will have to be made. But this does not necessarily mean increasing the level of pain already being experienced by most Nigerians.

45. So to the investors, business owners and industrialists, we are aware of your pains. To the farmers, traders and entrepreneurs, we also hear you. The status quo cannot continue. The rent seeking will stop. The artificial current demand will end. Our monetary, fiscal and social development policies are aligned. 

Conclusion
46. Mr. Senate President, Mr. Speaker, distinguished members of the National Assembly, in spite of the global economic uncertainties; we must remain steadfast in our commitment to steer this country back to greatness.

47. The Nigerian economy needs to move away from dependency on oil. Our growth must be inclusive. Nigerians must be part of the growth story. As a Government, we shall deliver security, jobs and infrastructure. This is the right of all Nigerians.

48. I know many people will say “I have heard this before”. Indeed, trust in Government, due to the abuse and negligence of the past, is at an all-time low. This means we must go back to basics. Our actions will speak for us. My team of dedicated, committed and patriotic Nigerians is well aware of the task ahead and I can assure you that we are taking on the challenge.

49. We will not betray the trust reposed in us.

50. We will welcome and be responsive to your feedback and criticisms.

51. We are here to serve. And indeed, Nigerians will get the service they have longed for and which they rightly deserve.
52. We as a Government cannot do it alone. We will require the support of all civil servants, the organized labour, industry groups, the press and of course, our religious and traditional institutions. This is a call for all of us to stand and serve our country.


53. This Budget represents a major step in delivering a new opportunity for Nigeria. It demonstrates our confident optimism that despite the challenging times, we have the will, resourcefulness and commitment to deliver prosperity to our people. And by the Grace of Almighty God and the sheer will and determination of the Nigerian people, we will come out stronger and more united than ever.

54. Thank you and God bless the Federal Republic of Nigeria.

Prime Minister Of The Commonwealth Of Dominica Backs Away From Ex-Oil Minister Alison-Madueke.

The Prime Minister of the Commonwealth of Dominica, Mr. Roosevelt Skerrit, has denied that Nigeria’s former Petroleum Minister Diezani Alison-Madueke, who is facing major corruption investigations in Nigeria and the United Kingdom, was ever offered or encouraged by his government to make that country her home.

PM Roosevelt Skerrit of Commonwealth of Dominica and Nigeria's ex-Oil Minister Diezani Allison-Madueke

In a statement dated December 10, he explained that the Minister was introduced to him in May during a routine stop-over visit to London, and that the discussions took place well before any question of an investigation by the relevant authorities arose.
May was the same month that the government in which Alison-Madueke served came to an end.  

Contrary to reports that the former Minister had arranged to move to Dominica, Mr. Skerrit said the idea of relocating to Dominica was never discussed with her, let alone agreed.  

He recalled that in his budget address to his people two years ago, he outlined a vision of recruiting persons of experience, influence and integrity to serve and represent Dominica in various capacities abroad, given that as a small nation with very limited resources, she lacks the capacity to establish consular or other offices in many regions of the world. 
“In this case, who better to speak for and on behalf of Dominica in parts of the African continent than a former President of OPEC and former Chairman of the West African Gas Pipeline Authority?” he asked of Alison-Madueke.

He noted, however, that following the former Minister’s arrest in October 2015, and pending the outcome of the investigations, the Dominica Ministry of Foreign Affairs moved with dispatch to suspend all relations with her immediately. 
“This suspension took place in the month of October,” he stated.  “Our position is that the relationship with Mrs. Madueke and all that flows from this will remain completely suspended until such time as the probe into her conduct as a Minister of Government is concluded and a determination made by the relevant authorities.”

Full text of the statement:
Office of the Prime Minister Commonwealth of Dominica Kennedy Avenue Roseau, Dominica www.opm.gov.dm pressdm@dominica.gov.dm December 20,2015 For Immediate Release Official Statement There is no truth to the rumour of a former Government Minister of Nigeria being offered or encouraged by the Prime Minister or Government of Dominica to make The Commonwealth of Dominica her home.

Prime Minister Skerrit explained that in May of this year, during a routine stop-over visit to London, Madueke was introduced to him as the immediate past Minister of Petroleum Resources in Nigeria and also immediate past President of OPEC, the Organization of Petroleum Exporting Countries. These discussions however took place well before any question of an investigation by the relevant authorities arose.

Prime Minister, Honourable Roosevelt Skerrit has made clear that the idea of relocating to Dominica was never discussed, far less agreed, in any discussions with or on behalf of Diezani Alison Madueke, the ex-minister of Petroleum Resources in Nigeria, who is now under investigation by United Kingdom and Nigerian authorities. Indeed, the Prime Minister said the discussions surrounded her continued residence in the United Kingdom and ability to travel to Africa in order assist Dominica. The Prime Minister stated: “The academic and professional credentials of Mrs. Madueke were impeccable. She had been a senior government minister since 2007, having served also as Minister of Transport and Minister of Mines and Steel Development.

Additionally, she served as an Executive Official and Director of Shell Petroleum Development Company in Nigeria. In my Budget Address to the people of Dominica two years ago, I outlined the intention and policy of my Government to recruit persons of experience, influence and integrity to serve and represent Dominica in various capacities abroad. As a small nation with very limited resources, we do not have the capacity to establish consular or other offices in many regions of the world. In this case, who better to speak for and on behalf of Dominica in parts of the African continent than a former President of OPEC and former Chairman of the West African Gas Pipeline Authority. Also, it must be recalled here that Mrs.

Madueke was educated in the United Kingdom and United States of America, having studied for her Bachelor's degree at Howard University in Washington, D.C. and post-graduate studies at Cambridge University in the UK. So, on the recommendation of a number of outstanding individuals of note, and after thorough due diligence studies were undertaken, the Government of Dominica agreed to the appointment of the former Nigerian Government Minister as Trade and Investment Commissioner for Dominica, with the specific remit of promoting and marketing the trade and investment opportunities of Dominica. This was especially the case considering her obvious contacts following her stint as President of OPEC. The issue of her relocating to Dominica was never raised in any of our discussions, because at the time Mrs. Madueke was to my knowledge in good standing in Nigeria and United Kingdom, having only just demitted office in Nigeria and established living arrangements in the United Kingdom.

The arrangement of Mrs. Madueke serving in an honorary capacity, with no direct remuneration from Dominica and Dominica facilitating her travels across Europe and Africa with the issuance of a diplomatic passport, was entirely in accordance with existing convention, protocol and practice, until the very recent and unexpected development of the investigations by UK and Nigerian authorities. This development was not foreseen nor anticipated by the due diligence undertaken on behalf of the Government, and could not have been and was not foreseen by me or the Government of the Commonwealth of Dominica.

I should add that the Ministry of Foreign Affairs moved with dispatch to suspend all relations with Mrs. Madueke immediately following her arrest in October 2015, pending the outcome of the investigations. This suspension took place in the month of October. Our position is that the relationship with Mrs. Madueke and all that flows from this will remain completely suspended until such time as the probe into her conduct as a Minister of Government is concluded and a determination made by the relevant authorities.”

SoURCE:  SAHARAREPORTERS, NEW YORK

Kayode Fayemi breaks down the FG’s plan for solid minerals sector.

Nigeria Minister of Solid Minerals, Dr. Kayode Fayemi

Good morning ladies and gentlemen. The core purpose of our gathering today is to acquaint you with some of the emerging strategic priorities and plans of the Federal Ministry of Solid Minerals Development for accelerating and scaling up the role of solid minerals in Nigeria’s economy. I speak today on behalf of the core leadership of this ministry and duly acknowledge the support and contributions of my brother and colleague Hon. Abubakar Bawa Bwari, Minister of State and the Permanent Secretary, Mr. Istifanus Fuktur.

We will also like to thank President Muhammadu Buhari for the opportunity to serve our republic and her citizens. In the short period that we have been here, we must acknowledge the enriching support of staff of the Ministry and its key departments and agencies for their warm welcome, insights, support and frankness.

Our Point of Departure: A Partially Leveraged Asset

Ladies and gentlemen, it is no news to anyone that Nigeria has tremendous mining endowments. Today, we have at least 44 known mineral assets that include precious minerals, base metals, bulk minerals and what are known as rare earth minerals. More specifically, our most promising mineral assets include gold, iron ore, baryte, bitumen, lead, zinc, tin and coal.

We have reasons to believe that available data of our reserves understates what the almighty God has blessed our country with in many cases. We have barely updated some of the geosciences data collected 50 years ago or earlier; so we are cautiously optimistic that our mining endowments actually exceed what is currently stated.

That said, based on current data, Nigeria’s solid minerals sector makes up about 0.34% of gross domestic product (GDP). That means that based on current official exchange rates, the mining sector contributes N400billion in value to the economy. While that is a significant role, it is smaller than its true potential as the vast majority of our mining assets have yet to be exploited. In fact, what has been happening is the the sector has more or less been operating sharply below capacity, with many mining operations manned by small scale artisanal miners, as opposed to the large scale players.

Mining is not new to Nigeria. As a nation, mining of our resources began in 1902 in key mining towns such as Jos and Enugu. From these early operations led by the then British Colonial government, we went on to a more private sector focused model, and then moved to companies controlled by government such as the National Steel Company and the National Coal Corporation. The policy shift created too much uncertainty which occasioned many private investors leaving Nigeria and the sector suffering sharply as a result. The government at the time unfortunately did not do a good job of running mining companies and as a result, the sector’s progress grounded to a halt. Needless to say, little attention paid to the sector over the years compounded by, in some cases, poor policy judgements of previous administrations are some of the factors that have stunted the sector’s growth.

Today, following extensive reforms started in 1999, which essentially crystallized around the Nigerian Minerals and Mining Act of 2007, Nigeria is once again on the path to providing a transparent and workable regulatory and policy environment for private sector led mining. And companies have started responding to all the efforts made by my predecessors. Today we have companies such as Tongyi Allied Mining, Dangote Group, Segilola Gold, Kogi Iron Mines, Multiverse Resources, and Australian Mines Ltd etc. blazing the trail in the mining sector. We also look forward to welcoming more companies into the sector.

Challenges and Constraints

That said, even for our pioneer miners, the road to mining prosperity has not been easy. Many companies who have kept faith with Nigeria have struggled due to challenges in the solid minerals sector. Today, the Nigerian mining industry faces two (2) sets of challenges: external and internal.

External Challenges

The global mining market is in turmoil as key sources of demand that supported prices over the past two decades have declined. As you all may be aware, there is continuous global decline in prices of mining products which has put mines and mining houses under tremendous pressure. We see this reflected in the sharp declines in the share prices of Glencore, BHP-Biliton, Anglo American and Rio Tinto for example.

Naturally, as a result of falling metal and asset prices, many of the top mining houses are pulling back from investment planning, shutting down mines and optimizing current operations. All mining now has to be cost and process efficient.

For Nigeria, it creates a challenge to attract the large houses in the current time frame but therein also lies a great opportunity. We have therefore adjusted our go to market strategy to reflect a need to jump start market growth using a mix of domestic mining houses, junior mining companies and large global miners. The good news for Nigeria is that we have tremendous domestic demand for industrial minerals and metals – in the construction industry for example, so we will be focusing on working with other key MDAs to ensure that demand is met by Nigerian miners and processors.

Internal Challenges

Our internal challenges are of a different nature, and not a supply-demand balance issue. Internally, we need more of the support structure that will enable industry growth. At present, there are eight key internal challenges we face:

1. Limited Infrastructure: This is a key issue; the absence of appropriate infrastructure e.g. water, railroads and port handling facilities for base and bulk minerals makes it difficult for Nigeria to export iron ore for example. We need to improve energy, transport and market links to mines.
2. Insufficient Geological Data: While we have some geosciences data, we are still heavily reliant on work done 30 to 50 years ago to estimate our reserve potential. We need to provide more detailed, investment grade data to support investors. Mining licenses issued by the Cadastre Office should be able to serve as collateral for loans, if supported by reliable information on the quality and grade of deposits.
3. Limited Cooperative Federalism: Absence of incentives for states to become involved in mining is a key constraint i.e. royalties and taxes not directly accessible to states; need to review this arrangement. States have also not taken full advantage by setting up mining joint ventures, limiting their capacity to generate IGR.
4. Low Productivity: Nigeria’s mining techniques and processes need to be upgraded in order to reduce mine site waste, and boost productivity of output. Ditto some of our older steel plants. Even in a labour intensive mining sector, it is important that miners have access to the most efficient supporting technology.
5. Illegal Artisanal Mining and Community Challenges: Much of Nigeria’s mining is conducted informally at levels as high as 80% of activity in some regions of the country, not necessarily of Naira earnings. We need to bring these miners into a legalized framework, making them real start-up miners and ensuring they pay government the right set of taxes and royalties. I want to be clear: there will no longer be a free lunch, as the Mining Act will be firmly enforced.
6. Weak Institutional Capacity: The Ministry has undergone significant changes since 2007 but still remains constrained with respect to enforcing existing laws and policies, supervising mines, and leading the provision of geo-sciences data. The Ministry will therefore need to add more technical staff and also upgrade the skill set of the Mining Inspectorate staff as well as other staff in the Ministry and its agencies.
7. Insufficient Funding: Funding has been a challenge partially because the sector had not been a focus area for both government and financial institutions. Thus, a number of projects have drawn funding from offshore sources, while others have sought capital from a few Nigerian banks. We have commenced constructive engagement with the Central Bank of Nigeria (CBN) and with commercial lenders to help them create the teams to sharpen commercial options for Nigerian miners.
8. Weak Ease of Doing Business and Perception Issues: Nigeria still remains a challenging place to do business based on data from the World Bank’s survey over the past decade; while we have improved, that has had a negative impact on mining. Mining specific data such as the Fraser Institute survey puts Nigeria near the bottom of investor friendly destinations, even if that is more perception than reality, it shapes investor decision making process.

For Nigeria, the continued presence of these issues will hold back market development. Therefore, we must resolve these set of issues as they impact how we choose to compete in the market. While external markets create opportunities we can exploit, improving ease of doing business or reducing transport costs will enable us to attack market opportunities as a lower cost competitor for example. Indeed, the global mining party is ours to attend, but we must dress appropriately and come with a competitive edge. My team and I will be spending more time on building collaborative links with other key ministries to enable us build a cost competitive industry.

The President’s Agenda and Promise

Beyond the challenges, the key question is if all goes well, what do we want to achieve in the Solid Minerals sector? You must have heard Mr. President oft repeated views that he wants the sector to be a key source of economic growth and diversified revenue base for Nigeria. In fact, Mr. President has stated clearly that our goal is to build a more diversified economy in which oil remains important, but its share of the overall portfolio of revenue sources declines as the whole pie grows bigger. The recently approved Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) emphasizes the place of solid minerals in the economic growth strategy of the country.

Based on that presidential promise, to build a more diversified economy, our task as a Ministry is therefore to remove any and all obstacles to such growth. From working with the National Assembly to receive the right budgetary provisions to ensuring expansion in bulk handling terminals at multiple river and ocean ports, our role is to ensure that things work as intended.

Our Emerging Vision – A Safe, Sustainable and Profitable Sector

The trajectory of Nigeria’s extractive industry has not been without controversy. We are all witnesses to the challenges in the oil industry over the past few decades. More recently, we have seen significant challenges in the gold, lead and zinc mines of Zamfara where illegal mining without a clear understanding of how to handle poisonous material such as lead has had incredibly devastating consequences. We will continue to work with all stakeholders on the remediation of the health challenges arising from poor mining activities.

Given where we are and the early stages of the industry in Nigeria, we believe it is important that we set the right tone and create a structure for long term success. Therefore our core philosophical beliefs that will guide our decisions are as follows:

1. Jobs Creation – We want to build a sector that is a jobs and growth machine, capable of working alongside other sectors to create a range of career options for our citizens.
2. Revenue Generation – We want to build a sector that blocks all forms of leakages in the revenue accruals with a view to ensuring prompt and comprehensive collection of revenues.
3. Industrialisation – We want to build an industry that will support Nigeria’s industrialization, expansion of low cost coal generated power, earn foreign exchange and generate tax revenues for government at all levels.
4. Sustainability – We want to build an industry that is sustainable, and will balance profit maximization with sustained economic options
5. Transparency – We want to build a transparent industry that broadcasts what it pays to government and other partners.
6. Environmental Justice – We want to build an industry that values environmental equity and fairness for any and all.
7. Cooperation – We also want to build an industry that integrates states, communities and existing artisanal miners where possible into the mining ecosystem.

If we deliver on this vision, then we can build a mining sector that Nigerians can be proud of 30 years or more from now. This sector should deliver double digit growth over the next decade, with important direct and indirect economic impacts on households. To improve our likelihood of building such an outcome, the Ministry also sought to extensively understand the entire operations in the sector. Therefore, we continue to review lessons from some of the best mining industries to see what lessons we can draw from their experiences, balancing some of the objectives outlined above.

Our Emerging Federal Mining Strategy

Given all the opportunities and challenges outlined, as well as the global market outlook for mining, the Ministry has developed a framework strategy to drive growth. Let me outline the key elements of the strategy along 3 dimensions: what our aspirations are; where Nigeria should focus on; and how we intend to win.

Aspiration: First, our strategic aspiration is to build a sustainable, globally competitive mining sector, and related supporting sectors that will prudently use the finite resources available to improve the quality of life for Nigerians

Where to Focus: We will focus on supporting and growing Nigeria’s position in mineral assets with commercially proven reserves. Our assets will then be used to serve 2 key markets: a domestic industrialization market that is more beneficiation focused; and an export market that is more focused initially on the export of ores and raw materials. The mix of investors that will target Nigeria will reflect that preference of serving both the domestic and export markets. We anticipate that as we expand our geosciences databases and insights, we will also expand what minerals we compete in.

How to Win: Nigeria will focus on going to market as a quality and cost leader, rather than a scale based operation, pending further understanding of our reserves position. Be that as it may, we are interested in building a profitable solid minerals industry, not the largest in the world, hence we will always make shrewd decisions with our partners, communities and other stakeholders. For example, we will rather be the most competitive gold producer in the world and serve only a fraction of supply, than be the biggest producer and have equity investors generating losses.

Given the aspiration, the where to play and how to win choices, the role of government would be to invest in activities and levers that reduce the cost of doing business, and improve Nigeria’s perception as a high quality mining destination. Over the next few months, we will conduct additional analysis to refine our strategies and the policy regimes that will emerge to support and accelerate the execution of the strategy.

Ensuring Successful Execution of Emerging Strategy

To ensure a successful implementation of our strategy, we have also invested significant time in brainstorming key drivers of success. We have identified 8 key drivers of success which we will now review briefly.

· First, we will always work off an integrated plan that emerges from a broad consultation process; once the plan is finalized, we will actively communicate it to key stakeholders. Based on what we have shared today, much of it will not be a surprise.

· Second, we will build an investor friendly regulatory environment; today we have a very strong system but it can always be further improved; for now, our focus will be on enforcing its key elements including its “use it or lose it” license provisions and automating its operations.

· Third, we will champion and only use a partnership model with investors, communities, artisanal miners and states to create the right incentives for all parties. A good example is the Northern Numero Resources Ltd which is a partnership of an Australian group, the Federal Government and Kebbi State Government and the Community.

· Fourth, we will build a more widely available geosciences database; as we create more accurate geological maps, investors can become more confident and precise in their decision making

· Fifth, we will work closely with our colleagues in the Federal Executive Council particularly Environment, Finance, Industries, Trade and Investment, Interior, Transportation, Power, Works and Housing, Defence/ONSA, Customs and the BPE with a view to strengthening inter-agency collaboration and coordination.

· Sixth, we will work closely with banks, and other financial institutions, public and private to improve access to capital for solid minerals sector operators, large and small; we want Nigerian financiers to understand this industry again, and build teams to help drive its growth.

· Seventh, we will also look inward and rebuild the Ministry’s personnel, offices and teams to ensure we are streamlined, and investing appropriately to support growth; for example, we will add more technical and commercial persons, even as we consolidate certain functions to create efficiencies.

· Eight and finally, we intend to use solid minerals as a growth catalyst for communities. We will engage closely with multiple MDAs to ensure that communities we work in are treated with respect and professionalism to ensure that they can build a diversified economy over the years.

We have made varying levels of progress across each of these elements. Most would be classified as work in progress, while a few such as using solid minerals to drive growth and wealth in communities can be considered very early stage or not started. Over the next 12 to 36 months, we will periodically report back on progress against these 8 categories.

Next Steps: Some Short Term Actions

Before wrapping up today’s prepared remarks, I also want to talk about what my team and the entire Ministry will be doing in the next few months. Our immediate priority now is to accelerate investor confidence in the mining markets, and get the sector growing and jobs created. To do that within the context of the overall emerging strategy, we will be taking the following actions:

Finalize Market and Technical Diagnostic: We are working on creating one consistent view of Nigeria’s mining industry, drawing on a range of internal and external data; this will help inform our strategy as well as investor decisions.

Revenue Generation: Upgrading of the Mining Cadastre Office and the Mines Inspectorate Directorate – automation, efficient review of overlapping and inactive titles, guaranteeing the integrity of mining licenses, external audit of revenue receipts in the past years would be undertaken and the establishment of Mines Police

Formalising Artisanal and Small Scale Miners: Strengthen the institutional support to artisanal and small-scale miners for integrating them into the formal economy.

Finalise Privatisation Exercise: Based on the recent update provided by the Bureau of Public Enterprises to the Ministry, an audit of privatised assets would be undertaken.

Geosciences: Review and conclude all open contracts for collecting geosciences data; for projects that have been contracted and the collection flights flown, finalize payments and make these and other data available to investors.

Capacity Building: We will invest in capacity building for the technical and operational staff in the Ministry and organise the Ministry for optimal delivery of the goals outlined.

Non-State Actor Engagement: We will encourage and work in partnership with non-state actors especially Community Development Associations and Civil Society Organisations to promote participation and inclusion and ensure community development and safer/environmentally sustainable mining practices.

Regulation: We will work with stakeholders to review existing licenses and bring them up to date where there are issues; our goal is to get licensees who are sitting on the fence to have sufficient confidence to start investing real capital. That said, starting March 1, 2016, we will start enforcing the “use it or lose it” doctrine enshrined in the Nigerian Minerals and Mining Act, 2007. The period from today to 1st March 2016 should be considered an amnesty period to allow regularization of papers.

Formation of Investment and Business Support Team: There will be some low hanging fruits e.g. providing support to miners who are close to production but facing one or two administrative issues. We are setting up a new investment team that will help get such companies “over the line” and into production mode. We will also engage rapidly with key Nigerian companies that are today importing raw materials that can be supplied domestically e.g. coal for cement kilns. That import substitution push will be a quick to medium term win. The team will also start working closely with foreign investors who need guidance to launch operations in Nigeria.

Launch Stakeholder Communications: We will launch a series of targeted sessions with investors, communities and other parties in the next few weeks to continue the consultations we have begun since taking office. Our focus would be on ensuring that we are listening and acting as well in the best interests of committed partners. As much as possible, these sessions will be used to refine our thinking, as well as solve problems.

Conclusion

It is fair to say that we have a great deal of work ahead of us. That said, we are building on a hard fought legacy and it is important that we continue to refine that structure until it gives us the type of industry all Nigerians and our international investor friends will be proud of.

We ask for your patience but we also recognize our responsibility to boost confidence. As Solid Mineral’s share of GDP grows over the coming years, we will continually review what we have done well and what can be improved. One thing we can guarantee is that this Administration will make choices that will ensure that Nigeria and her partners, domestic and foreign, create a profitable, safe and sustainable solid minerals growth story. Hold us to account and challenge us.

Thank you for your kind attention.

-Minister of Solid Minerals Development, Kayode Fayemi, delivered this speech at the Inaugural Media Briefing of the Ministry on Monday, December 21, 2015

Re: Interview with Professor Sagay: Retraction and apology

The Sunday Tribune published an interview in its December 20, 2015 edition with the headline: "Buhari not sincere with corruption fight--Sagay." A lot of issues have since cropped up on that interview with the supposed interviewee disclaiming it through an online medium. We have done a preliminary in-house investigation into how the interview was conducted and on what could have gone wrong with it.

The fact of the matter is that the interview was conducted through telephone by one of our politics reporters on Thursday, 17th December, 2015 calling the interviewee on TELEPHONE NUMBER 08023137144. The normal introductory formalities, according to the reporter, were observed before the interview commenced. In the course of the interview, the person on the other side answered all questions even when he was addressed as the Chairman of the Presidential Advisory Committee on Anti-Corruption.

Online reports quoting Professor Sagay as denying granting the interview were, therefore, received by us with a shock. We consequently listened to the audio recording of the interview and, regrettably, discovered the voice not to be that of Professor Sagay. While we are continuing our investigations on who the person on the other line actually was and what could have gone wrong along our own line of editorial control, a number of disciplinary actions has been taken against our key members of staff involved in the publication. Specifically, the reporter has been dismissed from the employ of the company and the Editor, Sunday Tribune, placed on indefinite suspension.

We have no reason whatsoever to put words in the mouth of the respected Professor Sagay. We apologise to him. We equally apologise to President Muhammadu Buhari and all other persons who were variously attacked in the publication. Our apologies also go to our esteemed readers. There was no deliberate action on our part to mislead our readers. We have an enviable pedigree and a long history of pioneering, in this country, a brand of journalism that upholds the truth as inviolable at all times. We have an institutional rigorous process in place that hitherto ensured this kind of unfortunate slip never took place. How this happened, escaping the control system, is part of issues we are addressing. We are taking a firm, corrective look at that mechanism again.

Once again, we promise our readers that this unfortunate incident will not happen again in our operations even as we retract the interview in its entirety.

Management.

Source: Nigeria Tribune

Nigerian Tribune Newspaper Fires Reporter, Editor Over Concocted Interview Berating Buhari

The Nigerian Tribune, a newspaper owned by the family of late Nigerian political sage, Obafemi Awolowo, has fired a senior reporter, Olakunle Timothy Taiwo, for concocting an interview with Itse Sagay, a constitutional lawyer and scholar.

Senior reporter at the Tribune, Olakunle Timothy Taiwo

The paper’s Managing Director/Editor-In-Chief, Edward Dickson, confirmed Mr. Taiwo’s sack in a response to a text from SaharaReporters. Our correspondent had sent a text asking the MD to confirm the authenticity of information that the paper was about to issue an apology to Mr. Sagay and to formally retract the report based on a non-existent interview with the legal scholar.

In a widely circulated report in the paper’s online edition, Mr. Taiwo claimed that Mr. Sagay had reportedly berated President Muhammadu Buhari’s anti-corruption war. However, in an interview yesterday with SaharaReporters, Mr. Sagay, who chairs President Buhari’s advisory team on anti-corruption, denied that he granted any interview to the reporter or the Tribune. He also challenged the reporter and newspaper to provide proof that he spoke to them.

The Tribune’s MD said he was at the newspaper’s annual general meeting and therefore could not offer further comments on the forged report. However, another source at the paper told SaharaReporters that an editor had also been fired early today over the same scandal.

ALSO READ: I Never Granted Any Interview To Nigerian Tribune About Buhari’s Anti-Corruption War—Itse Sagay http://bit.ly/1RzteCf

The Nigerian Tribune is one of the newspapers named as beneficiaries of a payout from funds that were meant for the purchase of weapons to fight Islamist insurgent group, Boko Haram. The revelation of a widespread dole-out of cash to media groups, including the Tribune, is part of a growing financial scandal involving former National Security Adviser, Colonel Sambo Dasuki (ret.). Mr. Dasuki is accused of diverting more than $2 billion budgeted for the purchase of weapons for the Nigerian military. Much of the looted defense funds were then shared among officials of the then ruling Peoples Democratic Party (PDP) for campaign purposes. 

In addition, Mr. Dasuki funneled billions of naira to Raymond Dokpesi, proprietor of African Independent Television (AIT), and Nduka Obaigbena, owner of Thisday newspaper. Mr. Obaigbena also became the alleged conduit for distributing cash to at least 12 newspapers, according to findings by agents investigating the NSA’s illicit disbursements of defense funds. 

Source: Sahara Reporters

I Never Granted Any Interview To Nigerian Tribune About Buhari’s Anti-Corruption War—Itse Sagay

Itse Sagay, a legal scholar, has denied ever granting an interview to the Nigerian Tribune to deride President Muhammadu Buhari’s anti-corruption efforts.

Speaking with a correspondent of SaharaReporters by telephone from Lagos, Mr. Sagay, a professor of law, well known constitutional lawyer and head of President Buhari’s advisory committee on anti-corruption, said he was shocked to read a report concocted by the newspaper, crediting him with sharp criticism of the current administration’s anti-corruption strategy. According to him, the newspaper’s report on his purported interview represented a desperate attempt to discredit President Buhari’s anti-corruption war. 
 
Mr. Sagay told our correspondent that he had stopped granting interviews to the Tribune after the paper’s editors had twisted an interview he granted them in August. According to him, the paper’s account of his August interview was tailored to suit the devious agenda of its editors hence his rejection of all efforts by the newspaper to speak with him on record for an interview.

The Nigerian Tribune is one of the newspapers named as beneficiaries of a payout from funds that were meant for the purchase of weapons to fight Islamist insurgent group, Boko Haram. The revelation of a widespread dole-out of cash to media groups, including the Tribune, has emerged as part of a scandal involving former National Security Adviser, Colonel Sambo Dasuki (ret.), who is accused of diverting more than $2 billion budgeted for weaponry. 

Investigators have revealed that several Nigerian newspapers received N10 million each from the slush fund overseen by Mr. Dasuki. At least 12 newspapers were paid from the fund through Nduka Obaigbena, chair of the Newspaper Proprietors Association of Nigeria (NPAN), according to investigators. Even though the Tribune denied receiving the funds, subsequent disclosures indicated that the newspaper’s editors took part in a meeting where it was agreed that the booty should be accepted. 

In dismissing the opinion attributed to him by the Tribune, Mr. Sagay said he had never met or spoken to the journalist who wrote the report, insisting that the interview was made up. He challenged the reporter and paper’s editors to provide the public with a tape recording of the so-called interview.
 
The late Obafemi Awolowo founded the Tribune, and his family still owns the paper, which is one of Nigeria’s longest surviving daily newspapers. 

Source: Sahara Reporters