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FULL TEXT OF DR. KAYODE FAYEMI’S INAUGURAL PRESS BRIEFING (READ HERE)

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STATE OF THE SOLID MINERALS SECTOR AND WAY FORWARD

Presented by

Dr. ‘Kayode Fayemi, CON

Minister of Solid Minerals Development at the Inaugural Media Briefing of the Ministry

on Monday, December 21, 2015

 

 

Protocols and Introduction

 

Good morning ladies and gentlemen. The core purpose of our gathering today is 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 and the entire staff.

 

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, extensive briefings, insights, support and frankness.

 

I also want to thank all other stakeholders, Nigerians at home and abroad, the organised private sector, the Central Bank and CEOs of all Banks, local and international development agencies; envoys of leading mining countries who gave freely of their time to brief us since we resumed duties, technical experts in the mining sector, small scale miners in the field, traditional rulers in mining host communities, and all those who have taken their time to meet with us, and in some cases document their suggestions, as we consulted far and wide on where we are  and where we want the solid minerals sector to be. In all my years in politics and the professions, not many issues have had such a sobering effect on me as what i have seen for myself and learnt since I resumed this assignment. For example, it is a collective shame  for us that such a massive project as the Ajaokuta Steel Plant can be allowed to remain moribund inspite of our sovereign resources that have been invested and its immense potentials. I am inspired by the optimism in the media too and your commitment to our success. With your sustained support and feedback, we will win together.

 

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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. Insufficient Funding: Funding has been a challenge partially because the sector had not been a focus area for both government and financial institutions. Over the past five years for example, the total capital allocation to the Ministry and its agencies in the Federal budget had been less that N10 billion. And out of the N1 billion allocated in 2015, only N352 million was released. Equally, access to finance has been practically non- existent from the Banking industry. Indeed, as at today, the banking sector’s exposure to the sector is less than 1% of its total portfolio, which demonstrates the limited focus on the sector. 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.

 

  1. 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 nesr 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 thr 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.

 

  1. 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.

 

  1. 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.

 

  1. Sustainability – We want to build an industry that is sustainable, and will balance profit maximization with sustained economic options

 

  1. Transparency – We want to build a transparent industry that broadcasts what it pays to government and other partners.

 

  1. Environmentally Safe operations – We want to build an industry that values health and safety, environmental equity and fairness for any and all.

 

  1. 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.

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Fidelity Set to Hold 3rd Edition of FITCC in Atlanta, USA September 2025

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Fidelity Set to Hold 3rd Edition of FITCC in Atlanta, USA September 2025

 

Lagos, Nigeria – [29 May 2025] — Leading African financial institution, Fidelity Bank Plc, is set to hold the 3rd edition of its flagship market access platform, the Fidelity International Trade and Creative Connect (FITCC) Expo from September 18 to 20, 2025, at the Omni Atlanta Hotel at Centennial Park, Georgia, USA.

In a strategic move to deepen diaspora and transatlantic business linkages, Fidelity Bank is partnering with Amplify Africa, the organizers of AFRICON, the leading African diaspora business and culture summit in the United States. This collaboration brings together two powerful platforms committed to bridging African enterprise with global opportunity.

“Since 2022, when we hosted the maiden edition, FITCC has evolved beyond a platform for promoting Nigeria’s non-oil exports to become a veritable showcase of the immense value Nigeria has to offer the global market.

“As part of our commitment to developing platforms that promote economic growth, creativity, and sustainable trade both within Nigeria and internationally, we are pleased to announce the third edition of FITCC. Since 2022 when we hosted the inaugural edition, the FITCC expo has been at the heart of driving global market access for local businesses and I am delighted that this year we will be in the city of Atlanta, USA,” stated Dr Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer of Fidelity Bank Plc.

Following the success of previous editions in London and Houston, which collectively generated a consolidated deal pipeline exceeding US$500 million, FITCC Atlanta 2025 will convene over 100 Nigerian exporters, alongside U.S. buyers, investors, policy stakeholders, and diaspora-led business networks.

The expo will spotlight strategic sectors including agriculture, consumer-packaged goods, energy transition minerals, fashion, beauty, and the broader creative economy. Programming highlights include business exhibitions, B2B matchmaking, policy dialogues, diaspora investment panels, and curated workshops focused on expanding Nigeria’s access to global markets.

FITCC 2025 is expected to attract over 3,000 participants, including development finance institutions, chambers of commerce, trade facilitation agencies, and multinational corporations. The event is also aligned with ongoing government-led efforts to expand U.S.–Nigeria trade and investment under emerging bilateral frameworks.

Interested participants can register to attend by visiting https://www.fidelitybank.ng/fitcc/#start_registering

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.

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Inclusive Education in Action, Union Bank Sponsors Mathematics Competition for Hearing Impaired Students

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Inclusive Education in Action, Union Bank Sponsors Mathematics Competition for Hearing Impaired Students

 

Lagos, Nigeria— Union Bank of Nigeria, through UnionCares, an arm of its Corporate, Sustainability and Innovation Initiative, recently sponsored the Ajofa Special Education Foundation for the Deaf Mathematics Competition held at the Wesley School for the Hearing Impaired at Surulere Lagos, Nigeria, with the theme “Impacting Deaf Students and Life with Mathematics in Nigeria.”

 

The Mathematics Competition had in attendance representatives from Union Bank, the Lagos State Education Board, Principals of Schools, and teachers. Ten competitors, drawn from different schools within and outside the deaf community in Lagos, participated in the programme.

 

The competition, a collaboration between Union Bank and the Ajofa Foundation, aimed to close the gap in inclusive education by creating opportunities for learners with hearing impairments to showcase their academic abilities and intellectual potential.

Speaking about the event, Olufunmilola Aluko, the Chief Brand and Marketing Officer at Union Bank of Nigeria, said,
“At Union Bank, we believe that development must be inclusive. That’s why, through our UnionCares initiative, we continue to invest in meaningful partnerships and platforms like this. We also commend the brilliant students on display today, who have demonstrated that their circumstances do not define them. Rather, they are writing a new story that says disability is not inability. They are mathematicians, thinkers, and problem-solvers whose wisdom whispers and reshapes the world positively”.

Francis Ajomiwe, the Founder and Executive Director for the Ajofa Special Education Foundation for the Deaf, who communicated through an interpreter, expressed appreciation to Union Bank.

He said, “I’m grateful to Union Bank for their Sponsorship of this competition, helping bring our dreams to life. Through the Foundation, we are contributing our share to the overall goals of enhancing the educational experience and developing the deaf community. This we have been committed to upholding through organising education programmes and projects that benefit the deaf community”.

The Lagos State Education Authority, from its School Support Section, was represented by Bukunola Famakinwa, who, during her speech, emphasised the importance of the initiative on deaf learners and their community, stating that, “Deaf learners face unique challenges in accessing quality education, and mathematics is no exception. However, they can excel in mathematics and beyond with the right approach and support.” She emphasised the importance of mathematics as it empowers learners to “make informed decisions, solve problems, and participate fully in society.”

She urged the community to collaborate with the deaf community to create an inclusive education system that supports deaf learners in Nigeria.

The top three winners of the competition were Samuel Megbodofo, Tomilola Shonubi, and Opeoluwa Saka, who finished in first, second, and third place, respectively. The winners, who came from different schools for the hearing impaired competition, received branded gifts from the Bank, among other prizes.

The rest of the competitors, learners and teachers were also not left out as they, too, were gifted branded items from Union Bank.

Note to Editors:
About Union Bank of Nigeria:
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria. The Bank offers various banking services to individual and corporate clients, including current, savings, and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing, and trade finance. The Bank also offers customers convenient

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Two Years of President Tinubu: A Business Perspective By Abdul Samad Rabiu

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Two years of President Bola Ahmed Tinubu: A Business Perspective featuring Abdul Samad Rabiu, CFR, CON — Founder & Chairman, BUA Group

Two years of President Bola Ahmed Tinubu: A Business Perspective featuring Abdul Samad Rabiu, CFR, CON — Founder & Chairman, BUA Group

 

As Nigeria marks two years under the leadership of President Bola Ahmed Tinubu, I believe it is important to reflect, not from the lens of politics, but from the perspective of business, of industry, and of the economy. I speak not only as the Chairman of BUA Group – one of Africa’s largest conglomerates, but also as someone who has lived through the complexity of Nigeria’s reforms. I have seen the cost of dysfunction, the burden of inefficiency, but more importantly, the promise of a level playing field and the dividends of decisive governance.

*FUEL SUBSIDY REMOVAL*

The removal of the fuel subsidy is one of the most important decisions taken by this administration. Before that, Nigeria was selling PMS at 200 or 250 Naira per litre, which was about 25 or 30 cents. I doubt there was any country in the world where fuel was being sold at that price. During my trip to Saudi Arabia for the lesser Hajj in February this year, I checked the pump price at one of the petrol stations as we drove from Jeddah to Mecca. When I converted the price to Naira, it was almost 1,500 Naira per litre. That was Saudi Arabia.

We could simply not afford the subsidy. It was not just Nigerians who were benefiting from it. We were subsidising the entire region. I remember visiting Niger Republic a few years ago when President Bazoum honoured us. During dinner, he joked and said, “Thank you for the subsidy.” He said 100 percent of all PMS consumed in Niger was coming from Nigeria because it would cost them three times more to import. There was no incentive for them to bring in their own fuel or refine crude at their own refinery. This was the situation across the region.

Today, I understand that our fuel consumption has dropped by almost 40 to 50 percent. It is not because Nigerians are consuming less, but because neighbouring countries have stopped tapping into our subsidised fuel. The PMS is still cheaper in Nigeria, even at 800 or 900 Naira per litre, but the logistics no longer support easy access. Countries like Niger and Benin Republic still take fuel from Nigeria, but others have stopped.

The removal of subsidies was needed not only to save the economy but to ensure that Nigerians alone benefit from what is imported. Even if there must be subsidy, it should be for Nigerians only. The money saved is now being channelled to infrastructure, to better support for states, and to other developmental priorities. All the states are receiving more money now, and that has made a real difference.

I am of firm opinion that President Bola Ahmed Tinubu made the right decision, and he made it boldly. On the first day he took office, he did what everyone knew had to be done but no one dared to do. He acted immediately. Many criticised him, but he did the right thing, and it saved the country. Had we continued under that burden, only God knows where we would be today. I always say, Mr President is probably the only one who had the courage to take such hard and necessary decisions.

*ON THE UNIFICATION OF THE FOREIGN EXCHANGE REGIME*

The unification of the foreign exchange market is another critical reform. Before this, many of us in the business community spent most of our time chasing foreign exchange. I personally spent half of my time trying to get FX from the Central Bank of Nigeria. The CBN was the only source of official exchange, offering FX at around 500 Naira when the parallel market was 800 or 900. No business could survive outside the CBN structure.

Every two weeks, we would go to Abuja to seek allocations. It was exhausting and inefficient. You had to camp there for three or four days before Allocation Monday, waiting for the CBN to allocate dollars. Today, I have met the new CBN Governor, Mr Cardoso, only once in two years. The reason is simple: I do not need to go to Abuja now to get foreign exchange. The system is open. It is working.

This was also a bold move by President Tinubu. It was necessary, and he took that decision as well. We are very glad because today we can focus on our businesses. These reforms are saving the economy.

*FAIRNESS, SANITY AND STABILITY IN BUSINESS*

Under this administration, we have seen a return to fairness and stability in business. We no longer worry about arbitrary shutdowns or politically motivated disruptions. Let me give a real example. We started a new business in Port Harcourt four or five years ago under BUA Foods, operating at the Rivers Ports under a concession with the Nigerian Ports Authority. It was going very well. One day, we woke up to a letter stating that the concession had been revoked, the terminal shut down, and the lease agreement terminated. There was no prior warning, no issue, no conflict.

Later, we discovered that the Managing Director of NPA at the time decided to close the business simply because our operations were competing with those of her friend. She wanted to impress her friend. That was the only reason. Today, that kind of thing cannot happen. Nobody would dare take such an action under President Tinubu. You can wake up now without fear that your business has been shut down by an agency or politician.

That stability is critical. That Port Harcourt plant alone has seen over 500 million dollars in investment and has employed over 4,000 people. The confidence this government has brought is real, and it is helping us plan better.

I must also personally acknowledge former President Muhammadu Buhari. When our Port Harcourt plant was unfairly shut down, it was his intervention that saved it. I had the privilege of explaining the situation to him. He agreed it was wrong and acted. He said he would not permit injustice under his watch. That decision saved the business. But the reality is, I had access. What if I did not? That is the difference today. Now, nobody needs access to the President to be treated fairly. Everyone knows that if you do something wrong under President Tinubu, you may lose your job or even face prosecution and go to jail. That is why I can now spend more time focusing on the business and relaxing.

The President Tinubu reforms are creating a level playing field. Like I said previously, every business had to lobby the CBN for FX. If you did not, your business would collapse. Now, you do not need to go to Abuja. You just focus on your operations.

*INFRASTRUCTURE AS A KEY DRIVER OF DEVELOPMENT*
In infrastructure, the difference is also clear. Look at the Lagos-Calabar highway. Look at the Sokoto-Badagry road. Look at the Kwara projects we are executing under the tax credit scheme. Look at Kano-Kongolam. Look at the Okpella to Kogi State corridor. These projects are progressing because of the savings from subsidy removal and FX unification. With more revenue, Nigeria is building.

These roads and others being built are critical because logistics have become a major challenge. Transporting goods from Lagos to the North is very expensive due to bad roads. Now, the President is addressing this. With better infrastructure, logistics will improve, and businesses will grow. These reforms have enabled long-term planning and serious investment.

*BUA WILL CONTINUE TO BET ON NIGERIA*
Since President Tinubu took office, BUA Group has invested over one billion dollars in the Nigerian economy. We are expanding our food business, doubling our flour and pasta facilities in Port Harcourt and building another in Lagos. Demand is increasing. People are earning more. Confidence is returning. We have also completed the first POP plaster manufacturing plant in Nigeria which is now operating and are soon starting construction of a 30MW solar energy project in Sokoto State.

In the oil and gas sector, we are completing our LNG project in Ajaokuta, Kogi State. These investments are possible because of stability that has been brought about by President Tinubu’s reforms. We can plan now. The exchange rate has been fairly stable for almost a year. FX is accessible. Money is coming in from different sources, and investors are responding. If you want 200 million dollars a week for trade, you can get it without lobbying anyone at the Central Bank. These are the results of good policies.

*ON FOOD SECURITY*

When I met President Tinubu recently, he raised concerns about food prices. He wanted to know what BUA Foods was doing. I explained that his six-month tariff waiver had worked. It disrupted hoarding in the rice market. In Nigeria, the rice harvest is short and runs for about three months. Middlemen were buying paddy rice, hoarding it, and raising prices post-harvest. This artificial scarcity drove prices to as high as 110,000 Naira per bag. The farmers did not benefit. Farmers just wanted to sell and move on yet some people were buying from them, hoarding it, and creating a food crises in the country.

The temporary waiver allowed rice to be brought in, and milled immediately. The hoarders were cut out. Prices began to drop. It was a short-term solution, but it worked. It showed foresight. I told the President it helped and that if the situation persists, further steps can be taken. But for now, it has made a difference.

*PRESIDENT TINUBU’S NIGERIA FIRST POLICY AND BACKWARD INTEGRATION*

President Tinubu’s Nigeria First policy has aligned well with our own belief in backward integration. Our cement business is almost entirely local. We mine our own limestone. We use Nigerian gas even though it is dollar-denominated. The only foreign element is the equipment, and even that benefits from government concessions for mining equipment which everyone else in the industry benefits. If we had to import cement today, prices would be over 15,000 Naira per bag. Nigeria does not have the port infrastructure to even handle the import volume. Producing locally has saved the economy and stabilised the sector.

We are doing more, and we will continue to do more. Nigeria has everything—population, arable land, resources, water, and now, strong leadership under President Tinubu. We believe in Nigeria because the fundamentals are now strong. My advice to all is to take a Bet on Nigeria. This is the place to be.

So for me, what has this administration done right? First, it removed the fuel subsidy which was the biggest economic scam in our history. Second, it unified the foreign exchange market and third, it restored stability, fairness, and confidence in the economy. These are the foundations of growth. Nigeria is full of potential. With the right leadership, which we now have, there is no limit to what we can achieve.

_Abdul Samad Rabiu is the Founder and Chairman, BUA Group._ Watch the full, exclusive interview on youtube – https://bit.ly/pbatbua

#TinubuAtTwo #BUAGroup #PresidentBolaTinubu #AbdulSamadRabiu #BetOnNigeria

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