Has Nigeria’s 2015 FX ban on imports worked?
Edo, mining sector stakeholders chart course to deepen investment in POST-COVID-19 economy
The Edo State government and stakeholders in the state’s mining sector have resolved to exploit more opportunities in the state’s solid minerals and mining sector so as to diversify earnings in a post-coronavirus (COVID-19) economy.
The resolution was reached during a webinar themed, Investment Opportunities in the Minerals Value Chain and Capacity Strengthening of Local Miners in Edo State, organised by the Edo State Investment Promotion Office (ESIPO) and Nemoante, an advisory company involved in origination and project development across Africa.
Permanent Secretary, Ministry of Mineral, Oil, and Gas, S.O. Oko-ose, who represented the governor, said the state was ready to exploit its solid minerals deposit and expand the space for more investors to diversify its revenue base.
He noted that players in the industry, BUA Group and Dangote Group, were already investors in the state, but that there was a need to attract more investors to saturate the space and provide more op
It is been five years since Nigeria resorted to restricting some food items from accessing foreign exchange to boost local production and conserve the dollar reserve. But Africa’s biggest economy still reels from a shortage in domestic production of some food items and a dollar crisis that is squeezing life out of the economy.
Rather than pay attention to the numerous structural challenges inhibiting domestic production, from a lack of electricity to poor road network and the unavailability of basic infrastructure that has made it cheaper for businesses to import goods from abroad than produce locally, Nigeria’s central bank embarked on rationing sales of the greenback to importers, restricting access to dollars in its official market, where the naira trades stronger relative to the dollar.
That dollar restrictions started after a 2014 collapse portunities for job creation and prosperity.
Simon Nkom, directorgeneral, Mining Cadastral Office, said it was delightful that Edo State was partnering his office to promote investment in the mining sector.
He said the state was a strategic location for the cadastral office’s operations which informed the opening of a regional office to cater to the needs of miners in the state.
President, Women in Mining in Nigeria, Janet Adeyemi, commended Edo State for organising the forum, noting that there was need to fast-track investment in infrastructure to attract more players in the industry.
Managing director, Nemoante, Erhabor Okogun, urged stakeholders to take advantage of already existing data to make investment decisions, and engage with financial institutions and Small and Medium Enterprises (SMES) to open up the sector.
Head, ESIPO, Kelvin Uwaibi, reiterated the readiness of the state government to unlock the state’s mining sector and pilot innovations to drive investment. in global crude oil prices triggered a huge decline in petrodollars, the country’s biggest foreign earner.
After banning a list of 41 items that included rice and fertilizer in 2015, the apex bank has continued to expand the list of items not allowed to access foreign exchange.
Only recently, the apex bank also prohibited maize importers, taking the total items banned from sourcing dollars in the official market to 44.
Fast-forward to today, that move is yet to yield any remarkable gains, according to various analysts who spoke to Businessday, due to the numerous structural challenges bedevilling the countries.
From spiralling inflation rate, currently at the highest levels in more than two years at 13.22 percent in August, to a huge backlog of foreign exchange demand, the economy still faces a similar scenario
L-R: Oladele Odusote, commissioner, Lagos
State Ministry for Energy and Mineral Resources; Babajide Sanwo-olu, governor, Lagos State; Femi Hamzat, deputy governor, Lagos State; Solape Hammod, special adviser to the governor of Lagos State on SDGS and investment, and Tubosun Alake, special adviser to the governor of Lagos State on innovation and technology, at the grand finale of Lagos Smart Meter Hackathon 2020 in Lagos, at the weekend.
Pic by Olawale Amoo https://www.facebook.com/businessdayng