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| R-L: Managing Director /Chief Executive of Nigeria Export -Import Bank (NEXIM ) Mr Abba Bello; Chief Executive of Bullion Mart, Mr Moniruz Zaman; Team Lead, Agric Finance and Export Heritage Bank, Mr Adelana Ogunjirin; Minister of State for Mine and Steel Development, Dr. Uchechukwu Ogah and Dr. Hadiza Gado, during NCIS Summit 2019 – Mining Master Class held at Transcorp Hotel Abuja. |
Heritage Bank Plc, Nigeria’s most innovative banking service provider,
disclosed that Nigeria’s Gold
market is worth £4 billion Pounds with high prospects of profitability
for all players in the subsector.
The
MD/CEO, Ifie Sekibo, who stated this at the Nigeria-Canada Investment
Summit, held in Abuja, yesterday also disclosed that the enormous
potential of
the industry was one of the reasons why Heritage Bank delved into the
mining sector despite enormous risks.
According
to him, the bank has Dukia Gold as its partner that would facilitate
access to local miners and artisans to get value for their commodity at
international
market price after being registered with Dukia Gold.
Sekibo,
who was represented by the Team Lead, Agric Finance and Export, Adelana
Ogunjirin, explained that prior to now, local miners of Gold found it
difficult
to trade their commodities favourably but with the involvement of Dukia
and its partner, Heritage Bank, a Quality-and-Quantity test will be
conducted based on the arrangement they made with Dukia Gold and that
will lead to additional value to the small holder
miners. He explained that this will leverage the small miners the
opportunity to also trade their commodities at international market
price.
He
further stated that a metric tonne of Gold is currently valued at
$30million adding that it is worth investing in the industry, especially
as gold is
a kind of commodity that does not easily lose its value.
He
said: “Mining sector is an area which has not been fully tapped in terms
of the potentials around it, as there are quite a lot of opportunities
around
that sector. Recently we secured $1 billion funding line with our
funding partner AfreximBank, which also is to support areas like solid
minerals.
“Now
with respect to this we have looked at the value chain of this space and
we have looked at the opportunities that are there. A lot of fund
providers
have not really delved into this and it is because of the lack of
understanding of the market.
“In
terms of value, gold is an area where you can enhance the value. You
hardly see Gold losing value and you see that in different exchanges you
even trade
those commodities.
“Looking
at it in terms of trend, you see that gold is something that will
appreciate definitely. So in terms of the profitability of this
business, we have
looked at it, the crunch, the numbers we see that is a space that the
Bank will definitely earn a lot of income.”
He
also expressed optimism that other banks would like to come into the
Nigerian mining sector, but may be studying to understand the sector
properly.
“Definitely
other banks will come into the sector. For us we are leading, but the
truth is they need to play in an area and space that they understand, as
not everybody would be able to play in that space.
“Heritage
Bank has already carved a niche for itself in agribusiness space, just
like the Gold commodity, this would be exported. So, in terms of export
proceeds too, there are opportunities to be explored. Generally,
looking at the Nigerian outlook, on the long run, this will also enhance
the country’s external reserves. There are multiplier effects of what
we are doing today and that is why we are also moving
in this direction," the MD noted.
Also speaking, Managing Director,
Nigeria Export-Import Bank, NEXIM, Abba Bello, revealed that the bank
had gone into high level discussions with heavy equipment manufacturers
and suppliers that would lease equipment to miners for exploration and
processing, adding that this was expected to make the equipment
accessible and affordable.
Bello said, “For equipment supplier or
outright purchase of equipment, we have gone into discussions with
Bluecare and now Mantrac for the supply of heavy equipment for gold
processing or exploration on lease basis and, it is something that does
not exist currently within the industry.
“Barrick Gold and Bullion Mart is
something that happen in the mining world. You don’t have to own the
equipment, but there are vendors who supply the equipment for explorers
to hire.
“Discussions have gone very far with the equipment suppliers and very soon we will announce the programme.”
Meanwhile, the Country Manager, ITM,
Nigeria, Habibah Waziri, raised concerns on human resources development
that would sustain the sector.
Waziri also said there is need to
formalize the sector and also invest in human capital in the sector for
growth and development.
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