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Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel
 

Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel

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This presentation talks about the utilization of Nigeria's natural resources in a step by step process thereby achieving magnificent outcomes. It emphasizes on the use of agricultural, mineral and ...

This presentation talks about the utilization of Nigeria's natural resources in a step by step process thereby achieving magnificent outcomes. It emphasizes on the use of agricultural, mineral and human resouces to achieve a stable economy not dependant on petroleum as the only/major source of revenue.

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    Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel Presentation Transcript

    • Central Bank of Nigeria (CBN) Supported National Sub-StructurePrivate Sector Integrated Support Framework (PSISF) Development Model For Real Sector Development in Nigeria Anthill Concepts Limited 8B Kayes Street Zone One Abuja
    • Executive SummaryThe present global socio-economic realities in the light the Nigerianimport substitution model has placed the economy in a precarious situationOil rents together with the distributional, consumption oriented politicsthat developed around them have not only underdeveloped Nigeria but alsoemasculated the prospects for future prosperity.Recent reports show that the economy stands the risk of complete systemcollapse if the international oil price falls at below $30 per barrelThe NEEDS document and WORLD BANK reports identify the SolidMinerals and Agriculture Sub Sets as critical to National development andMass employment .The NEEDS document states that the earnings from Solid Minerals cansupersede that earnings from the Oil sectorThe national sub structure model using the Private Sector IntegratedSupport Framework( PSISF) is presented as an alternative to the perennialeconomic challenges afore-listed
    • Sources of Prosperity Inherited Prosperity Created Prosperity• Prosperity is derived from inherited • Prosperity results from increasingnatural resources productivity in producing goods and services - Prosperity is limited if: - Prosperity is unlimited• Government is the central actor in • Companies are the central actors in the economy the economy - Resource revenue /allocation • Government’s role is to create thepractices that fuel corruption enabling conditions for and allow unproductive policies productivity and foster private and practices exist sector development PSISF DRIVEN SUBSTRUCTURE MODEL
    • Overview of the Prevailing National Economic Structure Agriculture though the largest contributor in the entire non oil sector is still bogged down by poor data and low quality private sector investment inadequate funding ,seasonal cropping, desertification dysfunctional land ownership and tenure The Solid Minerals (which has the capacity to do more) and indeed the Manufacturing sectors contributes minimally to the GDP and is bogged down with weak or non existent industry linkages, low demand and high cost of local products, influx of cheap and sub standard goods, low access to finance and high interest rates Consequently, Nigerias social safety net is very weak, it is estimated that 44 % of the urban residents are poor while 64% of the rural dwellers live below the poverty line
    • The CBN Supported (PSISF) Driven National Sub Structure Model Off Taker Component(Infrastructure) • Establishment of demand critical human and social infrastructure on clear cut and defined private sector driven, project based finance models and partnerships • Establishment of integrated processing facilities in contigual locations in Nigeria Upstream Component(Power/Energy) • Effective utilisation of available power and development of demand driven of off grid power plants on available hydro /Gas potentials to drive energy needs of value added facilities Downstream Component • Establishment of solid mineral projects for the production of strategic(Solid Minerals/ Agriculture) materials for Nigeria’s economic growth • Establishment of Animal husbandry with a target of 50 million livestock across eleven states of Northern Nigeria • Planting of energy, food and cash crops(jathropha cactus, rice, cow pea sorghum to create Major and Minor belts across 11 northern states
    • PSISF FRAMEWORK•Power and Energy •Animal husbandry•Transportation •Bio-fuel•Sustainable Housing projects •Integrated Mine Dev projects •Aqua culture Project Bankable Based Finance Feasibility Models Studies Public Project Private Preparatory Partnerships Funds•Infrastructure development •Integrated Agriculture dev•Roads models•Rail •Drilling campaigns•Inland water ways •Metals and Steel dev
    • Expected Outcome of (PSISF) Framework on the National Economy Mass Employment opportunities And Sustainable Project Development Increased GDP Infrastructure Dev and National Integration Demand Driven Sufficiency of Raw Production Materials models and In the Products Real Sector
    • Achievable Milestones of the (PSISF) National Sub Structure Model • REPOSITIONING NIGERIA AS A PRODUCTION BASED ECONOMY • CREATION OF NEW ECONOMIC CENTRES IN NIGERIA IN COLLOBRATION WITH LOCAL AND INTERNATIONAL FINANCE AND DEVELOPMENT AGENCIES • ERADICATION POVERTY AND PURSUE A MASS EMPLOYMENT PROGRAM THROUGH( PPP) ON MINERAL EXPLORATION AND EXPLOITATION PROGRAMS WITH STATES AND LOCAL GOVERNMENT COUNCILS • DIVERSIFICATION THE ECONOMY FROM OIL TO NON OIL PRODUCTS EVEN IN THE OIL PRODUCING AREAS
    • THE MINERALS METALS AND STEEL SUB- SET
    • Overview of the Minerals, Metals and Steel Sector• The threshold of industrialization is measured in terms of steel consumption on a global average of 130 kilograms (per capita).• Our Nations steel consumption average with its population of one hundred and forty million persons is 10 kilograms (per capita) which translates to approximately 1.5 million tons per annum• To be rated among the 20 industrialized nations Nigeria must improve its steel consumption from its present 1.5 million tons per annum to 18 million tons per annum• This could only be attainable if our local production capacity is improved through the integration of the Minerals, Metals and Steel into a definitive production, consumption and infrastructure development program.
    • A typical Mining Value Chain Exploration Processing Market Mine Planning (Manufacturing (Prospecting, & Mining (Extraction/Smelting Industries and otherDiscovery, Evaluation) Development & Refining) consumers)
    • A TYPICAL MINERAL DEVELOPMENT PROCESS
    • A TYPICAL MINING PROJECT FUNDING CURVE
    • Sources of Mineral Resources Dev Funding• Debt• Equity• Majors• Juniors• Venture Funds• Capital Market• Slush Funds• Multilateral/Donor Agencies• Mineral Development Funds (Government)
    • THE NIGERIAN MINERAL RESOURCES SITUATION
    • Nigeria’s Minerals/Metals Sector Commercial Policy/Regulation Capacity Operations Building Council of Nigerian Upstream Downstream MMSD (Ministry of Mining Engineers & Mines & Steel Geologists (COMEG) Development) Nigeria Mining Ajaokuta Steel Co. Nigerian Institute ofCorporation (NMC) Ltd. Mining & Dept. of Mining Geosciences Mines Cadastre (NIMG)National Iron-ore Inspectorate Office (MCO) Delta SteelMining Company (NIOMCO) Mines Metallurgical Environmental Training Institution Artisanal & Small Nigerian Coal Inland Rolling Mills Compliance (MTI) Scale MiningCorporation (NCC) (MEC) National MetallurgicalArtisanal & Small Aluminium Smelting Met Development Centre Steel & Non- Scale Miners Company of Nigeria Inspectorate (NMDC) Ferrous & Raw Metals Dept. Materials Nigeria National Steel Geological Raw Materials Survey Agency Exploration (NGSA) Agency (NSRMEA)
    • Overview of the ComponentsUpstream Section(Commercial operations)i. Scrapping of the NMC/NCCii. Capacity of Niomcoiii. The super concentrate is not required for ASCL but DSCL which is presently sold, the existing lines in NIOMCO can take the Iron ore to 64% fe which is what is required for steel production in ASCL .The Implication is that unless Itakpe can improve on its production or new mines are opened, Itakpe might not meet the requirements of ASCL on its present production capacityDownstream Sectioni. Low utilisation of the Engineering work and lime facilities in ASCLii. Privatisation of Inland rolling mills and AlscomPolicy/ Regulationi. Lack of Technical and financial resources for effective monitoring of mines inspectorate, artisanal mining and environmental complianceii. Licensing issues with MCOCapacity Buildingi. Lack of capacity of institutes like COMEG , NMDC ,MTIii. Wrong placement of National Steel Raw Materials Exploration agency as a capacity Dev Agency
    • SPECIFIC CHALLENGES OF THE SECTOR 3 PRONG
    • Prong 1Absence of definitive private sector drivenbusiness projects that tie the developmentmineral and natural resources to thedevelopment support infrastructure:- powerrail, roads through a clearly defined valueadded chain model
    • Prong 2Absence of External Financial and TechnicalPartnerships and Joint Ventures due to: – Lack of defined exploration and project development programs (risk, exploration and venture funds windows in local finance institutions) – Lack of proper definition and understanding of the “front and “back ends” (exploration and exploitation) in the value chain (infrastructure development)
    • Prong 3 ASCL/NIOMCO 1.Wrong 2.StructuralClassification & & OperationalLocal capacity defects utilization DisjointedMinerals, metals 3.Absence of Steel & Support raw National materials Infrastructure Development
    • Explanatory notes Lack of understanding of the diversified industrial portfolio of ASCL Ajaokuta project is actually the most diversified industrial development portfolio in the entire federal economic development program and is equipped with over 37 (thirty seven) industrial manufacturing and utilities sector
    • Explanatory notes contd. Inappropriate back-end programs for raw materials due to: – Lack of defined exploration and project development programs (risk, exploration and venture funds) occasioned by low understanding of the synergy between the (exploration and exploitation of key minerals:- Dolomite, Manganese, Lime stone and other minerals) in the value chain (minerals, metals and steel development) The result of this is that even in event of government commissioning all the lines in Niomco to produce foundry grade iron, the plant would still require equal if not larger amounts of other mineral products like limestone, Coal, Manganese, Dolomite to commence local production
    • Explanatory notes ContdStructural defects of Ajaokuta Steel Plant and Itakpe Iron ore mining company The Coke oven and the Iron Blast furnace in ASCL are complex and expensive and require continuous 24 hours operations for at least five(5) years. ASCL is designed to process at least 1.3 million metric tonnes of Iron ore annually Any shut down as a result of unsustainable production will result to the destruction of the two facilities with all is cost implications. The Itakpe project is believed to have produced 3 million tonnes of iron ore with 200 thousand metric tonnes upgraded to foundry grade ore It is not clear what % the 3 million tonnes was supplied to ASCL, but even then the quantity is still insignificant for the blast furnace requirement
    • AGRICULTURE SUB-SET
    • Executive SummaryAgri-business represents not just a major component of theeconomy but a way of life for millions of Nigerians that must bereckoned with.Agribusiness in Nigeria however is plagued by myraidinfrastructure challenges.Fixing the infrastructure needs for development of agribusiness inNigeria will require a holistic approach that will involvegovernments at all levels, regulatory bodies as well as otherstakeholders.This will require enactment of enabling laws, overhauling ofrelevant agencies as well as deployment of mechanisms that willensure substantial infusion of fixed investment and workingcapital towards sustainable infrastructure development.
    • Nigerian Microeconomic Competitiveness Business Environment Strengths Weaknesses• Home market • Electricity• Favourable location • Land transport• Abundant resources and • Air transport agricultural potential • Land use • Workforce skills • ICT capacity • Business regulation/red tape • Tariff and non-tariff barriers • Monopoly/lack of open competition • IP protection
    • Challenges of the Agro-Allied Sub-Sector1. The agro-allied sector was a key contributor to the pre and post colonial administrations in Nigeria, accounting for 40 percent of GDP and providing 60 percent of informal employment.2. Out of 2.9 million hectares of arable land, only about 974,900 hectares is currently irrigated in Nigeria3. Due to the nature of the post colonial agriculture development models and programs, Nigeria has lost a lot of grounds in the production and exports of key crops such as cocoa, groundnuts, ground nut oil and palm oil.4. Hitherto, In the 1960s, Nigeria had over 60% of global palm oil exports, 30% of global ground nut exports, 20-30% of global ground nut oil exports, and 15 % of global cocoa exports and by the 2000s, Nigeria global share of exports of each of these crops was 5% or less.5. The loss of production capability has turned Nigeria into a net importer of agricultural produce, with imports of some major food products like wheat (NGN 635.5 billion – USD 4.1bn), fish (NGN 96.9 billion – USD 625 million), rice (NGN 356.5 billion – USD 2.3 billion) and sugar (NGN 217 billion – USD 1.4 billion) totalling NGN 98.08 trillion (USD 632.8 billion) of food import bill for the period 2007 t0 2010.6. Consequently Nigeria faces a large and growing global agricultural market – Rising commodity prices, growing demand for food, and opportunities in bio-fuel all present significant opportunities for Nigeria. For example, global cereal demand will grow by between 31% and 150% by 2050 depending on the region, and global commodity prices are in their second major spike in three years. Agriculture can become the main driver for more equitable income growth, compared to oil and gas sector.7. This growth potential can be driven by increasing the acreage by 14 m ha of new agricultural land, which is approximately 38% of Nigeria’s unused arable land of 36.9m ha; and this will in turn shift 20% of production to higher value crops’.
    • OVERVIEW AGRI-BUSINESS IN NIGERIA Farming input supply companies Cut across formal andUn-integrated Producing farm firms informal sector of theand Delinked economy Food processing agribusinesses firms Food marketing and distribution agribusiness organizations
    • challenges of agro-allied sector to be Corrected by the Sub Structure Model
    • CONCLUSION
    • The Proposed National Sub-Structure Matrix1. Gausau Cluster comprising states of Sokoto, Kebbi and Zamfara States2. Kano Cluster comprising of Kano, Kaduna and Katsina States3. Guyuk Cluster comprising, Adamawa. Bauchi, Taraba. Gombe ,Yobe and Borno States4. FCT Cluster FCT, Niger, , Kogi States5. Lafia Cluster comprising of Benue, Plateau and Nassarawa States6. Calabar Cluster comprising Akwa ibom, Cross river, Rivers, Bayelsa and Delta states7. Abakaliki Cluster comprising of Abia, Enugu, Ebonyi Imo and Anambra States8. Ado-Ekiti Cluster comprising Lagos, Ondo, Edo, Ogun , Osun ,Ekiti, and Oyo states for the:• Establishment integrated solid minerals projects for essential raw materials for existing front end facilities• Establishment of major and minor belts for the planting of cash and food crops that would drive a food chain for human and animal consumption• Establishment of Animal husbandry and bio-fuel belt• Establishment of Gas gathering and distribution facilities• Establishment of cash crop belts of cocoa, palm ,forestry and integrated aquaculture projects• Establishment of minor belts for food and cash crops The Super Structure• These projects would be used to support existing infrastructure in the Power, Transport, Agriculture and Solid Minerals Sub Sectors of the Nigerian Economy and also promote the use of alternative power generation, especially the existing small hydro power potentials and the integration to the existing 12,000 km rail network in the country.
    • The New Thinking: (PSISF) Mineral Development as the Sub Structure of the Nigerian Economy Increased Private sector Investment in Infrastructure etc in Mineral cluster Increased areas due to Spending on Mining activities & Social & Infrastructure Support industry Economic growth + projects Wealth/Employment Education, creation + Health, roads Internally etc Generated Revenue (IGR) Exploration& Exploitation work to develop Solid Mineral Clusters areas
    • Integrated Mineral/Infrastructure katsina Rolling Mill Development Matrix Jos Rolling Mill Oshogbo Rolling Mill Coal production Ajaokuta Steel Plant facility (primary product) billet Delta steel plant Feasibility on Mine Development & Value added (Appropriate funding)Solid Mineral Exploration program for Iron-ore, Coal, Manganese, Dolomite, Limestone, etc
    • National Rail track Offtakers Offtakers Rehabilitation prog, Industrial Trans Sahara Gas & Industrial Parks National gas pipeline Parks Prog, katsina Rolling Mill Jos Rolling Mill IPPs Industrial Offtakers Parks Delta steel plant Oshogbo Rolling Mill Industrial Ajaokuta Steel Plant Parks Industrial (primary product) billet Parks OfftakersOfftakers Mines: Iron ore, Coal, Zinc, Tin Offtakers Offtakers Offtakers
    • A PSISF Driven Economy 2 Kaura Namoda Nguru Offtakers 2 2 Industrial 2 2 Parks 2 Maiduguri kano2 katsina Rolling Mill Offtakers 2 Industrial Dadin Kowa 2 Parks Kaduna Shiroro 2 2 2 2 Kainji Jos Rolling Mill Minna 2 Offtakers Jebba Jos 2 Industrial Ajaokuta Keffi Plant 2 Parks Steel Abuja 2 2 (primary product) billet Lafia 2 (Geregu) 2 2 Obajana Oshogbo Rolling Mill 2 2Mineral Deposits 2 2 IndustrialIron Ore Offtakers ParksCoal 2 2 2 MambilaBentonite 2Gypsum Industrial 2 2 2 EnuguBarite Parks 2 Offtakers 2Gold Oben Delta steel plant 2 2Phosphate Gas Field 2LimestoneMarble 2Diamonds 2 2 2 2 Existing Gas Pipeline 2Feldspar 2 2 Proposed Gas PipelineTalc 2 2 Existing Hydro Power StationLead/Zinc 2 2 2 2Columbite 2 On-going Gas Power Station 2Tantalite Proposed Hydro 2 Potential Mining Site 2 2ChromiumSalt 2 Existing Gas Power Station
    • Benefits of Sub Structure development Model to the Public/ Private Sectors• Creation of economic activities (including service industry) and organized settlements within the country’s rural and semi urban centres so as to create employment opportunities and stem population explosion in the metropolis.• Provide alternative (non-oil) source of internally generated foreign exchange that can be used to fund critical infrastructure projects.• Provide an incentive for private sector investment in supplementary infrastructure projects e.g. roads, housing, schools, power plants, water etc around the mining clusters to service organized settlements that will evolve from the mining clusters. e.g. Jos city evolved and developed as a result of tin mining activities.
    • Sustainable Benefits of the Program• JOB SECURITY• SUSTAINABLE HOUSING DEVELOPMENT• BOTTOM UP SOCIAL SERVICES SCHEME• NATIONAL INTEGRATION• MASS EMPLOYMENT• SUSTAINABLE INFRASTRUCTURE DEVELOPMENT
    • THANK YOU FOR THE KIND ATTENTION QUESTIONS