The document discusses a proposed national sub-structure model supported by the Central Bank of Nigeria and Private Sector Integrated Support Framework. The model aims to promote real sector development in Nigeria through eight regional clusters that would focus on integrated projects in solid minerals, agriculture, animal husbandry, and biofuels. These projects would help address Nigeria's economic challenges by increasing productivity, employment, and infrastructure development across key sectors. The goal is for Nigeria to transition from an import-dependent to a production-based economy.
Ähnlich wie Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel
Ähnlich wie Chief Emeka Okengwu of Anthill Concepts supported by the CBN develops the PSISF Sub-structure Model presented to the Federal Ministry of Mines & Steel (20)
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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
1. Central Bank of Nigeria (CBN)
Supported
National Sub-Structure
Private Sector Integrated Support Framework (PSISF)
Development Model
For
Real Sector Development
in
Nigeria Anthill Concepts Limited
8B Kayes Street
Zone One
Abuja
2. Executive Summary
The present global socio-economic realities in the light the Nigerian
import substitution model has placed the economy in a precarious situation
Oil rents together with the distributional, consumption oriented politics
that developed around them have not only underdeveloped Nigeria but also
emasculated the prospects for future prosperity.
Recent reports show that the economy stands the risk of complete system
collapse if the international oil price falls at below $30 per barrel
The NEEDS document and WORLD BANK reports identify the Solid
Minerals and Agriculture Sub Sets as critical to National development and
Mass employment .
The NEEDS document states that the earnings from Solid Minerals can
supersede that earnings from the Oil sector
The national sub structure model using the Private Sector Integrated
Support Framework( PSISF) is presented as an alternative to the perennial
economic challenges afore-listed
3. Sources of Prosperity
Inherited Prosperity Created Prosperity
• Prosperity is derived from inherited • Prosperity results from increasing
natural 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 the
practices that fuel corruption enabling conditions for
and allow unproductive policies productivity and foster private
and practices exist sector development
PSISF DRIVEN SUBSTRUCTURE MODEL
4. 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, Nigeria's 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
5. 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
6. 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
7. 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
8. 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
10. 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.
11. A typical Mining Value Chain
Exploration Processing Market
Mine Planning
(Manufacturing
(Prospecting, & Mining (Extraction/Smelting Industries and other
Discovery, Evaluation) Development & Refining) consumers)
16. 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 of
Corporation (NMC) Ltd. Mining &
Dept. of Mining Geosciences
Mines Cadastre (NIMG)
National Iron-ore Inspectorate Office (MCO)
Delta Steel
Mining Company
(NIOMCO) Mines Metallurgical
Environmental Training Institution
Artisanal & Small
Nigerian Coal Inland Rolling Mills Compliance (MTI)
Scale Mining
Corporation (NCC) (MEC)
National
Metallurgical
Artisanal & 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)
17. Overview of the Components
Upstream Section(Commercial operations)
i. Scrapping of the NMC/NCC
ii. Capacity of Niomco
iii. 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 capacity
Downstream Section
i. Low utilisation of the Engineering work and lime facilities in ASCL
ii. Privatisation of Inland rolling mills and Alscom
Policy/ Regulation
i. Lack of Technical and financial resources for effective monitoring of mines inspectorate,
artisanal mining and environmental compliance
ii. Licensing issues with MCO
Capacity Building
i. Lack of capacity of institutes like COMEG , NMDC ,MTI
ii. Wrong placement of National Steel Raw Materials Exploration agency as a capacity Dev
Agency
19. Prong 1
Absence of definitive private sector driven
business projects that tie the development
mineral and natural resources to the
development support infrastructure:- power
rail, roads through a clearly defined value
added chain model
20. Prong 2
Absence of External Financial and Technical
Partnerships 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)
21. Prong 3 ASCL/NIOMCO
1.Wrong
2.Structural
Classification
&
&
Operational
Local capacity
defects
utilization
Disjointed
Minerals, metals
3.Absence of
Steel &
Support raw
National
materials
Infrastructure
Development
22. 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
23. 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
24. Explanatory notes Contd
Structural 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
26. Executive Summary
Agri-business represents not just a major component of the
economy but a way of life for millions of Nigerians that must be
reckoned with.
Agribusiness in Nigeria however is plagued by myraid
infrastructure challenges.
Fixing the infrastructure needs for development of agribusiness in
Nigeria will require a holistic approach that will involve
governments at all levels, regulatory bodies as well as other
stakeholders.
This will require enactment of enabling laws, overhauling of
relevant agencies as well as deployment of mechanisms that will
ensure substantial infusion of fixed investment and working
capital towards sustainable infrastructure development.
27. 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
28. Challenges of the Agro-Allied Sub-Sector
1. 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 Nigeria
3. 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’.
29. OVERVIEW AGRI-BUSINESS IN NIGERIA
Farming input supply
companies
Cut across formal and
Un-integrated Producing farm firms informal sector of the
and Delinked economy
Food processing
agribusinesses firms
Food marketing and
distribution agribusiness
organizations
32. The Proposed National Sub-Structure Matrix
1. Gausau Cluster comprising states of Sokoto, Kebbi and Zamfara States
2. Kano Cluster comprising of Kano, Kaduna and Katsina States
3. Guyuk Cluster comprising, Adamawa. Bauchi, Taraba. Gombe ,Yobe and Borno States
4. FCT Cluster FCT, Niger, , Kogi States
5. Lafia Cluster comprising of Benue, Plateau and Nassarawa States
6. Calabar Cluster comprising Akwa ibom, Cross river, Rivers, Bayelsa and Delta states
7. Abakaliki Cluster comprising of Abia, Enugu, Ebonyi Imo and Anambra States
8. 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.
33. 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
34. 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
35. 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
Offtakers
Offtakers
Mines: Iron ore, Coal, Zinc, Tin
Offtakers Offtakers Offtakers
36. 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
2
Mineral Deposits 2 2
Industrial
Iron Ore Offtakers
Parks
Coal 2 2 2
Mambila
Bentonite 2
Gypsum Industrial
2
2
2
Enugu
Barite Parks 2 Offtakers
2
Gold
Oben
Delta steel plant
2 2
Phosphate
Gas Field
2
Limestone
Marble 2
Diamonds 2
2 2 2
Existing Gas Pipeline
2
Feldspar 2 2
Proposed Gas Pipeline
Talc 2
2 Existing Hydro Power Station
Lead/Zinc 2 2
2
2
Columbite 2
On-going Gas Power Station
2
Tantalite Proposed Hydro 2
Potential Mining Site
2 2
Chromium
Salt 2
Existing Gas Power Station
37. 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.
38. Sustainable Benefits of the Program
• JOB SECURITY
• SUSTAINABLE HOUSING DEVELOPMENT
• BOTTOM UP SOCIAL SERVICES SCHEME
• NATIONAL INTEGRATION
• MASS EMPLOYMENT
• SUSTAINABLE INFRASTRUCTURE
DEVELOPMENT