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Market Formation Framework, Driver To Optimally Develop Solid Mineral Sector —- Sekibo

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MD/CEO of Heritage Bank Plc, Ifie Sekibo has said that the market formation framework is the key to optimally exploit Nigeria’s precious metal and solid minerals endowments.

He disclosed this during a webinar organized by the Securities and Exchange Commission (SEC) in collaboration with the Federal Ministry of Mines and Steel Development with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges.”

Sekibo explained that a fully established market formation process that would lead to having a Corporation as an integrated solid mineral institution like NNPC which allows the collateralization of assets those banks can rely on for alternative funding options.

According to him, this will guarantee other creative ways of raising funds for financing commercial activities relating to solid minerals and viable projects along its value chain.

Sekibo who was represented by the Divisional Head, Strategy and Business Solutions, of the Bank, Olusegun Akanji, said for the sector to be viable, it requires lots of converged government interventions because for any development focused sector to kick-off around the world, it needs government intervention to lay the foundation for the private sector and funders to step-in and pool their resources.

“Once, we can collateralize these assets, whether they are under the ground or being determined, you use different instruments to bring liquidity into them. Then investors will follow up once we have established there is enough they can explore.” the MD stated.

He further suggested that finance sector regulators need to expand its Prudential Guidelines to accommodate the instruments such that precious metal-backed or solid minerals-backed assets could qualify as part of the computation of liquidity ratios.

“Once banks start injecting their resources, customers would certainly follow that trend. You can start arranging for sophisticated solutions like bonds, bullion-backed assets, and pension notes. Again, banks will have to be poised to hold the funding that comes from this sector; that way, they can open new transactional frontiers either locally or internationally.

“At the base of this, are the issues of pricing and integrity of the market. Once banks play in that sector and we have a government institution like the NNPC type to hold all this documentation, it would be very easy to establish price discovery on an ongoing basis. This will in turn attract international funders, hedge funds, and retail investors. Today, we have retail bonds in the same way; we can have gold-backed or any of the solid mineral assets where retail investors can put in the funds,” Sekibo explained.

Meanwhile, it would be recalled that Heritage Bank Plc has said its involvement in the private sector collaboration with Dukia Gold & Precious Metals Refining Co. Limited is set to unlock the over N344 trillion market worth of gold investible instruments in the solid minerals sector.

However, he reiterated that a consistent packaged framework, which could only be held by an established government institution, as part of the layers of framework, would help to tackle major challenges in trying to support Dukia Gold’s clients.

“With the consistent packaged framework, it will be easier for Dukia Gold and help in less spending. If Dukia Gold should speak of their challenges, they will speak about tonnes of documents they have to produce. But with a unified source of documentation, it makes the process easier and improves cost management. These are some of the challenges we have experienced in trying to support a few clients we worked with,” Sekibo stated.

BIG STORY

BREAKING: GTCO Becomes First Banking Stock To Exceed N100 On NGX

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Guaranty Trust Holding Company has achieved a strong mid-market showing during the July 16, 2025, trading session, surpassing the N100 milestone.

This makes GTCO the first banking stock listed under the NGX Banking Index to cross the N100 benchmark, while Stanbic IBTC Holdings remained just below at N99.

The upward movement aligns with the broader positive sentiment in the banking sector, where the NGX Banking Index has gained over 22% so far in July.

The development follows GTCO’s recent dual listing, which involved 2.29 billion ordinary shares being listed on the London Stock Exchange on July 9, 2025, and another 2.28 billion shares added to the Nigerian Exchange the next day.

The stock’s rise appears driven by investor response to its cross-border listing and its strong Q1 2024 financial performance. Month-to-date, GTCO has posted a gain exceeding 27%.

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BIG STORY

Marketers Protest As Dangote Moves To Crash Cooking Gas Price

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President of the Dangote Group, Alhaji Aliko Dangote, has revealed his intention to slash the cost of Liquefied Petroleum Gas, also known as cooking gas. He further stated that if current distributors resist the price reduction, he will begin selling directly to consumers.

Industry players, however, have opposed the proposal, accusing Dangote of attempting to dominate the LPG market. They voiced their concerns on Monday, fearing the possibility of monopolistic control.

During a recent inspection of his refinery by both local and international visitors, Dangote pointed out that the current cost of cooking gas is too high and beyond the reach of ordinary Nigerians who rely on firewood.

He mentioned that the refinery is now capable of producing 22,000 tonnes of LPG daily, and efforts are underway to increase output for local distribution, especially as more Nigerians adopt gas for cooking.

Addressing members of the Lagos Business School CGEO Africa at his Lekki refinery, Dangote stated, “The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. You know Nigeria is gradually moving to the usage of LPG. But I believe it is expensive, but right now we’re trying to bring down the price and make it cheaper.”

Dangote cautioned that “if the distributors are not trying to bring it down, we’ll go directly and sell to the consumers, so that people will now transit from firewood or kerosene to LPG for cooking.”

It was earlier reported that Dangote plans to begin nationwide direct distribution of petrol, diesel, and aviation fuel in August, using 4,000 CNG-powered buses.

At present, cooking gas sells for between N1,000 and N1,300 per kilogramme. Dangote aims to reduce this to make it more accessible.

Operators kick

LPG market stakeholders appear displeased with Dangote’s plan to shake up the sector.

In an interview with our correspondent, the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, labelled the move monopolistic.

Okoduwa stressed that Dangote must acknowledge the efforts of investors who expanded the LPG market from 70,000 metric tonnes in 2007 to over 1 million metric tonnes by 2022. He emphasized the importance of cooperation.

“I think it’s monopolistic. I think a market should be protected to encourage growth. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022. That was done by collaboration — collaboration with the Federal Government, the NLNG, and offtakers. Everything was done in collaboration. It grew from 70,000 to 250 to 800, and now over a million,” Okoduwa said.

He argued that monopoly cannot drive growth, but collaboration can. “Today, we are just under 5kg or 6kg per capita consumption in terms of LPG. Other countries are doing much more. South Africa is doing double digits, Morocco and Tunisia are doing double digits. We can do much more.

“So, we should, as an industry and as a country, focus on how to grow the LPG industry and not allow someone (to frustrate the players). Yes, he has invested; yes, it’s a capital economy, but he should not be allowed to frustrate the players.

“There are people who have spent money, spent resources, even business and development, and someone just comes in to reap from the work that has been done. I’m sure he wouldn’t have built if there had not been an existing market. The work has been done, he should respect the market and let us grow. It shouldn’t be a zero-sum strategy. It should be collaborative,” he said.

He recommended that despite having a significant advantage, Dangote should pursue collaboration.

“My advice to him is that the pie can be bigger. The Nigerian market is about 1.3 million tonnes. The Nigerian LPG market can be 5 million tonnes. He should work towards collaboration rather than competition, because at the end of the day, everybody benefits,” he added.

When told that Dangote’s main goal is to lower gas prices so everyone can afford it and reduce firewood use, Okoduwa responded, “I have news for him. He should go to the Northeast, where you have the least consumption of LPG. He should go to the Northeast and start developing the LPG infrastructure there. I think we will tell him thank you for that.”

In a similar vein, the Executive Secretary/Chief Executive Officer of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, expressed doubt about Dangote’s ability to sell gas directly to consumers or significantly reduce prices.

“I am saying that it’s unrealistic. What is the position with PMS? Has the refinery been able to sell petrol directly to you and me into our cars at a very cheap rate?” Essien asked.

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BIG STORY

Aliko Dangote Submits Paperwork To Build Biggest Seaport In Nigeria

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Aliko Dangote, who leads the Dangote Group, has revealed plans to construct what he describes as the “biggest, deepest seaport in Nigeria”.

Speaking with Bloomberg, Dangote mentioned that he has submitted an application to initiate development of the planned Atlantic seaport located in Olokola, Ogun state.

He explained that the project is aimed at simplifying the export process for products — including liquefied natural gas (LPG) — and will contribute to the rapid expansion of his industrial ventures.

Dangote noted that the initiative “to build the biggest, deepest port in Nigeria” progressed after submitting the necessary documentation for approval last month.

“It’s not that we want to do everything by ourselves, but I think doing this will encourage other entrepreneurs to come into it,” he said.

The proposed port marks Dangote’s return to the same location where he had once halted plans for a refinery and fertiliser plant due to disagreements with local authorities.

Back in March, Dangote stated he had resumed construction in Ogun state “because of His Excellency, our governor, Prince Dapo Abiodun”.

In a separate interview, Devakumar Edwin, Dangote Group’s vice-president, disclosed that the company also intends to export liquefied natural gas (LNG) from Lagos.

He added that this effort will involve laying pipelines from the Niger Delta to the coast.

“We want to do a major project to bring more gas than what Nigeria LNG is doing today,” he said.

“We know where there is a lot of gas, so run a pipeline all through and then bring it to the shore.”

On May 26, Dangote announced that Dangote Industries Limited (DIL) aims to generate $7 million in daily fertiliser sales within the next two years.

Roughly a month later, the company declared that it would commence nationwide distribution of diesel and premium motor spirit (PMS), commonly known as petrol, starting August 15.

The organisation also revealed that it has procured 4,000 new compressed natural gas (CNG)-powered tankers to improve its fuel delivery network across the country.

On June 27, Dangote further stated that the continent will become self-reliant in fertiliser production within 40 months.

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