The Economic Reality of Iron Ore Production amid Diversification: A Case of Niomco (National Iron Ore Mining Company)
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 1
Abstract
The study projects on average, the profitability of Nigeria’s iron ore company, NIOMCO (National Iron Ore Mining Company) in Kogi State, amid her current economic status. In attempt to project the profitability surrounding the company’s operations, the Net Discounted Present Value was employed, over a projection of five years. Interestingly, the outcome of the projection revealed that, selling at the current global market price of iron ore ($62.59), considering Nigeria’s current inflation rate and Dollar to Naira market exchange rate will not be profitable to NIOMCO, with ‘all things being equal’ within a projected period of five years. Therefore, it recommends that the entity be privatized to foreign investors with adequate financial and technical capacity to saddle the operations of the entity throughout five years and a tax holiday of five years should also be granted, as a coping strategy to willing investors. It also recommends that, a new price be set, at least to cover running expenses, if it must be sustained, as Nigeria journeys through a period of economic vulnerability, as she seeks to diversify her economy.
Authors and Affiliations
Osemenam Uche M. Sc. Unn, Thomas . B. Afeni Ph. D. Wits
Keywords
Related Articles
- EP ID EP414451
- DOI 10.9790/5933-0901016166.
- Views 203
- Downloads 0
Application of Truncated Distributions to Poverty Analysis among Etsako People of Edo State, Nigeria.
The rational for undertaking this study is to expound on the fact that public and self-employed people who earn income may not be out of poverty. To demonstrate this notion, a truncated poverty distribution analysis is e...
Review of Potentials, Sources and Financial Benefits as a Means of Acceleration and Expansion of the Provincial Development of Southeast Sulawesi
The objectives to be achieved in this research are: (1) to identify various local financial potentials in Southeast Sulawesi Province (2) to examine and analyze in detail the source and utilization of the regional financ...
Consumption Of Zobo (Hibiscus Sabdariffa) Drinks Among Staff And Students Of A Tertiary Institution In Ibadan, Oyo State Nigeria
Using a cross sectional data the consumption pattern of zobo drink (Hibiscus sabdariffa) among staff and students of Tertiary Institution was examined. Simple random sampling (SRS) was used to select 40 students and 40 s...
Territorial Development: Literature Review
Today, many countries are interested in the territorial issues and more particularly in territorial development and the conditions necessary for its implementation. The objective of this article is to present a review of...
Fiscal Policy and Public Debt in Kenya
Fiscal policy in Kenya has been unstable. Fiscal balance to GDP ratio worsened from a surplus of 0.2 percent to a deficit of 7.6 percentwhile debt to GDP ratio rose from 25.4 to 56.2 percent between 1963 and 2015. This w...