News

Miners’ debt to banks rises 296% in Q3 2023 amidst states’ bans

Published

2 years ago

February 14, 2024

Dele Alake, Nigerian minister of Solid Minerals

Miners’ debt to banks rises 296% in Q3 2023 amidst states’ bans

The mining and quarrying sector witnessed a substantial influx of bank loans in the third quarter of 2023, with borrowing surging to approximately N12.76 billion, as detailed in the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin.

This leap represents a staggering 296% increase from the N3.22 billion recorded in the preceding quarter, underscoring a robust appetite for capital despite broader economic challenges.

By the close of September 2023, the cumulative debt burden shouldered by firms within this sector had escalated by a notable 43% to N42.35 billion, up from N29.59 billion at the end of June 2023.

This financial trajectory is particularly noteworthy against the backdrop of regulatory headwinds, as some Nigerian states imposed bans on mining activities during the same period.

States’ Ban on Mining Activities

The landscape of Nigeria’s mining sector underwent significant regulatory shifts between June and September 2023, marked by a series of bans on mining activities across various states.

This period saw no fewer than five states—Taraba, Niger, Zamfara, Kebbi, and Enugu—impose restrictions, primarily targeting illegal mining operations, amid concerns over environmental degradation and insecurity.

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In June 2023, Taraba State Governor Agbu Kefas enacted Executive Order No. 3 to halt all mining activities effective June 23, 2023. By August, Niger State, under the directive of Governor Mohammed Umaru Bago, suspended all forms of mining. The following month, similar actions were taken in Zamfara, Kebbi, and Enugu, all aiming to address the resurgence of insecurity linked to mining activities.

These state-level interventions coincide with broader national security concerns. Previously, in 2022, the former Minister of Justice, Abubakar Malami, floated the idea of a nationwide mining ban as a strategy to undercut the financial pipelines fueling terrorist activities.

However, these measures have not been without controversy. The Miners Association of Nigeria (MAN) has criticised the state-imposed bans, arguing that such actions infringe on federal jurisdiction over mining and mineral resources.

The association’s grievances point to a contentious legal and regulatory landscape, which may further heighten the risk tendency of the mining sector.

The state bans, while aimed at curbing illegal mining and its associated security risks, also raise questions about the impact on legitimate enterprises and the broader economic implications for regions reliant on mining for revenue and employment.

FG’s Response to Ban

The federal government, through Dele Alake, the Minister of Solid Minerals Development, clarified the legal landscape surrounding mining regulation, firmly stating that state governments lack the authority to regulate mining activities within their territories.

This declaration comes in the wake of a series of unilateral bans on mining activities by various state governments aimed at curtailing illegal mining operations and addressing associated security challenges. According to Alake, such state-level interventions are deemed illegal and contravene the provisions of the Nigerian constitution.

The minister emphasised the centralised nature of mining regulation, noting that any state interested in participating in mining activities must adhere to established legal processes, including applying for a licence through the appropriate federal channels.

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This stance underscores the federal government’s intent to maintain a unified regulatory framework for the mining sector, which is critical to ensuring national security, environmental protection, and economic development.

Also, Alake recently highlighted the strategic importance of solid minerals as a potential major revenue earner for the nation, urging sub-national governments to align with the federal government’s vision.

He advocated for states to position themselves as contributors to the national agenda by leveraging the mineral resources within their jurisdictions, albeit through legally mandated federal licencing and regulatory mechanisms.

More Insights

The Solid Minerals Development Fund (SMDF), under the guidance of Executive Secretary and CEO Fatima Shinkafi, is placing a strategic emphasis on greenfield exploration, targeting the critical gap in data availability that hinders investment attraction in Nigeria’s mining sector.
Shinkafi recently spoke about the inherent challenges of exploration, notably its cost-intensive and risky nature, which historically has deterred banks, known for their risk-averse lending practices, from financing ventures within the sector.
Despite these challenges, a noticeable shift in the financial landscape is attributed to recent reforms spearheaded by the current Minister of Solid Minerals Development, Dele Alake.
These reforms seem to have incrementally opened the doors to increased financing from the banking sector, signalling a departure from the traditional reluctance to engage with the mining industry due to its speculative nature.
This shift is part of a broader strategy by the Federal Government, through initiatives like the SMDF, aimed at de-risking the mining sector to make it a more attractive investment proposition.
Nigeria’s mining and quarrying sector is navigating a transformative era, buoyed by governmental efforts to mitigate risk and foster a conducive environment for investment.
The concerted push to fill the data void through greenfield exploration is particularly significant, as it directly addresses one of the most substantial barriers to entry for potential investors.
Moreover, the willingness of banks to reconsider their stance on lending to the sector reflects a broader re-evaluation of the mining industry’s potential as a viable and lucrative investment destination.

Miners’ debt to banks rises 296% in Q3 2023 amidst states’ bans

News

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

Published

10 hours ago

April 21, 2026

Trends Admin

Wale Edun

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

President Bola Ahmed Tinubu has reportedly approved a minor cabinet reshuffle involving key changes in the Federal Executive Council (FEC), including the removal of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, alongside the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa.

The development was said to have been contained in a memo signed by the Secretary to the Government of the Federation (SGF), Senator George Akume, directing immediate transition processes across the affected ministries.

Wale Edun, Dangiwa Relieved of Ministerial Duties

According to the reported directive, Wale Edun has been asked to hand over duties at the Ministry of Finance and Coordinating Minister of the Economy. Similarly, Arc. Ahmed Musa Dangiwa is to vacate his position as Minister of Housing and Urban Development.

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The memo reportedly instructed that all handover processes be concluded on or before close of business on Thursday, April 23, 2026, ensuring a smooth administrative transition within the affected ministries.

Succession Arrangements and Ministerial Changes

The document further stated that Mr. Taiwo Oyedele has been named as the incoming Minister of Finance and Coordinating Minister of the Economy, following Edun’s exit.

In the housing ministry, Dr. Muttaqha Rabe Darma has reportedly been nominated as Minister-designate for the Ministry of Housing and Urban Development, pending formal confirmation procedures. Until then, Dangiwa has been directed to hand over to the Minister of State within the ministry.

Presidency Explains Reason for Reshuffle

Explaining the development, SGF George Akume was quoted as saying the changes are aimed at improving cohesion, synergy in governance, and economic delivery under the administration’s Renewed Hope Agenda.

He added that President Tinubu acted within his constitutional powers under Sections 147 and 148 of the 1999 Constitution (as amended), emphasizing that cabinet adjustments remain part of ongoing efforts to improve governance efficiency.

Presidential Appreciation and Next Steps

The memo also reportedly conveyed President Tinubu’s appreciation to outgoing ministers for their service to the nation, while wishing them success in their future engagements. It further indicated that the President assured Nigerians and cabinet members that government reinvigoration efforts will continue periodically.

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

News

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

Published

12 hours ago

April 21, 2026

Trends Admin

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

A power distribution company has announced plans to hold its April Virtual Stakeholder Engagement aimed at educating customers on safety measures during the rainy season.

In a notice issued to customers, the company said the virtual session would focus on the dangers associated with exposed electrical wires, flooded installations, and the increased risk of electric shock that often accompanies heavy rainfall.

The engagement, scheduled for Thursday, April 23, 2026, from 11:00 a.m. to 1:00 p.m., will be held via Microsoft Teams, allowing participants to join remotely.

According to the company, the initiative is part of efforts to promote public safety and reduce electricity-related accidents during the rainy season, when infrastructure is more vulnerable and risks are heightened.

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Beyond safety concerns, the session will also provide practical tips to help customers navigate the season safely, including guidance on energy efficiency to reduce consumption and costs.

The company further disclosed that it would share updates on its waste-management support initiatives targeted at public schools, as part of its broader corporate social responsibility programmes.

Customers and other stakeholders are encouraged to participate in the session to gain valuable insights and contribute to discussions aimed at improving safety and sustainability in communities.

The company reiterated its commitment to customer welfare, urging the public to remain vigilant and adhere to recommended safety practices during the rainy season.

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

News

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Published

18 hours ago

April 21, 2026

Trends Admin

Nigerian Electricity Regulatory Commission (NERC)

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Twenty-one states, including Rivers State and Kano State, have yet to assume full regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have successfully transitioned to independent electricity regulation under Nigeria’s decentralised power framework.

The Nigerian Electricity Regulatory Commission (NERC) confirmed that the 15 states that have completed the transition now operate their own electricity markets, handling tariff regulation, licensing, investment promotion, and consumer protection within their jurisdictions.

The reform is part of the broader implementation of the Electricity Act 2023, which decentralises Nigeria’s power sector by empowering states to regulate generation, transmission, and distribution within their territories after meeting legal and institutional requirements.

15 states now operating independent electricity markets

According to NERC, 15 states have fully completed the transition process and are now independently regulating their electricity sectors. These states include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa.

The commission explained that the transition began in October 2024 with Enugu and Ekiti, followed shortly by Ondo. The process gained momentum in 2025, with states such as Lagos, Oyo, Ogun, and Edo completing their transitions. More recent entries include Nasarawa, Anambra, and Bayelsa in early 2026.

Under the new structure, these states now oversee intrastate electricity regulation, including issuing licenses, enforcing technical standards, setting local tariffs, and protecting electricity consumers.

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21 states yet to complete transition

However, 21 states are yet to complete the process of taking over regulatory control of their electricity markets. These include Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

Energy experts say the delay could slow down the expected benefits of the Nigeria electricity sector reform, including improved power supply, localised tariff structures, and increased investment in mini-grids and embedded generation projects.

They also warn that uneven implementation could widen disparities in electricity access and investment across states.

What the Electricity Act 2023 provides

Under the Electricity Act 2023, once a state completes its transition, it establishes its own electricity regulatory commission responsible for overseeing all intra-state electricity operations.

The national regulator, NERC, retains oversight of interstate electricity trade and the national grid system.

State regulators are expected to drive local electricity market development by encouraging private investment, supporting renewable energy projects, and ensuring service quality standards across distribution networks.

However, NERC noted that some states that have declared transition still need to fully operationalise their regulatory institutions.

Federal government push for decentralisation

The Federal Government has repeatedly encouraged states to accelerate adoption of the reform, describing decentralisation as essential to solving Nigeria’s long-standing electricity challenges.

Minister of Power, Adebayo Adelabu, said Nigeria’s size and population make centralised electricity management ineffective.

He explained that the Electricity Act allows states to participate in all segments of the power sector value chain, including generation, transmission, distribution, and supporting services.

Adelabu also stressed the importance of collaboration between federal and state regulators to ensure alignment between wholesale and retail electricity markets.

He added that state participation is especially critical in off-grid electrification and rural power projects, where flexible local regulation can improve access and attract investment.

Outlook for Nigeria’s power reform

Stakeholders say the success of Nigeria’s electricity decentralisation reform will depend on how quickly the remaining 21 states establish functional regulatory frameworks and fully activate their electricity markets.

They warn that delays may limit investment inflows and slow down efforts to improve electricity supply reliability across the country.

Despite the uneven progress, the Electricity Act 2023 remains one of the most significant structural reforms in Nigeria’s power sector, aimed at creating a more competitive and efficient electricity market.

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law