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Miners reject governors’ six-month mining ban plan

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Mining operators in the country have expressed strong opposition to the six-month planned ban on mining activities announced by the 19 Northern governors.

The Miners Association of Nigeria warned that the decision would worsen insecurity rather than curb it, arguing that such measures have historically driven out legitimate operators and created room for bandits and illegal miners to take over mining sites.

The association’s President, Dele Ayanleke, expressed a strong opposition view during an interview on Wednesday, telling The PUNCH that previous attempts by some state governments to suspend mining activities only succeeded in driving out legitimate operators and leaving mining sites in the hands of bandits and illegal miners.

Recall that Northern governors and traditional rulers on Monday called for a six-month suspension of mining activities across the region, blaming illegal mining for the worsening insecurity in many states. This was contained in a communiqué issued after a joint meeting of the Northern States Governors’ Forum and the Northern Traditional Rulers’ Council held at the Sir Kashim Ibrahim House, Kaduna.

The forum asserted that criminal mining networks were fuelling violence and providing resources for armed groups. As a corrective measure, they asked President Tinubu to direct the Minister of Solid Minerals to suspend mining activities to allow for a full audit and revalidation of licences.

The ban, which is expected to run for six months, covers all forms of mining, artisanal and licensed operations, pending an improved security situation and a major security overhaul. “The Forum observed that illegal mining has become a major contributory factor to the security crises in Northern Nigeria,” it said.

“We strongly recommend a suspension of mining exploration for six months to allow proper audit and to arrest the menace of artisanal illegal mining.” The northern leaders also announced plans to mobilise N228bn to fight bandits terrorising communities across the region.

But Ayanleke described the policy as “misguided and counter-productive,” noting that past experience, particularly in Zamfara State, proves that shutting down mining does not translate to improved security.

He said, “Our opinion on this matter is simple. Since the governors said it is to improve the security situation in the region. We need to look at antecedents. For several years now, mining activities in Zamfara have been said to have been banned. But we discovered that the insecurity in the state is even getting worse in spite of the ban on mining activities.

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“What we have observed is that what usually happens when these governors ban activities is that they only succeed in sending out the legitimate operators from their site. The government doesn’t have or hasn’t been deploying enough security personnel to ensure compliance.

“So when legitimate operators leave the site, what we have observed is that the illegal operators would take over, including the so-called bandits. These illegal miners are the so-called bandits. And these are the people that the government cannot control. They don’t have enough logistics to deploy to ensure that people comply with any ban on activities.”

Ayanleke argued that the major challenge has been the government’s failure to deploy adequate security personnel and logistics to enforce compliance with any declared ban. “The government does not deploy enough security to protect these sites. So, when the legitimate operators exit, the illegal ones, who are mostly criminals, move in. These are the people the government cannot control,” he said.

The association warned that denying lawful operators access to sites would inadvertently give criminal groups more control over mineral resources, enabling them to “weaponise themselves.”

“So if Zamfara has remained banned for years now, we are still hearing a lot of banditry attacks and an increasing wave of banditry in that region. It means that banning mining activities cannot stop that problem. If anything at all, it would only improve on the resources that these people would have access to, for them to weaponise themselves and begin to carry out their heinous activities.

“We don’t see banning of mining activities as a panacea to the problem of insecurity and banditry that have been taking place in the northern part of the country,” he added.

Ayanleke further expressed concern that the six-month suspension would harm existing mining companies, disrupt production schedules, and threaten ongoing investments involving local and foreign partners.

“Just as we have said, the proposed ban would affect a lot of things. For example, you have a lot of big mining companies springing up in these states, which are contributing meaningfully to the economy.

“What happens to the economy if their operations are crippled. What will happen to their production or even upcoming miners who have partnered with investors, both foreign and local investors? What will happen to their investment? So I think we should look for another solution to solve this,” he said.

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He argued that the ban could trigger investor flight and undermine the Federal Government’s push to grow the solid minerals sector into a major revenue source. The miners’ association urged the governors to adopt the Niger Delta security approach, where the Federal Government tackled oil-related insurgency without shutting down crude production.

“When there was an insurgency in the Niger Delta,  the government didn’t ban oil drilling activities. Instead, they deployed security to ensure that they curtail the level of insecurity in the area during that period. Assuming the government has banned oil drilling activities, what would have happened to our economy or the revenue that each state gathers to share every month in Abuja.

“These are the issues. So far, the feedback I have received from all our members across the federation is that a ban on mining activities is not the solution. If it were the best solution, Zamfara would be the most secure and safest place in this country,” Ayanleke said.

He called for the deployment of joint task forces or specialised security units to mining corridors to tackle bandits, enforce mining regulations, and protect licensed operators. According to him, artisanal mining is a global phenomenon that cannot be eradicated but can be regulated if legitimate operators remain active on mining sites.

“In my own licensed site, artisanal miners cannot operate without my consent. Where legitimate operators are present, illegal miners don’t disturb them. It is usually when there is a ban that these illegal miners take over,” he noted.

Ayanleke added that the government’s ongoing effort to formalise artisanal miners into cooperatives is a step in the right direction, but such reforms would fail if legitimate operators are forced out by blanket bans. He also referenced a recent warning by Senator Adams Oshiomhole on the growing link between banditry and illegal mining, urging the government to “listen and act.”

“When there was an insurgency in the Niger Delta area, the government deployed joint task forces to curtail illegal bunkers. They didn’t ban oil drilling activities. Assuming they did, imagine what would have happened to our economy today. So let the government deploy JTF, or its nearest force, to checkmate all these bandits and their activities,” he concluded.

The decision by the Northern Governors’ Forum followed escalating attacks across mining corridors in Kaduna, Niger, Zamfara, Plateau, and Katsina, where criminal groups have been accused of exploiting mining sites as operational bases and using mineral revenues to procure arms and support their logistics.

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However, mining in Nigeria is constitutionally under the exclusive control of the Federal Government, creating a long-standing jurisdictional tension between the federal and state authorities.

Under the 1999 Constitution (as amended), mineral resources fall within the Exclusive Legislative List, giving the Federal Government, through the Ministry of Solid Minerals and the Mining Cadastre Office, the sole authority to issue licences, regulate operations, and enforce compliance.

This means state governments cannot legally ban or suspend mining activities, except through advisory pronouncements or by collaborating with federal security agencies. The contradiction often results in policy clashes, with states attempting to impose local restrictions in response to insecurity or environmental concerns, even though the law does not grant them the power to enforce such measures.

Earlier this year, the Minister of Solid Minerals Development, Dele Alake, said that, despite the federal government’s constitutional authority to control the mining of the solid minerals in the country, it is constrained by cultural and political sensitivities, as state governments continue to interfere in mining operations.

Alake revealed that several governors have taken unilateral actions such as banning mining activities or sealing off mining companies, leading to conflicts with federal authorities. While reaffirming that mining falls under the exclusive jurisdiction of the FG, he noted that the Land Use Act grants states ownership of land, which is creating room for contention.

“I’ve had a meeting with the governors at their Secretariat here, organised by the chairman of the governors’ forum, the governor of Kwara State. Thirty-two were present there, and I had a robust exchange with them. Some didn’t feign ignorance of this constitutional separation of powers.

“I did explain to them this exclusivity of the mining sector as belonging to the purview of the Federal Government, and a lot of them understood. But there is a sensitivity given the peculiarity of our environment, political, social, and cultural environment, which we recognise, and I particularly will not be the one to heat the polity unnecessarily. I’ve had a lot of calls, even from the media, calling on me to confront this governor, confront that governor. That is not how to do it,” he explained to State House Correspondents.

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Read how Nigerians tap savings, loans to buy Dangote refinery shares

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Some Nigerians seeking to invest in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering have turned to personal savings, loans and proceeds from the sale of assets to raise funds to buy shares, Saturday PUNCH has learnt.

Findings by our correspondents revealed strong interest in the shares among prospective retail investors, some of whom said they expected the investment to yield substantial returns in the future.

While some respondents said they were dipping into savings or raising funds through other means, others said the prevailing economic hardship had made it difficult for them to participate in the offer.

The refinery opened its IPO on Monday, September 14, giving Nigerians an opportunity to own equity in the company.

The offer comprises 4.1 billion ordinary shares priced at N525 each, with the company targeting about N2.15tn to part-fund an expansion that would nearly double the refinery’s capacity to 1.4 million barrels per day.

The minimum subscription is 10 shares, costing N5,250.

Dangote Group Chief Executive Officer, Aliko Dangote, said the low entry threshold was deliberately set to allow ordinary workers, including drivers, cooks and domestic staff, to become shareholders, describing the offer as “the IPO for the people.”

The offer is expected to close on October 13.

Investors turn to savings, loans

A staff member of the Federal Ministry of Works, David Adelabu, described the shares as expensive for struggling civil servants but said he considered the offer an opportunity to become a shareholder in the refinery.

He said, “I have small shares in some companies, including Glo and MTN, but Dangote’s shares will be the highest I will be buying. It is on the high side, but I feel this is an opportunity to become a shareholder in Dangote.

“I understand that the dividends are not going to be immediate, but I don’t mind even if it will entail selling a plot of land I have in Metumbi here in Minna. I will gladly do so.”

A trader in Dutse, Jigawa State, Adamu Bala, said he planned to use savings from his business to buy the shares.

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“I will not sell my house. I will use a small profit from my shop to buy,” he said.

Similarly, a civil servant, Fatima Mannir, said women in her group had started raising money through contributions, known as adashe, to participate in the offer.

“We have started raising money through adashe,” she said.

A trader in Damaturu, Yobe State, Malam Musa Ibrahim, said he invested part of his business savings after learning about the offer.

“I am using part of the money I have saved from my business.

“I believe that if I can invest a small amount now, it may become useful to me in the future. But I am also being careful because business is not easy at the moment,” he said.

Another resident, Aisha Mohammed, said she raised money by cutting down on some household expenses.

“I did not borrow money to buy the shares. I have been saving little by little, and when I heard about the offer, I decided to use part of what I had saved,” she said.

A businessman, Abdullahi Yusuf, however, said he obtained financial assistance from a friend to increase his subscription.

“I wanted to buy more shares than what my savings could afford, so I discussed it with a friend who agreed to lend me some money.

“I know that borrowing money to invest carries risks, but I am hoping that the investment will perform well. I will repay the money from my business income,” he said.

A petty trader, Hauwa Lawan, said she sold some personal belongings she no longer used and added the proceeds to her savings to finance her purchase.

“I sold some things that I was no longer using and added the money to my savings,” she said.

A farmer, Mallam Abdullahi Adamu, said he sold farm produce to raise about N500,000 to invest in the shares.

In Kano State, an investor, Abdulmalik Ibrahim, said he bought 10 shares for N5,250 using personal funds.

Hardship keeps some investors away

While some Nigerians are finding ways to participate in the IPO, others said economic pressures had put the investment beyond their reach.

See also  Dangote dumps naira, begins petrol sales in dollars

A civil servant in Kogi State, Saliu Joseph, said he would have loved to invest but had just paid his children’s school fees.

“Right now, I don’t think I can afford to participate unless a miracle happens,” he said.

A retired permanent secretary in the state, Bola Boro, also said he would not participate because he could not afford the investment at the moment.

“As a retired civil servant, I cannot afford such an amount to invest in the offer. Even though I am a fan of investment through the stock market, which I have been doing for years, I don’t think it will be convenient for me to participate considering the time frame of just one month,” he said.

A civil servant, Kuta Abdulahi, said the financial demands of his children’s education had left him unable to participate in the share offer.

“I must tell you the truth, I know about the Dangote Refinery shares, but I cannot even think of it at this time. My children are just resuming a new term in school. Where will I get the money for their school fees before thinking of buying shares? Please, I have a lot on my head,” he said.

Similarly, a vulcaniser, Ahmed Alkali, said his income was barely enough to meet his family’s basic needs, making investment in shares difficult.

“With the kind of job I do, I am working from hand to mouth. So, how can I buy shares when I have not eaten?” he asked.

Experts warn against borrowing

Investment experts, however, cautioned Nigerians against taking loans, selling properties or committing all their savings to the IPO, warning that equity investments carry risks.

Speaking with Saturday PUNCH, the Group Managing Director of Lancelot Group, Adebayo Adeleke, urged prospective investors to understand the risks associated with the capital market before committing their funds to the IPO.

Adeleke, who is also a former Secretary of the Independent Shareholders Association of Nigeria, said capital market investments should be made with funds that investors could afford to leave untouched for the long term, noting that equities were unsuitable for people struggling to meet immediate financial needs.

He said, “When you buy shares, you are buying a portion of the ownership of the business. Investment takes a lot of time to pass through gestation, to stability, to profitability. And you cannot, with any degree of certainty, predict when the company is going to turn the corner and begin to produce profits.

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“So, investment money is not the money you are likely to need in the next two months, three months, six months, even one year. If you cannot part with your money for a minimum of three to five years, the capital market is not the place to invest.”

Adeleke, however, described the IPO as a strategic investment, citing the refinery’s scale and demand for its products.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, urged Nigerians to consider the risks associated with the investment and avoid committing all their savings to the offer.

He said, “There are plenty of risks to this business. It’s not risk-free. Things can get worse for the business. Valuation is based on expectations of what will happen in the future. Things might not go as planned. And, like we all know, equity is a risky business.”

Olubunmi particularly cautioned prospective investors against selling property or using up all their savings to invest in the offer.

He advised them to invest only a portion of their funds and diversify their portfolios.

The expert also advised those considering taking loans to buy the shares to have a separate and reliable repayment plan rather than depending on returns from the investment.

The Emir of Kano, Muhammadu Sanusi II, had earlier warned prospective investors against using their children’s school fees or selling their homes to invest in the shares.

Sanusi, who gave the warning on Thursday while speaking at the company’s roadshow in Kano, urged prospective investors to invest only money they could afford to set aside for some time, suggesting amounts such as N10,000, N20,000 or N30,000.

Source: punchng.com

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

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🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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