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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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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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