Economy
FG to Set up Commission to Regulate Mining Sector
By Modupe Gbadeyanka
Minister of Mines and Steel Development, Mr Kayode Fayemi, has revealed plans by Federal Government to a regulatory agency to control the affairs of the mining sector in the country.
The agency to be called the Nigerian Mining Commission will control the leasing of mining sites to investors as well as be the final authority on regulatory matters.
Mr Fayemi, who made this known in a statement by his Special Adviser on Media, Mr Yinka Oyebode, noted that the law setting up the commission was already with the National Assembly.
Addressing participants at the Nigeria Day event at the ongoing African Mining InDaba in Cape Town, South Africa, the Minister said government was determined to strengthen regulation in the sector as well as ensure the improvement of its geological data.
Mr Fayemi further said the delivery of the geological data was in line with government’s desire to ensure bankable geological data that would be an incentive to investors.
He noted that the ministry would undertake more extensive electromagnetic Airborne Geological Survey of some promising parts of the country this year and the completion of the National Mineral Database.
“We want to ensure predictability; that is what we want to offer; we want to be a big mining designation.
“To achieve this, we have to put certain things in place, including provable data, sound regulations, capacity building for Artisanal and Small Scale Miners as well as access to funding, he said.
The Minister explained that while mining circle was not the same as electoral circle, it was important for government to put in place sound policies and reforms as well as bankable geological data that would make the Nigerian mining jurisdiction a major attraction.
He also spoke on government’s determination to enhance its collaboration with state governments and the host communities.
He said the development was being worked out administratively through the establishment of the National Council on Mining and Minerals Development Council, where the states were playing active roles.
Mr Fayemi said the combination of the various reforms being put in place, inputs by the National Council on Mining and Minerals Resources Development and the Chamber of Mining, would help to re-position the sector for better result.
Those who spoke on various aspects of the Electromagnectic Survey results included Gaig Annison, Director, Business Development, Compagnie Generale de Geophysique (CCG) Airborne Surveys PTY, Australia, who anchored the presentation.
Annison described Nigeria as a nation taking very bold steps towards becoming a major mining destination.
Mr Franklin Ramirez Venezuela, Deputy Minister of Mines and minerals, said the oil and gas rich country was also diversifying to mining to shore up its economy.
He said Venezuela had a lot to learn from Nigeria in its economic diversification efforts.
The minister had in December 2017, disclosed that the ministry secured the delivery of 26,000-line kilometre of electromagnetic data, following the payment of outstanding fees to the consultant that handled the project.
The Consultants had held on to the results of the Electromagnectic survey following the failure of the previous administration to effect payment for it.
The minister said that a good percentage of the N30 billion fund made available to the ministry from the National Resource fund, would be committed to exploratory work and data gathering.
Nigeria took the centre stage at the African Mining Indaba, with the formal presentation of its new Airborne Electromagnetic Survey Results amid endorsements for the country’s mining sector reforms by mining experts, operators and developmental agencies.
The presentation of the new Airborne Electromagnetic Survey Results, a major high point of the Wednesday event at the week-long mining conference, was witnessed by renowned stakeholders in global mining and other important dignitaries from different countries.
By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will, at the Commercial Bid Conference, announce the successful bidders for 50 oil and gas blocks in the 2025 Licensing Round on July 21, 2026.
The regulator said the conference would conclude an eight-month licence round that began on December 1, 2025, after President Bola Tinubu approved the exercise under the Petroleum Industry Act (PIA) 2021.
The commission said the 50 blocks include 15 onshore, 19 shallow-water, 15 frontier and one deep-offshore block, covering basins such as the Niger Delta, Chad Basin, Benue Trough, Anambra and Bida.
It said the round aims to attract about $10 billion in fresh investment and to unlock discovered but undeveloped fields, fallow assets and gas resources. NUPRC described the 2025 round as the third licensing exercise under the PIA framework and stressed it is designed to prioritise natural gas development.
NUPRC outlined a five-stage process for the round — registration and pre-qualification, data acquisition, technical bid submission and evaluation, and the commercial bid conference — followed by ministerial approval and contracting. The Commission said it notified pre-qualified applicants on March 16, 2026, and closed technical and commercial bids on June 12, 2026.
NUPRC chief executive, Mrs Oritsemeyiwa Eyesan, had said the selection would be merit-based and would exclude weaker applicants.
She said only candidates with strong technical and financial credentials, professionalism and credible development plans would advance, and that winners would be chosen on a weighted combination of technical and commercial scores.
To widen participation, the federal government fixed signature bonuses for the round in a prescribed range of $3 million to $7 million per block, the Commission said, adding that bids outside that range would be non-compliant and excluded.
NUPRC said it would resolve the tied highest bids within the range by conducting a sealed rebid for the signature bonus, adding that successful bidders will receive Petroleum Prospecting Licences (PPLs) and may elect either a Concession or a Production Sharing Contract (PSC) framework, noting that the choice of framework will determine fiscal terms for up to two decades.
The agency noted that bidders were required to present host community development plans and to commit to remit 3 per cent of operating expenditure to Host Community Development Trusts. It said decarbonisation objectives and broader environmental, social and governance (ESG) requirements were mandatory parts of submissions.
It warned that applicants with government debts, those that had previously failed to develop licences “vigorously and in a business-like manner,” or those found non-compliant with applicable laws could be disqualified at any stage.
The regulator said it expects ministerial approval and formal contracting between July and October 2026, after which awardees must execute concession contracts before licences take legal effect.
Recall that during the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja, the NUPRC issued PPLs to 12 companies across 19 blocks from the 2024 round. The Commission named recipients, including Boron Energy Limited, Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, Tulkan Energy E&P Company Limited and said that the exercise showed the licensing pipeline was functioning.
By Adedapo Adesanya
The Special Adviser to the President on Energy, Mrs Olu Verheijen, has said Nigeria requires about $38.3 billion in fresh investment to sustain current oil and gas production and achieve its 2030 output targets.
Speaking at the recently concluded 25th NOG Energy Week Conference and Exhibition in Abuja, Mrs Verheijen said global investors are now prioritising countries with predictable policies, competitive fiscal terms and credible regulatory systems.
“For Africa, that question is urgent. And for Nigeria, the scale of the task is equally clear: to sustain the current base and grow toward our 2030 production target, analysis shows a financing gap of about $38.3 billion,” she said.
According to her, the era when countries relied solely on resource endowment to attract capital has ended.
“Capital has no passport. It is rational. It prices risk. It follows credibility. It asks one question: can this country turn resources into bankable projects, and bankable projects into reliable returns?”
She said Nigeria had deliberately repositioned itself through reforms aimed at improving investor confidence and accelerating project execution.
“We recalibrated fiscal terms, clarified regulation and streamlined oversight. We introduced targeted incentives and cut contracting timelines by more than half. We made a clear statement to the world: Nigeria is no longer asking to be trusted; Nigeria is working to be bankable.”
Highlighting progress recorded under the reforms, Verheijen said Nigeria now has more than $50 billion worth of upstream projects in its visible investment pipeline.
“We now have more than 50 billion dollars of upstream projects in the visible pipeline. In the last three years, more than 10 billion dollars of long-awaited final investment decisions have come through.”
She added that crude oil and condensate production has increased by about 400,000 barrels per day since 2023, while onshore production is at its highest level in two decades.
“Crude oil and condensate production has risen by about 400,000 barrels per day since 2023. Onshore production is at its strongest level in twenty years.”
Mrs Verheijen said the Federal Government remains committed to achieving its target of producing three million barrels of oil per day and 10 billion standard cubic feet of gas daily by 2030, while strengthening Nigeria’s competitiveness in the global energy market.
She also highlighted ongoing reforms in the power sector, including the N4 trillion Presidential Power Sector Financial Reforms Programme, which she described as critical to restoring confidence across Nigeria’s electricity value chain.
On gas development, she said the government was expanding domestic LPG supply, improving affordability and supporting investments through tax and import duty incentives.
“A gas-rich nation cannot be comfortable when families are priced back to firewood, charcoal or kerosene,” she said.
Mrs Verheijen stressed that Nigeria’s ambition extends beyond exporting crude oil to building an industrial economy anchored on value addition.
“We have chosen not merely to produce molecules, but to convert molecules into megawatts, fertiliser, petrochemicals, mobility, manufacturing, jobs and exports.”
She concluded that the country’s reforms were laying the foundation for long-term growth despite lingering challenges.
“The age of Nigerian hesitation is ending. The age of Nigerian ambition has begun. Our task now is to turn reform into relief, capital into projects, projects into jobs, and energy into national greatness.”
By Adedapo Adesanya
Nigeria’s headline inflation rate in June 2026 moderated to 15.91 per cent from 15.93 per cent in May, as pressure from the Iran war mildly eased, though it largely remained in focus during the review month.
In the report on Wednesday, the statistical office showed that the headline inflation rate for June on a month-on-month basis was 1.66 per cent, 0.09 per cent lower than the 1.75 per cent recorded in May 2026.
On an annualised basis, the print was down from 25.29 per cent in the same month of the preceding year (June 2025). This was due to the rebasing of the calculation year from 2009 to 2024.
The rise in prices, which stemmed from the continued conflict in the Middle East, continued to stoke food prices and energy costs, which account for a huge chunk of average spending.
The food inflation rate in May 2026 on a month-on-month basis was 3.75 per cent, up by 0.77 percentage points from May 2026 (2.98 per cent), while on a year-on-year basis, it was 17.52 per cent and stood at 25.41 per cent in the same month of the preceding year (June 2025).
At 15.91 per cent print, the inflation marginally beat expectations by Meristem Research, predicted at 15.95 per cent.
There had been expectations that the ceasefire between the United States and Iran would help drive oil prices lower, raising expectations of some relief on the inflation front. However, with conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
This will be a core factor that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will be looking at when it meets for the next policy meeting. At its last meeting, the committee left benchmarked interest rates at 26.5 per cent.
