Economy
Landslide Threatens $6b Mambilla Hydro-Power Project
By Modupe Gbadeyanka
There are strong indications that the over $3.2billion Mambilla Hydro-power project may be stalled by a landslide.
Apart from the landslide, another key factor that may frustrate the project initiated in Taraba State in 1982 is bad roads.
The hydro-power project has the capacity to generate about 3050 megawatts of electricity, which is far more than what the present six biggest thermal stations in the country have in total, 3030 megawatts.
The Mambilla Hydro-power was conceptualised to serve as the largest single hydro-power station in Nigeria.
Unfortunately, previous governments suspended the project due to different factors.
But President Muhammadu Buhari has revived the project and is determined to complete it.
The contract to construct the project was awarded on May 28, 2007 at the sum of $3.2 billion to China Gezhouba Group Company Limited (CGGC) and another Chinese consortium named Sinohydro.
But the amount was increased to about $6 billion due to inflationary trends. The Chinese firms are expected to provide 70 per cent of the sum while 30 per cent would be provided by the Federal Government of Nigeria.
The President was in China this year to seek the assistance of Chinese government, the major financier for the power-station, in an effort to ensure the speedy completion of the project.
Recently some foreign engineers in company of government officials on an inspection visit to Taraba State refused to proceed further to Barup, the project site due to bad roads damaged by massive landslide.
Other access roads are bushy that only bikes could ply while the rivers have no functional bridges.
All entreaties by officials and members of the local community were not heeded by the foreigners who insisted that they would not continue the journey on dangerous paths.
A source at the Federal Ministry of Work Power and Housing told the Economic Confidential that the Minister, Mr Raji Fashola has shown keen interest in ensuring the completion of the project because of its potential to add 3000MW to the grid through Hydro-Electric project rather than expensive gas plants.
The officer added that “the Ministry is working towards assessing the condition of the roads for immediate solutions. We are all aware that the project would provide employment opportunities and is expected to boost national economic growth.”
Also concerned about the development, former President Olusegun Obasanjo urged President Buhari to immediately complete the Hydro Power Project to increase the energy potentials of Nigeria and pave way for more development.
Obasanjo who was speaking with news men in Jalingo, Taraba State said that the project would be of great benefit to the region and to Nigeria and as such must be quickly completed. He added that the cost of completing the project was rising by the day stressing that it would be better to complete it now than wait for when it would be more expensive.
A community leader and Chairman of Mambilla Plateau Legacies Forum (MPLF), Mallam Ibrahim Ismail Sadiq appealed to the Federal and state governments to take urgent measures at addressing the problems of the roads and open up the potentials of the plateau. He said that the surrounding communities that are borders to Cameroon Republic are on the verge of being cut off from Nigeria as a result of the landslide that occurred on the only road linking Mambilla Plateau with Taraba state and Nigeria as a nation.
He said that: “Many foreign investors are reluctant to ply the dangerous roads that are dilapidated by landslides while the rivers could not be accessed by vehicle due to lack of functional bridges.
“Apart from the potential to generate power-supply, Mambilla Plateau offers attractive settings worth of massive investments than anywhere in Nigeria because of its unique physical and conducive climatic conditions for human settlement and cattle breeding.”
The Mambilla Plateau is a high grassland with an average elevation of 2419m (5249ft) above sea level, making it the highest Plateau in Nigeria which occupies an area 9389km§. It has cattle ranches, tea plantation and rolling glassy hills. It is a home to some rare species of birds and animals. The highland is also home to Nigeria and west Africa’s only highland tea plantation and production.
Mambilla landslide
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
By Aduragbemi Omiyale
The first six months of 2026 were not too good for Caverton Offshore Support Group Plc, as it suffered an N8.7 billion loss compared with the N2.1 billion net profit it recorded in the same period of 2025.
This occurred as the company posted a 10.91 per cent decline in earnings between January and June 2026, according to its financial statements for the period ended June 30, 2026.
Analysis of the results showed that the revenue generated in the period under review stood at N14.7 billion versus the N16.5 billion printed in the corresponding period of last year.
Business Post observed that the revenue was negatively impacted by a decline in earnings from helicopter charter and helicopter/airplane contract.
Further analysis of the financial results indicated that operating profit went down by 22.34 per cent to N7.3 billion from N9.4 billion, with administrative expenses jumping to N7.9 billion from N4.7 billion.
But Caverton believes things will get better, noting that the clearest driver of the recovery is Caverton Marine.
Through its relationship with Stena Bulk, one of the world’s leading tanker operators, the organisation now participates in three Suezmax tankers trading a rare source of foreign-currency revenue for a Nigerian-listed company.
It noted that the relationship is being deepened through Unity Shipping Worldwide, a joint venture with the Nigerian National Petroleum Company (NNPC) Limited and Stena Bulk that pairs the state-owned oil firm’s national position and Stena Bulk’s fleet with Caverton’s indigenous operating platform
Closer to home, the firm’s OMIBUS platform, developed with Shanghai-based electric-propulsion OEM Explomar, is bringing battery-electric passenger ferries to Lagos waterways. A prototype is already in service, and Caverton holds a firm order from Lagos State for ten vessels, an early-mover position in clean inland-water transport that the group believes can be replicated across other states as the fleet enters service and ferry operations mature into steady, recurring revenue.
In aviation, the institution said the recovery is anchored on its partnership with NHV, a Belgium-based international helicopter operator, with the restructuring of charter operations targeted for the second half of 2026.
“The first half of the year tested us, but the direction of travel is now visible in the numbers.
“Quarter on quarter, we are working to build up our revenue to narrow losses. Our marine business units, from international tankers to electric ferries, are scaling.
“Meanwhile, our aviation relaunch is on track for the second half, and our cost base is tighter than it has been in years. There is distance still to travel, but Caverton is moving from stabilisation to recovery, and we intend to finish 2026 with that momentum intact,” the chief executive of Caverton, Mr Olabode Makanjuola, stated.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
