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Alake warns mining firms over host community agreements, threatens licence revocation

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The Minister of Solid Minerals Development, Dele Alake, has warned mining companies operating in Nigeria that failure to comply with their Community Development Agreements (CDAs) could lead to sanctions, including the revocation of their licences.

Mr Alake gave the warning on Saturday during the ministry’s 2026 Ministerial Retreat in Abuja.

He said although the government has made significant progress in reforming the solid minerals sector, greater emphasis would now be placed on accountability and ensuring that host communities benefit from mining activities.

“Our reforms have restored confidence, attracted serious investors and made the sector a key part of Nigeria’s economic diversification. Now, our focus is on accountability,” he stated.

The minister stressed that companies must honour the agreements reached with their host communities.

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“Mining companies that fail to honour their Community Development Agreements will face sanctions, including the revocation of their licences,” he said.

He added that, “Host communities deserve to benefit from the resources in their land, and there will be consequences for those who ignore that responsibility.”

Community Development Agreements are legally required arrangements between mining companies and host communities, outlining commitments on social amenities, employment, infrastructure and other development projects.

READ ALSO: Alake calls for united African front to capture greater value from global mineral economy

Illegal mining

Mr Alake also reaffirmed the Federal Government’s commitment to tackling illegal mining across the country.

According to him, the ministry will strengthen the operations of the Mining Marshals while adopting practical and innovative measures to improve security in the sector.

“I also reaffirmed our commitment to ending illegal mining by strengthening the Mining Marshals and embracing practical, innovative ideas that will make the sector more secure and more beneficial to all Nigerians,” he said.

The minister said the government’s ongoing reforms are aimed at building a more transparent, secure and investment-friendly mining sector capable of contributing more significantly to Nigeria’s economic diversification.


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Business

Nigeria’s power plants operated at 86% capacity in August — NERC

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The latest operational performance report by the Nigerian Electricity Regulatory Commission (NERC) has shown that Nigeria’s grid-connected power plants operated at an average of 86 per cent of their available capacity in August 2026.

This was one of the major highlights of the NERC’s August 2026 factsheet report published on Thursday. The report showed that Nigeria’s power plants had an average available capacity of 4,758 megawatts (MW) during the month under review, while average hourly generation was pegged at 4,102MW.

According to the report, about 656MW of the available generation capacity was not utilised on average during the period.

Among the major energy producers, Kainji_1 recorded a 98 per cent load factor, generating 345MW out of 352MW available capacity, while Afam_2 recorded 99 per cent, with 262MW generated against 265MW available.

It said Egbin_1 operated at 96 per cent, generating 333MW from 347MW of available capacity, while Ihovbor_2 recorded 92 per cent, generating 418MW from 454MW of available capacity.

Other major plants listed included Delta_1 at 80 per cent load factor, Zungeru_1 at 72 per cent, Odukpani_1 at 74 per cent, Shiroro_1 at 87 per cent, Jebba_1 at 83 per cent, and Okpai_1 at 87 per cent.

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Frequency, voltage stability breached limits

Despite the relatively high utilisation rate, NERC reported breaches of prescribed grid frequency and voltage limits during the month.

The commission said the average lower grid frequency was 49.34Hz, while the average upper grid frequency was 50.67Hz, exceeding the prescribed operating range of 49.75Hz to 50.25Hz.

Similarly, it noted that the monthly average lower grid voltage was recorded at 302.29 kilovolts (kV), while the average upper grid voltage stood at 349.68kV.

NERC said both figures exceeded the prescribed voltage range of 313.50kV to 346.50kV.

The data showed significant differences in plant utilisation.

Olorunsogo_1 recorded a 100 per cent load factor, generating 115MW from 115MW of available capacity. Omoku_1 and Igbafо_1 also recorded 100 per cent utilisation.

Omotosho_1 generated 148MW from 149MW available, representing a 99 per cent load factor, while Dadin-Kowa_1 recorded 98 per cent after generating 35MW from 36MW available.

READ ALSO: DisCos bill N250.79bn, collect N205.53bn in July — NERC

However, some plants recorded substantially lower utilisation. Afam_1 operated at 67 per cent, while Ikeja_1 recorded 76 per cent and Ihovbor_1 79 per cent.

Several listed plants recorded zero generation during the month, including Sapele_2, Alaoji_1, Geregu_2 and Ibom Power_1.

The commission’s data also showed that Olorunsogo_2 generated 87MW from 109MW available, while Sapele_1 generated 25MW from 27MW available.

Overall, the August figures indicate a grid operating at relatively high utilisation of available generating capacity, while frequency and voltage excursions remained notable operational issues.


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Business

Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025

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Coronation Insurance Plc has reported significant growth in insurance revenue and balance-sheet strength for the financial year ended December 31, 2025.

A statement released by the insurer after its 68th Annual General Meeting held in Lagos, the company’s Group insurance revenue rose by 51% N74.8 billion when compared with N49.5 billion achieved in 2024.

Insurance service result also rose by 93%from N5.5 billion to N10.6 billion during the year, while total assets rose by 27.7% cent to N98.1 billion.

Shareholders’ funds increased by 21.9% from 39.8 billion to N48.5 billion.

Profit before tax, however, declined to N9.6 billion from N13.8 billion in 2024, principally because the Company did not record the significant net foreign exchange gain that contributed to the previous year’s result.

Speaking at the AGM, Mutiu Sunmonu, Chairman, Coronation Insurance Plc, said the Company’s 2025 performance demonstrated the importance of building resilience while navigating a changing operating environment.

“The performance of Coronation Insurance in 2025 reflects a business that continued to grow while responding responsibly to significant changes in the market. Our focus remains on strengthening the business, protecting policyholders and creating sustainable value for our shareholders.”

Olamide Olajolo, Managing Director/CEO, Coronation Insurance Plc, said the Company’s revenue growth reflected the strength of its diversified business model, distribution capabilities and customer-focused strategy.

“We entered 2026 with a stronger operating platform, a broader distribution base and greater capacity to respond to the evolving needs of our customers. Our task now is to translate that foundation into deeper market participation, stronger customer relationships and sustainable growth.”

The Company also highlighted the performance of its bancassurance partnership with Access Bank, which generated N19.4 billion in Gross Written Premium for the Group in 2025, compared with N13.6 billion in 2024.

A representative of the Company’s shareholders, Mrs. BisiBakare, said:“We commend the Board, Management and staff for successfully meeting the recapitalisation requirements. We also recognise the progress recorded by the Company during the year. This achievement reflects the strength and resilience of the business, and we look forward to seeing the Company build on this foundation to deliver sustained growth and greater value for shareholders.”

The AGM considered the Company’s audited financial statements and other resolutions relating to its governance, Board composition, Audit Committee and future oversight

The post Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025 appeared first on Business Today NG.

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