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.

“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.

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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.

PZ Cussons Nigeria attributed its robust profit growth for the year ended 31 May 2026 to proceeds from asset disposal rather than to its regular sources of income that had shaped its financial performance in the past, according to its latest earnings report.

Net profit for the consumer goods company advanced nearly fourfold to N49.1 billion, thanks to profit on the disposal of fixed assets, which delivered N38.7 billion, compared with N6.5 million a year earlier.

The maker of home and personal care products, which also distributes consumer electronics, highlighted the sale of three properties and the facilities previously used by PZ Wilmar Limited, a former joint venture partner, as key drivers.

Last June, PZ Cussons announced it had offloaded its 50 per cent interest in PZ Wilmar, an enterprise set up for the production of palm oil and other edible oils, to Singapore-based Wilmar, which, until the closure of the deal, held the other half of the total shares.

The deal was for a cash consideration of $70 million.

“Proceeds will be used to reduce gross debt and, as a result, the group’s key credit and bank covenant metrics are materially improved,” PZ Cussons said at the time.

Revenue for the period under review climbed by 22.5 per cent to N260.5 billion. The company attributed the growth to the strength of its business, the equity of its brands, and the discipline of execution.

Foreign exchange gain stood at N11.8 billion, in contrast to a loss of N7.8 billion one year prior, softening the blow that spikes in selling and distribution expenses and administrative costs would have had on operating profit, which rose by 307.2 per cent.

READ ALSO: PZ Cussons releases full year results, records N260.46bn revenue

Profit before tax increased by 364.1 per cent to N77.3 billion, while profit after tax rose to N49.1 billion from N10.1 billion.

“The business grew volumes in both the electrical and consumer business, leveraging investment in our brands and sharpening our route-to-market capabilities,” the board of directors said in a statement on Friday.

“The result has been market share gains by our major brands, increased household penetration, and robust volume uplift contributing to overall revenue growth,” it added.

PZ Cussons, which logged negative shareholder funds in 2024 and 2025, recorded a positive net asset position this time around at N70.6 billion.