By Philippine Duru

philippineobetoduru@gmail.com

08034905774

The Federal Government has intensified efforts to unlock Nigeria’s estimated three billion tonnes of iron ore reserves as part of a broader strategy to revive the nation’s steel industry, reduce dependence on imported steel products, and accelerate industrialization, economic diversification and job creation.

The initiative forms part of the government’s drive to harness the country’s abundant solid mineral resources and position the mining sector as a major contributor to economic growth, foreign exchange earnings and manufacturing development.

Officials said the renewed focus on iron ore development is aimed at creating a sustainable value chain that will support domestic steel production, reduce import bills and provide raw materials for key sectors of the economy, including construction, automobile manufacturing, infrastructure, engineering and defence.

According to the Federal Government, unlocking the country’s vast iron ore deposits will also encourage greater private sector investment in mining, mineral processing and steel manufacturing while strengthening Nigeria’s position as a leading industrial hub in Africa.

The government noted that Nigeria possesses significant iron ore deposits spread across several states, particularly in Kogi, Kaduna, Niger and other parts of the country, but much of the resource remains underdeveloped despite decades of exploration.

Industry experts have long argued that fully exploiting these reserves could transform Nigeria’s industrial landscape by supporting the revival of dormant steel plants, encouraging the establishment of new processing facilities and reducing the country’s reliance on imported steel products.

As part of the renewed push, the Federal Government said it is working to attract both local and foreign investors through policy reforms, improved licensing processes and incentives designed to encourage exploration, mining and downstream processing.

The government also pledged to improve supporting infrastructure, including roads, rail networks and power supply, to lower production costs and enhance the competitiveness of Nigeria’s steel industry.

Analysts say the development of a robust steel industry is critical to achieving the country’s long-term industrialization goals, noting that steel remains a strategic input for manufacturing, housing, transportation, energy and other sectors.

They added that increasing domestic steel production could significantly reduce foreign exchange spent on imports while creating thousands of direct and indirect jobs across mining, logistics, fabrication and engineering industries.

The renewed efforts are also expected to strengthen linkages between the mining and manufacturing sectors, stimulate the growth of small and medium-sized enterprises and promote value addition instead of exporting raw minerals.

Stakeholders have, however, emphasized the need for consistent government policies, transparent regulation and sustained investment in infrastructure to ensure the success of the initiative. They also called for stronger collaboration between the Federal Government, state governments, investors and host communities to guarantee responsible mining practices and environmental sustainability.

The move aligns with the Federal Government’s broader economic diversification agenda, which seeks to reduce dependence on crude oil revenues by unlocking the vast potential of the solid minerals sector.

If successfully implemented, the iron ore development programme is expected to revive Nigeria’s steel industry, boost manufacturing capacity, enhance export competitiveness and contribute significantly to economic growth, while creating employment opportunities and strengthening the country’s industrial base for long-term sustainable development.

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigeria’s maximum lending rate declined to 33.16 percent in June 2026, offering a measure of relief to businesses and consumers seeking access to bank credit amid the country’s high-interest-rate environment.

The latest figures indicate a moderation in borrowing costs after months of elevated lending rates, reflecting the gradual adjustment by commercial banks following the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 26.5 percent.

The decline is expected to provide some breathing space for manufacturers, small and medium-sized enterprises (SMEs), corporate borrowers and households that have struggled with the rising cost of financing over the past year.

Although the reduction is relatively modest, economists say it signals that monetary conditions may be beginning to stabilize after an aggressive tightening cycle aimed at curbing inflation and supporting exchange rate stability.

Banks have continued to review their lending portfolios in response to the CBN’s policy stance, with many gradually adjusting interest rates in line with changing market conditions, liquidity levels and funding costs.

The CBN has maintained a tight monetary policy over the past two years as part of broader efforts to contain inflation, stabilize the naira and attract investment into the Nigerian economy. While the strategy has helped strengthen macroeconomic stability, it has also pushed borrowing costs to multi-year highs, making access to affordable credit increasingly difficult for businesses.

Industry operators say the easing in the maximum lending rate could encourage fresh investments, particularly among businesses looking to expand operations, purchase equipment or increase production capacity.

Manufacturers have repeatedly argued that high financing costs remain one of the biggest obstacles to industrial growth, noting that expensive loans reduce profitability, discourage expansion and weaken the competitiveness of locally produced goods.

Small business owners have also expressed concern over elevated lending rates, saying access to affordable financing remains critical to supporting entrepreneurship, job creation and economic recovery.

Financial analysts believe that while the latest decline is encouraging, lending rates are likely to remain relatively high as long as inflationary pressures persist and the CBN maintains its restrictive monetary policy stance.

According to analysts, commercial banks continue to factor inflation expectations, exchange rate risks, operating costs and credit risks into their loan pricing decisions, limiting the pace at which lending rates can decline.

The decision by the Monetary Policy Committee to leave the benchmark interest rate unchanged at 26.5 percent has been interpreted by many market participants as a signal that the apex bank is prioritizing price stability while closely monitoring inflation and other macroeconomic indicators before considering any monetary easing.

Economists note that a sustained decline in inflation would be a key condition for lower lending rates in the coming months, as it would create room for the CBN to gradually ease monetary policy without undermining economic stability.

Businesses are also hoping that improved liquidity in the banking system, stronger foreign exchange inflows and continued economic reforms will support further reductions in borrowing costs, making credit more accessible to productive sectors of the economy.

Despite the latest improvement, analysts caution that Nigeria’s lending rates remain among the highest in emerging markets, underscoring the need for continued reforms to improve financial sector efficiency, strengthen competition among banks and expand access to affordable financing for businesses and households.

The decline in the maximum lending rate nevertheless represents a positive development for the economy, raising expectations that, if sustained, lower borrowing costs could stimulate private sector investment, boost production, support employment and contribute to stronger economic growth in the months ahead.

By Philippine

philippineobetoduru@gmail.com

08034905774

Dangote Petroleum Refinery has defended its recent petrol sales policy, insisting that its decision to resume the sale of Premium Motor Spirit (PMS) in naira was driven by the need to restore stability in Nigeria’s downstream petroleum market after some fuel importers allegedly withheld products in anticipation of higher prices.

The refinery said its pricing decisions were based on prevailing market realities and should not be interpreted as an attempt to dominate the market or disadvantage independent marketers. Instead, it maintained that the objective was to ensure uninterrupted fuel supply while promoting fair competition in Nigeria’s deregulated petroleum sector.

According to the company, after temporarily introducing dollar-denominated pricing due to challenges in sourcing sufficient crude oil under the Federal Government’s naira-for-crude arrangement, it returned to naira sales once conditions improved. The refinery argued that continuing to buy crude in dollars while selling refined products in naira had become financially unsustainable, forcing it to review its pricing structure.

Management further alleged that some fuel importers delayed releasing existing inventories while awaiting higher pump prices, a development it said contributed to artificial supply tightness in parts of the country. The refinery noted that resuming naira-denominated sales was intended to discourage speculation, improve product availability, and stabilize distribution across the market.

Dangote Refinery stressed that it remains committed to supplying petroleum products to all qualified marketers on transparent and non-discriminatory terms. The company added that its pricing reflects international crude oil costs, exchange rate movements, logistics expenses, and other operational realities affecting refining and distribution.

Industry observers say the refinery’s explanation comes amid renewed debate over fuel pricing following recent adjustments in ex-depot prices. They noted that the refinery has become a major supplier of petrol in Nigeria, making its pricing decisions increasingly influential on retail pump prices nationwide.

The development has also reignited discussions over the implementation of the Federal Government’s naira-for-crude policy, which was introduced to reduce pressure on foreign exchange demand by allowing domestic refiners to purchase crude oil in the local currency. However, refinery officials have argued that inadequate crude allocations under the arrangement forced them to import additional crude at international market prices, increasing operating costs.

Energy analysts believe the return to naira sales could improve liquidity in the domestic fuel market and reduce pressure on marketers seeking foreign exchange for product purchases. Nevertheless, they caution that sustained stability will depend on consistent crude oil supply to local refineries, transparent market competition, and effective regulatory oversight.

The Dangote Refinery, Africa’s largest single-train refinery, has become central to Nigeria’s efforts to reduce dependence on imported petroleum products and strengthen domestic refining capacity. Recent expansion plans are expected to further boost production and support long-term energy security for Nigeria and the wider African market.