The Federal Executive Council (FEC) has approved the procurement of a satellite gadget worth N2.5 billion to combat illegal mining activities in Nigeria.

The approval, granted during the FEC’s third meeting of the year on Monday, is part of a broader strategy by the Ministry of Solid Minerals Development to address unlicensed, unregulated, and underreported mining operations contributing to significant revenue leakages.

Dele Alake, the Minister of Solid Minerals Development, announced the procurement, explaining that the technology is an “integrated solution framework” designed to monitor mining activities in real time. The satellite gadgets will enable the ministry to detect illegal mining operations, track the volume of minerals extracted, monitor the number of trucks leaving the sites, and assess the security situation at mining locations across the country.

How the Satellite Technology Works

The approved technology involves the installation of satellite gadgets in strategic locations nationwide, all connected to a central monitoring system called the Mines Martial Centre. This system will provide real-time visual data on mining activities, offering a “click-of-a-button” view of any mining site in the country.

The monitoring hub will be set up within the ministry, with live feeds accessible from the minister’s office. Alake described the technology as a critical tool in tackling illegal operations that have led to substantial revenue losses and environmental degradation.

“There will be a center like a screen in the operation center, the mines martial center, and in my office as well,” he explained. “At a glance, you can surf any mine site and see the operations there.”

Two-Pronged Approach: Persuasion and Coercion

The satellite technology is part of a two-pronged approach introduced by the ministry to address illegal mining.

1. Persuasive Strategy: The ministry has encouraged artisanal miners to form cooperatives, offering them a path to formalize their operations. These cooperatives help miners become “structured, formalized, and legalized,” which in turn makes their businesses bankable. They can then access loans and support from financial institutions while fulfilling their obligations to the Nigerian state. The ministry has so far facilitated the formation of over 300 cooperative societies among artisanal miners.
2. Coercive Strategy: For miners who resist formalization, the ministry has established Mining Marshals, a specialized unit responsible for apprehending, prosecuting, and convicting illegal operators. According to Alake, this approach has been effective, with several foreigners involved in illegal mining already facing the law.

Public Allege Embezzlement and Corruption

While the government touts this initiative as a game-changer, many Nigerians are calling its bluff, suggesting that the N2.5 billion project is just another avenue for embezzlement. Social media platforms have been flooded with skepticism, with many accusing the government of using technology as a smokescreen to siphon public funds.

“Politics is really a lucrative job in Nigeria,” said Monell Tohrock, a social media user. “See money that these people want to cash out, illegal mining that they know who is doing it among themselves.”

This sentiment is widely shared. A substantial portion of the Nigerian populace believes that the real perpetrators of illegal mining are well-known among political elites and that the government’s new initiative is merely a diversionary tactic.

Illegal mining has long been a controversial topic in Nigeria, with persistent allegations that powerful politicians and influential figures are behind many illegal mining operations. These claims are bolstered by reports of military escorts and political cover for illegal mining activities, particularly in gold-rich regions like Zamfara, Osun, and Niger States.

In 2020, the Nigerian Senate investigated illegal mining activities and raised concerns that Chinese nationals, often working in collusion with local politicians, were smuggling gold and other minerals out of the country. Despite the uproar, no significant prosecutions followed, reinforcing the belief that illegal mining networks enjoy immunity due to their political connections.

Industry experts have raised concerns that the satellite technology might end up being a white elephant project. Some analysts argue that while technology can enhance monitoring, its effectiveness depends on the political will to act on the data.

What Nigeria Can Learn from Other Countries

Countries like Ghana, South Africa, and Brazil have successfully used satellite technology to monitor mining activities. In Ghana, the Galamsay Tracker, a satellite-based system, has helped reduce illegal gold mining by providing transparent data to regulatory authorities. However, Ghana’s success also hinged on strong enforcement measures, including seizing equipment and prosecuting offenders, even when they had political ties.

For Nigeria, skeptics point to previous multi-billion naira projects that failed to deliver on their promises. From the controversial surveillance contracts awarded under the Goodluck Jonathan administration to the unexplained security votes during the Buhari era, Nigerians have seen numerous instances where large sums of money were spent with little to show for it.

Mining Communities Left Behind Once Again

Beyond corruption concerns, there are fears that the new technology will do little to address the plight of mining communities. Many of these communities suffer from environmental degradation, health risks, and economic exploitation by illegal miners, often with the tacit support of local authorities.

Activists note that instead of spending billions on technology, the government should focus on creating alternative livelihoods for artisanal miners and investing in community development projects that would provide tangible benefits to those living in mining regions.

Champion Breweries Plc has reported an impressive 186.08% increase in pre-tax profit, reaching N1.2 billion in its financial results for the year ending December 31, 2024. This is a substantial leap from the N445.3 million recorded in the previous fiscal year, underscoring the brewery’s strong performance amid a broader recovery trend within Nigeria’s brewing industry.

The company’s total revenue also climbed significantly by 64.44%, reaching N20.8 billion from N12.7 billion in 2023. This growth was primarily driven by the robust sales of Champion Beer and Champ Malta, highlighting the brewery’s effective market strategies and expanding consumer base.

Financial Highlights

• Revenue: N20.8 billion (+64.44% YoY)
• Cost of Sales: N12.1 billion (+59.44% YoY)
• Gross Profit: N8.7 billion (+71.96% YoY)
• Other Income: N68.8 million (-42.76% YoY)
• Operating Profit: N2.3 billion (+289.45% YoY)
• Finance Income: N15.5 million (+38.09% YoY)
• Finance Cost: N1 billion (+529.47% YoY)
• Pre-Tax Profit: N1.2 billion (+186.08% YoY)
• Post-Tax Profit: N816.9 million (+120.47% YoY)
• Total Assets: N21.3 billion (+3.85% YoY)
• Retained Earnings: N3.8 billion (+26.81% YoY)

Breweries Are Bouncing Back

Champion Breweries’ stellar performance comes amid a wave of strong financial results from breweries across Nigeria. Analysts believe this uptick in profitability is a clear indication that the brewing industry may have passed the worst of the economic downturn triggered by Nigeria’s foreign exchange (FX) market liberalization.

In June 2023, the Central Bank of Nigeria (CBN) floated the naira, leading to a sharp devaluation of the currency and causing significant disruptions across various sectors. Breweries were not spared, as the cost of importing raw materials and equipment soared, squeezing margins and threatening profitability.

However, the brewing industry has shown remarkable resilience. For instance, Guinness Nigeria Plc reported a surge in sales driven by a strategic shift towards affordable product offerings and increased demand for spirits and non-alcoholic beverages. The company’s ability to navigate the FX volatility by leveraging local sourcing and cost management strategies contributed to its improved performance, which analysts see as a sign of broader industry recovery.

Revenue Growth and Cost Management

Champion Breweries’ 64.44% increase in revenue to N20.8 billion highlights the company’s strong market positioning. The growth was driven entirely by sales of its flagship brands, Champion Beer and Champ Malta, which continue to enjoy strong consumer patronage.

However, the company also faced rising costs, with the cost of sales increasing by 59.44% to N12.1 billion from N7.6 billion in 2023. This was largely due to higher costs of raw materials and logistics, compounded by naira depreciation. Despite these pressures, Champion Breweries managed to grow its gross profit by 71.96%, demonstrating effective cost management and operational efficiency.

Operating Profit and Finance Costs

Operating profit surged by 289.45% year-on-year, reaching N2.3 billion from N603.9 million. This remarkable growth is indicative of the company’s operational strength, particularly in navigating the economic challenges posed by the FX reforms.

Finance income rose by 38.09% to N15.5 million, driven by interest on call deposits. However, finance costs escalated sharply by 529.47% to N1 billion, which may signal increased borrowing or higher interest expenses. This surge in finance costs, while concerning, appears to be part of a broader industry trend where companies are incurring higher expenses to maintain liquidity and finance growth initiatives.

Asset Position and Financial Health

Champion Breweries’ total assets grew modestly to N21.3 billion, a 3.85% increase from N20.5 billion in 2023. Non-current assets, which include property, plant, and equipment valued at N13.8 billion, represent a significant portion of the company’s asset base.

Current assets were reported at N7.3 billion, with cash and cash equivalents, along with inventories, making up a substantial share. Retained earnings also increased by 26.81% to N3.8 billion, bolstering the company’s financial stability and potential for future investments.

Indications of Recovery

The brewing sector’s positive performance suggests a potential easing of the financial strain caused by the FX market liberalization. Many breweries have adapted by restructuring operations, enhancing local sourcing, and adjusting pricing strategies to mitigate the impact of the naira devaluation.

The broader recovery in the brewing industry is expected to lead to increased competition as companies jostle to capture market share. Analysts expect Champion Breweries to leverage its brand strength and operational efficiency to sustain its growth trajectory.

U.S. President Donald Trump’s supporters have collectively lost over $12 billion in the past month following the dramatic collapse of the $Trump meme coin. The cryptocurrency, launched on January 17, 2025, as a symbol of support for Trump’s second term, initially soared in value but has since plummeted by over 80%, shrinking its market capitalization from a peak of $15 billion to $2.7 billion as of Thursday.

While many investors are reeling from steep losses, Trump appears undeterred. In a bold move on Sunday, the former president announced plans to create a U.S. Crypto Strategic Reserve, signaling his continued commitment to digital assets despite the recent turbulence. The proposed reserve will include established cryptocurrencies such as Solana (SOL), Cardano (ADA), and Ripple (XRP), aiming to solidify America’s standing as a leader in the global digital finance sector.

The announcement builds on Trump’s earlier executive order, “Strengthening American Leadership in Digital Financial Technology,” issued on January 23, 2025. The order directed the Presidential Working Group on Digital Asset Markets to accelerate efforts toward creating a national cryptocurrency reserve. Trump described the initiative as a pathway to revitalize the cryptocurrency industry following what he called “corrupt attacks” by the Biden Administration.

“We’re going to make the U.S. the Crypto Capital of the World,” Trump said. “No more stifling innovation. We will bring back the prosperity of the crypto markets, and we’ll do it bigger and better than ever.”

To further boost his crypto agenda, Trump will host the first-ever White House Crypto Summit on Friday. The event will feature prominent founders, CEOs, and investors from the cryptocurrency sector, as well as members of the Presidential Working Group on Digital Assets. The summit is expected to unveil additional measures to support the industry and provide a platform for leading voices in digital finance.

A Cautionary Tale of The $Trump Coin Collapse

The $Trump coin’s implosion has highlighted the high-risk nature of meme coins, which often thrive on hype and celebrity endorsements but lack underlying value or practical utility. Many investors had purchased the token not only as a show of loyalty to Trump but also as a speculative bet on potential gains. However, the coin’s value tanked shortly after its peak, contributing to a broader cryptocurrency market downturn.

Melania Trump’s own venture into meme coins fared even worse, with her officially endorsed token plummeting by 94% since January 20. The collapse of both coins has led to intensified scrutiny from U.S. lawmakers, with Democrats proposing the “Modern Emoluments and Malfeasance Enforcement (Meme) Act,” aimed at preventing senior government officials and their families from launching meme coins.

A Wider Crypto Rout

The $Trump coin’s decline coincides with a broader crypto market slump. Bitcoin, the flagship cryptocurrency, lost 20% of its value following Trump’s inauguration, contributing to the overall bearish sentiment. Many argue that the lack of a clear strategy from Trump’s administration has exacerbated the situation, particularly his failure to establish a strategic Bitcoin reserve as initially hinted.

Sam Liccardo, a Democratic Congressman, criticized Trump’s ventures. “The Trumps’ issuance of meme coins financially exploits the public for personal gain and raises the specter of insider trading and foreign influence over the Executive Branch,” he said.

Will the Crypto Reserve Restore Confidence?

Despite the backlash, Trump’s proposed U.S. Crypto Strategic Reserve offers a potential lifeline for his digital finance ambitions. By focusing on established cryptocurrencies such as Solana, Cardano, and Ripple, the initiative could help stabilize market sentiment and demonstrate a shift away from speculative meme coins toward more credible digital assets.

Analysts, however, remain cautious. “This reserve could provide a much-needed anchor for U.S. digital asset policy, but it all depends on execution,” said Lisa Green, a senior analyst at CryptoWatch. “Investors will want to see clear regulatory guidelines and a structured approach, not just grandstanding.”

The forthcoming White House Crypto Summit may provide critical insights into Trump’s strategy. Industry insiders expect discussions to cover regulatory frameworks, market stability, and innovation incentives, all aimed at boosting the legitimacy and global competitiveness of the U.S. cryptocurrency sector.

However, Trump’s influence on the crypto market remains undeniable. Despite the $Trump coin debacle, his latest policy moves suggest a calculated pivot towards more established and resilient cryptocurrencies. Only time will tell whether this shift will restore investor confidence, and boost the performance of cryptocurrencies, particularly, bitcoin – which saw a rise following the announcement of Trump’s plans for a U.S. Crypto Strategic Reserve.