Since assuming office, President Bola Tinubu has prioritized the transformation of Nigeria’s mining sector, aiming to increase its contribution to the national economy. With over 300 illegal miners arrested and new policies for mineral value addition implemented, the administration seeks to address challenges like illegal mining and under-valuation of resources. The establishment of Mining Marshals and the revocation of dormant licenses signal a commitment to strengthening the sector, which reported a GDP contribution increase from N1.66 trillion to N1.76 trillion. Experts emphasize the need for continued reforms and policy adherence for sustained growth.
President Bola Tinubu has set out to reposition Nigeria’s economic landscape since his inauguration on May 29, 2023, with a significant focus on revitalizing the mining sector. Despite Nigeria’s wealth of commercial minerals, including seven critical ones for the global energy transition, the sector’s contribution to the GDP has been subpar. The new Minister of Solid Minerals Development, Dele Alake, responded by declaring a state of emergency in the sector to combat illegal mining, which he asserts is linked to funding for banditry and thereby undermining the sector’s revenue potential.
To counter these challenges, the government has implemented a dual-pronged approach involving both coercive and persuasive measures. A special security outfit, Mining Marshals, composed of personnel from the Nigeria Security and Civil Defence Corps, has been established to safeguard mining operations nationwide, resulting in the arrest and prosecution of over 300 illegal miners. Concurrently, the government has initiated efforts to formalize the activities of artisanal miners by creating 250 cooperatives to assist their transition into legitimate operations.
Alake has also highlighted the need for the country’s mineral resources to be accurately valued in international markets. The introduction of the Value Addition Policy, which mandates mining companies to present detailed plans for mineral value addition before obtaining licenses, is a strategic move to enhance the sector’s economic contribution. This initiative has been supported by the inauguration of advanced laboratories for geochemical services, which are critical for efficient mining site selection.
To boost sector growth, new higher fees for mining activities were introduced in July 2024, aimed at maximizing royalties from pivotal minerals. The government is hopeful that the revocation of 924 dormant mining licenses will eliminate racketeering and attract serious investors, thereby enhancing Foreign Direct Investment in the sector. Stakeholders have welcomed the lifting of the five-year ban on mining exploration in Zamfara, which had previously led to substantial revenue losses and allowed illegal mining to flourish.
With a reported increase in sector GDP contribution from N1.66 trillion in 2022 to N1.76 trillion in 2023, stakeholders believe that with appropriate policy enforcement and addressing regulatory issues, the sector can achieve greater heights. Additionally, the push for adherence to local content requirements in the oil and gas industry through the use of Nigerian barite is expected to further enhance national revenue.
As the government navigates through these reforms, major mining conferences in 2024 have focused on innovations and public-private partnerships necessary for the industry’s advancement. While the current administration’s initiatives are recognized, experts stress the need for consistent policies and programs to sustain progress. The Minister has assured that further reforms are planned for 2025 to solidify the achievements of the preceding year.
The Nigerian mining sector has immense untapped potential, with the country being rich in various minerals. However, due to illegal mining activities and inadequate governance, the sector has historically struggled to contribute significantly to the national economy. Under President Bola Tinubu’s administration, efforts are being made to address these challenges through strategic reforms aimed at both economic growth and improving security in mining areas. This revitalization is viewed as crucial for enhancing the overall economic stability of Nigeria.
In summary, President Bola Tinubu’s administration is actively working to transform Nigeria’s mining sector through comprehensive reforms aimed at boosting productivity and revenue generation. Key measures include the establishment of security forces to combat illegal mining, the introduction of policies for mineral value addition, and the enforcement of new mining fees. While progress has been noted, experts call for continued commitment to these reforms and consistent policy implementation to truly realize the sector’s potential and enhance the nation’s economic health.
Original Source: nannews.ng
