Since taking office, President Bola Tinubu has focused on transforming Nigeria’s mining sector to enhance economic diversification. The sector, home to 44 commercially viable minerals, has faced challenges due to illegal mining and security issues. Key reforms include the establishment of Mining Marshals for security, a Value Addition Policy for mining licenses, and increased licensing fees. Positive developments such as new laboratories and processing plants have been initiated, while the government continues to seek to eliminate inefficiencies in the mining industry to attract genuine investment.
Upon assuming office on May 29, 2023, President Bola Tinubu committed to improving Nigeria’s economic landscape through diversification, particularly targeting the solid minerals sector vital for the global energy transition. Despite possessing 44 commercially viable minerals, the sector’s contribution to the nation’s GDP remains disappointingly low. To address this, the Minister of Solid Minerals Development, Dele Alake, has declared a state of emergency in the industry, citing illegal mining as a key obstacle to its growth, amidst rising insecurity partly fueled by these illicit activities.
The government’s response includes both coercive and persuasive strategies. A specialized security force known as the Mining Marshals has been deployed to safeguard mining locations while 2,570 personnel have been inaugurated to reinforce these efforts, leading to the arrest of over 300 illegal miners. Concurrently, formalization initiatives for artisanal miners have been launched, with 250 cooperatives established to facilitate their transition to legal mining.
Moreover, a new Value Addition Policy mandates mining companies to outline strategies for enhancing the value of minerals in their licensing applications. A pivotal development was the inauguration of a state-of-the-art analysis laboratory in Sabon-Wuse, Niger State, which enhances the capacity for ground-breaking geochemical analysis crucial for mining operations. Additionally, processing facilities for lithium and tin have been established, indicating progress in the mineral processing sector.
In July 2024, a revised rate structure was introduced to bolster sector revenue and enhance investor attraction. The government’s recent decision to revoke 924 dormant mining licenses reflects a commitment to purging ineffective players from the landscape, promoting genuine investment opportunities instead. Despite a slight GDP contribution increase from N1.66 trillion in 2022 to N1.76 trillion in 2023 reported by NEITI, there remains considerable untapped potential.
Stakeholders have expressed optimism regarding the government’s measures, including the lifting of the mining exploration ban in Zamfara, which had been detrimental to revenue. There are calls for enforcing local content regulations to ensure the integration of Nigerian materials in the oil sector. Significant developments such as upcoming mining conferences indicate heightened interest in technological innovations and public-private partnerships to drive the sector forward. As the administration’s efforts continue, stakeholders emphasize the importance of consistent policy application and reform to guarantee sustained growth.
The solid minerals sector in Nigeria has been historically underdeveloped, despite the country’s rich mineral resources. As part of its economic diversification strategy, the government is focusing on revitalizing this sector to enhance its contribution to the national GDP, particularly in light of the global shift towards sustainable energy resources. Initiatives led by the administration aim to combat illegal mining, improve security, and formalize artisanal mining practices in order to maximize the sector’s potential and attract foreign direct investment.
In conclusion, the Tinubu administration has initiated significant reforms aimed at revitalizing Nigeria’s mining sector, addressing illegal activities, and enhancing revenue generation through new policies and strategic initiatives. While progress has been made, continued efforts are necessary to translate these initiatives into substantial economic impact. Stakeholders remain cautiously optimistic but urge for comprehensive and consistent policy implementation to secure the sector’s long-term growth and development.
Original Source: nannews.ng
