Since assuming office, President Bola Tinubu has prioritized the revitalization of Nigeria’s mining sector, focusing on increasing its contribution to GDP by addressing illegal mining and formalizing artisanal practices. The government has instituted new policies aimed at enhancing security, promoting technological innovations, and ensuring value addition in mineral processing. Significant reforms, including the revocation of dormant licenses, have been implemented to attract investment and improve profitability in the sector.
In his quest to diversify Nigeria’s economy, President Bola Tinubu has prioritized the revitalization of the mining sector since taking office on May 29, 2023. With Nigeria possessing a wealth of over 44 minerals, including seven critical minerals vital for global energy transition, it is imperative to increase this sector’s contribution to the nation’s Gross Domestic Product (GDP), which has been notably minimal in recent years. To address rampant illegal mining fueled by insecurity and banditry, the Minister of Solid Minerals Development, Dele Alake, declared a state of emergency and implemented both coercive and persuasive strategies.
To bolster security at mining sites, the government instituted a special security outfit named Mining Marshals, comprising 2,570 personnel from the Nigeria Security and Civil Defence Corps (NSCDC). This initiative has led to the arrest and prosecution of over 300 illegal miners. On the other hand, the government is formalizing the operations of artisanal miners by establishing 250 cooperatives, aiming to transition them into legal mining activities.
Acknowledging the issue of under-valuation in international markets, the introduction of the Value Addition Policy mandates companies to outline plans for enhancing mineral value before receiving licenses. This policy has been welcomed, particularly with the inauguration of a state-of-the-art analysis laboratory in Niger State, designed to improve exploration efforts.
The government is introducing new regulatory charges to enhance the sector’s economic aspects, with an expected boost in national revenue from critical minerals. In April 2024, a significant move was made to revoke 924 dormant mining licenses to eliminate obstacles that have hindered progress and genuine investments. Despite the sector’s GDP contribution rising from N1.66 trillion in 2022 to N1.76 trillion in 2023, considerable potential remains unexploited. Stakeholders emphasize the need for effective policy implementation and regulatory consistency to fully harness the sector’s capacity.
Events focusing on technological innovations and partnerships have been facilitated in 2024, highlighting the pathway towards a thriving mining sector. Experts acknowledge the need for sustained efforts in reforming the sector, with the minister confirming that additional reforms are planned for 2025, aiming to build upon the progress achieved in 2024.
The mining sector in Nigeria is a critical component of the economy, endowed with a wide array of mineral resources that have largely remained underutilized. The country’s potential is hindered by illegal mining practices, insecurity, and inadequate infrastructure, resulting in a low contribution to the national GDP despite the abundance of resources. President Tinubu’s administration seeks to transform this sector by implementing comprehensive policies designed to enhance security, formalize artisanal mining, and create value through modern technology and practices. The recent focus on addressing illegal mining while integrating innovation reflects a strategic approach toward economic diversification and investment attraction.
In summary, President Bola Tinubu’s administration is undertaking significant reforms in Nigeria’s mining sector, focusing on security, legal compliance, and value addition. Through a combination of enforcement, formalization of operations, and technological advancements, there is a concerted effort to enhance the sector’s contribution to the economy. While recent initiatives demonstrate promise, stakeholders emphasize the importance of consistent policy implementation in realizing the full potential of Nigeria’s rich mineral resources in the coming years.
Original Source: nannews.ng
