President Bola Tinubu has prioritized the transformation of Nigeria’s mining sector since taking office, focusing on diversifying the economy away from oil dependency. The government has initiated a state of emergency, formed the Mining Marshals for site security, and implemented a Value Addition Policy to bolster mineral valuation. Furthermore, significant reforms, including higher fees for mining activities and the revocation of dormant licenses, aim to attract investment and maximize revenue. Stakeholders remain optimistic yet cautious about the ongoing efforts.
Upon taking office on May 29, 2023, President Bola Tinubu set forth a mission to transform Nigeria’s economy by diversifying its reliance on oil through strategic revitalization of the mining sector. This initiative is vital, considering Nigeria’s vast endowment of seven critical minerals essential for global energy transition, despite the country possessing a total of 44 commercial minerals. Unfortunately, the mining sector’s contribution to Nigeria’s Gross Domestic Product (GDP) remains notably low, prompting urgent governmental intervention.
Minister of Solid Minerals Development, Dele Alake, declared a state of emergency in the sector, citing illegal mining operations funded by powerful interests as significant barriers to revenue generation and linked to rising insecurity. Historical data supports this observation, particularly in states like Zamfara where mining was halted in 2019 due to rampant banditry. As insecurity persisted in northern regions, the government adopted a dual strategy to tackle these challenges with both coercive and persuasive measures.
To enhance security at mining sites, the government inaugurated a special unit, the Mining Marshals, composed of personnel from the Nigeria Security and Civil Defence Corps (NSCDC), with over 2,570 officers now deployed. The crackdown on illegal mining has led to more than 300 arrests, while simultaneously, the administration has sought to formalize artisanal mining by establishing 250 cooperatives aimed at fostering legal compliance within the sector.
In addition, there are concerns regarding the undervaluation of Nigerian minerals in international markets. To combat this, a Value Addition Policy requires prospective mining firms to submit detailed plans for enhancing mineral value prior to receiving licenses. The opening of a modern analysis laboratory in Sabon-Wuse, Niger State, equipped to provide vital geochemical services, illustrates the efforts towards adding value in the sector. Meanwhile, the establishment of a lithium processing laboratory in Nasarawa and a tin processing plant in Jida Community further underline the government’s commitment to mineral processing.
Economic reforms, including increased rates and charges for mining operations, were introduced in July 2024 to boost sector revenues. The revocation of 924 unused mining licenses aimed to eliminate non-productive players, thereby attracting genuine foreign investments to the country. Even as the Nigeria Extractive Industries Transparency Initiative reported a rise in mining’s GDP contribution, stakeholders emphasize that significant potential remains unexploited.
Concerns voiced by industry leaders regarding stringent regulations and multiple taxation continue, alongside calls to use locally sourced barite in oil drilling as prescribed by the Nigerian Oil and Gas Industry Content Act. Furthermore, recent mining conferences highlighted innovative technologies and partnerships as crucial for advancing the industry.
While stakeholders appreciate the current administration’s endeavors to revitalize the solid minerals sector, tangible outcomes are yet to be fully assessed given the newness of these reforms. Continued commitment to enhancing policies and collaborative measures is essential for leveraging successes demonstrated thus far, with further reforms anticipated in 2025 to maintain momentum in the sector’s transformation.
The Nigerian mining sector has historically been underutilized despite the country being rich in mineral resources. Nigeria holds 44 different minerals in commercial quantities, including critical elements necessary for modern technology and energy solutions. This presents both opportunities and challenges, notably through illegal mining activities that contribute to security concerns and limit the sector’s economic potential. The Tinubu administration recognizes the importance of this sector in diversifying the economy, as oil dependency poses risks amid fluctuating global prices.
In conclusion, the Nigerian government under President Tinubu is making concerted efforts to revitalize the mining sector through various strategic reforms. The dual approach of enhancing security while formalizing artisanal mining illustrates a commitment to overcoming historical challenges. With the introduction of new policies and investments in technology, stakeholders cautiously anticipate a turning point for the sector. However, consistent implementation and monitoring of these strategies will be crucial for realizing their full potential and boosting Nigeria’s economic growth overall.
Original Source: nannews.ng
