President Bola Tinubu’s administration is taking steps to transform Nigeria’s mining sector by addressing illegal mining, enhancing mineral value addition, and improving sector revenue. Key measures include establishing Mining Marshals for site protection, revoking dormant licenses, and implementing new policies to optimize resource utilization. Notable developments, such as advanced laboratories and increased mining rates, signal progress while future reforms are anticipated to further advance the sector.
Upon assuming the presidency on May 29, 2023, President Bola Tinubu made a commitment to diversify Nigeria’s economy, particularly focusing on revitalizing the solid minerals sector. Given Nigeria’s rich deposits of seven critical minerals essential for the global energy transition, there is a pressing need to enhance the sector’s contribution to the nation’s GDP, which remains insufficient despite possessing 44 minerals in commercial quantities.
The Minister of Solid Minerals Development, Dele Alake, responded to the sector’s challenges by declaring a state of emergency, citing that illicit mining activities hinder the sector’s revenue and fuel insecurity through banditry. Following this, the government adopted a dual approach involving the establishment of a specialized security unit, Mining Marshals, tasked with safeguarding mining sites. To date, over 300 illegal miners have been arrested as part of these efforts.
In addition to the coercive measures, the government aims to formalize artisanal mining through the establishment of 250 cooperatives. Recognizing the undervaluation of mineral resources, the Ministry imposed a Value Addition Policy, mandating companies applying for mining licenses to produce plans for enhancing mineral value.
Recent infrastructural developments, such as a cutting-edge analysis laboratory in Niger State and a lithium processing facility in Nasarawa State, signify progress in bolstering the sector’s operations. Furthermore, an increase in mining rates and charges, implemented in July 2024, is designed to optimize sectoral revenue, particularly for critical minerals like lithium and gold.
The government has actively worked to revoke 924 dormant mining licenses to eliminate ineffective players and encourage genuine investors. Furthermore, a study by the Nigeria Extractive Industries Transparency Initiative (NEITI) noted a slight increase in the sector’s GDP contribution from N1.66 trillion in 2022 to N1.76 trillion in 2023. Stakeholders remain optimistic, advocating for the enforcement of local content initiatives to boost domestic resource utilization and revenue.
Major mining conferences in 2024 emphasized the importance of innovation and public-private partnerships for the sector’s development. While stakeholders commend the administration’s initiatives, they highlight the need for sustained implementation of policies to ensure substantial progress. The Minister of Solid Minerals Development assured that further reforms are anticipated in 2025 to solidify these advancements.
The article discusses the efforts of President Bola Tinubu’s administration in revitalizing Nigeria’s mining sector, which is pivotal for the country’s economic diversification strategy. With Nigeria’s immense mineral wealth, including critical minerals for energy transition, the government aims to enhance the contribution of the mining sector to the national economy. Major challenges such as illegal mining, insecurity, and underutilization of resources are being addressed through the declaration of an emergency in the sector and multifaceted reforms.
In conclusion, President Tinubu’s administration has initiated significant reforms to transform Nigeria’s mining sector, focusing on legalizing artisanal mining, enforcing value addition policies, and addressing security challenges. While progress is evident through recent developments and policy implementations, stakeholders emphasize the necessity for continued reforms and action to fully realize the sector’s potential. The government’s future commitment to sustained initiatives will be critical in achieving economic growth through the mining industry.
Original Source: nannews.ng
