Nigeria’s Mining Industry: Struggles and Progress
Nigeria’s mining industry has added a whopping N505 billion to the country’s GDP, but it’s been a tough journey. The industry is still a long way off from reaching its target of contributing three per cent to the Gross Domestic Product.
A recent report by PwC, authored by Cyril Azobu and Habeeb Jaiyeola, highlights the challenges and opportunities in Nigeria’s mining sector. Despite attracting both local and international investors, the industry remains underdeveloped.
The report points out that Nigeria is rich in solid resources such as gold, lead, zinc, coal, bitumen, iron ore, limestone, and barite. However, the industry’s current contribution to the GDP is only 0.15 per cent, far from the three per cent target set in the country’s mining roadmap.
The report emphasizes the urgent need for a secure environment for mining operations. It suggests that technology, collaboration with security agencies, and engagement with mining host communities are essential to curb insecurity in the sector.
Furthermore, the report calls for the harmonisation of policies and regulations, stressing the importance of a unified approach to regulating mining activities at the federal, state, and local levels.
In addition, the report urges the Nigerian government to focus on strategic minerals development and review the country’s list of strategic minerals to align with global demand and current realities.
Environmental, social, and governance factors are also highlighted as crucial considerations in the mining sector. The report advocates for the adoption of environmentally friendly mining methods and emphasizes the importance of governance in mitigating risks, improving decision-making, and ensuring transparency and compliance.
Meanwhile, the Ministry of Mines and Steel Development is seeking collaboration with states to combat illegal mining activities. The ministry’s Permanent Secretary, Dr. Mrs. Mary Ogbe, emphasized the need for partnership to eliminate illegal mining, which has been causing significant revenue loss to the government.
In conclusion, Nigeria’s mining industry has made significant strides, but there are still substantial challenges to overcome. With the right policies, regulations, and partnerships, the industry has the potential to thrive and make a more substantial contribution to the country’s economy.