Boosting Nigeria’s GDP: Solid Minerals Development Minister Vows to Revitalize the Mining Sector
In a bid to enhance the contribution of the mining sector to Nigeria’s Gross Domestic Product (GDP), Dele Alake, the Minister of Solid Minerals Development, has made a commitment to significantly increase the sector’s impact on the country’s economy. This announcement was made during a meeting with a delegation from the Miners Association of Nigeria, headed by its National President, Mr. Dele Ayanleke.
Acknowledging that Nigeria has long relied on a mono-cultural economy, Alake emphasised the need to diversify the country’s revenue sources by tapping into the vast potential of solid minerals. He expressed the vision to elevate solid minerals to a position of pride, serving as a major contributor to Nigeria’s GDP. This strategy is viewed as essential to move away from the overdependence on oil and to ensure the sustainable growth and development of the nation.
Nigeria boasts rich deposits of various minerals, including gold, lead, zinc, coal, bitumen, iron ore, limestone, and barite. Despite this abundant resource base, recent data revealed that the mining sector’s contribution to the GDP was a mere 0.15 per cent at the conclusion of the second quarter of 2023, as reported by PricewaterhouseCoopers (PwC). This represents a significant underutilisation of the country’s mineral wealth.
The government has set ambitious targets to address this shortfall, with the aim of increasing the mining sector’s contribution to GDP to 3 per cent by 2025 in accordance with the country’s mining roadmap. This signaled a firm commitment to unlocking the economic potential of the mining industry and aligning it with broader national development objectives.
The pledge by the Minister of Solid Minerals Development marks a turning point in Nigeria’s approach to resource management and economic diversification. By opting to leverage the untapped wealth of solid minerals, the government is demonstrating its commitment to fostering sustainable economic growth and reducing the reliance on oil as the primary revenue source.
In line with global best practices, the targeted revitalisation of the mining sector is poised to attract investments, create employment opportunities, and boost industrialisation across Nigeria. Moreover, it is projected to stimulate overall economic development and enhance the country’s resilience to external shocks, thus ensuring a more stable and inclusive economic landscape.
As the government continues to pursue its agenda of economic diversification and sustainable development, these recent pronouncements underscore the significance of the mining sector in achieving these objectives. It is anticipated that the concerted efforts by the authorities, in collaboration with the private sector and relevant stakeholders, will yield positive outcomes and drive the transformation towards a more diversified and resilient Nigerian economy.
