Nigeria’s Plan to Boost Mineral Export Value and Create Jobs

Nigeria is currently in the process of enacting more stringent regulations to restrict the export of raw minerals and promote the export of processed products. The primary objective of these measures is to create employment opportunities and enhance the value of the country’s mineral exports.

Dele Alake, the Minister for Solid Minerals, has emphasized the significance of adding value to Nigeria’s minerals within the country before exporting them. He has underscored the necessity of establishing local processing facilities for the minerals prior to their exportation.

As the largest crude producer in Africa with a declining oil output, Nigeria is seeking to capitalize on its abundant mineral reserves as an alternative source of revenue. Nigeria is rich in lithium, gold, bitumen, and iron ore deposits. The country aims to emulate the success of nations like Indonesia, which significantly increased the value of its commodities and created more job opportunities by mandating that foreign purchasers establish refineries within its borders.

Despite previous unsuccessful efforts by Nigerian governments to revitalize the mining industry, the current administration is resolute in its determination to achieve substantial progress. A decade ago, the administration of former President Goodluck Jonathan set a target to increase the mining sector’s contribution to the country’s gross domestic product (GDP) to 3% by 2015. However, the sector only accounted for a mere 0.2% of the GDP last year.

Encouraging foreign companies to process minerals within Nigeria is a major challenge due to the unreliable electricity supply and weak domestic demand. Furthermore, illegal mining activities present a significant obstacle, particularly in the northern region of the country, which has been afflicted by insecurity as a result of the activities of armed groups. These challenges have impeded the growth of the mining and quarrying industry.

In response to these challenges, President Bola Tinubu’s administration has introduced new regulations to combat smuggling and enhance industry oversight. The government also intends to revoke licenses that remain unused for more than 18 months.

Additionally, Nigeria has recently entered into an agreement with Australian authorities to provide technical training for local miners. This initiative aims to improve industry regulation and facilitate more efficient exploration of the country’s mineral resources.

The Ministry of Finance has also expressed optimism regarding the increasing interest from foreign direct investors in Nigeria’s solid minerals sector. According to Finance Minister Wale Edun, the government is anticipating the realization of some of these investment prospects.

The measures being implemented by the Nigerian government to strengthen its mining industry and enhance the value of mineral exports represent a significant step towards economic diversification and job creation. Through the implementation of these strategies, Nigeria is positioned to unlock the full potential of its mineral wealth and emerge as a leading player in the global commodities market.