Boosting Economic Growth through Solid Minerals Policy – Insights from Gabriel Idahosa
The Lagos Chamber of Commerce and Industry (LCCI) has recently emphasized the potential economic benefits of the policy designed to regulate Nigeria’s solid minerals sector. In his address at the chamber’s inaugural press conference for 2024, Gabriel Idahosa, President of LCCI, highlighted the critical nature of addressing associated challenges to unlock the sector’s full potential and ensure sustainable and inclusive development.
With the global oil market experiencing a decline, diversifying into the solid minerals sector has become an imperative strategy to reduce Nigeria’s dependency on oil revenues. According to Idahosa, this strategic shift not only improves economic stability but also mitigates the adverse effects of fluctuating oil prices on the national economy.
Furthermore, the development of the solid minerals sector is poised to create job opportunities throughout various stages of exploration, mining, processing, and marketing, thereby significantly contributing to the reduction of unemployment rates and fostering economic growth. Moreover, effective regulation of the sector has the potential to lead to increased revenue generation for the government through taxes, royalties, and other levies, which can then be utilised for infrastructure development, social programs, and other public services.
By regulating the solid minerals sector, Nigeria is positioning itself to participate more effectively in the global market for solid minerals, thus opening new opportunities for international trade and partnerships. Idahosa stressed that the approval of this policy review paves the way for better management and utilization of Nigeria’s abundant solid mineral resources, ensuring judicious, efficient, and sustainable exploitation that prevents depletion and guarantees long-term economic benefits.
However, despite the promising prospects, the successful implementation of the policy may face several challenges, including regulatory hurdles, lack of infrastructure, and bureaucratic inefficiencies, which could potentially hinder the intended benefits of the policy. These challenges highlight the importance of addressing these barriers to fully leverage the potential economic advantages of the solid minerals policy.
Idahosa also noted that unregulated mining activities, even with a policy in place, may pose environmental risks such as deforestation, soil erosion, and water pollution. As such, strict adherence to environmental standards and effective monitoring will be crucial to mitigate these concerns and ensure the sustainable development of the sector.
In addition, Idahosa emphasized the need for clarity from the Ministry of Solid Minerals, especially regarding the position of mining in the exclusive list of the 1999 constitution. He also highlighted the potential threat posed by state government interference in the operations of private licensed miners and suggested that they be encouraged to establish their mining SPVs to participate in the industry, thereby promoting responsible mining through improved regulation and robust community engagement to address land conflicts and environmental degradation.
As Nigeria charts the course for economic diversification, the regulation and strategic development of the solid minerals sector stand as a pivotal opportunity to drive sustainable economic growth, reduce reliance on oil revenues, and create employment opportunities. The insights provided by Gabriel Idahosa shed light on the potential benefits and challenges associated with the solid minerals policy, underscoring the importance of effective regulation, sustainable exploitation, and strategic engagement with stakeholders to harness the economic potential of Nigeria’s solid mineral resources.
