The Significant Impact of the Mining Sector on Nigeria’s GDP
Professor Akande Olatunji, the President of the Nigerian Mining and Geosciences Society (NMGS), has underscored the inadequacy of the National Bureau of Statistics (NBS) in accurately measuring the contributions of the mining sector to the country’s Gross Domestic Product (GDP). As the Society prepares for its 59th annual international conference and Exhibition, Professor Olatunji has emphasized the potential for the mining sector to become the backbone of Nigeria’s economy and significantly impact the GDP.
Professor Olatunji contends that by addressing illegal activities within the sector through the enforcement of existing legal frameworks, the mining sector has the capacity to substantially enhance the country’s GDP. He stated, “The GDP contributions to the mining sector are more than what the Bureau of Statistics is quoting. If you add the number of licenses that have been granted and calculate the number that are active, and consider the number of people employed, the actual contributions would exceed what is currently being reported by the Bureau of Statistics.”
To fully realize the potential of the mining sector, Professor Olatunji has recommended that the government allocate adequate funding to the sector and create an enabling environment to attract investment.
Regarding illegal mining activities, the NMGS president acknowledged that where there are solid minerals, there will inevitably be scavengers. He emphasized the importance of fully implementing the laws governing mining operations to minimize illegal activities within the sector. “The solution is to implement the law, but the question is, how do we catch these people?” he asked.
An obstacle to effectively addressing illegal mining is the lack of sufficient manpower. Professor Olatunji stressed the need for the Mining Inspectorate Office to be fully equipped for effective monitoring, which includes having adequate manpower and mobility. He urged the government to stop paying lip service to combating illegal mining and to invest heavily in equipping the mining inspectorate office.
Furthermore, he highlighted the substantial financial losses incurred by Nigeria due to the activities of illegal miners. To curb illegal mining, he called for significant investment in the sector and emphasized that anyone caught engaging in illegal mining should be dealt with in accordance with the available laws, regardless of their connections.
Regarding the issue of control over mining activities, Professor Olatunji clarified that the law clearly states that mining is on the exclusive list, indicating federal government control. He emphasized the importance of adhering to the provisions of the law, unless there is a change in the legislation through the appropriate channels.
In conclusion, Professor Olatunji’s insights shed light on the significant impact of the mining sector on Nigeria’s GDP and the measures needed to fully harness its potential for economic growth. It is evident that a concerted effort to address illegal mining and provide sufficient resources for monitoring and regulation is essential for the sustainable development of the sector.
