The Underestimated Contributions of the Mining Sector to Nigeria’s Economy
The President of the Nigerian Mining and Geosciences Society (NMGS), Professor Akande Olatunji, has highlighted the National Bureau of Statistics (NBS)’s inadequate capture of the contributions of the mining sector to Nigeria’s Gross Domestic Product (GDP).
In anticipation of the Society’s forthcoming 59th annual international conference and Exhibition in Jos, Plateau State, Professor Olatunji underscored the potential of the mining sector to become the linchpin of Nigeria’s economy and significantly augment the GDP. He also observed that if illegal activities within the sector are addressed in accordance with the prevailing legal framework, the sector holds the capacity to substantially enhance the country’s GDP.
With regards to the official statistics, Professor Olatunji articulated, “The GDP contributions to the mining sector are more substantial than what the Bureau of Statistics is reporting. If we take into account the number of licenses that have been issued, calculate the active licenses, and consider the number of people employed, the true impact on the GDP is far greater than what is currently being reported.”
In order to fully realize the potential of the mining sector, he recommended that the government designate sufficient funding and establish an enabling environment to attract investment.
On the topic of illegal mining activities, the NMGS president noted that wherever valuable minerals exist, there will invariably be individuals involved in unlawful extraction. He emphasized the significance of implementing and enforcing the existing laws to curb these activities within the sector.
A major hindrance in addressing illegal mining is the dearth of adequate manpower and resources within the Mining Inspectorate Office. Professor Olatunji advocated for the full equipage of the office for effective monitoring, declaring, “We need to move beyond paying lip service to combating illegal mining and be willing to make substantial investments in equipping the mining inspectorate office.”
He further stressed that stringent enforcement of the law is imperative, regardless of the status of the individuals engaged in illegal mining activities. According to him, anyone caught participating in illegal mining should be prosecuted in accordance with the available laws.
In addressing the issue of jurisdiction over mining, Professor Olatunji clarified that, according to the law, mining falls under the exclusive list of the federal government, despite the interference and conflicting messages from some state governments. He underscored the importance of adhering to the existing laws until they are formally revised through the appropriate legislative process.
The observations made by Professor Olatunji shed light on the significant role that the mining sector could play in Nigeria’s economic development and the need for proper recognition and support from the government and relevant authorities. Thus, it is imperative to accurately capture the contributions of the mining sector to the GDP, address illegal mining activities, and ensure compliance with the laws governing the sector.
Overall, the potential of the mining sector to drive economic growth and development in Nigeria should not be underestimated, and concerted efforts are required to harness its full potential.
