The Need for Revival of Nigerian Mining Sector, LCCI Urges Government Action
The Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over the underperformance of the Nigerian solid mineral sector, citing its contribution of less than 0.5 per cent to the country’s GDP. In a statement entitled “LCCI Statement on the Declining Performance of Nigeria’s Solid Minerals Mining Sector”, the LCCI highlighted the limited investment and economic impact of the mineral sector, despite Nigeria’s abundant mineral resources.
The LCCI emphasized the recent poor performance of the mining industry, as indicated by the National Bureau of Statistics (NBS), which demands immediate attention. The decline in productivity from 8.32 per cent in the third quarter of 2022 to a mere 4.47 per cent in the fourth quarter of 2023 reflects the sector’s potential not being optimally utilized.
In light of these challenges, the LCCI called on the government to review the strategies in place for attracting investments, developing mining projects, and leveraging Nigerian mineral resources in line with sustainable growth principles. Additionally, the LCCI urged the government to address funding issues and establish mechanisms to facilitate access to finance for processing value-added mineral products.
Dr. Chinyere Almona, the LCCI’s Director General, highlighted the obstacles hindering the sector’s growth, including inadequate infrastructure, regulatory disparities, limited financing opportunities, and security concerns in mining areas. These factors have collectively impeded the sector’s ability to fulfill its envisioned role as a catalyst for industrialization, and have thwarted efforts to integrate the sector with other national rural development strategies.
Furthermore, the LCCI stressed the need for the government to address regulatory and legal challenges, such as inconsistent policies and unclear land tenures, which have weakened the sector’s performance. The Chamber also recommended an inclusive strategy for Artisanal and Small-Scale Mining (ASM) linked to rural development plans, aimed at creating more job opportunities and integrating the solid minerals sector with other rural activities.
The LCCI proposed that the revitalization of Nigeria’s mining sector and its potential as a driver of economic growth requires collaboration and concerted efforts from government agencies, private sector entities, civil society organizations, and local communities. As a stakeholder committed to advancing Nigeria’s mining industry, the LCCI expressed readiness to collaborate with all relevant parties to overcome the existing challenges and harness the sector’s latent potential for the nation’s development.
In conclusion, the LCCI’s appeal for the revival of the Nigerian mining sector emphasizes the urgent need for robust government action to address the sector’s challenges and unlock its economic potential. If effectively implemented, the proposed measures have the potential to position the mining sector as a significant driver of economic growth and development in Nigeria.
