Challenges Impeding the Growth of Nigeria’s Mining Sector
The Honourable Minister of Solid Minerals Development, Dele Alake, recently articulated the primary obstacles impeding the growth of the mining sector in Nigeria, underscoring the imperative need for augmented funding and enhanced security measures to counter these impediments. In a statement issued on Tuesday, April 7, Alake conveyed his apprehensions during the inaugural session of the investigative hearing of the Senate Committee on Solid Minerals. He identified the insufficient budget for exploration and the prevailing insecurity as the principal factors constraining the sector’s capacity for economic diversification.
A salient issue raised by Alake was the paltry investment in mining exploration, citing data from a report by Standard & Poor, a renowned global rating agency. According to the report, Nigeria’s exploration budget stood at a mere $2.5 million, ranking 12th in Africa, with Ivory Coast leading at $147 million. Alake implored the Senate to endorse the proposed budget of N70 billion to finance exploration nationwide, stressing the urgency of this investment to effectively compete in the global marketplace.
The minister also underscored initiatives to combat illicit mining activities, spotlighting the establishment of a 2,220-strong Mining Marshals team and the deployment of operatives to all states and the FCT. Furthermore, he disclosed ongoing advocacy efforts through Artisanal and Small Miners (ASM) extension officers and a radio campaign aimed at discouraging illegal mining and encouraging artisanal miners to form cooperatives.
Aligned with the government’s new value addition policy, Alake revealed plans to establish six additional processing centres across the geo-political zones. However, he emphasised the necessity for legislative support and enhanced funding to seamlessly implement these initiatives and bolster the ministry’s regulatory capacity.
At the commencement of the investigative hearing, the Senate President, Sen. Godswill Akpabio, lauded the minister for his unwavering commitment to addressing the challenges confronting the mining sector, underscoring the significance of solid minerals in diversifying the economy. Additionally, Ekong Sampson, the Chairman of the Senate Committee on Solid Minerals Development, reiterated the importance of harnessing Nigeria’s extensive mineral deposits for the nation’s economic advancement.
In conclusion, the prevailing state of Nigeria’s mining sector presents both challenges and opportunities for growth. The collaborative efforts of the executive and legislative branches, as well as adequate funding and robust security measures, will be indispensable in unlocking the sector’s potential and maximising its contribution to the nation’s economy.
