The Nigerian economy has historically relied heavily on the oil sector, leading to a relative neglect of the solid mineral sector. Recent reports indicate that the solid minerals only contributed 0.17% to the economic growth between 2018 and 2022. Nonetheless, the new administration under Minister Dele Alake is determined to alter this trajectory.
Alake has pledged to lessen the country’s reliance on crude oil through economic diversification, with a specific focus on harnessing Nigeria’s abundant solid mineral resources. He has revealed a seven-point agenda aimed at transforming the sector for international competitiveness and domestic prosperity.
However, the mining sector encounters various challenges, including illegal mining, insecurity, and smuggling, all of which hinder its full potential. Alake has proposed that the ministry invest in mineral exploration, estimating a requirement of 70 billion nairas, although the actual amount allocated for this project is yet to be confirmed.
Moreover, the issue of illegal mining is being addressed through a persuasive and non-kinetic strategy, wherein illegal miners are being urged to join artisanal cooperatives. Additionally, the ministry has deployed a Mining Marshal Corps to suppress illegal mining activities.
In addition, the ministry is reviewing mining licenses to attract more investors to the sector. The introduction of the Nigeria Mineral Resource Decision Support System (NMDSS) aims to furnish prospective investors with information and facilitate access to critical data on Nigeria’s mineral deposits.
There are still certain areas where the Minister’s agenda has not yet made significant progress, such as the lack of comprehensive data on specific priority minerals and their deposits, the establishment of mineral processing centers, and the formation of a solid mineral corporation similar to the NNPC Ltd.
Nevertheless, despite the challenges, the Minister remains optimistic and resolved to position the solid mineral sector as a key player in the administration’s economic diversification policy. The success of this agenda will depend on addressing the challenges faced by the sector and creating an environment conducive to investment.
In conclusion, the solid mineral sector in Nigeria holds great potential for economic growth and diversification. Through the strategic efforts of the new administration, it is hoped that the sector will make a substantial contribution to the nation’s GDP.
Source: Premium Times – Nigerian Mining Progress, but still a long way to go.