Summary
President Bola Tinubu’s administration is focused on diversifying Nigeria’s economy through the solid minerals sector. Despite its vast potential worth $750 billion, state government interference complicates mining operations, imposing overregulation and multiple taxation on miners, affecting investor confidence. Ongoing discussions aim to address these issues and streamline regulations across federal and state levels.
Since President Bola Tinubu took office, he pledged to diversify Nigeria’s economy beyond oil, focusing on the neglected solid minerals sector. The Minister of Solid Minerals, Dele Alake, announced policy initiatives aimed at raising the sector’s contribution to GDP, particularly amid global shifts towards renewable energy. Despite Nigeria’s vast mineral wealth, estimated at $750 billion by Geoscan, the sector struggles due to illegal mining, poor infrastructure, and security issues. The creation of the Mining Marshals aims to secure mining sites and combat illegal activities. However, interference from state governments complicates operations with overregulation and multiple taxes, burdening miners and endangering investment. Despite the Constitution granting federal control over mineral resources, state actions often disrupt this framework. Stakeholders, including the Miners Association of Nigeria, warn that these interferences risk investor confidence and threaten the federal government’s economic goals. Civil society urges patience, stating the sector needs time for necessary regulatory improvements. Alake indicated ongoing discussions with state governors to mitigate these issues and align state and federal regulations for better mining governance.
Upon taking office, President Bola Tinubu emphasised the importance of diversifying Nigeria’s economy, particularly through the solid minerals sector, which has remained undeveloped despite its potential. The federal government aims to increase this sector’s contribution to the country’s GDP, recognising it as crucial in the face of declining oil demand amid global energy transitions. However, challenges such as illegal mining, insecurity, and elaborate state regulations pose significant barriers to achieving these goals. Stakeholders argue that state governments’ overreach undermines federal laws and hampers the sector’s growth, leading to calls for reform and better regulation.
Interference from state governments in mining operations is a growing concern for Nigeria’s solid minerals sector, threatening its potential for economic growth and investment. This contradicts the federal government’s efforts to revitalise the sector, highlighting a need for cohesive regulations. Stakeholders advocate for a unified approach to foster a conducive environment for mining activities and attract foreign direct investment, essential for achieving economic diversification.
Original Source: blueprint.ng