Summary
Nigeria aims to diversify its economy through the underdeveloped solid minerals sector under President Bola Tinubu. Despite having an estimated $750 billion in untapped resources, state government interferences create operational difficulties for miners, including multiple taxes and conflicting regulations. Stakeholders are calling for unified laws to enhance investment and operational ease in the mining sector, which is crucial for economic growth.
Following President Bola Tinubu’s assumption of office on May 29, 2023, his administration has committed to economic diversification, notably through the solid minerals sector. Analysts highlighted this sector’s neglect over the years, resulting in underdevelopment despite Nigeria’s potential, estimated at $750 billion in untapped solid minerals, as surveyed by Geoscan. The Federal Government, under Minister Dele Alake, is implementing policies to boost the sector to contribute more significantly to GDP, especially as global energy transitions reduce oil demands. Challenges faced by the solid minerals sector include illegal mining, poor infrastructure, and insecurity, which hinder revenue collection from royalties. The government has established the Mining Marshals for security at mining sites and launched the Nigerian Minerals Resource Decision Support System for increased foreign investment. However, state governments’ interference has emerged as a significant issue. They apply multiple taxes and create regulatory frameworks that conflict with federal laws, increasing operational costs for miners. Dele Ayankale, President of the Miners Association, states, “The cost of doing business in the mining sector has increased due to state governments’ interference.” Furthermore, state actions—like establishing their own regulations and confiscating mined products—have confused the operational landscape, discouraging investment further. The Forum of Concerned Stakeholders has expressed deep concerns over state shutdowns of legal mining operations, with Prof. Akinade Olatunji warning that these actions complicate the business environment and undermine federal investment goals. Additionally, Niran Ajibade highlighted the over-regulation by states, stating, “Some of them have imposed bans on mining and have set up task forces.” While civil society organisations urge patience amidst sector sanitisation efforts due to past illegal operations, the Minister continues discussions with state governors to unify regulations and prevent overwhelming miners with excessive taxes. Stakeholders emphasise the need for coherence between federal and state regulations to secure the sector’s growth.
The article discusses Nigeria’s solid minerals sector, which is being revitalised under President Bola Tinubu’s administration, focusing on economic diversification away from oil dependency. Despite vast mineral wealth, regulatory inconsistencies and state-level interferences have impeded development. The roles of various government levels in creating a conducive environment for miners are examined, alongside ongoing initiatives to formalise and secure mining operations. The concerns over overregulation by state governments indicate a tension between federal authority and local governance in resource management.
In conclusion, Nigeria has a wealth of underdeveloped solid minerals that could significantly boost its economy. However, increasing interference from state governments complicates operations and discourages investment. Unification of regulations between federal and state entities is essential to foster a favourable environment for mining operations and attract foreign investment. Continued dialogue between stakeholders and the government will be necessary to resolve these challenges effectively.
Original Source: www.environewsnigeria.com