This article discusses the need for reforms in Nigeria’s ASM sector, highlighting its potential to significantly contribute to the economy and sustainable development. Despite rich mineral resources, the sector remains underdeveloped due to historical challenges. There is an urgent need for policies that foster investment and inclusivity.
This policy brief outlines necessary reforms aimed at transforming Nigeria’s Artisanal and Small-Scale Mining (ASM) sector into a vital economic contributor, improving resource utilisation and promoting sustainable development. Despite the continent’s rich mineral wealth, many nations, including Nigeria, struggle to optimally harness these resources. The country is not only well-known for its oil reserves but also possesses a variety of mineral deposits across over 500 sites in all 36 states and the Federal Capital Territory (FCT). Unfortunately, the mining industry has not reached its full potential. The Nigerian Mining Corporation, once a key player in solid minerals production and export, has seen a dramatic fall in activity since the 1970s due to the indigenisation policy.
The ASM sector is a crucial part of Nigeria’s economy, with significant untapped potential to enhance resource mobilisation and contribute to national growth. Historically, the sector has faced challenges, including lack of investment, inadequate technology, and limited regulatory support. To improve its efficacy, comprehensive reforms are essential, focusing on fostering inclusivity and sustainable practices, particularly given Nigeria’s vast mineral resources that remain largely idle in the wake of oil dominance in the economy.
In conclusion, revitalising Nigeria’s ASM sector is imperative for tapping into the country’s mineral wealth and ensuring equitable economic development. By implementing sound policies and reforms, stakeholders can enhance industry productivity, generate employment, and contribute to sustainable national growth.
Original Source: www.undp.org