Reforming the Solid Mineral Sector: A Review of Developments in 2023

The solid mineral sector in Nigeria has undergone significant reform and development in recent times, with the aim of diversifying the country’s economy and reducing its reliance on petroleum. President Bola Ahmed Tinubu’s administration has identified this sector as pivotal to the country’s development and has implemented policies and strategies to unlock its potential.

To address historical challenges such as infrastructure deficits, inadequate geological data, and the need for modern mining practices, the Ministry of Solid Minerals has articulated a comprehensive seven-point agenda focusing on national mining companies, certified data development, artisanal mining through cooperatives, mine security, and community empowerment. The government has also prioritised revoking licenses of operators who fail to comply with regulations, in an effort to clean up the sector.

In addition to these efforts, the government has been working to attract domestic and international investors through climate change investments, including a partnership with the Africa Finance Corporation to gather information on available mineral resources across the country. The goal is to de-risk investments in the sector and create an attractive investment climate for both domestic and international stakeholders.

The Ministry of Solid Mineral Development has also made strides in ensuring that host communities benefit from mining activities in their areas, with the launch of Revised Community Development Agreement guidelines. Moreover, the government has emphasized the importance of value addition in mineral exportation, as demonstrated by the establishment of a factory to process lithium batteries in Nasarawa State.

The advancements in the solid mineral sector have garnered attention from various stakeholders, including state governments, government agencies, and private and international investors, all of whom have expressed interest in partnering with the sector. However, there are calls for the government to consider and incorporate previous policies to maximize the benefits to the nation.

Overall, the reform and development initiatives in the solid mineral sector are an encouraging sign for Nigeria’s economy. The efforts to create an attractive investment climate, prioritize community empowerment, and add value to mineral resources are steps in the right direction for the sector.

Authored by Rabi Mommoh, Edited by Hadiza Abdulrahman and Annabel Nwachukwu.