Exploring Nigeria’s Mineral Wealth: A Paradigm Shift Needed
The Deputy Speaker of the House of Representatives, Honourable Benjamin Kalu, has expressed apprehensions regarding Nigeria’s heavy dependence on the oil and gas sector, while underscoring the extensive untapped potential of the nation’s mineral resources. He has underscored the imperative need to redirect focus towards unlocking the vast mineral deposits that are prevalent across the 36 States of the Federation and the Federal Capital Territory (FCT).
During a two-day Policy Dialogue on Solid Minerals organised by the House Committee on Solid Minerals, chaired by Honourable Jonathan Gbefwi, Honourable Kalu has emphasized the significance of addressing various challenges, including insecurity, inadequate infrastructure, and the dearth of skilled labour, for the purpose of harnessing the nation’s mineral wealth.
He has expressed sanguinity with regards to the potential impact of the proposed Nigerian Minerals and Mining Act (Amendment) Bill, indicating that it could potentially represent a pivotal turning point for Nigeria’s mineral wealth. Honourable Kalu has stressed the urgency of diversifying the economy, generating employment opportunities, and maximising the potential of the mining sector, which presently contributes a mere 0.3% to the nation’s GDP, despite boasting over 40 commercially viable minerals.
In reference to the prosperous Segilola Gold Project in Osun State, managed from a private-sector-led perspective, Honourable Kalu has noted that initiatives such as the streamlining of licensing processes and the implementation of competitive royalty regimes have the capacity to attract global stakeholders and stimulate large-scale mining activities across the country.
Furthermore, Honourable Kalu has underscored the necessity of establishing a sustainable mining industry that benefits all Nigerians, advocating for the creation of more employment opportunities, increased value addition, and environmental sustainability in mining operations.
In his address, Honourable Jonathan Gbefwi has outlined key priority areas for the committee, with a focus on governance, economy/industrialisation, security, geoscientific data/standardisation, environment, and human capital development. He has elucidated that the committee’s reform efforts are geared towards addressing the current realities of the nation and fortifying the legislative framework governing the sector.
Gbefwi has stressed the importance of enhanced governance and security in the solid minerals sector, detailing proposed measures such as the establishment of the Mines Inspection and Environmental Agency and improved coordination between federal and state governments. He has also emphasized the necessity for heightened supervision of mining activities and the formalisation of the sector through the establishment of purchasing centres in each state.
In addressing community development and environmental concerns, Gbefwi has proposed the allocation of a percentage of the revenue from all mined minerals to host communities, reaffirming the commitment to responsible and sustainable mining practices.
The dialogue has underscored the nation’s imperative need to realign its focus towards the untapped potential of its mineral resources and take decisive measures towards fostering a flourishing and sustainable mining sector.
Ultimately, the proposed legislative reforms and policy initiatives aspire to revolutionise Nigeria’s mining sector, generate a diversified economy, and pave the way for a brighter future for all Nigerians.
