Federal Government’s Plan to Boost Mining Industry
The Federal Government of Nigeria, through the Ministry of Solid Minerals, has unveiled plans to establish a state-backed corporation with a focus on overseeing the country’s mineral resources and providing financial support to the mining sector. The announcement was made as part of the agenda for the Transformation of the Solid Minerals for International Competitiveness and Domestic Prosperity in Abuja.
During the announcement, Minister Dele Alake stressed the importance of Nigeria creating a corporate entity that would play a strategic role similar to that in the petroleum industry. The proposed Nigerian Solid Minerals Corporation seeks to address the lack of funding and assistance for mining operators in Nigeria.
The corporation will concentrate on seven priority mineral areas, including gold, coal, limestone, bitumen, lead, iron ore, and baryte. It is anticipated that the corporation will engage in partnership investment agreements with multinational companies to attract foreign direct investment in the sector, taking advantage of Nigeria’s favourable environment for investors.
Apart from the corporation’s establishment, the ministry has outlined plans to crack down on illegal mining activities. The Minister has given illegal miners a 30-day ultimatum to join recognised mining cooperatives or face legal action. The ministry also intends to establish a surveillance task force, comprising law enforcement and relevant agencies, to ensure the security of mining sites across the country.
During a press briefing, the Minister expressed his determination to address the issue of illegal mining, citing the abundant mineral resources in the country, such as gold, bitumen, lithium, and uranium. He highlighted the need to maximise the potential of these resources for the benefit of the citizens and the economy.
The government’s efforts to combat illegal mining are part of a broader strategy to revitalise the mining industry, which has been undermined by illicit activities. The Permanent Secretary of the Ministry of Mines and Steel Development, Dr. Mary Ogbe, previously raised concerns about the impact of illegal mining on the industry, emphasising the need to curb the unlawful export of raw minerals to foreign markets without adding value to them.
In conclusion, the government’s initiative to establish the Nigerian Solid Minerals Corporation and its commitment to combat illegal mining activities signal a renewed focus on developing the mining sector. The move aims to attract investment, improve governance, and ensure the sustainable exploitation of the country’s mineral resources. It underscores the government’s determination to create a vibrant and competitive mining industry that will contribute to Nigeria’s economic growth and development.
