Nigeria Set to Roll Out Mining Industry Reforms to Boost Sustainable Investment
The Minister of Solid Minerals Development, Dr. Oladele Alake of Nigeria, has announced plans to introduce extensive reforms to the country’s mining industry. This move aims to differentiate genuine long-term investors seeking to add value to the sector from those looking to exploit raw minerals for short-term gains.
During the China Mining Week 2023 in Tianjin, China, Dr. Alake outlined the Federal Government’s new roadmap for mineral development at the Mining Ministers Forum. The reforms seek to address longstanding issues within the industry and enhance the sector’s industrial capacity.
The primary feature of the proposed reforms is the establishment of the Nigerian Solid Minerals Development Company, which will leverage both domestic and international capital and technology. This initiative aims to create a more attractive environment for potential investors and enforce social and governance standards to protect the environment.
Dr. Alake emphasized the crucial role of geological data in mining finance and exploration and reiterated the commitment of the Nigerian government, under the Tinubu administration, to make substantial investments in this area. The goal is to enhance the sector’s appeal to investors while ensuring environmental safeguards are in place.
Additionally, the minister stated that the government is actively engaging with artisanal miners, urging them to join cooperatives to formalize their operations within the sector. This move aims to provide broader access to training, extension services, machinery, and credit for the miners.
Regarding security within the sector, Dr. Alake disclosed that a new security framework is currently being developed, integrating formal enforcement agencies with community safety organizations to combat threats and ensure the safety of miners.
Addressing concerns about potential interference from sub-national agencies in mining operations, the minister assured stakeholders that the federal and state governments have fostered harmonious relations and cited a recent governors’ forum hosted by the ministry to address critical issues in this regard.
In conclusion, Dr. Alake advised potential investors to incorporate mineral industrial processing into their business plans as the government prepares to introduce a new requirement for mandatory value addition as part of the investment conditions.
These proposed reforms are set to bring about a significant transformation in Nigeria’s mining industry, providing sustainable investment opportunities and boosting the sector’s overall growth and development.
