The Underestimated Contribution of the Mining Sector to Nigeria’s GDP
The President of the Nigerian Mining and Geosciences Society (NMGS), Professor Akande Olatunji, has expressed reservations regarding the accuracy of the National Bureau of Statistics (NBS) in accurately depicting the mining sector’s contribution to the Gross Domestic Product (GDP) of Nigeria.
In a pre-conference press briefing ahead of the Society’s 59th annual international conference and Exhibition in Jos, Plateau State, Professor Olatunji underscored the potential for the mining sector to emerge as a significant driver of the Nigerian economy. He stressed that with the effective enforcement of existing legal frameworks to address illegal activities within the sector, the mining industry has the capacity to substantially bolster the country’s GDP.
Professor Olatunji highlighted that the statistics provided by the Bureau of Statistics do not adequately reflect the actual GDP contributions of the mining sector. He pointed out that when accounting for the number of granted licenses, active operations, and the employment rate within the sector, the GDP impact is far more considerable than current reports suggest.
To fully harness the sector’s potential, he recommended that the government allocate adequate funding and establish a conducive environment to attract further investments. Furthermore, he emphasized the importance of addressing the issue of illegal mining, stressing the need for stringent enforcement of regulatory measures to combat these activities effectively.
The NMGS president identified the lack of adequate manpower within the Mining Inspectorate Office as a significant obstacle, essential for effective monitoring and regulation. He emphasized the requirement for comprehensive support, encompassing manpower and resources, to combat illegal mining activities. Additionally, he advocated for a proactive approach, urging authorities to make substantial investments in equipping the mining inspectorate office and enforcing penalties for offenders, irrespective of their affiliations.
Addressing the jurisdictional issues regarding mining control, Professor Olatunji clarified that the law designates mining as an exclusive federal responsibility. He urged compliance with existing legislation and called for unity among states to address any concerns through appropriate legislative channels. Emphasizing the importance of upholding the rule of law, he discouraged any form of interference that contradicts the established legal framework.
The insightful comments made by Professor Akande Olatunji shed light on the overlooked potential of the mining sector and the urgent need to address the challenges hindering its full economic impact. As Nigeria endeavors to diversify its economy and capitalize on the opportunities within the mining industry, the perspectives shared by the NMGS president offer valuable insights for policymakers and stakeholders.
The upcoming international conference and exhibition present an opportune platform to further explore these critical issues and foster constructive dialogue towards unlocking the true contributions of the mining sector to Nigeria’s GDP.
