Boosting Nigeria’s Mining Industry: LCCI’s Call for Revitalization and Growth
The Lagos Chamber of Commerce and Industry (LCCI) has expressed its concerns regarding the underperformance of Nigeria’s solid mineral sector and is urging the Federal Government to take decisive steps to revitalize the industry. Chinyere Almona, the Director-General of LCCI, emphasized the urgent need for the government to review the mining industry strategy and attract investments in mineral exploration, project development, and new mineral discoveries in adherence with the principles of Environmental, Social, and Corporate Governance (ESG) for sustainable growth.
One of the primary concerns raised by LCCI is the sector’s funding challenges, which hinder access to finance for processing value-added minerals-based products. The organization has called for the establishment of seed funds and special incentives to attract both domestic and foreign investors. It was noted that the Nigerian mining industry’s performance has been subpar in the last two quarters, with its contribution to the GDP decreasing from 8.32 percent to 4.47 percent.
Despite the sector’s immense potential, it has been plagued by various obstacles such as inadequate infrastructure, regulatory inconsistencies, limited access to financing, and security concerns in mining locations, resulting in a struggle to attract investments and fulfill its role as a catalyst for industrialization. To address these challenges, LCCI has urged the government to adopt innovative strategies for revitalizing key entities such as the Ajaokuta Steel Company Limited (ASCL) and the Nigerian Iron Ore and Mining Company (NIOMCO). The chamber also stressed the importance of leveraging research, technology, and community development initiatives to enable sustainable growth in the mining sector.
As part of its National Development Plan 2021-2025, Nigeria aims to lay a solid foundation for the minerals sector to drive growth and industrialization in an environmentally sustainable manner. However, the current state of the mining industry falls short of this vision, and the government’s efforts to build a world-class minerals and mining ecosystem have not yielded the desired results.
Furthermore, Nigeria’s solid minerals are primarily exported without sufficient value addition, and the sector remains a minor contributor to the overall GDP. Regulatory and legal challenges, including inconsistent policies and unclear land tenures, have further impeded the industry’s growth potential. LCCI has emphasized the need for a more inclusive strategy for Artisanal and Small-Scale Mining (ASM), along with the integration of the solid minerals sector with other rural economic activities to generate more jobs in rural areas.
In conclusion, LCCI has reiterated the importance of concerted efforts and collaboration among government agencies, private sector entities, civil society organizations, and local communities to overcome the existing challenges and unleash the sector’s latent potential. The chamber remains committed to collaborating with relevant stakeholders to revitalize Nigeria’s mining sector and position it as a critical driver of economic growth and development.
