Investment Needed for Solid Minerals Development in Nigeria
The Minister of Solid Minerals Development, Dr. Dele Alake, has emphasized the need for a significant investment of N70 billion to enhance exploration in Nigeria’s mining sector. This investment is crucial to encompass the entire Nigerian landscape and improve the country’s global competitiveness in solid minerals.
Dr. Alake expressed concern over the minimal level of investment in mining exploration, citing a mere $2.5 million that was invested last year. He compared this figure to the $147 million of Ivory Coast and $133 million of Congo, as reported by Standard & Poor’s. The Minister highlighted that insufficient funding for exploration, along with insecurity, are the primary obstacles hindering the growth of the mining sector and limiting its potential as a driver for economic diversification.
To address these challenges, Dr. Alake indicated that the ministry would seek support from the Senate to increase funding. He emphasized the importance of enhancing the ministry’s capacity to conduct comprehensive exploration of the nation’s vast mineral deposits, with the aim of increasing the solid minerals sector’s contribution to the country’s GDP.
In addition to seeking funding for exploration, the Minister highlighted efforts to combat illegal mining. He mentioned the deployment of 2,220 Mining Marshals across the country to sanitize the solid minerals sector, along with ongoing advocacy through Artisanal and Small Miners (ASM) extension officers. Dr. Alake also disclosed plans for the establishment of six more processing centres across the geo-political zones, as part of the government’s new value addition policy.
Furthermore, the Minister stressed the necessity for legislative support to facilitate the effective regulation of the mining sector and other reforms. He called for a joint effort by the executive and legislature to curb the significant financial losses incurred annually due to illegal mining and other illicit activities.
In response to these issues, Senator Ekong Sampson, Chairman of the Senate Committee on Solid Minerals Development, echoed the need to address the challenges hindering the development of the mining sector. He emphasized the importance of harnessing Nigeria’s abundant mineral deposits for the benefit of all Nigerians and expressed a commitment to working with the executive to ensure the substantial contribution of solid minerals to the country’s economy.
In conclusion, the Minister’s call for increased investment in exploration and enhanced regulatory measures highlights the critical need to elevate Nigeria’s solid minerals sector to a level that is on par with other leading African countries. This concerted effort between the government and the legislative body is essential for sustaining the growth and economic diversification that solid minerals can offer.
