The Ongoing Challenges Facing Nigeria’s Mining Sector
The recent Senate hearing regarding the state of Nigeria’s mining sector has brought to light several concerning issues. Matters of illegality, insecurity, policy, and the exploitation of the sector by foreign entities at the expense of Nigerians were highlighted as key concerns during the three-day hearing. Additionally, the Senate was informed of the failure of manufacturers to adequately pay royalties owed to the government.
This hearing follows a report by the Economic Community of West African States (ECOWAS) Parliament, which revealed that Nigeria is losing a substantial 91 per cent of its mining revenue to illegal miners. Mohamed Tunis, the Speaker of the ECOWAS Parliament, emphasized the fact that 80 per cent of mining activities in Nigeria’s northwest region are being conducted illegally, resulting in a loss of 91 per cent of potential mining revenue for the country.
The severity of this issue was further emphasized by the House of Representatives, which estimated annual revenue losses in the mining sector to be approximately $10 billion, representing a significant increase from the previously reported figure of $9 billion. It is evident that the exploitation of Nigeria’s mining resources is significantly impacting the country’s economy.
During the hearing, President of the Senate, Godswill Akpabio, expressed concerns regarding the fact that foreign entities are profiting more from Nigeria’s solid minerals than Nigerians. He stressed the necessity for the country to derive greater benefits from the mining sector and called upon stakeholders to address the challenges hindering its growth.
Senator Sampson Ekong, the Chairman of the Senate Committee on Solid Minerals Development, highlighted the importance of identifying barriers and opportunities in the mining value chain, increasing local content and value addition, and enhancing the sector’s contribution to foreign exchange earnings and economic growth. It is evident that there is an urgent need to address the issues impeding the development of Nigeria’s mining sector.
Dr. Dele Alake, the Minister of Solid Minerals Development, underscored the urgency of diversifying Nigeria’s economy away from its reliance on oil and towards the untapped potential of the solid minerals sector. He emphasized the necessity of leveraging Nigeria’s abundant solid mineral resources to drive the country’s economic growth.
It is clear that the challenges facing Nigeria’s mining sector are complex and far-reaching. The exploitation of the sector by foreign entities, in combination with issues of illegality and insecurity, is significantly impacting the country’s economy. The findings of the Senate hearing underscore the need for coordinated efforts to address these challenges and unlock the full potential of Nigeria’s mining sector.
Source: The Guardian UK
