The Ministry of Solid Minerals Development in Nigeria has publicized that the Nigerian Solid Minerals Corporation is scheduled to commence operations in the fourth quarter of 2024. This corporation will play a pivotal role in spearheading the revitalization of the country’s mining sector, which has been described as robust. Furthermore, the government has divulged that out of over 10,000 applicants, 4,000 investors have successfully secured mining licenses, with additional investors expected to enter the sector in the future.
During the Ministerial Sectoral Update commemorating President Bola Tinubu’s inaugural year in office, Minister of Solid Minerals Development, Dele Alake, declared that the new company would adopt a specific ownership structure. The Nigerian Solid Minerals Corporation is set to have 25 per cent government shares, 25 per cent public shares, and 50 per cent private investor shares. This distinctive structure distinguishes it from the National Nigerian Petroleum Corporation Limited, demonstrating the government’s dedication to collaborating with the private sector for the advancement of Nigeria’s future.
The inception of a legislative framework for the establishment of the corporation is presently in progress, with a proposal seeking budgetary provision for approval already underway. The ministry is also partnering with legislative committees to ensure the corporation becomes operational by the fourth quarter of 2024. Additionally, the government is implementing a seven-point agenda, which includes the stipulation for mining companies to establish their plants within the country and process the materials locally to add value and generate additional revenue.
The Ministry of Solid Minerals Development has also been prosperous in its revenue generation endeavors, remitting a total of N16.4bn collected as revenue from mining royalty and fees between May 2023 to April 2024. This amount surpassed the targeted N10.56bn, signifying a surplus of N6.74bn.
To guarantee the proper utilization of mining licenses, the ministry has taken the decisive action of revoking the licenses of 2,557 dormant companies that failed to utilize them for production. This action underscores the government’s commitment to the development of the sector, resulting in an influx of new license applications. The endeavors to sanitize the mining sector have led to increased confidence and more applications, with 258 new operational mining and quarrying companies providing employment to over 9,030 individuals.
Regarding security within mining environments, the government has implemented a three-pronged approach involving the deployment of mining marshals, the utilization of advanced technologies, and a mass sensitization campaign. These measures have led to the apprehension of over 200 illegal miners and the prosecution of 133 individuals within three months of the marshals’ operations.
Minister of Solid Minerals Development, Dele Alake, expressed contentment with the progress and attributed the increased security measures to the positive developments within the mining sector. He also recognized the challenges faced, including threats received due to the revocation of licenses from influential individuals. However, the minister reassured the public of the government’s commitment to upholding the integrity of the sector.
In conclusion, the future of the mining sector in Nigeria appears promising as the government takes proactive measures to revitalize and secure the industry. With the establishment of the Nigerian Solid Minerals Corporation and the commitment to partnership with the private sector, the stage is set for sustainable growth and development in this critical area of the country’s economy.