Nigeria plans to overhaul its mining code to boost investment in a sector that currently contributes 0.3% to GDP. However, security challenges in the north, particularly from insurgency and land disputes, jeopardise these efforts, with much of the mining activity being illegal.
Nigeria’s Vice President Yemi Osinbajo has proposed revisions to the nation’s mining code, which critics assert is hindering investment in a sector contributing a mere 0.3% to GDP. The country boasts significant mineral resources, including gold, tin, iron ore, lead, zinc, barite, and bitumen. However, mining operations in northern Nigeria face severe security challenges due to Islamic insurgency and conflicts between farmers and herders over land rights. The Institute of Security Studies indicates that approximately 80% of mining in the northwest is illegal, predominantly carried out by local artisans, with gold mining identified as a key factor in regional violence.
Nigeria’s mining sector is rich in mineral resources, yet security issues in the northern regions have deterred legal mining activities. The government’s intent to reform the mining code aims to attract investment but must address the underlying security concerns to be effective. Illegal mining has proliferated amidst ongoing violence, complicating the landscape for legitimate mining operations.
Revising the mining code could enhance investment in Nigeria’s mining sector, but without addressing the pressing security issues in the north, particularly stemming from insurgency and land conflicts, the reforms are unlikely to succeed. Ensuring safety for mining operations is critical to realising the sector’s potential.
Original Source: www.theafricareport.com