Nigeria has resumed mining in Zamfara state following a five-year suspension due to improved security. The government aims to boost the mining sector’s GDP contribution, which is under 1%. Reforms are in place to attract investors and technical assistance is being sought from international partners to enhance the industry.
Nigeria’s mining activities in Zamfara state have resumed after a five-year ban due to improved security conditions. The ban was initially implemented in 2019 because of rampant bandit attacks, which severely affected legitimate mining operations. Mining Minister Dele Alake noted that security forces have made significant progress in reducing crime, paving the way for legal mining operations to start again. Zamfara is rich in minerals like gold, lithium, and copper, and the government aims to enhance the mining sector’s contribution to the economy, which currently stands at less than 1% of the GDP.
To attract investors, the Nigerian government has enacted reforms including the return of unused mining licences, allowing investors majority stakes in new mining companies, and strict regulations against illegal mining. Additionally, it has signed agreements for capacity-building support with countries including France, Germany, and Australia, seeking to upgrade its mining industry’s skills and efficiency. The Nigerian government is keen on diversifying its economy away from an oil dependency, leveraging its wealth of natural resources.
Zamfara state has significant deposits of valuable minerals such as gold, lithium, and copper. In 2019, the Nigerian government suspended mining operations due to escalating violence and insecurities caused by bandit attacks in the region. The recent lifting of this ban suggests that security forces have managed to achieve a level of stability that allows for the resumption of safe mining activities, indicating a shift towards enhancing the economic contributions of the mining sector in Nigeria, amidst ongoing efforts to diversify the economy.
The lifting of the mining ban in Zamfara signifies a positive development for Nigeria’s economic diversification efforts. With security improving, the government is focusing on strengthening the mining sector’s contribution to GDP, which has historically been negligible. Through various reforms and international collaborations, Nigeria is positioning itself to attract investment and enhance its mining capabilities, moving away from an over-reliance on oil.
Original Source: www.timeslive.co.za