Nigeria has lifted a five-year mining ban in Zamfara State due to improved security. This move aims to tap into the rich deposits of gold, lithium, and copper in the region. The mining sector currently contributes less than 1% to GDP, but reforms are in place to attract investors and increase its significance in the economy.
Nigeria has lifted its five-year mining ban in Zamfara State, a decision prompted by improved security conditions. Initially imposed in 2019 due to significant bandit attacks, the ban had left the state’s rich deposits of gold, lithium, and copper underutilised. Mining Minister Dele Alake credited enhanced security efforts for this turnaround and emphasised the region’s vast natural resources that could greatly boost national revenue. In a bid to diversify its economy, which heavily relies on oil, Nigeria aims to amplify the mining sector’s contribution, currently less than 1% of GDP, through reforms designed to attract investors.
The mining ban in Zamfara State, which lasted five years, was a response to increasing violence and instability linked to banditry. The region is known for its mineral wealth, including significant reserves of gold, lithium, and copper. Nigeria’s intended shift towards diversifying its economy from a predominant oil dependency underlines a national strategy to enhance other sectors, including mining. This lifting of the ban and reforms represent a critical step in revitalising the industry and attracting foreign investment.
In conclusion, lifting the mining ban in Zamfara State marks a significant development in Nigeria’s efforts to exploit its rich mineral resources and reduce its reliance on oil. With enhanced security and strategic reforms to attract investment, the country is positioned to enhance the role of the mining sector in its economy, aiming for greater contributions to GDP and national revenue.
Original Source: www.africa.com