The Bandits’ Takeover: A Threat To Nigeria’S Mining Sector
Nigeria Is On The Move, Looking For Alternatives To Oil, And Solid Minerals Seem To Be A Promising Option. In A Recent Chat With Daniel John Baraya, The Head Of Corporate Operations And Communications At Elipse Group Of Companies, A Major Mining Company In Jos, Plateau State, We Got Some Insight Into The Challenges And Prospects Of The Sector.
Bandits Have Been Making Their Presence Felt In The Mining Industry, Particularly In The North West And North East Regions. This Has Led To Increased Insecurity And Economic Losses. The Banditry Has Had A Significant Impact On Mining, As It Forced Many People Out Of Their Daily Income Sources. The Bandits Have Now Escalated To The Point Of Collecting Royalties From Legitimate Mining Companies, Essentially Exploiting Them. This Has Forced Many To Abandon Their Operations, Leaving The Mining Sites In The Hands Of The Bandits.
The Government Needs To Address This Issue Urgently To Ensure The Safety Of Those Involved In The Mining Business. The Bandits’ Activities Have Not Only Caused Economic Harm But Have Also Introduced Kidnapping Into The Mix, Making The Situation Even More Perilous. If The Government Is Serious About Attracting Investment In The Mining Sector, It Must Take Decisive Action To Tackle The Insecurity.
When It Comes To Repositioning The Mining Sector, The Government’S Support Is Crucial. While The Industry Has Been Making Some Progress Independently, Government Backing Is A Welcome Development. However, The Government Needs To Focus On The Regulatory Environment, Which Is Currently A Major Obstacle. The Existing Minerals And Mining Act Of 2007 Does Not Address The Operational Challenges Faced By Mining Companies. For Instance, The Process Of Obtaining Consent From Local Communities Is Riddled With Ambiguity, Leading To Disputes That Hinder Progress. Clarity In This Area Is Essential For The Industry To Thrive.
Another Pressing Issue Is Illegal Mining, Which Poses A Significant Threat To Both The Government And Legitimate Operators. The Government Must Implement Effective Measures To Prevent Illegal Mining From Occurring In The First Place, As Evicting Illegal Miners Can Be A Daunting Task, Especially When They Have The Support Of Traditional Rulers.
The Conflict Between State And Federal Governments Over Mining Control Has Further Complicated Matters. Some State Governors Have Taken It Upon Themselves To Ban Mining Activities, Despite It Being Under The Jurisdiction Of The Federal Government. This Lack Of Clarity Creates Uncertainty For Industry Players And Hampers Long-Term Planning. The Federal Government Needs To Take Decisive Action To Address This Confusion And Ensure That All Stakeholders Are Aware Of Their Roles.
The Mining Industry In Nigeria Is Capital-Intensive, And Attracting Investors Requires Substantial Motivation From The Government. To Develop The Industry, Nigeria Needs To Build A Robust Infrastructure That Supports The Entire Value Chain Of Mining. This Includes Establishing Assay Labs, Enhancing The Skill Level Of Geologists And Mining Engineers, And Creating A Reliable System For Sample Testing And Analysis.
If Nigeria Can Position Its Mining Sector Effectively, The Potential For Revenue Generation Is Immense. Comparing The Market Capitalization Of Leading Mining Companies Globally, It Is Evident That Nigeria Has A Long Way To Go In Realizing The Full Economic Potential Of Its Mineral Resources. With The Right Infrastructure And Support, The Mining Sector Could Significantly Contribute To Nigeria’S Economy.
In Conclusion, The Challenges Facing Nigeria’S Mining Sector Are Substantial, But With Proactive Government Intervention And Industry Collaboration, There Is Hope For A Brighter Future. The Potential Of The Mining Industry To Drive Economic Growth And Development In Nigeria Cannot Be Underestimated.