Nasarawa Governor Abdullahi Sule has called for the deregulation of Nigeria’s mining sector to enhance its potential. Speaking at the 60th Nigerian Mining and Geosciences Society Annual Conference in Abuja, he advocated for reforms akin to those in the oil and gas industry, emphasising the need for modernization and liberalisation to attract investment.

Governor Sule highlighted Nigeria’s abundant mineral resources and criticized existing policies that impede growth. Reflecting on his oil industry experience, he underscored the importance of structured revenue-sharing and industry regulations to secure adequate returns for mining states.

During his term, he discovered that despite 416 mining licenses granted in Nasarawa, the state was receiving no significant financial returns, prompting him to challenge the National Economic Council regarding the lack of revenue compared to the oil sector. Recognising flaws in the licensing process, he issued an executive order to ensure that all minerals processed in the state before export, which boosted local investments.

He proudly noted that Nasarawa State now hosts Nigeria’s largest lithium processing plant and several other smaller tin mining operations. Governor Sule urged Nigeria to shift focus towards long-term industrialisation over short-term financial gains, drawing comparisons to China’s approach to mining development.

Sule remains determined to overcome resistance to regulations that would ultimately benefit the sector and the economy. Professor Akinade Olatunji, President of the Nigerian Mining and Geosciences Society, acknowledged the governor’s contributions to advancing mining reforms in Nigeria, culminating in a fellowship award presented to him during the event.

Governor Abdullahi Sule’s call for the deregulation of Nigeria’s mining sector underlines his commitment to modernising the industry. By improving revenue-sharing mechanisms and enforcing operational regulations, he aims to harness the nation’s mining potential for sustainable growth and investment. His proactive measures reflect a determined effort to transform the sector into a vital component of Nigeria’s economy.

Original Source: dailypost.ng

The post Nasarawa Governor Advocates Deregulation of Nigeria’s Mining Sector first appeared on Nigerian Mining News.

Abdullahi Ibrahim Danjija, a 31-year-old miner in Nasarawa, Nigeria, earns N150,000 ($100) daily from artisanal lithium mining, double the monthly minimum wage. Many miners are attracted to this opportunity due to the increasing global demand for lithium, essential for electric batteries and mobile phones. Despite the allure, much of Nigeria’s mining is small-scale and often illegal, with minimal safety or environmental standards enforced.

At the Gidan Kwano site, some miners avoided media attention, as they operated without legal permits. Nearby, families were seen using explosives to expand their mining operations. Artisanal work thrives, with children and women participating eagerly, providing a means of livelihood as they dig and sell lithium-rich rocks, which costs them only their labour.

China remains the leading consumer of lithium and imports significant quantities while Nigeria aims to attract foreign investment as it promotes its lithium resources. Despite campaigns against illegal mining, the sector is booming. New regulations may require foreign firms to establish processing plants locally, a move that could deter investment from large players like Elon Musk.

Chinese companies have established local operations to refine lithium, even as concerns about inadequate exploration and site verification linger. The Geological Society of Nigeria highlights the need for better regulation and sustainable practices within the mining sector, pointing out that some Chinese miners operate unsafely.

However, artisanal mining can also lead to local conflicts over resource access. Analyst Charles Asiegbu explains that disputes can arise both between communities and with exploration firms. Additionally, armed groups exploit the weak governmental presence in certain regions to conduct illegal extractions while local miners like Danjija continue their hazardous work without respite, even in adverse weather conditions.

The rising global demand for lithium, crucial for electric batteries and mobile gadgets, has drawn interest from miners in Nigeria, particularly in Nasarawa. This interest has spurred artisanal mining, which, though potentially lucrative, often operates illegally without permits or adherence to safety regulations. The Nigerian government is keen to attract foreign investment in this resource sector, but challenges such as illegal mining and civil conflicts complicate efforts.

The burgeoning interest in Nigeria’s lithium reserves highlights both the potential for economic growth and the risks of unregulated artisanal mining. With China as a major player in lithium processing, Nigeria seeks to establish a regulated framework to ensure local benefit from its resources while addressing environmental and community challenges associated with mining operations.

Original Source: punchng.com

The post Foreign Investors Target Nigeria’s Lithium Wealth Amidst Rising Demand first appeared on Nigerian Mining News.