The Nigerian Economic Summit Group (NESG) highlights weak reforms and policies as major obstacles hindering growth in the country’s mining sector. They stress the need for targeted policy reforms, improved governance, and strategic initiatives to tap into the industry’s potential. Lumun Amanda Feese, NESG’s Manufacturing and Mining Policy Commission facilitator, pointed out that despite nearly two decades of reforms, Nigeria lags behind nations that initiated changes earlier.

Feese noted that the current mining framework fails to create effective linkages with sectors like manufacturing, construction, and technology. The mining act remains outdated, offering no space for independent regulation and failing to foster inter-sector connections. Consequently, the sector primarily caters to foreign demands, lacking integration with Nigeria’s broader economy.

The mining landscape is marred by challenges like environmental damage, violent conflicts linked to illegal activities, and insufficient GDP contributions. Rectifying these issues is critical for revitalising the sector and enhancing its role in Nigeria’s economy. Comprehensive reforms aligned with the African Mining Vision (AMV) are needed to address legal and regulatory shortcomings, with coordination between the Bureau of Public Enterprises and the Ministry of Solid Minerals Development.

Niyi Yusuf, chairman of NESG, stresses collaboration between private and public sectors to transform the mining industry. He describes this endeavour as a long-term commitment essential for economic diversification and job creation. Transformation in this sector is a gradual process, not an immediate fix, and is vital for national growth.

The article addresses the challenges faced by Nigeria’s mining industry, primarily stemming from inadequate institutional reforms and policies. These issues limit the sector’s potential contributions to the economy, despite ongoing reforms over the years. The emphasis is on the need for comprehensive reforms to create synergies across various sectors and ultimately enhance the mining sector’s performance and relevance to Nigeria’s economic landscape.

The article underscores that Nigeria’s mining industry growth is impeded by weak reforms and lack of sector connections. Advocating for comprehensive, multi-faceted reforms, it stresses the necessity of collaboration between stakeholders to revitalise the mining sector. This transformation is essential for job creation and economic diversification, emphasising the industry’s crucial role in national interests.

Original Source: businessday.ng

The post Weak Reforms Hindering Nigeria’s Mining Industry Growth first appeared on Nigerian Mining News.

Mkhululi Ncube from the African Minerals Development Centre stated that the newly launched African Mining Vision (AMV) aims to rejuvenate Nigeria’s mining sector by integrating mining into broader industrial and social development. This initiative promotes economic growth by connecting mining with local industries and various sectors.

The AMV was unveiled during the Nigerian Economic Summit and serves as a private sector-driven platform for sustainable mining development and equitable benefits. It aims to enable the domestication of AMV in Nigeria, creating collaborative efforts among the government, communities, and private entities, and fostering a partnership between the NESG and AMDC for managing the AMV Private Sector Compact.

According to Ncube, “It will transform the continent’s mining sector into a catalyst for broader economic transformation, focusing on integrating mining into industrial and social development.” The transformation relies on investments in industrial linkages, enhancing local participation, and resource-based industrialisation.

He pointed out that the AMV Compact aligns with mining firms’ core values and practices, moving beyond mere compliance with national legislation. Following a model akin to the UN Global Compact, it encourages businesses to align their operations with universal principles around human rights, labour rights, environmental sustainability, and anti-corruption.

Despite governmental initiatives since 2005 to rejuvenate the mining industry, including law modernisation and geoscience data investment, issues persist. A NESG study identified key challenges, namely the lack of a regulatory commission, exclusion of sub-national governments, a misaligned exploration strategy, and fragile economic linkages.

The AMV Private-Sector Compact presents a cost-effective avenue for the private sector to engage with essential stakeholders, which is critical for creating a viable and sustainable mining environment that addresses governmental and societal needs while leveraging AMV mechanisms for development.

The African Mining Vision (AMV) aims to transform Africa’s mining sector by embedding it into the broader context of industrial and social development. It intends to facilitate economic growth through improved linkages among mining, local industries, and other sectors. The vision emphasises sustainable development and social responsibility, guiding private sector engagement and collaboration for better outcomes in mining. The recent unveiling during the Nigerian Economic Summit underscores its importance in revitalising Nigeria’s mining landscape.

The launch of the African Mining Vision signals a significant step towards revitalising Nigeria’s mining sector by fostering sustainable development and economic growth. By promoting collaboration between the government, private sector, and communities, it aims to address the sector’s challenges and enhance local participation. The initiative is expected to align mining practices with broader social and industrial objectives, benefiting all stakeholders involved.

Original Source: businessday.ng

The post Nigeria’s Mining Sector Transformation: The Role of African Mining Vision first appeared on Nigerian Mining News.