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 The mining act remains outdated, offering no space for independent regulation and failing to foster inter-sector connections.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

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