FG determine resolve to diversify economy, create business-friendly environment in the mining sector

Favour Ishember, Abuja

In line with President Muhammadu Buhari’s determined resolve to diversify the economy, the Federal government has createdted a very business-friendly environment in the mining sector through reforms that grew out of the roadmap for the growth and development of the Nigerian mining industry.

Honourable Minister, Ministry of Mines and Steel Development, Arc. Olamilekan Adegbite stated this in his keynote address at the 5th edition of the Nigeria Mining week held virtually on 16th- 27th November.

Adegbite retareted that the mining sector is also being primed to be a huge job creator, broadening the spectrum of economic opportunities available to Nigerians through the pursuit of strategic policies; To this end, the ministry has continued to work hard to increase the revenue generated from the sector and its contribution to the national GDP.

With the team of this year’s event titled “Seven Compelling Reasons to Invest in Nigeria’s Mining Sector”, the Minister

explained that the country is endowed with over 44 different mineral types occurring in commercial quantities in over 500 locations across the 36 states and the Federal Capital Territory, These mineral endowments he said are broadly cut across the various mineral spectrums.

“We have industrial minerals such as barite, kaolin, gypsum, feldspar, and limestone. We are endowed with energy minerals such as bitumen, lignite, and uranium. We also have metallic ore minerals such as gold, cassiterite, columbite, iron ore, lead-zinc, and copper, he added.

Adegbite highlighted that the mining sector is also being primed to be a huge job creator, broadening the spectrum of economic opportunities available to Nigerians through the pursuit of strategic policies, and every policy initiated has been steeped in global best practices.

“Transparency has been our watch word and cornerstone upon which the mining industry has been administered, as we continue to foster a culture of openness which will, in turn, engender trust between all stakeholders in the industry.

“Carrying out this mandate through our various reforms is a drive towards creating value in the mining sector that would ultimately benefit the citizens”

The Minister added that the Ministry has been scaling up the capacity of the sector, transforming it into a strategic catalyst for domestic growth while also achieving a high level of global relevance.

As part of the mandate to develop the sector,the Ministry successfully hosted a virtual meeting with the 774 local government chairmen, chaired by the Vice President, Prof. Yemi Osinbajo in July 2021, the event was meant to creating opportunities for both local and foreign investors to exploit the various minerals occurring in each local government area to create jobs and empower members of the local host mining communities, he explained.

In the words of the Hon. Minister:”Just recently, we launched the Made in Nigeria Barite in Port Harcourt, as part of our modest efforts towards the development of industrial minerals. This initiative is expected to spur the promotion and growth of local content, boosting the economy with a corresponding increase in revenue”.

“The initiative would not only put Nigeria on the radar of the global mining communities, but would also save the country about $300 million in annual importation costs, thereby creating employment opportunities for the teeming population.

“The Ministry will also commission an open marketplace portal that will connect all stakeholders along the barite value chain to a hub that allows for easy coordination, stocking, effective costing, and seamless sale of barite, as we adhere to the ease of doing business initiative.

“We have commenced one pilot project per geopolitical zone in order to enhance local content along the mineral value chain. This is in line with our mandate to fast-track mineral processing in the country using a cluster approach. Each cluster will be equipped with modern equipment and technologies to support a network of miners, processors, skills development providers, logistics providers” he added.

Most importantly, Adegbite said the Ministry have also commenced the process of retrieving Nigeria’s colonial geological data from the United Kingdom by engaging the British Geological Survey (BGS) to build a national electronic geo-data archiving management system to be called the Nigerian Geo-data Center at the Nigerian Geological Survey Agency (NGSA). This , he said would provide easy access to geo-science data for prospective investors on potential areas to target for exploration and mining within and outside Nigeria.

The BGS will also integrate historical geo-data of Nigeria into NGSA and the National Steel Raw Materials Exploration Agency (NSRMEA) into the system.The Mining Cadastre Office has been repositioned to promote transparency in mineral title administration. He said.

“The processes have been streamlined to enable investors to apply online and obtain licenses and leases within and outside Nigeria. We are also establishing MCO offices in the six geo-political zones. They include Jos, Enugu, Ibadan, Kaduna, Maiduguri, and Benin. From the revenue drive perspective, MCO has demonstrated marked improvement despite the challenges of the pandemic. It grew its revenue from N2.3 billion in 2020 to N3.88 billion in 2021 as of October 31st, with two months still remaining in this year to achieve higher revenue”

The Minister however , urge those who are still dithering about investing in the Nigerian mining sector to take the leap as Nigeria still provides one of the highest rates of return on mining investment the country’s minerals are closer to the surface, conferring the advantage of lower cost of production when compared to other mining jurisdictions.

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