The Nigerian Economic Summit Group (NESG) convened a crucial pre-30th Nigerian Economic Summit (#NES30) webinar on August 13, 2024, centered on harnessing the African Mining Vision to propel Nigeria’s mining industry towards transformation and growth. Despite the Federal Government’s sustained efforts to revitalize the mining industry since 2005—through the modernization of mining policies, laws, regulations, and investments in geoscience data—the sector’s contribution to Nigeria’s GDP remains negligible, standing at less than 1 percent, according to the National Bureau of Statistics (2024). The sector’s limited contributions to employment, revenue, and exports, compounded by significant environmental, social, and economic repercussions, underscore the urgent necessity for comprehensive reform.
In his welcoming remarks, Engr. Mansur Ahmed, Private Sector Co-Chair of the MMPC Steering Committee, emphasized the pre-summit webinar’s critical role in formulating policy options to unlock the full potential of Nigeria’s economy. He acknowledged the mining sector’s immense potential, which remains untapped due to challenges such as conflicts, terrorism, banditry, and insufficient sectoral reforms. Engr. Ahmed also underscored the significance of aligning Nigeria’s mining sector with the African Mining Vision (AMV), a policy framework adopted by the African Union in 2009, aimed at ensuring that the continent’s mineral resources contribute substantially to sustainable development.
Professor Peter Akper, in his presentation, highlighted the untapped potential of Nigeria’s mineral resources, which could substantially boost GDP, revenue earnings, and foreign exchange if effectively harnessed. He noted that while reforms were initiated to reposition the sector, challenges such as security concerns, weak regulatory enforcement, and illegal mining activities have hindered progress. He advocated for stronger collaboration between the Ministry of Solid Minerals and the Bureau of Public Enterprises (BPE) to implement structural reforms capable of potentially increasing GDP by 2.35%, creating jobs, diversifying government revenue streams, and attracting foreign investments.
Delivering the keynote address, Mr. Mkhululi Nkosilamandla Ncube, Programmes Officer at the African Minerals Development Centre (AMDC) of the African Union Commission, underlined the AMDC’s commitment to integrating the AMV across African nations. He pointed out that the AMV is designed to assist countries in maximizing the benefits of mining, facilitating industrialization and broader socioeconomic development. Mr. Ncube emphasized that Nigeria, as a founding member of the AMDC and a recent signatory to the AMV, is strategically positioned to leverage these opportunities for growth and transformation.
During the panel session, Dr. Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), presented key findings from NEITI’s Solid Minerals Audit Reports, which identified governance, procedural, and operational deficiencies within the mining sector. He stressed the need for comprehensive reforms, drawing parallels with the successful implementation of the Petroleum Industry Act.
Prince Adetokunbo Kayode, President of the Nigeria Private Sector Alliance, and Mr. Dele Ayanleke, National President of the Miners Association of Nigeria (MAN), also contributed to the discussions, highlighting the current operating environment in the mining sector and the escalating challenges posed by regulatory interference at the subnational level.
Mrs. Amina Sijuwade, Director of Iron Ore Mining Ltd, emphasized the necessity for a more robust legal and regulatory framework, improved sectoral administration, and enhanced access to geoscience data to attract investment and stimulate growth in the mining sector.
Looking Ahead to NES #30:
The 30th Nigerian Economic Summit, themed “Collaborative Action for Growth, Competitiveness, and Stability,” is scheduled to take place from October 14-16, 2024, at the Transcorp Hilton Hotel in Abuja. The Summit will convene stakeholders from across various sectors to address common challenges, create shared opportunities, and chart a path towards a unified, competitive, and prosperous future for Nigeria and the African continent.