When President Bola Tinubu assumed office on May 29, 2023, he pledged to diversify Nigeria’s economy and elevate its global standing. A critical component of this agenda is the revitalisation of the solid minerals sector.
Despite Nigeria’s endowment with 44 commercially viable minerals, including seven critical for the global energy transition, the sector’s contribution to the Gross Domestic Product (GDP) remains minimal. To address this, the Minister of Solid Minerals Development, Dele Alake, declared a state of emergency in the sector, highlighting illegal mining as a major driver of insecurity and revenue loss.
Key measures taken include the establishment of Mining Marshals, a special security outfit drawn from the Nigeria Security and Civil Defence Corps (NSCDC), to safeguard mining sites. So far, 2,570 personnel have been deployed, with over 300 illegal miners arrested and prosecuted.
A persuasive strategy has also been adopted to formalise the activities of artisanal miners. This includes the creation of 250 cooperatives to facilitate their transition to legal operations. Additionally, the Value Addition Policy mandates companies to provide detailed plans for processing minerals locally before mining licences are granted.
Infrastructure developments are underway, including the inauguration of an ultra-modern geochemical analysis laboratory in Niger State and a lithium processing facility in Nasarawa State. Tin mining and processing plants have also been commissioned, further boosting local mineral processing capacities.
In 2024, the government revoked 924 dormant mining licences to curb racketeering and attract serious investors. Meanwhile, the introduction of increased mining rates and charges aims to maximise royalties, particularly for high-demand minerals like lithium and gold.
The Nigeria Extractive Industries Transparency Initiative (NEITI) reported a marginal increase in the sector’s contribution to GDP, from ₦1.66 trillion in 2022 to ₦1.76 trillion in 2023. However, stakeholders believe the sector’s potential remains largely untapped due to challenges like state interference, over-regulation, and multiple taxation.
Significantly, the lifting of a five-year ban on mining in Zamfara, imposed due to rampant banditry, has been commended as a move to curb illegal activities and recover lost revenues. Stakeholders are urging stricter enforcement of policies, such as compelling International Oil Companies (IOCs) to utilise Nigerian barite, in line with local content laws.
Mining conferences, including the Nigerian Mining and Geosciences Society’s summit and Mining Week, have emphasised the role of advanced technology and public-private partnerships in fostering sector growth.
While progress is evident, stakeholders stress that consistent implementation of reforms is key to realising the sector’s potential. Minister Alake assured that more reforms and policies will be introduced in 2025 to build on the achievements of 2024 (Source: News Agency of Nigeria).
