Nigeria’s mining sector holds vast potential, yet inefficiencies have hindered its growth, resulting in widespread illegal mining and a lack of equitable development. One of the key challenges lies in the large number of inactive mining licenses — over 85% of the licenses issued by the government remain unused. These dormant licenses, often held by foreign companies or individuals who lack the capacity to operate, exacerbate inequality and stifle local economic growth.
The absence of active mining operations contributes to the rise of illegal mining. As many licensed sites sit idle, local communities, particularly in areas rich in minerals, often resort to unregulated mining, which poses serious environmental and human risks. In response to these issues, Nigeria has launched several reforms, including the introduction of an electronic mining cadastral system aimed at improving the efficiency and transparency of the mining license application process.
This digitisation effort simplifies licensing, reducing bureaucratic delays and helping to eliminate corruption. It also increases accountability by allowing the government to track the status of mining sites more effectively. However, experts believe more is needed to fully address the sector’s inefficiencies. One suggested measure is the revocation of inactive licenses and reallocating them to operators who can utilise them, ensuring that these resources benefit the local economy rather than contributing to the proliferation of illegal mining.
Additionally, experts argue that greater involvement of local communities in the mining process is essential. The government must prioritise equitable revenue-sharing mechanisms, where local stakeholders benefit from mining activities in their areas. By ensuring that mining operations contribute to local economic development, Nigeria can reduce inequalities and foster a more sustainable mining industry.
Ultimately, for Nigeria’s mining sector to fulfil its potential, reforms must go beyond streamlining licenses. It requires a comprehensive approach that includes stricter enforcement, local empowerment, and the elimination of dormant mining rights. With these changes, the sector can become a catalyst for economic growth and environmental protection.