Dr. Dele Alake (Nigerian Mining)

Nigeria is positioned as a key player in the global energy transition, endowed with seven critical minerals essential for sustainable energy technologies. These include lithium, gold, and copper, among others, which are available in commercial quantities. Despite possessing 44 minerals in significant deposits, the solid minerals sector’s contribution to the nation’s GDP remains minimal, a challenge analysts hope will change with ongoing reforms.

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    The Honourable Minister of Solid Minerals Development, Dr. Dele Alake, has implemented a series of measures to revitalise the sector. Among these is the declaration of a state of emergency aimed at sanitising the industry and curbing illegal mining. This declaration has led to the revocation of licences for defaulting operators and the arrest of over 300 illegal miners, signalling a strong stance against unlawful activities.

    Tackling Insecurity in Mining Communities

    Recognising insecurity as a major impediment to mining activities, especially in regions like Zamfara, Plateau, and Niger states, the government has initiated the establishment of a special security outfit known as Mining Marshals. While this initiative is still undergoing legislative processes, it aims to enforce mining laws and ensure the safety of legal operators. The lifting of a five-year mining ban in Zamfara has also been described as a positive step, though concerns about lingering insecurity persist.

    Infrastructure and Policy Reforms

    The government has commissioned an ultramodern analysis laboratory in Niger State and a lithium processing facility in Nasarawa State, enhancing Nigeria’s capacity for value addition. Under the new value addition policy, miners are encouraged to process raw minerals locally before export, creating jobs and fostering skill development. This policy mirrors efforts in the oil sector to reduce dependency on importing refined products.

    Additionally, efforts to formalise artisanal mining have led to the establishment of cooperatives and the issuance of permits to small-scale miners, reducing illegality and enhancing sector organisation.

    Industry Insights

    Speaking on these developments, Jegede Abiodun Paul, Chairman of Japaul Group of Companies, commended the government’s initiatives but noted that challenges remain. “The state of emergency has brought significant improvements, particularly in addressing illegal mining and formalising artisanal activities. However, the Mining Marshals need to be fully operational to ensure long-term impact,” he said.

    Paul also highlighted the importance of the value addition policy, comparing it to Nigeria’s experiences in the oil sector. “By processing minerals locally, we create jobs and build expertise. It’s a step in the right direction, though its implementation needs to be consistent,” he added.

    Mining Marshal, ACC J. A. Onoja (Nigerian Mining)
    Mining Marshal, ACC J. A. Onoja

    The Nigerian government’s recent reforms signal a renewed commitment to unlocking the potential of the solid minerals sector. If sustained and supported with adequate security measures and infrastructure, these initiatives could transform the sector into a significant revenue source for the country. However, stakeholders stress the need for robust enforcement, transparency, and community engagement to ensure these efforts yield long-term benefits.

    With global demand for critical minerals rising, Nigeria’s position as a resource-rich nation presents a unique opportunity to align its economic goals with the global energy transition agenda.

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