The federal government has reaffirmed its commitment to transform Nigeria’s mining and solid minerals sector into a key driver of economic growth and diversification.
Speaking at the 9th Nigeria Mining Week in Abuja, President Bola Tinubu, represented by Uche Geoffrey Nnaji, the minister of Innovation, Science, and Technology, highlighted the government’s resolve to reposition the sector. He emphasized its potential to not only stimulate economic expansion but also enhance Nigeria’s global standing.
Tinubu stated, “We gather to chart a transformative path for Nigeria’s mining sector, with the promise of driving our economic revival and ensuring shared prosperity. Under the leadership of the minister of Solid Minerals, Dr. Dele Alake, our mining sector is set for a renaissance that will establish it as a global example of resilience and sustainable growth.”
Renewed Hope Agenda
Dr. Alake outlined the administration’s seven-point agenda, designed to address challenges and unlock the sector’s vast potential. He reported significant milestones, including the prosecution of over 300 illegal miners and the development of policies aimed at maximizing economic contributions from the sector.
“Our vision is to establish a mining industry that serves as the cornerstone of Nigeria’s economic resurgence. With strategic interventions, we aim to build a foundation for robust growth,” Alake said, urging Nigerians to support ongoing reforms.
Legislative and stakeholder support
Legislators pledged to back the sector’s revitalization, with Senator Ekong Sampson stressing the need for collaboration between government arms. He remarked, “Nigeria has no justification for poverty. The mining sector is central to unlocking our economic potential.”
The president of the Miners Association of Nigeria, Dele Ayanleke, also called for systemic reforms, citing the sector’s potential to alleviate grassroots poverty through wealth distribution, given its presence in all 774 local government areas.
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Ajaokuta Steel revival on track
Prince Shuaib Abubakar Audu, the minister of Steel Development, revealed that the Ajaokuta Steel Company is expected to resume operations before 2025. He disclosed plans to privatize the steel plant and its associated Iron Ore Mine in Itakpe to reduce Nigeria’s $4 billion annual steel import bill.
“We have signed an MoU with the plant’s original builders, Messrs TPE, and their Moscow-based partners, and a technical audit of the facility is set to begin by year-end,” Audu said.
Untapped potential and future outlook
Despite producing 95.07 million tonnes of solid minerals and earning N9.01 billion in royalties in 2023, the sector’s contribution to Nigeria’s GDP remains low at 0.75%. This highlights significant untapped potential, as noted by Dr. Orji Ogbonnaya Orji, executive secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI).
The government’s renewed focus on mining and steel development seeks to position these industries as engines of economic growth, fostering wealth distribution and reducing Nigeria’s dependency on oil revenue.
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