By Martha Agas, News Agency of Nigeria (NAN)

When President Bola Tinubu assumed office on May 29 2023, he vowed to elevate Nigeria’s economic standing by diversifying its mono-cultural economy.

One of his key strategies is the revitalisation of the solid minerals sector.

This is important following Nigeria’s endowment with seven critical minerals needed for the global energy transition, all in commercial quantities.

In spite of the nation’s possession of 44 minerals in commercial quantities, analysts have lamented that the sector’s contribution to the country’s Gross Domestic Product (GDP) remains minimal.

Upon his appointment, the Minister of Solid Minerals Development, Dele Alake, declared a state of emergency in the sector.

He alleged that powerful individuals involved in illegal mining were funding banditry, thereby obstructing the sector’s revenue-generating potential.

He further noted that insecurity is closely linked to illegal mining activities in states where such operations occur.

For instance, in Zamfara, the Federal Government banned mining exploration in 2019 due to rampant banditry.

Similarly, states in the northern region, such as Plateau and Niger, continue to experience security challenges related to illegal mining.

To address these challenges, the government adopted a dual-pronged approach, combining coercive and persuasive measures.

As part of the coercive strategy, a special security outfit called Mining Marshals was established to protect mining sites nationwide.

Personnel were drawn from the Nigeria Security and Civil Defence Corps (NSCDC), and to date, 2,570 personnel have been inaugurated.

Over 300 illegal miners have also been arrested and prosecuted.

Meanwhile, the persuasive approach aims to formalise the activities of artisanal and illegal miners.

To this end, 250 cooperatives have been established to facilitate their transition to legal mining.

The minister also raised concerns about the under-valuation of Nigeria’s mineral resources in international markets.

To address this, he introduced the Value Addition Policy, requiring all companies seeking mining licences to present detailed plans for adding value to minerals before their licences are granted.

Stakeholders view this policy as promising, citing the recent inauguration of an ultra-modern analysis laboratory in Sabon-Wuse, Niger State, as a positive step.

The lab, owned by African Natural Resources and Mines Limited (ANRML), is equipped with state-of-the-art Wavelength Dispersive X-ray Fluorescence (WDXF) machines, offering comprehensive geochemical services essential for the exploration and mining industries.

According to reports, geochemical services play a pivotal role in selecting mining sites by identifying and quantifying valuable mineral deposits—an integral part of the value addition process.

In May, a lithium processing laboratory was inaugurated in Kama Oto, Nasarawa Local Government Area, Nasarawa State.

Similarly, in November, a tin mining processing plant was commissioned in Jida Community, Wamba Local Government Area, within the same state.

Stakeholders have lauded these developments, emphasising that mineral processing is just one aspect of value addition.

They note that branding and incorporating minerals into finished products are equally essential.

In line with Tinubu’s agenda, a new regime of increased rates and charges for all mining activities was introduced in July 2024.

According to the minister, this move aims to consolidate the sector economically, enhance services, increase transaction traffic, and improve infrastructure.

The new rates are expected to maximise royalties for critical minerals like lithium and gold, thereby boosting national revenue.

To sanitise the sector, the government revoked 924 dormant mining licences in April 2024.

Alake explained that the move was necessary to curb licence racketeering, which had hindered the sector’s development and deterred genuine investors.

By eliminating unserious players, the government hopes to attract major investors and increase revenue through Foreign Direct Investment (FDI).

Although the Nigeria Extractive Industries Transparency Initiative (NEITI)reported that the sector’s contribution to GDP increased from N1.66 trillion in 2022 to N1.76 trillion in 2023, major potential remains untapped.

Stakeholders argue that the sector’s contribution could rise further if issues such as state interference, over-regulation, and multiple taxation are adequately addressed.

They have also commended the Federal Government’s decision to lift the five-year ban on mining exploration in Zamfara, which had resulted in substantial revenue losses.

The minister explained that the ban created a vacuum that illegal miners exploited to plunder the nation’s resources.

Stakeholders believe that enforcing existing policies could further boost revenue.

For instance, the Association of Miners and Processors of Barite (AMAPOB) has urged the Federal Government to compel International Oil Companies (IOCs) to use Nigerian barite.

According to the association’s secretary, Patrick Odiegwu, the Nigerian Oil and Gas Industry Content Act of 2010 prescribes local content requirements that promote the use of indigenous products and services by IOCs.

An initiative that analysts say would greatly enhance national revenue.

In 2024, major mining conferences, such as those hosted by the Nigerian Mining and Geosciences Society, the African Natural Resources and Energy Investment Summit, and Mining Week, centred on innovations to strengthen the sector.

These events underscored the importance of advanced technology and public-private partnerships in boosting the mining industry and the economy at large.

While stakeholders acknowledge the current administration’s efforts to reposition the solid minerals sector, they stress the need for these resolutions to be translated into tangible actions.

They remain cautiously optimistic, noting that one year may be insufficient to fully assess the impact of these reforms.

Experts have called for consistent programmes, policies, and actions to build on the progress made so far.

In a recent press conference, the minister however assured that more reforms and policies are slated for implementation in 2025 to consolidate the achievements of 2024. (NAN Features)