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FG investing in mineral resources sector

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By Timothy Akintola

Mineral resources can be very important for our technological advancement.

Nigeria is blessed with numerous solid mineral resources capable of elevating its economic status quo. But over the years, the mineral resources industry has not been well utilized due to mismanagement and lack of investors. In fact, the Minister of Mines and Steel Development, Mr. Olamilekan Adegbite once noted that some foreign mining investors have little or no knowledge about Nigeria being a mining nation, with the lowest royalty rate of 3.5 percent, when compared to other mining nations being 17-20 percent rate depending on the mineral being mined.

The Minister said that Nigeria was fresh in the area of mining and as such, the need for the government to encourage mining investors to invest in the country’s mineral resources sector. However, the government have recently become so invested in efficiently maximizing the sector’s resources. One of the policies put in place by the federal government is the one hundred percent ownership of investment to stakeholders that invest in the mining sector, an incentive put in place to attract both local and foreign investors into the country’s mining industry.

Government supports make Nigeria an epicenter for change in mining sector.

Mr. Olamilekan Adegbite, during the prepress briefing of the Annual 6th Nigeria Mining week that took place in Abuja noted that the federal government was investing all of its political will and power towards the development of the solid mineral sector. The 2022 Nigeria Mining Week which have taken place via digital connection in the last two years, as a result of the Covid-19 pandemic, is set to be back in-person and is scheduled to hold between November 1-3, 2022 at the International Conference Centre (ICC) is themed, “Success and Achievements in the Mining Sector”. The Minister further asserted that the sector have received immense support from the government which have made Nigeria one of the epicenters for the impending technological change in the mining industry.

The mining sector has been positioned carefully to inherently support the diversification of supply chains, as well as the security of a global scale supply. On the impending event which is set to be organized by the Vuka Group, Pricewaterhousecoopers (PwC), in collaboration with the Miners Association of Nigeria (MAN), the Minister stated that the whole mining value-chain will reconnect and explore the numerous prospective opportunities that the mining sector can offer, whilst the achievements of the sector since the inception of the Mining Week will be showcased.

Mining week to promote Nigeria as the next big point for mining investment.

The Minister also said that the Nigeria Mining Week is part of the design to promote Nigeria as the next best destination for mining investment, as well as attending numerous global mining forums and making known the fact that Nigeria’s mining sector is ready for investment and immense development. He also noted that one of the key discussions that will take place in the conference is the important mineral resources that are pivotal for many technologies for the provision of green renewable energy. Thus, the conference will ensure networking with global colleagues, learning different expert analysis and deliberating on the latest challenges and opportunities that exists in the mining sector.

Mr. Adegbite has however encouraged executives from mining companies, ranging from explorers, junior and mid-tier producers, processors and investors to attend the three-days conference. Senator Gbemisola Saraki, the Minister of State, Ministry of Mines and Steel Development also noted that this year’s conference is set to welcome the entire mining ecosystem, including operators and companies to address important issues in the mining industry and ways to salvage them. She said the assertions will expound the direction of the country, imperatively creating long term plans that will help develop the mining and metals industry.

The mining sector to contribute $27 billion to Nigeria’s GDP by 2025.

The acting President of the Miners Association of Nigeria, Alhaji Mohammad also said that the sector is aimed at contributing 27 billion dollars to the country’s GDP by 2025. Based on the sector’s performance in 2021, he noted that there is a huge chance for this benchmark to be achieved, as well as this year’s edition, which offers the sector a good chance for highlighting the strengths of the mining industry. This year’s edition which is aimed at the success of the sector will pivotally reference Gold, Iron ore, Barite, Bitumen and Kaolin commodities.

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