Nigeria has intensified efforts to utilise its vast Mineral resources and position the Mining industry as a pivotal driver of economic diversification. The recently concluded 9th edition of the National Mining Week in Abuja brought together government officials, mining stakeholders, international investors, and industry experts to deliberate strategies to transform the sector into a major economic powerhouse. Themed “From the Inside-Out: Building the Mining Sector to Be the Cornerstone of Nigeria’s Economy,” the three-day event showcased the government’s resolve to capitalise on its rich mineral deposits while addressing systemic challenges affecting development.
Meanwhile, the nation holds notable mining potential with over 40 identified mineral resources, including tin, iron ore, gold, zinc, and lithium, which are critical components in electric vehicle batteries. The government plans to mandate local processing of extracted minerals to create jobs and ensure value addition before export. Authorities emphasised that past practices, where raw minerals were exported without processing, often deprived the country of much-needed Revenue and industrial growth. By enforcing policies that require Investors to establish local processing plants, Nigeria aims to retain more economic benefits within its borders.
Strategic initiatives to revive the sector and combat illegal activities.
During the event, the Minister of Solid Minerals Development, Dele Alake, outlined a comprehensive strategy to modernise the industry. A key highlight was establishing a corporate entity representing the country in global mineral exploitation ventures. This entity, alongside the newly formed Nigerian Mining Corporation, will focus on maximising the potential of legacy sites and promoting international partnerships. The government has also revamped the licensing regime to ensure compliance with royalty payments and discourage its speculative practices. These measures are expected to create transparency, improve revenue collection, and strengthen investor confidence.
Illegal activities in the field have long been a major issue, depriving the government of notable revenue while causing environmental damage. To tackle this, a specialised Security outfit, the Mining Marshal Corps, has been established to monitor and enforce compliance across the sector. Authorities revealed that more than 300 illegal miners, including foreign nationals, have been arrested this year. Efforts are also underway to transition illegal operators into formal cooperatives, providing them with a legitimate pathway to contribute to the economy. Over 250 mining cooperatives and 150 new mineral-buying centres have been established, noting major progress in formalising the industry.
Using technology, laws, and funding to drive the sector reforms.
Recognising the role of Technology in driving transparency and efficiency, the Ministry of Solid Minerals Development has established a Centre of Excellence equipped with data analytics and Artificial Intelligence (AI). This advanced facility will be a decision-support hub, enabling better resource management and providing real-time insights into sectoral activities. Additionally, satellite technology is being deployed to monitor its operations, curb illegal activities, and enhance regulatory oversight. These technological advancements are expected to transform the industry into a globally competitive market.
Furthermore, the event also emphasised the need for stronger legislative and financial backing to drive reforms. The Senate and House Committees on Solid Minerals have pledged to collaborate on sectoral reforms, including measures to prevent Environmental Degradation and illegal activities. Legislators also called for increased budgetary allocations to the industry for 2025 to unlock its full potential. Moreover, the industry reforms align with President Bola Tinubu’s broader economic vision, emphasising industrial diversification and resource optimisation. The Minister of Steel Development, Prince Shuaibu Audu, noted the role of the iron and steel subsector in stimulating Economic Stability and growth, noting that strategic partnerships and investments could revitalise the industry.
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Despite its vast potential, the industry contributed only 0.77 percent to the country’s Gross Domestic Product (GDP) last year. Analysts attribute this to insecurity, weak enforcement of mining laws, and insufficient Investment in the sector. While these challenges persist, the government’s recent initiatives signal a renewed commitment to addressing systemic issues. Lastly, the MAN organised the event in collaboration with PwC and Vuka Group and continues to serve as a vital platform for stakeholders to explore solutions, promote investments, and encourage collaborations. With support from the Ministry of Solid Minerals Development, the event reflects the government’s commitment to transforming the industry.