Mohammed Shosanya
The Nigerian Economic Summit, has lamented the impact of the country’s mining sector on Nigeria’s Gross Domestic Product,GDP.
The group said,the sector’s contribution to the GDP accounts for less than one percent despite the Federal Government’s ongoing efforts to revitalise the mining industry since 2005—through modernising mining policies, laws, regulations, and investing in geoscience data.
At the pre-30th Nigerian Economic Summit (#NES30) webinar on Tuesday, the NESG noted with concern the sector’s low contributions to employment, revenue, and exports, coupled with significant environmental, social, and economic impacts, which highlight the urgent need for comprehensive reform.
The group advocated the need for urgent comprehensive reform in the mining sector.
Speaking,Engr. Mansur Ahmed, Private Sector Co-Chair of the MMPC Steering Committee, emphasised that the pre-summit webinar was crucial for developing policy options to unlock the full potential of Nigeria’s economy.
He acknowledged the vast potential of the mining sector, which remains unrealised due to challenges such as conflicts, terrorism, banditry, and inadequate sectoral reforms.
He also highlighted the importance of aligning Nigeria’s mining sector with the African Mining Vision (AMV), a policy framework adopted by the African Union in 2009, aimed at ensuring that the continent’s mineral resources contribute significantly to sustainable development.
In his presentation,Professor Peter Akper, disclosed the untapped potential of Nigeria’s mineral resources, which could significantly boost GDP, revenue earnings, and foreign exchange, if properly harnessed.
He noted that while reforms were initiated to reposition the sector, challenges such as security concerns, weak regulatory enforcement, and illegal mining activities have hampered progress.
He called for stronger collaboration between the Federal Ministry of Solid Minerals and the Bureau of Public Enterprises (BPE) to implement structural reforms that could potentially increase GDP by 2.35%, create jobs, diversify government revenue streams, and attract foreign investments.
In his keynote address, Mr. Mkhululi Nkosilamandla Ncube, Programmes Officer at the African Minerals Development Centre (AMDC) of the African Union Commission, underscored the AMDC’s commitment to mainstreaming the AMV across African nations.
He said that the AMV is designed to help countries maximise the benefits of mining, facilitating industrialisation and broader socio-economic development.
Mr. Ncube highlighted that Nigeria, as one of the founding members of the AMDC and a recent signatory to the AMV, is well-positioned to leverage these opportunities for growth and transformation.
During the panel session, Dr. Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), presented key findings from NEITI’s Solid Minerals Audit Reports, which identified governance, procedural, and operational shortcomings within the mining sector.
He emphasised the need for comprehensive reforms, drawing parallels with the successful implementation of the Petroleum Industry Act.
Mr. Ayodeji Ariyo Gbeleyi, Director General of the Bureau of Public Enterprises (BPE), shared insights from the BPE’s experience in reforming key economic sectors such as communications, electric power, petroleum, and transport.
He provided a framework for how similar reforms could be applied to the mining sector.
Prince Adetokunbo Kayode, President of the Nigeria Private Sector Alliance, and Mr. Dele Ayanleke, National President of the Miners Association of Nigeria (MAN), also contributed to the discussions, highlighting the current operating environment in the mining sector and the increasing challenges posed by regulatory interference at the subnational level.
Mrs. Amina Sijuwade, Director of Iron Ore Mining Ltd, emphasised the need for a stronger legal and regulatory framework, better sectoral administration, and improved access to geoscience data to attract investment and drive growth in the mining sector.
The NESG said it remains committed to driving conversations that will lead to the transformation of Nigeria’s mining industry, aligning it with the AMV, and ensuring that the country benefits from its vast mineral wealth.
The webinar event focused on, “Leveraging the African Mining Vision for Nigeria’s Mining Industry Transformation and Growth.”
