Experts advocate mining reforms to unlock economic growth

Nigeria’s mining sector has long been touted as a potential game-changer for the country’s economy, but despite efforts to revitalize the industry since 2005, its contribution to GDP remains a paltry less than 1%.

The Private Sector Co-Chair of the MMPC Steering Committee, Mansur Ahmed, at the pre summit of the 30th National Economic Summit Group anniversary, noted that the pre-summit webinar is crucial for developing policy options to unlock the full potential of Nigeria’s economy.

The webinar themed: ‘Leveraging the African Mining Vision for Nigeria’s Mining Industry Transformation and Growth’.

He also noted that the mining sector’s low contributions to employment, revenue, and exports, coupled with significant environmental, social, and economic impacts, highlight the urgent need for comprehensive reform.”

He acknowledged the vast potential of the mining sector, which remains unrealized due to challenges such as conflicts, terrorism, banditry, and inadequate sectoral reforms.

Ahmed 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.

Similarly, Professor Peter Akper, a renowned expert in the field, in his presentation, 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 emphasizes that “stronger collaboration between the Ministry of Solid Minerals and the Bureau of Public Enterprises (BPE) is crucial to implement structural reforms that could potentially increase GDP by 2.35%, create jobs, diversify government revenue streams, and attract foreign investments.”

Also, Mkhululi Nkosilamandla Ncube, Programmes Officer at the African Minerals Development Centre (AMDC) of the African Union Commission, stresses that “the African Mining Vision (AMV) is designed to help countries maximize the benefits of mining, facilitating industrialization and broader socioeconomic development.”

He said 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.

Dr. Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), highlights the need for comprehensive reforms, drawing parallels with the successful implementation of the Petroleum Industry Act.

He emphasized that “governance, procedural, and operational shortcomings within the mining sector must be addressed to unlock its full potential.”

As the 30th Nigerian Economic Summit approaches, Prince Adetokunbo Kayode, President of the Nigeria Private Sector Alliance, urges stakeholders to “chart a path toward a unified, competitive, and prosperous future for Nigeria and the African continent.”

Mrs. Amina Sijuwade, Director of Iron Ore Mining Ltd, echoes this sentiment, stressing 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.”

“Unlocking Nigeria’s mining potential requires a multifaceted approach that addresses the sector’s challenges and leverages opportunities for growth and transformation.”

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