Implementing certain strategies would enhance the transformation of Nigeria’s solid minerals sector into a sustainable and well-regulated industry that contributes significantly to national development, writes JOSEPH INOKOTONG.
NIGERIA, fortuitously located in the remarkably prospective West Africa’s mining region, is opening up its mining sector and taking aggressive steps to become an alternate mining destination.
For long, the sub-region has been a destination of choice for mining executives from all over the world, with countries like Burkina Faso, Ghana, Ivory Coast and Niger being actively explored and mined.
However, the mining industry is now a global one with many countries competing for exploration funds. The fierce international competition suggests that mining companies and their investment funds would only go to those countries where the enabling environment would allow the private sector to flourish without hindrance. Recent efforts of the Federal Government to create an orderly and sustainable development of the country’s minerals resources can be traced to the realization of this fact.
The policy thrust of the government on the mining sector is anchored on developing a private sector-led mining industry, with the government restricting its role to that of an administrator/regulator.
Analysts say Nigeria is currently in a wave of market reforms in many segments of its economy including the privatisation of government owned enterprises and mining assets after years of dithering and being weighed down under squandered oil revenues and rising debt burdens. The government has finally demonstrated the political will to implement market-friendly policies.
In this regard, Nigeria over the past couple of years deregulated the petroleum sector, began a programme of fiscal and monetary management convergence of the financial services system, and even the political sphere is at various stages of transformation of enormous proportion.
To improve efficiency, Nigeria restructured the Ministry of Mines and Steel Development in August 2023, creating two separate entities
Over the past two years, the Federal Government has implemented key policies and reforms to revitalise the mining industry, attract investment and strengthen the sector’s contribution to Gross Domestic Product (GDP). Recent government-led initiatives have streamlined licensing processes, removed bottlenecks and simplified market entry for international investors, enhancing production across the country’s 44 solid mineral types.
As Africa’s premier mining investment event, African Mining Week (AMW) 2025 will convene, Nigerian and African stakeholders have a golden opportunity to interact with global investors and industry leaders to drive deal-making and accelerate sector growth.
In May 2024, the Nigerian Geological Survey Agency unveiled the Mineral Resources Decision Support System to provide global investors with easy access to geological and policy data. The platform markets Nigeria’s vast mineral resources and critical infrastructure, assisting investors in making informed decisions about the country’s mining sector. By enhancing data transparency and accessibility, the system aims to streamline investment processes and boost investor confidence in Nigeria’s mining industry.
To improve efficiency, Nigeria restructured the Ministry of Mines and Steel Development in August 2023, creating two separate entities. The Ministry of Solid Minerals Development focuses on upstream activities and investment facilitation, while the Ministry of Steel Development oversees the development of steel and metallic resources to drive industrial growth. This restructuring aims to enhance sector-specific governance, attract targeted investments and accelerate the country’s mineral and steel value chain development.
The Nigerian Minerals and Mining Bill approved in April 2023 and currently under public review, aims to introduce incentives for foreign investors while strengthening local content requirements. Once enacted, it will become the sector’s primary legal framework, enhancing transparency and investor confidence. The bill is also expected to modernize regulatory oversight, ensuring sustainable resource management and aligning Nigeria’s mining sector with global best practices.
However, the Nigerian Minerals and Mining Act, 2007, is the primary law governing the country’s mining sector, regulating all aspects of solid mineral exploration and exploitation. It replaced the Minerals and Mining Act of 1999 and is administered by the Ministry of Mines and Steel Development.
The Act aims to regulate all aspects of the exploration and exploitation of solid minerals in Nigeria.
Key provisions include mineral ownership. The Act vests ownership and control of mineral resources in the federal government for the common good and benefit of the citizens. It establishes a Mining Cadastre Office (MCO) as the sole agency responsible for administering mineral titles. Mineral Titles: The Act outlines the process for obtaining reconnaissance permits, exploration licenses, small-scale mining leases, mining leases, quarry leases, and water use permits.
Community Development Agreements: It mandates that holders of mining leases, small-scale mining leases, or quarry leases conclude Community Development Agreements (CDAs) with host communities to ensure the transfer of social and economic benefits.
Environmental Protection: The Act defines obligations of holders of mining titles respecting the environment, requiring environmental impact assessments and environmental protection and rehabilitation programmes, and establishes a Solid Minerals Development Fund.
The Act is administered by the Minister for Solid Minerals Development, who has overall responsibility for the development of a well-planned and coherent programme for exploiting Nigeria’s mineral resources.
While the 2007 Act is the current law, there have been discussions and efforts to revise the Minerals and Mining Act, with the goal of enhancing the sector and addressing challenges.
Implementation of Nigeria Mineral Value Chain Regulations began in July 2021. The Nigeria Mineral Value Chain Regulations mandates local processing of raw minerals such as gold and lithium, encouraging downstream investment. Following this policy, China’s Avatar Energy Materials Company launched a 4,000-ton-per-annum lithium processing facility in Nasarawa State in May 2024, while Ming Xin Mineral Separation Nig Ltd. is developing a lithium processing plant in Kaduna State to support EV e-battery production. These investments mark a significant step toward positioning Nigeria as a key player in the global critical minerals supply chain. Against this backdrop, AMW 2025 will provide a platform for industry leaders to explore Nigeria’s evolving mining landscape and engage with global investors.
African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1–3 in Cape Town.
For Nigeria to achieve an orderly and sustainable development of its solid mineral resources, the government and stakeholders need to implement a well-structured strategy that includes policy reforms, infrastructure development, environmental sustainability, and investment attraction.
Key among them include strengthening regulatory framework and governance; enforcing the Minerals and Mining Act (2007); strengthening oversight institutions like the Ministry of Mines and Solid Minerals Development; establishing a transparent licensing system to eliminate illegal mining and corruption. Decentralize mining governance by empowering state governments to collaborate with federal authorities.
Also, local and foreign investment should be attracted to the sector by providing fiscal incentives like tax holidays, reduced royalties, etc., to attract serious investors. A solid mineral development fund to support small-scale miners and research is needed in addition to partnering with international mining firms for technology transfer and skill development.
Efforts should be geared towards improving infrastructure and logistics by upgrading road networks and rail systems to mining sites.
Government should establish mineral processing zones to encourage local value addition before export, and improve access to electricity for mining operations.
The country should promote environmental sustainability by enforcing strict environmental impact assessments (EIAs) before granting mining licenses; mplement mine closure and reclamation policies to prevent land degradation, and encourage the use of eco-friendly mining technologies.
Conscious effort should be made to develop human capital and local content; strengthen geosciences education in universities and technical schools; create training programmes for artisanal and small-scale miners, and encourage local content policies to ensure Nigerians benefit from the mining sector.
The authorities should combat illegal mining and smuggling; establish a task force to monitor and shut down illegal mining operations; work with border security agencies to curb mineral smuggling, and provide alternative livelihood programmes to encourage formalisation of artisanal miners.
The economy can be diversified through mineral development by using solid minerals to support industrialisation like steel production, cement, lithium for batteries, etc., and encourage the development of a mineral-based manufacturing sector.
Implementing these strategies would enhance the transformation of Nigeria’s solid minerals sector into a sustainable and well-regulated industry that contributes significantly to national development.
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