"Why Nigeria\u2019s solid minerals sector is crawling"

" Why Nigeria\u2019s solid minerals sector is crawling \r\nNigeria, which boasts\u00a0 44 different types of minerals \u00a0in commercial quantity, did not earn a trillion naira in total revenue from the solid minerals sector in 15 years.\r\n\r\nData obtained from the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed that the sector contributed N818.04 billion ($3.2 billion) to the Federal Government\u2019s receipts between 2007 and 2021.\r\n\r\nNigeria has gold, manganese, bitumen, lithium, iron ore, lead, zinc, limestone, uranium, gemstones, coal, topaz, and copper in commercial quantity in over 500 locations in the 36 states and the Federal Capital Territory (FCT).\r\n\r\nAccording to the National Bureau of Statistics, the country earned N60.11 billion in the first half of 2023, accounting for 0.56 percent of total trade.\r\n\r\nThe solid minerals industry report by NEITI showed that the country made N121 billion in 2021, accounting for a 51.89 percent increase from the previous year.\r\n\r\nNEITI revealed that only limestone and granite were the most produced minerals in 2021, accounting for about 74.4 percent of total production. However, the sector contributed a meagre 0.63 percent to the country\u2019s economy.\r\n\r\n\u201cImproving the contribution of the solid minerals sector to the economy would require significant efforts in terms of infrastructure development, exploration and mining activities, investment attraction, and policy reforms,\u201d said Umar Oba Adelodun, vice president, commercial at OAT Ltd.\r\n\r\nHe said the government would need to provide adequate support and incentives to encourage both local and foreign investors.\r\n\r\n\u201cAdditionally, there should be a focus on improving the regulatory framework, addressing issues of illegal mining, and promoting sustainable practices in the sector,\u201d he said. \u201cWith a comprehensive and strategic approach, Nigeria can make significant progress towards reaching its target.\u201d\r\n\r\n Exports and destinations \r\n\r\nNEITI said China accounted for 95 percent and 88 percent of the total export volume and value, respectively, in the period. Others are Malaysia (4.64 percent), Korea (1.41 percent), Thailand (1.17 percent), and the UAE (1.11 percent).\r\n\r\nThe industry report showed that 143,000 tonnes of minerals were exported during the period.\r\n\r\nStates\u2019 contribution to production\r\n\r\nAccording to the report, Ogun, Kogi, Edo, Cross River, and the FCT were the top solid mineral-producing states in 2021, with a total contribution of 66.49 percent to total production volume.\r\n\r\n Contribution by geopolitical zones \r\n\r\nThe North-Central, South-West, and South-South contributed the most to the total production with 31.2 percent, 30.5 percent, and 23.7 percent, respectively, in 2021. On the other hand, the South-East contributed the least, at 0.94 percent to production volume and 0.9 percent to royalty.\r\n\r\n Licence issuance improvement \r\n\r\nThe number of artisanal minerals operators increased by 85 percent to 2,336 across the country. NEITI said there was no commensurate data in production, royalty payments and exports, among others, to support this increase in operators.\r\n\r\n Dele Alake , minister of solid minerals, recently unveiled a comprehensive policy directive on curbing illegal mining and formalising the sector, among others.\r\n\r\n\u201cThe ministry has to take the bull by the horns if the country must reap the harvest of the trillion dollars worth of minerals under the ground across the country. To achieve this laudable objective, there has to be a paradigm shift in the strategy by re-positioning the sector in terms of the human and capital factors that can drive its transformation,\u201d the minister said.\r\n\r\n\u201cMining is big business. Nigeria must assert its presence in this environment by replicating its strategic positioning in the petroleum sector by setting up a corporate body that plays in this field. Consequently, the ministry shall work towards the incorporation of the Nigerian Solid Minerals Corporation,\u201d he added."

"Why Nigeria\u2019s solid minerals sector is crawling"

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