By our Correspondent
Nigeria’s mining sector has long been recognized as a vital component of the country’s economic diversification strategy. With an estimated $750 billion worth of mineral resources, the sector has the potential to contribute significantly to the country’s GDP.
However, despite its vast potential, the mining sector has faced numerous challenges, including inadequate policies, lack of infrastructure, and security concerns.
At the 7th inaugural lecture of Nigeria institute of Advanced Legal Studies (NIALS) titled: “Towards Realising The Potentials Of The Mining Sector: Policy, Legal And Institutional Reform Imperatives for Nigeria”, presented by Peter Terkaa Akper, a Research Professor of Law in Abuja, he asserted that In recent years, the government has made efforts to address these challenges through policy reforms and institutional frameworks.
He noted that the Nigerian Minerals and Mining Act of 2007 and the Nigerian Minerals and Mining Regulations of 2011 are examples of these efforts.
Akper however said despite these reforms, the sector still faces significant challenges, one of the major challenges is the lack of a comprehensive policy framework that aligns with the African Mining Vision.
Akper who is also a Senior Advocate of Nigeria (SAN), informed that another challenge is the inadequate legal and regulatory framework, which has led to conflicts between the federal government and state governments over regulatory control.
He said the absence of an independent sector regulator has also hindered the effective administration of the mining sector.
Furthermore, he noted that the availability of geoscience data is crucial for investment decisions, but Nigeria’s exploration strategy has been criticised for not focusing on legacy mines.
“The Road Map on the Development of the Solid Minerals and Metals Sector was launched in 2012 to ensure the realisation of government developmental objectives in the sector. It identified the challenges to the development of solid minerals to include: Inadequate geoscience data needed to support detailed mineral investigation, development and exploitation;
inadequate infrastructural facilities such as roads.
“Very high proportion of Artisanal and Small Scale Miners (ASM) operations deriving mineral exploitation in the country resulting in environmental degradation, and exposure to high risk and health hazards due to the use of unsafe mining and mineral processing practices; lack of adequate legislation, and low institutional and human capacity”.
He also noted that “the present wave of insecurity in the country has grave implications for the development of the mining industry. Nigeria has in recent times witnessed unprecedented security challenges such as terrorism, insurgency, banditry, kidnapping for ransom, farmer-herder clashes, etc.
“The drivers of insecurity in Nigeria are myriad but have been identified to include ineffective and inadequate security architecture, proliferation of small arms and light weapons, resources control agitations, high incidence of poverty and unemployment, porous borders, access to illicit drugs and psychotropic substances, climate change impacts, inefficient criminal justice systems, etc. These security challenges impact negatively on mining operations”.
To address these challenges, The professor said the government needs to develop a comprehensive policy framework that aligns with the African Mining Vision.
He also said the government also needs to establish an independent sector regulator to effectively administer the mining sector.
Additionally, Akper noted that the government needs to focus on providing adequate infrastructure, including roads, rail, and power grids, to support mining operations.
According to him, the government also needs to address security concerns and provide a safe environment for mining activities
“The mining sector has the potential to contribute significantly to Nigeria’s economic development, but it requires the right policies, laws, and institutional frameworks to unlock its potential.
“With the right policies and frameworks in place, Nigeria can attract investments, create jobs, and increase its GDP.
The government needs to prioritize the development of the mining sector and address the challenges facing it.
By doing so, Nigeria can unlock its mining potential and achieve economic diversification.
“The mining sector is not just a source of revenue; it also has the potential to create jobs and stimulate economic growth. Therefore, it is essential that the government takes the necessary steps to develop the sector”; Akper noted.
The professor who also has the national honor of OFR, recall that “Dele Alake, Nigeria’s Minister of Solid Minerals Development, said “Nigeria currently possesses a deposit of mineral products worth $750bn…the mining has the potential to contribute a large part of the nation’s goal to achieve a trillion-dollar economy”; he quoted.
The researcher added that the development of the mining sector requires a collaborative effort from all stakeholders, including the government, private sector, and civil society, by doing so, Nigeria can achieve economic prosperity and create a better future for its citizens.