BY AKUDORO GLORIA
The Federal Government’s, on Tuesday, reiterated its commitment to transform Nigeria’s mineral sector into a cornerstone of the economy marking a significant shift in the nation’s economic diversification agenda.
Nigeria has been underdeveloped in other vital industries, such as mining, for decades due to its reliance on oil money. But a bold move towards sustainable growth and international competitiveness is indicated by the current administration’s drive to unlock the nation’s enormous natural riches, including gold, lithium, and other vital minerals.
President Bola Ahmed Tinubu who spoke at the 9th Nigeria Mining Week in Abuja, through the Minister of Innovation, Science, and Technology, Chief Uche Geoffrey Nnaji, expressed the administration’s commitment to leveraging the untapped potential of the solid minerals sector for economic growth and international competitiveness.
According to him, the theme of the event, “From the Inside-Out: Building the Mining Sector to be the Cornerstone of Nigeria’s Economy,” captures the government’s intent to adopt a holistic approach to developing the sector.
“We gather not just to convene, but to chart a transformative path for Nigeria’s mining industry, a transformative path in an industry brimming with the potential to fuel our economy and secure a future of shared prosperity.
“Under the remarkable leadership of the Honorable Minister of Solid Minerals, Dr. Henry Alake, our nation’s mining agenda has entered a new chapter. His dedication has reinvigorated our approach, addressing challenges with a vision that positions Nigeria’s mining sector as the backbone of economic growth. Together, we are shaping a mining sector that can stand as a global model of innovation, resilience and sustainable development,” said Mr. President.
In his remarks, the Minister of Solid Minerals Development and the Host of the 2024 Nigeria Mining Week, Dr. Dele Alake, highlighted the administration’s Renewed Hope Agenda, which positions mining as central to Nigeria’s economic growth.
“Nigeria’s economy is the cornerstone of the mining sector from the inside-out. Thus, it signifies a bold and ambitious vision and one that speaks to our determination to transform the Nigerian mining sector into a pillar of the Nigerian economy. Last year, at the 8th edition of this very same event, I did welcome you to a time of great changes in the country’s mining sector, and I sought your cooperation and collaboration.
“I did emphasize, then, that the seven-point agenda of strategic intervention in the sector emerged from critical research and analysis of the micro and macro components of the sector, enabling a holistic, global, and panoramic dissection of the gain and the pain of the sector,” he stated.
Dr. Alake who outlined significant progress, including the prosecution of over 300 illegal miners and ongoing policy reforms aimed at maximizing the sector’s contributions, appealed to Nigerians to support the government’s efforts, citing his success in transforming Lagos State as evidence of what can be achieved through collective action.
Also speaking, the Minister of Steel Development, Prince Shuaib Abubakar Audu, disclosed Federal Government’s decision to privatise the fore-most integrated Steel Plant at Ajaokuta and its captive Iron Ore Mine at Itakpe, as procurement process for the selection of the technical audit firm has been completed and the auditing of the entire plant will commence before end of the year.
Highlighting ongoing activities, the Minister said, “We are working to also sign a Memorandum of Understanding with Ministry of Defence and Defence Industry Corporation of Nigeria (DICON) for the production of major input materials for the manufacturing of military hardware using the Five (5) Engineering Workshops in ASCL.
“A high-level executive meeting with Mr. President was held in July, 2024 and we were given a matching order to ensure that all issues encumbering the commencement of operation be resolved. Relevant stakeholders are currently working to address critical issues of sustainable and competitive gas pricing regime, power generation and evacuation into the national grid, ownership tussle and dredging of Imo River.
“We have also followed up on;
The landmark investment resolution reached between Mr. President and the President of Jindal Steel Group in India on the sidelines of the G-20 Meeting in New Delhi in 2023. Messrs. Jindal Steel Group has pledged to invest about $5 billion USD for the setting up of another 5 million tons steel plant in Nigeria and we are already providing the enabling environment through different organs of Government. This singular investment alone will require over 20 million tons of different steel raw materials to feed the Plant.
“The Inner Galaxy Group’s is investing about USD 300 million in a new Steel Plant in Ogun State to produce Galvanized Steel Profiles for the Automotive Industry.
The Bell Oil and Gas USD 100 Million investment in Pipe Value Assembly and Composite Pipe manufacturing Facility in Lekki Free Trade Zone, Lagos and a host of others.”
In his address, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, who presented findings from the 2023 Solid Minerals Audit Report, which underscore the sector’s incremental progress, said, in 2023, Nigeria produced 95.07 million tonnes of solid minerals, generating ₦9.01 billion in royalties. Exports rose to 4.32 million metric tonnes valued at ₦117.29 billion.
Dr. Orji stressed that despite these achievements, the sector’s contribution to GDP remains modest at 0.75% in 2023, indicating significant untapped potential. Since 2007, the sector has contributed ₦1.137 trillion ($3.86 billion) in direct government payments, showing steady growth in revenue and compliance.
Earlier, the President of the Miners Association of Nigeria, Mr. Dele Ayanleke, reiterated the spread of the deposits of the various minerals across the 774 local council areas of this nation, stating that the mining sector in Nigeria distributes wealth evenly and accelerates poverty reduction through value chain development.
He appealed to national and subnational officials to respect constitutionality and existing laws in managing mineral resources.
Chairman of the Senate Committee on Solid Minerals, Senator Ekong Sampson, declared, “Nigeria has no reason to be poor,” and called for stronger collaboration between the executive and legislative arms.
Similarly, the Chairman House Committee on Solid Minerals’, Hon. Garza Jonathan Gbefwi, advocated for increased funding in the 2025 budget, describing the sector as key to addressing Nigeria’s economic challenges.
