FG Recommits To Diversifying Economy Through Mining Sector

The federal government has restated its plan to metamorphose Nigeria’s mineral sector into a linchpin of the national economy as part of its drive to diversify the economy.

Addressing the 9th Nigeria Mining Week in Abuja, President Bola Tinubu, represented by the minister of Innovation, Science, and Technology, Uche Geoffrey Nnaji, underscored the administration’s unwavering determination to transform the dormant solid minerals sector into a pivot for economic expansion and international prominence.

Tinubu remarked that the theme of the event, “From the Inside-Out: Building the Mining Sector to be the Cornerstone of Nigeria’s Economy,” encapsulates the government’s ambitious, integrative vision to holistically revitalise the mining industry.

President Tinubu remarked: “We assemble not merely to deliberate but to architect a transformative odyssey for Nigeria’s mining sector—an odyssey imbued with the promise to invigorate our economy and secure a future of shared prosperity.

“Under the exemplary stewardship of the minister of Solid Minerals, Dr Dele Alake, our nation’s mining trajectory has entered a renaissance. His visionary leadership has reinvigorated our strategic approach, tackling entrenched challenges with innovative foresight, thereby positioning the mining sector as the bedrock of Nigeria’s economic resurgence. Together, we are sculpting a mining sector poised to be a global paradigm of resilience, innovation, and sustainable advancement.”

In his keynote address, minister of Solid Minerals Development, Dr Alake, illuminated the administration’s Renewed Hope Agenda, which places the mining sector at the epicentre of Nigeria’s economic transformation.
He expounded: “Our vision is nothing less than the emergence of a mining sector that serves as the cornerstone of Nigeria’s economic resurgence—a bold and monumental ambition reflective of our resolve to elevate the sector into a vital pillar of national prosperity. At last year’s 8th edition of this forum, I extolled the dawn of profound change in the mining sector and solicited your unwavering collaboration.

“I emphasised then that the seven-point agenda of strategic intervention was borne of meticulous research and comprehensive analysis, encompassing both the micro and macro dynamics of the sector. This agenda represents a panoramic dissection of the challenges and opportunities, ensuring a pathway to robust growth.”

Dr Alake enumerated key milestones achieved, including the prosecution of over 300 illegal miners and ongoing policy overhauls aimed at maximising the sector’s economic contribution. He further appealed to Nigerians to rally behind the government’s reforms, drawing parallels to his transformative successes in Lagos State as a template for national progress.

Legislators also articulated their endorsement of the mining sector’s revitalisation, stressing the imperative for heightened investment.

Chair of the Senate Committee on Solid Minerals, Senator Ekong Sampson, affirmed, “Nigeria has no justification for poverty,” as he urged robust synergy between the legislative and executive arms of government.

Similarly, the chair of the House Committee on Solid Minerals, Hon Garza Jonathan Gbefwi, called for augmented budgetary allocations in 2025, deeming the sector integral to alleviating Nigeria’s economic tribulations.

He said: “Nigeria’s blessings are abundant; harnessing the latent potential of this sector is the linchpin to unlocking our collective prosperity.”

Presenting the 2023 Solid Minerals Audit Report, the executive secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Dr Orji Ogbonnaya Orji, chronicled the sector’s incremental advancements.

In 2023, Nigeria produced an impressive 95.07 million tonnes of solid minerals, accruing N9.01 billion in royalties. Export volumes reached 4.32 million metric tonnes, valued at N117.29 billion, he said.

According to him, despite these gains, the sector’s GDP contribution remains modest at 0.75 per cent, underscoring vast untapped potential. Since 2007, direct government payments from the sector have amassed N1.137 trillion ($3.86 billion), reflecting steady progress in revenue and compliance.

President of the Miners Association of Nigeria, Dele Ayanleke,called for a sweeping recalibration of the sector, citing governance bottlenecks and operational inefficiencies. He lauded the sector’s potential as a catalyst for wealth redistribution and grassroots poverty alleviation.

He stated: “With mineral deposits dispersed across all 774 local council areas, the mining sector holds the unparalleled capacity to foster equitable wealth distribution and expedite the exodus of Nigerians from poverty, as envisioned in the Honourable Minister’s 7-Point Agenda.”

Meanwhile, the minister of Steel Development, Prince Shuaib Abubakar Audu, announced that Ajaokuta Steel Company Limited is on course to commence operations before 2025. Highlighting the staggering $4 billion annual cost of steel imports, he delineated plans to privatise the steel plant alongside its captive Iron Ore Mine in Itakpe.

He said: “The federal government has resolved to privatise the Ajaokuta Steel Plant and its Iron Ore Mine at Itakpe. This process is well underway. We have recently signed a Memorandum of Understanding (MoU) with the plant’s original builders, Messrs TPE, and their Moscow-based partners. Furthermore, a technical audit of the entire plant will commence before year-end.”

These efforts underscore the government’s resolve to catalyse the mining and steel sectors as transformative engines of Nigeria’s economic renaissance, he added.