FG Embarks On Reforms In Solid Minerals Sector

By Georgina Humphrey

The Federal Government has embarked on reforms to boost investment by streamlining procedures and reducing hurdles to attract foreign investors in the solid minerals sector.

Minister of Solid Minerals Development, Dr. Oladele Alake stated this at the Mines & Money Conference in London, the United Kingdom.

Dr. Alake explained that all bottlenecks slowing down business transactions and security challenges in mining operations are among fresh commitments unfolded by the government.

The minister reminded the global mining community of the Federal Government‘s policies on how mining operations must benefit the communities and lead to processing instead of wholesale export of raw minerals.

“Nigeria is currently emphasizing on Solid Minerals Beneficiation and Value-Addition as a panacea for quick and sustainable growth of the Mining Industry. By adding value to our raw materials, we do not only create higher value products but also generate employment opportunities for our teeming youths and increase the sector’s overall profitability and contribution to the nation’s GDP”, he said.

Dr. Alake urged investors to support the socio-economic development of the communities where they mine to make mining mutually beneficial.

The minister who called for more investment in Nigeria noted that there are unique advantages such as lower production cost due to surface mining and billions of dollars of untapped minerals.

Dr. Alake added that recent reports by an audit firm indicates that mining contribution to Nigeria’s GDP rose from 0.3 percent to 0.85 percent last year, indicating 0.63 percent year on year growth.

“The country’s geological bounty encompasses over 44 distinct mineral types, found in exploitable quantities across more than 500 locations. Recently, recognizing the evolving global landscape and in response to emerging trends, Lithium has been included as a crucial strategic mineral of global consequence.” he stated.

Dr. Alake further explained that the recent launch of the revised guidelines for Community Development Agreement will provide social amenities, educational support, health and safety environmental facilities.

He stressed that progress made so far in creating a conducive environment for solid minerals development, includes fresh data by the Airborne Geophysical Survey, memorandum of understanding with a German firm to gather more data on solid minerals across the country and access to finance through a new funding facility launched by the Africa Finance Corporation and the Solid Minerals Development Fund.

Edited By Grace Namiji