Nigeria solid minerals revenue may top N5trn annually on proper regulation

With support, proper regulation and availability of crushing infrastructure, Nigeria can generate at least N5 trillion annually from mining and export of its vast solid mineral deposits.

This will have multiplier effects on job creation, government revenue, and growth.

According to metal exporters, the Federal Government should provide the enabling environment for the development of the Nigerian solid minerals sector. Metallic solid minerals such as zinc, tantalite and copper are the most exported solid minerals from Nigeria.

Seun Olatunji, president, Association of Metal Exporters of Nigeria, said there was the need for synergy between government agencies and private operators to unlock the values in solid minerals sector.

Olatunji noted that with not less than 38 viable solid mineral deposits in sustainable export quantity in Nigeria, the solid minerals sector had the potential to generate not less than N5 trillion annually once the government puts necessary things in place.

He pointed out that the solid minerals industry could serve as the much-needed solution to unemployment as the development of the value chain from mining to export can create more than five million jobs.

“We are glad that the current government is serious about solid minerals and diversification of the economy. Government should come up with policies that will enable Nigerians to benefit optimally from the country natural resources,” Olatunji said.

According to him, there is need for government regulatory agencies such as Standard Organisation of Nigeria (ON) to work with established private sector companies under the auspices of Association of Metal Exporters of Nigeria to develop globally acceptable regulatory standards for Nigerian metallic exports.

Nigeria’s mining sector contributes less than one percent to the GDP. Nigeria is hard hit by oil crunch, which has more than halved government revenues and put states in financial straits. Most of the activities taking place in mining sites are illegal, while the potential is yet to be unlocked because the products are not crushed before being exported.

“The government is losing revenue and this affects enterprises and cascades down to a lot of unemployment we have in the country now,” he said

“Our vision is to have a solid minerals industry where all operators along the value chain are well compensated and where Nigeria can realise the full potential of its God-given natural resources,” Olatunji added.

Bamidele Ayemibo, vice president, of the Association of Metal Exporters of Nigeria said government should consider viable public private partnership (PPP) option to develop basic infrastructure such as crushing plant and standardized weighing bay, among others.

According to him, with a crushing plant, government should put in place a general policy that ensures that all metal exports are crushed and other regulatory agencies should see to the enforcement of standards in the solid minerals exports in order to ensure that Nigerian exports are competitive in the global market.

Kemi Ayo-Ogunkeye, the associations’ general secretary, added that standard-setting will bring values to Nigeria as this will not only enhance the volume of transactions but also the reliability of the business.

Adegbola Ilori, financial secretary, said the association would also interface with the National Assembly to seek review of existing laws and to promote new laws that could help the development of the solid minerals industry.

He commended the policy initiative aimed at encouraging state governments to play actively in the development of solid minerals in their domains, adding that such a policy could be a major solution to the cash crunch bedeviling many states and help to stop rural-urban drift.

 

ODINAKA ANUDU