Weak reforms, policies seen stalling mining industry growth

Weak institutional reforms and policies are seen as the major barriers stalling the country’s mining industry growth, the Nigerian Economic Summit Group says.

The economic think-tank noted that Nigeria needs targeted policy reforms, enhanced governance, and strategic initiatives to unlock the industry’s vast opportunities.

Lumun Amanda Feese, facilitator for the Manufacturing and Mining Policy Commission, NESG, stated this at the official launch of the African Mining Vision Private Sector Compact in Nigeria on Monday in Abuja.

According to her, the federal government has been reforming the mining sector for nearly 22 years, and Nigeria is still far from meeting its objectives for reviving the sector, especially when compared to several countries that reformed earlier and are now doing much better.

Feese said these negatives impacts the current mining landscape, and further impacts the sector’s contributions to the GDP.

“In the mining sector, we found that there is No Independent Regulator, there are Resource Federalism Issues, Misaligned Exploration Focus and Weak Economic Linkages

“The Mining Act does not give room, it is just designed to develop the mining industry as it was during the colonial era,” she said.

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“There are no links to manufacturing, there are no links to construction, there are no links to the tech sector. There’s just very little linkage. There’s no link to the power sector. So it’s just an enclave sitting there to serve the needs of developed countries,” she noted.

“The environment is challenging the negative impact such as the environmental, social, economic, & national security damage. Linked to violent conflicts, banditry, & terrorism due to illegal mining & trading. Also, Low GDP contributions, employment, revenues, & exports”

Feese emphasized that addressing these issues is crucial for revitalizing the sector and ensuring its contribution to the nation’s economic growth.

“Comprehensive mining reforms aimed to sufficiently revive Nigeria’s mining Industry as envisioned by the AMV, using AMV tools & instruments. Develop a new mining policy through an inclusive, multi-sectoral, inter-governmental, multi-stakeholder process followed by legal, regulatory, & institutional reforms. Based on its economic reforms mandate & track record in reforming key economic sectors, BPE should collaborate with the Ministry of Sold Minerals Development to drive the reforms

“Comprehensive mining reforms are critical for the sector’s growth and inclusive economic growth using the African mining vision.”

Niyi Yusuf, chairman Nigerian Economic Summit Group emphasized the need for significant policy reforms in Nigeria’s mining sector. He noted that private sector leaders are committed to collaborating with the government on transforming the industry.

“What we are doing today is the beginning of the journey, and it takes time, patience, and resources. We are committed to working together to transform our mining sector and ensure it serves the national interest.

“Transforming the mining sector is not a sprint; it’s a marathon, crucial for diversifying the economy and creating jobs that will transform our country.”