Nigeria’s mining sector is struggling to meet its potential despite 22 years of reforms, according to Lumun Amanda Feese, facilitator for the Manufacturing and Mining Policy Commission at the Nigerian Economic Summit Group (NESG).
Feese attributed the sector’s stagnation to weak policies and regulations.
Feese emphasized that Nigeria lags behind countries that reformed their mining sectors earlier. “Our mining industry is very far from meeting its potential… What did they do that we didn’t do?” she questioned.
The NESG conducted a diagnostic study in 2013, identifying four key constraints: government failure to establish an independent regulator, non-inclusion of state governments, misaligned federal exploration focus, and weak links to the rest of the economy.
Feese highlighted the challenging operating environment for miners, hostile state governments, frustrated communities, revenue loss due to smuggling, and low GDP contributions. “We need a policy shift, reforms, and governance reforms,” she stressed.
The African Mining Vision provides a policy framework for member countries to align their mining policies. Feese advocated for a new mining policy developed by industry stakeholders, not just the Ministry of Solid Minerals.
NESG Chairman Niyi Yusuf expressed confidence that, with private sector support, the vision of transforming the sector into a major economic backbone would be realized. “This Compact launch is the first step… We’re ready to engage with the government at the highest level,” Yusuf said.
READ ALSO: Six dead, five injured in Ibadan auto crash
Ijaw Youths condemn threat to Asari’s life by Nigerian Army
Dele Aleke, President of the Miners Association of Nigeria, pledged support for the mining sector roadmap but noted a stagnated regulatory environment lacking federal control, transparency, and robust consultation.
Prince Adetokumbo Kayode, CEO of PolyGuard, emphasized the importance of localizing mining processes and encouraging private sector involvement. “If we don’t match-mark, we will keep giving our work away,” he warned.
The Nigerian mining sector’s growth roadmap (2016-2025) outlines key reforms, including the passage of the Nigerian Minerals and Mining Act (2007) and the Nigerian Mineral and Metals Policy (2008).
However, experts agree that more needs to be done to unlock the industry’s potential.