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It is reassuring that the federal government has given illegal miners an ultimatum of 30 days to join mining cooperatives or face the full wrath of the law. The Minister of Solid Minerals Development, Dele Alake, gave the ultimatum during the recent unveiling of the “Agenda for the Transformation of the Solid Minerals for International Competitiveness and Domestic Prosperity” in Abuja. Also, the minister revealed that a security task force and mines police will soon be introduced to combat illegal mining and smuggling.
He warned of an imminent clampdown on illegal miners by security agencies. Under the new plan, the government will float the Nigerian Solid Minerals Corporation, which will be joint ventures with mining multinationals. He also disclosed that the sector will contribute 50 per cent to the economy while attracting Foreign Direct Investment (FDI) into the country.
This new plan to develop the solid minerals sector is laudable. It is a departure from the past where illegal miners were allowed to exploit the nation’s mineral resources with little or nothing going into the federation account. As we applaud the new initiative, we enjoin that it will be seamlessly implemented. With the new policy, it is expected that Nigeria will begin to earn much foreign exchange from its solid minerals, such as gold, coal, limestone, bitumen, lead, iron-ore and barite.
Besides, Nigeria has enough reserves of manganese, zinc, kaolin, gemstones and topaz. The sector also boasts of over two million operators, including over 633 small scale companies and 251, 500 miners, but regrettably contributes minimally to the nation’s revenue.
The government’s plan to curb illegal mining and reposition the sector should be encouraged by all the miners and other stakeholders in the solid mineral sector. We urge the illegal miners to join the mining cooperatives before the expiration of government’s deadline. We believe that the new policy is indeed a win-win situation for all in the sector. However, there is need for the government to come up with new regulations that will guide the maximum exploitation of the solid mineral sector. However, the government must ensure that the mining environment is safe and healthy.
Therefore, we call for the cooperation of all and sundry for the success of the new initiative. The harnessing of the nation’s solid minerals will increase the nation’s earnings from the non-oil sector. It will also reposition the economy for growth. Globally, countries with rich mineral resources are using them to industrialise and grow their economies. The recent clamour for electric cars, renewable energy components and lithium batteries cannot materialise without these precious minerals.
The solid mineral sector contributed 4.5 per cent to the nation’s Gross Domestic Product (GDP) in the 1960s and 5.6 per cent in 1980s, but accounting for less than 2 per cent of GDP last year. On the other hand, the sector contributes to 20 per cent to the GDP of Senegal; Mauritania, 24 per cent; and Namibia, 50 per cent. With the repositioning of the sector, there is no doubt that the solid minerals will be Nigeria’s next oil. It is also expected to contribute 50 per cent to Nigeria’s GDP and even earn more revenues than oil.
The quest to revive the economy through the exploitation of our abundant solid minerals is a welcome development. We must curb the over-dependence on crude oil. Nevertheless, we call for transparency in the management of our solid mineral sector. We urge the National Assembly to make laws that will ensure transparency in the management of our solid minerals. There is also need to attract foreign investors and partnerships in the mining sector.
For Nigeria to reap bountifully from the exploitation of its solid minerals, the insecurity in the solid minerals belt of the country must be addressed. Without curbing the rising insecurity around the sold mineral zone, it is not likely that the sector will attract the much-anticipated foreign investors and partnerships.
Furthermore, the government must put up measures to improve the ease of doing business, including the reduction of taxes and levies imposed on new businesses. For the country to become the envisaged new destination for new businesses and investments, the business environment must be conducive.
