**Date**: September 3, 2023
*Abuja, Nigeria*:
The Federal Government of Nigeria has unveiled a comprehensive plan to tackle revenue leakages and address various issues in the country’s Solid Minerals sector. As part of this strategy, the government intends to review all mining licences in Nigeria. The announcement comes as the government seeks to enhance the sector’s contribution to the nation’s Gross Domestic Product (GDP).
Mr. Dele Alake, the Minister of Solid Minerals, outlined a seven-point agenda for the sector during a meeting with Political Correspondents. The agenda includes the establishment of the Nigerian Solid Minerals Corporation, forming joint ventures with mining multinationals, gathering big data on priority minerals and their deposits, granting a 30-day grace period for illegal miners to join artisanal cooperatives, establishing Mines Surveillance Task Force and Mine Police, creating six Mineral Processing Centres focused on value-added products, and conducting a comprehensive review of all mining licences.
Alake emphasized that President Bola Tinubu had given him a mandate to ensure that the solid minerals sector accounts for at least 50 percent of Nigeria’s GDP.
Key points from the seven-point agenda include:
1. **Nigerian Solid Minerals Corporation**: The government plans to establish the Nigerian Solid Minerals Corporation, a corporate entity with subsidiaries dedicated to specific priority minerals, such as gold, coal, limestone, bitumen, lead, iron-ore, and baryte. Existing enterprises, including the National Iron-Ore Mining Company and the Bitumen Concessioning Programme, will be reviewed to fit into this new system.
2. **Joint Ventures with Multinationals**: The proposed corporation will seek and secure partnership investment agreements with major multinational companies worldwide. This initiative aims to leverage Nigeria’s investment-friendly environment to attract significant foreign direct investment (FDI) for the mining sector.
3. **Big Data on Minerals**: The government will focus on gathering comprehensive data on seven priority minerals and their deposits to facilitate strategic planning and investment.
4. **30-Day Grace Period for Illegal Miners**: Illegal miners will be given a 30-day grace period to join artisanal cooperatives. After this period, strict legal action will be taken against anyone found operating on a mining site without proper authorization.
5. **Establishment of Mines Surveillance Task Force and Mine Police**: A new security regime will be implemented in the solid minerals sector, including the establishment of the Mines Police. These officers, sourced from the Nigeria Police and specially trained, will address illegal mining and enforce mining laws.
6. **Mineral Processing Centres**: Six Mineral Processing Centres will be established to focus on value-added products, contributing to the sector’s growth and economic diversification.
7. **Review of Mining Licences**: A comprehensive review of all mining licences in the country will be conducted to address inefficiencies, enforce regulations, and ensure the sector’s sustainable development.
The Minister highlighted the significant underutilization of Nigeria’s vast mineral resources, which have the potential to boost the country’s economy. He emphasized the need to address various barriers, such as inefficient geo-data, weak implementation and enforcement, environmental, safety, and health concerns, fragility and conflict, unregulated artisanal mining, low technical capacity, limited access to financing, and coordination challenges between government levels.
The government’s strategy aims to accommodate and formalize artisanal miners while taking strong measures against those who continue to operate illegally. It will also prioritize community engagement, ensuring peaceful and orderly cooperation between mining licensees and affected communities.
Additionally, a rejuvenated security regime and the establishment of the Mines Surveillance Security Task Force are set to enhance security and compliance in the sector.
The Federal Government is committed to promoting the sustainable development of Nigeria’s solid minerals sector, leveraging the country’s vast mineral resources to drive economic growth and diversification.
