The Minister of Solid Minerals Development, Dr. Dele Alake, has expressed satisfaction with the progress made in revitalizing Nigeria’s mining sector, describing recent reforms as pivotal for achieving long-term sustainability and economic growth.
Speaking to journalists after a joint committee session evaluating the sector’s progress in Abuja on Friday, Alake dismissed concerns that the ministry’s ambitions were overly modest. “I feel quite elated and happy with the outcome. The notion that the ministry’s ambitions were too small for the objectives we have set out was decisively dismissed,” he stated.
Highlights of the Seven-Point Agenda
The minister detailed significant strides over the past year, driven by the ministry’s seven-point agenda, which includes:
- Establishment of the Nigerian Mining Company (NMC): Modeled after the Nigerian Liquefied Natural Gas (NLNG) company, the NMC aims to ensure efficient management of solid minerals. President Bola Tinubu has approved the company’s formation, with its ownership structure divided into 50% private sector equity, 25% government equity, and 25% for individual Nigerian investors.
- Aggressive Marketing: Efforts to attract both local and international investments in the sector.
- Formalizing Artisanal Mining: Over 250 artisanal mining cooperatives have been formalized, enabling them to access funding, expand operations, and integrate technology.
- Enforcement through Mining Marshals: The deployment of mining marshals has led to the arrest and prosecution of over 300 illegal operators, including foreign nationals. “This speaks to the efficiency of our enforcement mechanisms,” the minister noted.
Combating Illegal Mining
Dr. Alake outlined a two-pronged approach to curbing illegal mining: persuasion and coercion. He emphasized the ministry’s success in formalizing artisanal miners, a move that has made their operations legitimate and bankable.
“By encouraging artisanal miners to form cooperatives, we have not only formalized their activities but also made them bankable. This allows them to access funding to enhance their operations, expand, and integrate technology,” he explained.
The introduction of mining marshals has also strengthened enforcement efforts, ensuring compliance with regulations. “Over 300 illegal operators have been arrested, and some, including foreign nationals, have been convicted,” the minister revealed.
Structural and Economic Reforms
The minister announced that the Nigerian Mining Company, once operational, will be midwifed by the Ministry of Finance Incorporated (MOFI) before transitioning to private-sector leadership. He emphasized that the company’s ownership structure is designed to prevent political interference and ensure sustainability.
“Our goal is to leave a legacy. This structure ensures that future administrations cannot interfere with the company’s operations,” Alake stated.
Commitment to Transparency and Growth
Concluding his remarks, Dr. Alake reiterated the government’s commitment to fostering a transparent and investor-friendly mining sector.
“This is about creating a system that thrives beyond this administration, positioning Nigeria as a competitive player in the global mining industry,” he said.
The reforms highlight the ministry’s dedication to driving economic diversification, strengthening enforcement mechanisms, and creating a mining industry that benefits all Nigerians.
