By Martha Agas
Experts have linked the rise in Nigeria’s mining revenue to new licence rates and strategic promotion of the sector, which has led to increased investment.
The News Agency of Nigeria (NAN), reports that the Minster of Solid Minerals Development, Dele Alake, had stated that in 2024, Nigeria’s mining sector secured more than 800 million dollars in investments for processing projects.
Alake said government revenue from the sector increased significantly from ₦6 billion in 2023 to ₦38 billion in 2024, attributing this to stricter licencing, the value addition policy, and measures against illegal mining.
The experts including Akinade Olatunji, a Professor of Geology at the University of Ibadan who spoke to NAN, noted that the mining licence rates introduced in 2024 contributed to sanitising the sector, increasing Nigeria’s GDP, and attracting more investors to the sector.
Also, the immediate past president of the Nigerian Mining and Geosciences Society (NMGS), Olatunji said the revocation of dormant licences sent a strong message that attracted genuine investors to the sector.
“Firmer implementation of the rule of use it or lose it has also helped, as those who had dormant and unpaid licences are complying more, otherwise, they will lose their licenses.
“ We must also state that the campaign to redirect attention to the sector seems to have caught the attention of Nigerians and foreign investors alike.
“Additionally, there is also an upsurge in increased investment by licence owners.
“There are no so many active exploration works ongoing in several parts of the country, so this has also led to increased job availability for professionals in the sectors
“There is also an increased attention in building of processing plants in the country, owing to the policy on value addition from the government,” he said.
According to him, a sustenance of the policy will ensure that the fruits from these investments are sustainable.
Also, Shekwonyadu Iyakwari, a Professor of Applied Mineralogy and Exploration Geology at the Federal University of Lafia, hailed the revenue growth but said more should be done to add value to minerals before export.
Iyakwari noted that policies requiring mining companies to process their products locally would create jobs, provide roads, power, and water for host communities.
According to him, the policies will open up these areas to more economic activities and development.
“Also, most of these ores mined contain other economic minerals or metals, but in most cases, only one or a few are declared by the companies.
“When companies start processing here, we will see that what we allow them to export is beyond what is declared. Processing locally will go a long way in helping our economy,” he said.
The professor commended the government for introducing the value addition policy in 2024, which required mining companies to present concrete plans for adding value before they were given licences to operate.
He, however, said that proper and strict implementation was needed to further improve the sector’s revenue, and that the policy should also be extended to existing companies, that would need to be encouraged to do the same.
