The Nigerian Economic Summit Group (NESG) and the Ford Foundation recently released a literature and diagnostic report on the governance, outlook and prospects of the mining industry in Nigeria, The Leader reported.
The report highlights opportunities for growth, predicting that the mining sector will drive the government's diversification agenda with a size that can support lifting 100 million Nigerians out of poverty by 2030.
Nigeria is a mineral-rich country, with more than 40 different solid minerals located at about 450 sites across the country.
However, the report notes that the current state of the mining industry is not attractive, contributing a negligible 0.5% to Nigeria's gross domestic product (GDP) (in 2018) and underperforming compared to some of its African peers rich in solid mineral resources.
The report attributes this poor performance to several factors, including: a weak regulatory environment at the federal and state levels and the prevalence of illegal mining; Infrastructure challenges; Insufficient funds; Risks associated with mining, health and environmental hazards, inadequate geological data, poor laboratory equipment and inconsistent policies.
For countries like Nigeria, the report says, industry governance issues, such as a lack of transparency and a weak intergovernmental framework to address mineral ownership and control issues, contribute to the sector's woes.
With mining contributing 0.3 per cent to national employment and 0.2 per cent to total exports, its job-creation potential is also far from being realised, the report notes.
The Nigerian Economic Summit Group (NESG) says addressing these issues is critical to boosting mining's contribution to GDP and achieving the Ministry of Mining and Steel Development's target of 5% in the short term.
