Nigeria Unveils Plan for New Mining Corporation to Boost Solid Minerals Sector

Nigerian Minister of Solid Minerals Development Dele Alake announced on Thursday the Federal Government's plan to establish a new mining corporation aimed at boosting the solid minerals sector, combating illegal mining, and promoting value addition. The initiative is part of President Bola Ahmed Tinubu's economic diversification agenda.

Speaking at a national stakeholders' roundtable on sustainable development of the mining industry in Abuja, Alake revealed that a preliminary report by German firm GeoScan indicated Nigeria has mineral deposits worth an estimated $750 billion. "The mining sector has the potential to contribute significantly to the government's goal of achieving a trillion-dollar economy," Alake stated. "We are working to make Nigeria a promising investment destination for solid minerals development."

The minister emphasized the importance of accurate data to attract investors who can establish processing plants in Nigeria, creating jobs and economic growth. The government is collaborating with the World Bank, Excalibur, and GeoScan to gather the necessary data on the sector.

Alake also announced plans to establish the Nigerian Solid Minerals Corporation, a private sector-led limited liability company, to engage in mining across the entire value chain and spur private sector activity. The corporation will have 50% private sector equity, 25% for Nigerians, and 25% for the government.

Why this matters: The development of Nigeria's solid minerals sector is vital for economic diversification and reducing dependence on oil revenues. Attracting investment and promoting value addition in the mining industry could create significant employment opportunities and contribute to sustainable economic growth.

Governor Abdullahi Sule of Nasarawa State highlighted the importance of investing in solid minerals, particularly lithium, which he described as the "new gold." Sule announced that the Tinubu administration will soon commission the largest lithium processing company in Nigeria, with a capacity to process 4,000 metric tons of lithium per day and transport over 1 million tons per year.

The Federal Government has also deployed 2,220 Mining Marshals to combat illegal mining, resulting in the arrest of some culprits. Additionally, the government is encouraging artisanal miners to form cooperatives to legalize their operations. Alake stated that these efforts are aimed at making Nigeria a top global mining destination.

Key Takeaways

• FG plans to establish a new mining corporation to boost solid minerals sector.
• Nigeria's mineral deposits estimated at $750 billion, with potential to grow economy.
• New corporation to have 50% private, 25% Nigerian, and 25% government equity.
• FG deploying 2,220 Mining Marshals to combat illegal mining, encourage cooperatives.
• FG aims to make Nigeria a top global mining destination through these initiatives.