Tinubu’s Administration Launches Strategic Reforms to Revitalize Solid Minerals Sector

In a bold step toward economic diversification, the administration of President Bola Ahmed Tinubu has unveiled comprehensive reforms targeted at repositioning Nigeria’s solid minerals sector.

The move is part of the government’s broader strategy to attract both local and foreign investment, reduce dependence on oil revenues, and unlock the nation’s vast mineral wealth.

Speaking on the developments, the Minister of Solid Minerals Development, Dr. Dele Alake, emphasized that the solid minerals sector holds immense potential and must not be underestimated, especially given its capacity to contribute significantly to Nigeria’s Gross Domestic Product (GDP).

“The era of neglecting our mineral resources is over. With deliberate reforms and sound policy frameworks, this sector will become a cornerstone of our national development,” Alake stated during a ministerial briefing in Abuja.

At the heart of the reforms is the establishment of the Nigerian Solid Minerals Corporation, modeled after the successful Nigeria Liquefied Natural Gas (NLNG) company structure. Under the proposed model:
• The private sector will hold 50% equity,
• 25% will be owned by Nigerian citizens, and
• The Federal Government will retain 25%.

This equity structure aims to ensure inclusivity, transparency, and private sector efficiency in driving the sector’s development.

In a bid to clean up the system and promote responsible mining, the government has revoked 924 dormant mining licenses. These include exploration licenses and mining leases that had been inactive or used for racketeering.

Additionally, new regulatory policies now require that mining licenses will only be issued to companies that commit to processing minerals locally, encouraging domestic value addition and curbing raw material exports.

The Tinubu administration has also deepened global partnerships to support the sector’s growth. Nigeria has signed cooperation agreements with countries like South Africa, France, Germany, and Australia, focusing on:
• Joint geological mapping,
• Data sharing on mineral deposits, and
• Training and capacity-building initiatives for Nigerian professionals.

These collaborations are expected to enhance the technical capacity of the sector and introduce best practices in mineral governance.

A major challenge in the sector has been illegal mining activities, often linked with insecurity and loss of government revenue. To address this, the government has deployed a dual approach:
1. The establishment of Mining Marshals, a specialized task force within the Nigeria Security and Civil Defence Corps (NSCDC), which has already led to the arrest of over 300 illegal miners.
2. Formalizing artisanal miners through the creation of 250 mining cooperatives, allowing them access to training, finance, and legal mining titles.

Though the solid minerals sector currently contributes less than 1% to Nigeria’s GDP, Minister Alake expressed optimism that with full implementation of the ongoing reforms, the sector could contribute as much as 50% to national GDP in the coming years.

“We are laying a foundation that will turn Nigeria into a global mining hub. These reforms are not just about boosting revenue but about ensuring sustainable and inclusive development,” Alake affirmed.

President Tinubu’s administration is signaling a clear commitment to economic diversification through the revitalization of the solid minerals sector.

The reforms not only aim to unlock the country’s vast untapped mineral resources but also to create jobs, attract investments, and foster sustainable development.

As the policies take root and investor confidence grows, Nigeria is poised to emerge as a leading player in the global mining industry.