Abuja: 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.
According to News Agency of Nigeria, Dele Alake, stated that in 2024, Nigeria's mining sector secured more than 800 million dollars in investments for processing projects. Alake noted that 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.
Akinade Olatunji, a Professor of Geology at the University of Ibadan, explained that the mining licence rates introduced in 2024 contributed to sanitising the sector, increasing Nigeria's GDP, and attracting more investors. Olatunji, who is also the immediate past president of the Nigerian Mining and Geosciences Society (NMGS), highlighted the revocation of dormant licences as a key factor in attracting genuine investors to the sector. He noted that the firmer implementation of the "use it or lose it" rule has compelled those with dormant and unpaid licences to comply or risk losing their licenses.
Olatunji further remarked that the sector's promotion campaign has captured the interest of both local and foreign investors, leading to an upsurge in investment by licence holders. This increased activity has resulted in more job opportunities for professionals and heightened attention towards building processing plants within the country, in line with the government's value addition policy.
Shekwonyadu Iyakwari, a Professor of Applied Mineralogy and Exploration Geology at the Federal University of Lafia, praised the revenue growth but emphasized the need for more value addition to minerals before export. He argued that policies requiring local processing would create jobs and infrastructure for host communities, and bring more economic development to these areas. Iyakwari pointed out that local processing would reveal the full economic potential of mined ores, which often contain more than what companies declare for export.
Iyakwari lauded the government's introduction of the value addition policy in 2024, which mandates mining companies to present value addition plans before obtaining operation licences. However, he stressed the importance of proper and strict implementation to further enhance the sector's revenue, suggesting that existing companies should also be encouraged to adopt these practices.