Wednesday, 23 September 2015
REFORMS: The astronomical rise of Solid Minerals contribution to Nigeria’s GDP.
Problem: As at 2010, the contribution of the solid minerals sector to GDP was an abysmal 0.29%, despite the existence of more than 34 different mineral types across 450 locations in the country.
- New Mineral Policy
- Minerals and Mining Act 2007
- ‘Commerce 44’ initiative to promote the export of 11 solid minerals
- Creation of the Mining Cadastre office
- Fiscal Incentive scheme to attract private sector investment.
Main Achievements: The contribution of solid minerals to Nigeria’s GDP has risen to 11%. The reforms have led to generation of geosciences data, and discovery of 10 new minerals in commercially viable quantities (total now 44). There was enforcement of compliance with Nigerian Mining and Minerals Act 2007, and also increased efforts to tackle illegal mining by forming miners into cooperatives. Furthermore, the reforms led to enhanced access to mineral titles as 3,007 active mineral titles were granted within few years. They equally led to the dissemination of 1,073 geological maps and geophysical data sheets. Again, availability of mining information online widens access and makes cost affordable to relevant users. There has also been the formalisation of 570 performing ASMS into certified cooperatives across the country and the reclamation of 17 high risk and abandoned mine sites across the country.
Key Challenges: (a) illegal mining which is still prevalent in the country; (b) low investment in this sector; and (c) existence of weak enforcement of some mining regulations and weak inspection.
Reference: Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review
Click to view Compendium