According to Solid Minerals Development Minister Dele Alake on Tuesday, insecurity is primarily the result of powerful and influential Nigerians engaged in illicit mining, especially in regions of the nation with substantial solid mineral resources.
According to Alake, their actions were not only driving away genuine foreign investors from the business, but they were also causing significant financial losses for the nation.
He did, however, divulge that, in order to safeguard regions rich in solid minerals for potential investors, the Federal Government was “identifying” the rogue miners through both kinetic and non-kinetic ways.
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Speaking before the House Committee on Solid Minerals, Alake defended the ministry’s projected budget for 2024.
The minister stated at a different Abuja event that the government, via his ministry, was prepared to work with the World Bank to fully utilise the country’s solid mineral resources.
“One discovery that we have made is that a lot of these insecurities, especially banditry associated with this sector, are sponsored by illegal miners,” Alake stated during the budget defence.
They are not the artisanal miners you know. They are not the ones who harvest gold from the earth. These people are influential and strong in our nation. They are not aliens; they are Nigerians.
Although they are not the fundamentals, foreigners might be seen as symptoms. The people driving those foreigners you see on the streets are Nigerians. We’re locating them and using a range of tactics, both active and passive.
“I gave the artisanal miners, who are non-kinetic, an ultimatum to form cooperatives because every Nigerian has a right to life and basic necessities, and we cannot force them into the bush if the government is unable to provide them.”
As of the most recent count, roughly 50 cooperative organisations had been established, he continued, adding that the ministry encouraged small-scale miners to establish them.
The minister also disclosed that overseas investors have started enquiring more frequently about the possibilities of making investments in the industry.
He claims that the ministry has located roughly 44 significant solid mineral resources across the nation, seven of which are highly sought after due to their significance.
According to Alake, Nigeria has the potential to develop into a major worldwide hub for solid minerals if the government makes the appropriate investments.
He emphasised that the government intends to spend a lot of money on exploration and called the N29 billion the ministry has been given for 2024 a “non-starter.”
He asked the legislators for help in securing sufficient funds for the industry.
Gaza Gbefwi, the chairman of the House Committee, stated that the country has never needed the solid mineral sector’s input more than it does right now.
“There is still optimism,” he declared, “especially in light of the fact that Mr. President (Bola Tinubu) reiterated during his budget presentation the importance this administration has given to the solid minerals sector and, of course, the individual he has appointed to lead it.
“It’s quite thrilling to see that he got right into it, taking on trade and bilateral missions that will bring much-needed investment to our nation.”
World Bank and Fed Government should work together on mining
Alake, who also met with Shubham Chaudhuri, the World Bank’s Country Director for Nigeria, expressed delight with the renewed emphasis on the development of the country’s mineral resources.
He said that in order to provide funding and technical assistance for the growth of the solid mineral industry, the government was looking into partnering with the World Bank.
According to Alake, Nigeria has the potential to make the solid minerals sector a significant contributor to its Gross Domestic Product (GDP) due to the abundance of economically viable minerals in the country. This was stated in a statement sent by Segun Tomori, his Special Assistant on Media to the Minister.
“Mr. Chaudhuri reiterated the bank’s readiness to partner with the Ministry to unlock financing for specific intervention areas requiring funding,” the statement states in part. “However, it also emphasises that the bank must impose terms and conditions to ensure effective project implementation and transparency in the use of funds.
“He went on to say that the bank is not limited to just lending money, adding that it can also provide technical support to enhance mining activities around the nation.
“In his reply, the Minister welcomed the World Bank team and praised the organisation for leading development initiatives across several economic sectors over the years.
The World Bank has been successful in refocusing attention on projects and concerns related to national development, particularly in Nigeria. The World Bank has just lately endorsed the use of palliatives following the elimination of gasoline subsidies.
“The World Bank provided us with very helpful assistance. I appreciate your participation in the min diver project, which is regrettably coming to an end.
“We anticipate enhancing our cooperation, which will lead to the necessary financial support and technical assistance for important mining-related areas, as previously said.
“Alake further guaranteed that the Federal Government is dedicated to offering a supportive atmosphere to protect mining operations while guaranteeing the greatest possible benefit to host communities and government revenue through taxes and royalties.”
