The Federal Government says mining will contribute 25 billion dollars to the Gross Domestic Products (GDP) by 2026.
Dr Kayode Fayemi, Minister of Mines and Steel Development, disclosed this at the Nigerian Mining and Geosciences Society annual conference on Tuesday in Abuja.
Fayemi said this would be achieved due to green shoots of growth recorded in the sector since the current administration assumed power.
He said that analysis conducted by major stakeholders in the solid minerals sector indicated that it could generate at least five trillion naira annually from mining and exporting.
According to him, the ministry is pursuing a focused strategic agenda to rebuild the sector and unlock its full potential, adding that its plans recently articulated in a roadmap will guide the growth of the industry over the next two decades.
He said the ministry aspiration was to build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and ores.
He said this would be achieved by focusing on Nigeria’s minerals, mining and related processing industry over a three-phase period.
He said in the first phase, Nigeria would seek to rebuild market confidence in its minerals and mining sector and win over domestic users of industrial minerals currently being imported.
During the phase, he said that Nigeria would also seek to expand use of its energy minerals, adding that it would likely last about two to three years.
According to the minister, Nigeria will focus on expanding its domestic ore and mineral asset processing industry in the second phase, as the phase will last about five to 10 years.
In the third phase, Nigeria would seek to return to global ore and mineral markets at a market competitive price point.
He also mentioned six key success factors and implementation plan to rebuild Nigeria’s mining sectors including stakeholder engagement, industry participants, geosciences data and information, access to finance and enabling environment.
According to him, the ministry, through the Federal Government, is also negotiating for 150 million dollars loan from the World Bank to begin the Mindiver Project aimed at further resuscitating the ailing sector.
“This reawakening means a renewed zeal to pursue the onerous task of developing the nation’s minerals and metals sector.
The prognosis of this situation is that the mineral and metal sector hold the key for economic diversification in Nigeria which is a condition for job and wealth creation.
According to him, the mining services industry is a vital source of economic activity and jobs in Nigeria and a major contributor to national income and wealth creation.
Technical and business innovation is continually needed to maintain the industry’s international competitiveness to ensure that mining is conducted in an environmentally sustainable manner.
“It is worthy to note that a sustainable and well governed mining sector has the capacity to garner resources for national development, create capacity for downstream value addition via establishment of resource-based processing industries.
Prof. Olugbenga Okunlola, President, Nigerian Mining and Geosciences Society (NMGS), said the society had contributed to the achievements by the government and the private sector in policy formulations.
He said that the society also executed intellectual contributions in the sphere of mining, oil and gas, water and minerals processing, training and skills acquisition.
He urged the ministry to create an investor-friendly environment, simple, stable and coordinated across national and state levels and the MDAs to grow the sector.
NAN reports that the NMGS is an international, non-governmental and non profit professional organisation established in 1961 to advance the practice of mining, earth science and metallurgy, among others.
The NMGS also has a statutory representation on Board of Council of Mining Engineers and Geoscientist (COMEG) established by Decree 40 of 1990 (now an Act) to regulate the professional practice of mining engineers and Geoscientists.(NAN)
FFP/IA
Edited by Idris Abdulrahman