…Holds Retreat
By Palma Ileye
Federal Government through the Ministry of Solid Minerals Development, has vowed to reposition the solid minerals sector through value addition, to attract investors, grow the nation’s economy and for sustainable development.
The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this during the opening of a Two-Day High Level Ministerial Retreat organized by the Ministry in Abuja with the theme: “Enhancing Performance, Strengthening Accountability, And Fostering Innovation in the Solid Minerals Sector.”
Speaking on the retreat, Alake stated that it was apt as it was an opportunity for introspection and a platform to drive forward the Renewed Hope Agenda of President Bola Ahmed Tinubu, which challenged every Ministry, Department, and Agency to deliver measurable, people-centered results.
The Minister who stressed on the need for value addition and attracting Foreign Direct Investment, said that the retreat, aims to, “Review, refine, and align our Ministerial Deliverables with the Renewed Hope Agenda; Deepen our understanding of the Central Delivery Coordination Unit, CDCU, Framework for Performance Management; Enhance leadership cohesion and strengthen cross-departmental collaboration; Institutionalize a results-based management culture; Develop a coherent, actionable strategic workplan that synchronizes departmental and agency-level activities with Presidential priorities.”
Value Addition
He revealed that the consciousness of other African nations, have been aroused, to look beyond the indiscriminate export of raw minerals and realize that the critical advantage that advanced mineral and trading countries have over Africa lies in the low value of exports.
He said, “We convinced our African compatriots that by raising the value of our mineral exports, they shall command higher values in the international market.”
He noted that this Value Addition policy has been adopted by Ministers of mining in Africa under the auspices of the Africa Minerals Strategy Group, AMSG, and is driving the implementation of a ban on the export of raw minerals by African countries adding that, “In recognition of my role as the champion of value addition, the AMSG elected me as its pioneer Chairman.”
He said that mineral processing projects commissioned in the last one year include the $600 million Avatar lithium plant in Nasarawa, African Industries multi-million dollar iron-ore to steel plant in Niger State adding that several processing projects were in various stages of completion and these include Hasetins $400 million rare earth factory and Asba lithium processing plant.
Global Investment marketing to attract Foreign Direct Investment
The Solid Minerals Minister said, “Besides directly addressing investors through speaking slots, our strategy of engaging potential investors at international mining conferences and exhibitions begins with securing excellent display locations and conducive, spacious offices for investment negotiations.
“We generate consistent traffic of investors interested in the solid minerals sector and many of them follow up by visiting Nigeria to concretise their deals. Examples include Auran, interested in bauxite, Power China, (Gold), Jampur Group, (Gold); Sinomach-HE, (Iron ore).”
Establishment of the Nigerian Solid Minerals Company
On the establishment of the Nigerian Solid Minerals Company, NSMC, he disclosed the appointed of Chief Executive Officer of the NSMC, Mr. Martins Imonitie, a seasoned banker with expertise in mining finance and experience in Nigeria, United Kingdom and Australia.
He noted that the NSMC has opened office for skeletal activities in Abuja, which was working with the Ministry of Finance, incorporated and consulting firms to conclude the final phase of the launch.
“We have appointed the Chief Executive Officer of the NSMC in the person of Mr. Martins Imonitie, a seasoned banker with expertise in mining finance and experience in Nigeria, United Kingdom and Australia. NSMC has opened office for skeletal activities in Abuja, the federal capital. We are working with the Ministry of Finance incorporated and consulting firms to conclude the final phase of the launch.
“The NSMC will be different from the defunct Nigerian Mining Corporation in corporate structure. As a vehicle for attracting Foreign Direct Investment, FDI, the private sector will hold 50 per cent of its shares, the government, 25 per cent and the remaining 25 per cent will be offered to Nigerians through public offer. Expectedly, it will inherit the assets of the NMC and maximize them to boost the sector,” he explained.
Improving Exploration and Geological Data
On improving exploration and geological data, he stated that the President and the National Assembly in the 2025 budget appropriated the considerable sum of N1trilllion, (about $1.3 billion) primarily to enable the Ministry close the wide gap between its exploration budget in relation to its competitors.
He noted that this will enable the Ministry, focus on 10 minerals across the classifications, gather enough geological data and certify them under the newly-established Pan-African Resources Reporting Code to command the credibility that investors require to do big mining projects in Nigeria.
He said, “Thanks to Mr. President and the National Assembly, the 2025 budget appropriated the considerable sum of N1trilllion, (about $1.3 billion) primarily to enable us to close the wide gap between our exploration budget in relation to our competitors.
“Focusing on 10 minerals across the classifications, we hope to gather enough geological data and certify them under the newly-established Pan-African Resources Reporting Code to command the credibility that investors require to do big mining projects in Nigeria.
“Further to discussions with friendly donor countries, we are improving our mineral testing capacity to reduce foreign exchange paid by Nigerian firms to foreign mineral testing companies and enhance the commercial transactions by cutting the time currently used to get results of mineral tests.
“The Nigerian Geological Survey Agency, NGSA, is conducting nationwide aeromagnetic surveys and geochemical mapping of key mineral belts, setting the stage for increased exploration by the private sector.
“We are enriching our geoscience data bank and synchronizing all exploration data on a one-stop-shop on our Geoscience Data Portal and other related sites such as the Mineral Resources Decisions Systems, MRDSS.”
Tackling illegal mining with Mining Marshals and Artisanal Co-operatives
He further explained, “The establishment of the Mining Marshals, the first-ever 2,350 combat-ready team specially trained to enforce Nigeria’s mining laws, is a game-changer in historic efforts to tackle insecurity in the sector. The Mining Marshals have cleared 98 mining sites, arrested 273 suspects and are monitoring over 400 illegal mining sites.
“This kinetic approach is enhanced by a non-kinetic option which leverages the mobilisation of artisans to form co-operatives, stop illegal mining and become bankable. At least 307 new co-operatives were registered in the last year by artisanal miners in response to the sensitization programmes of the department.
“In a bid to scale up monitoring of mines with security, we secured the approval of the Federal Executive Council for a N2.5 billion satellite mines monitoring project. The facilities will enhance the visibility of the sector.”
Enhanced Efficiency of Government operations
Dr. Alake stated that in line with the emphasis of Tinubu’s administration to promote efficiency and effectiveness of public agencies, the activities of the Nigerian Mining Cadastral Office, NMCO, had been reviewed and the outcomes were as follow: the Revocation of 924 dormant licences; Revocation of 1,633 licences for defaulting in annual service payments; Enhancement of the digital platform, EMC+, to ease applications processing globally online; Increase in rates of MCO’s services to check speculation and maximize financial investment in the technology.
Rise in revenue from N12billion (2023) to N36 billion, (2024); Rise in licence revenue from N6.07 billion (2023) to N12.58 billion (2024); Rise in registered mining companies- 883 (2023) to 1,025 (2024).
He said, similarly, operations of the Mines Inspectorate and royalties was reviewed, as a result, the royalties paid rose from N17.5 billion (2023) to N36.8 billion (2024).
Community Development and Environmental Sustainability
To ensure environmental sustainability, he said that the Mines Environmental Compliance Department, MEC, had made various efforts to enforce compliance through strategic mandated and the statistics of compliance level was as follows: Environmental Protection and Rehabilitation Program, EPRP =651; Community Development Agreements, CDA, signed with host Communities =320; Fuel Storage Plan, FSP, =115.
Furthermore, he charged that a new paradigm of governance, must be pursued, one that was rooted in accountability, innovation, and measurable results adding that, the global mining landscape was changing rapidly with the energy transition, the need for critical minerals, and the reshaping of global value chains and all hands must be on deck.
Also, Chairman, Senate Committee on Solid Minerals Development, Senator Ekong Sampson, in his remarks, lauded the Minister for work well done also vowing to work hand-in-hand with the Ministry to unbundle Nigeria’s natural resources.
“I commend our Minister for convening this timely retreat, it sets the tone for the next phase of collaboration. From gold to lithium, bitumen to coal our minerals hold the key to diversifying our economy, creating jobs, and earning the foreign exchange we need. We are ready to provide the legislative framework to make it happen,” he said.
In his goodwill message, the Chairman, House Committee on Solid Minerals Development, Honourable Jonathan Gaza Gbefwi, commended the potential of recent reforms in the Ministry.
Gbefwi said, “In less than two years, we moved from $6 billion to $38 billion in revenue, and attracted over $800 billion in Foreign Direct Investment, FDI. The Nigerian Solid Minerals Development Company is a masterstroke. This is our chance to replicate Norway’s oil success story, but with minerals. We must build resilient institutions that serve our communities for generations.”
On his part, the Permanent Secretary of the Ministry, Engr. Yabo Faruk Yusuf, reiterated the importance of synergy among Departments and agencies, calling for greater professionalism and accountability in service delivery.
“Our Civil Service Week award shows what’s possible when we work together with commitment and accountability. This retreat is our springboard to do more. This shows what we can achieve when we put our shoulders to the wheel, “Our job now is to turn this momentum into measurable results for the Nigerian people,” he said.
Yusuf called on other relevant stakeholders to work collaboratively towards unlocking the full potential of Nigeria’s solid minerals sector, for the nation’s economic growth and sustainable development.
