Nigeria targets 308% increase in mining revenue

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Nigeria targets 308% increase in mining revenue

The Federal Government of Nigeria has disclosed plans to increase the mineral sector’s contribution to the economy by growing revenue generated from mining by 2025.

Currently, according to the National Development Plan, the mining sector is generating about N2.3bn and the govt wants to increase it to N9.28bn. The new target implies that the Federal Government intends to increase revenue generated by the sector by 308 per cent in four years.

Part of its 2025 vision is to foster an investment friendly minerals sector that is well-managed with transparent collection of revenues and good governance. Establishing a sustainable mining sector that is inclusive of artisanal mining, environmentally friendly, and socially responsible will enhance Nigeria’s mineral attractiveness to exploration and mining investors, adding that the sector could improve rural livelihoods and stimulate job creation, while promoting inclusive economic growth.

Strategies

“Achieving these outcomes will allow the mineral sector to contribute significantly more to GDP growth and socio-economic development to support Nigeria’s global competitiveness and industrialization,” said the govt in a statement.

There are also plans to create 144,000 jobs in the sector by 2025, according to the NDP. To attain these goals, the government intends to adopt six strategies which are to improve the mineral sector’s enabling environment by strengthening regulatory compliance and enacting new policies where gaps exist; adopt an inclusive strategy that will improve the socio-economic and environmental sustainability of host mining communities and increase access to finance to develop value-added products, through the establishment of seed funds, and the attraction of foreign and local investments.

Others are to “create linkages across the mineral sector and beyond for value addition that will enhance local production and job creation; invest in research and development and skills development to enhance greater local knowledge generation and improve sector competitively; and to develop a Nigerian circular economy and environmental protection programme to reduce the footprint of mine waste and create new job opportunities.”

The government also intends to implement nine programmes that will drive growth in the mining sector. Among other things, it plans to increase Nigeria’s steel production capacity and create a sustainable and inclusive environment by repealing Cection 56 of the Labour Law that prohibits women from working in mines.

 

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