For decades, experts and analysts have consistently advocated for the proper management of Nigeria’s solid minerals sector, arguing that its development would spur economic, social, and political growth. They believe it has the potential to create substantial employment and increase national income beyond the earnings from the petroleum sector. However, despite these expectations, the sector has not fulfilled its potential, as reflected in available data and key indicators.
In 2015, the Federal Government identified the solid minerals sector as a critical area to drive the much-needed diversification of Nigeria’s economy. In response, experts and organizations put forward various
My objective as the minister is to work to ensure that Nigeria becomes a global mining destination for the first time in history, and we are working to make this happen by alleviating bottlenecks and addressing salient challenges that have plagued the sector for decades.
- Dr. Dele Alake
proposals to support the government’s efforts. One of the most notable was from PwC Nigeria, which authored a piece titled “Developing the Solid Minerals Sector: Quick Wins for the New Government.” PwC, a leading advisor to the global and Nigerian mining industries, offered insights on accelerating the sector’s development and aligning it with the government’s economic diversification agenda.
PwC and other experts highlighted several key actions that needed to be taken to unlock the potential of the solid minerals sector. These included gathering geoscientific data to build on the existing airborne geophysical survey, addressing security challenges, establishing Mineral Buying Centers and lapidaries, and improving access to funding. PwC also recommended creating a solid minerals development bank, establishing a policy on artisanal mining, and revisiting the roadmap for solid minerals and metals sector development.
The Federal Government took these recommendations seriously, resulting in the launch of a new mining roadmap in 2016. This roadmap aimed to “build a world-class minerals and mining ecosystem designed to serve both domestic and export markets.” The ultimate goal was for the solid minerals sector to contribute 3% to Nigeria’s GDP by 2025.
Eight years on, while the sector has made some progress, particularly in creating the structures for growth, it has yet to meet expectations. One significant development was the reconstitution of the Solid Minerals Development Fund (SMDF) board in 2017, which was tasked with funding key initiatives in the sector. The SMDF, in collaboration with the Bank of Industry (BoI), launched a 5 billion fund to provide low-interest loans for mining projects.
Efforts have also been made to improve the regulatory framework with new laws and the creation of the National Council of Mining and Mineral Resources Development. Other achievements include the establishment of the Nigerian Institute of Mining and Geosciences in Jos, with a focus on manpower training and research.
In 2018, the government introduced a Roadmap for the “Development of Nigeria’s Industrial Minerals” under the World Bank-assisted Mineral Sector Support for Economic Diversification (MinDiver) Project. The issuance of Nigeria’s first gold refining license and a strategic focus on Bitumen and Steel have also been notable steps towards harnessing the sector’s potential.
Furthermore, efforts to curb illegal mining have increased through the provision of surveillance vehicles for Mines Inspectors and enhanced inter-agency cooperation, leading to arrests of both local and foreign illegal miners.
State governments have also become more involved in the sector, particularly through better collaboration with the Federal Government. State governments have begun receiving the 13% derivation from national solid minerals revenues, encouraging them to develop the sector and monitor revenue collection more closely.
Despite these advances, the sector still faces significant challenges. Although the SMDF was reconstituted, its impact has yet to be fully felt. The 5 billion low-interest funding from the SMDF and BoI, launched in 2018, has remained largely inaccessible to miners, while commercial banks continue to view the industry as high-risk, limiting available funding.
This was the state of Nigeria’s solid minerals sector before the administration of President Bola Ahmed Tinubu took office. A sector with immense potential to diversify the country’s economy away from oil remains underdeveloped and contributes little to national revenue. During his 2023 presidential campaign, Bola Ahmed Tinubu of the All Progressives Congress (APC) made promises to revitalize key sectors of the economy, including solid minerals, and if elected, he committed to working towards achieving these goals.
The Renewed Hope Agenda, a comprehensive 8-point plan introduced by President Bola Ahmed Tinubu, aims to tackle poverty in Nigeria through sustainable development and improved living standards. This agenda focuses on food security, poverty alleviation, economic growth, job creation, access to capital, inclusivity, the rule of law, and the fight against corruption.
However, the President alone cannot deliver on all these promises; he needed a capable team with the intellect, commitment, and experience to drive his vision forward.
One of the key sectors identified in achieving priority area four (Unlock Energy and Natural Resources for Sustainable Development) is the solid minerals sector, crucial for diversifying Nigeria’s economy. To spearhead this effort, President Tinubu needed a trusted, competent leader with a strong track record of delivering results.
He selected Dr. Dele Alake, a man he knows well from his tenure as governor of Lagos State, where Alake served as Commissioner for Information and Strategy from 1999 to 2007. In that role, Alake played a pivotal role in formulating strategic initiatives that contributed to the administration’s remarkable achievements.
Dr. Dele Alake is a seasoned technocrat, strategic thinker, and media professional with decades of experience. Before his appointment as the Honourable Minister of Solid Minerals Development, he was Special Adviser on Strategy, Communications & Special Duties to President Tinubu. His deep understanding of governance, communication, and strategy made him an ideal candidate to take on this critical role.
Upon assuming office as Minister of Solid Minerals Development, Dr. Alake laid out a clear, well-defined vision for the mining sector, encapsulated in his Seven-Point Agenda. This agenda seeks to reform the sector, restore investor confidence, and rekindle global interest in Nigerian mining. The key components of the agenda include:
- Establishment of the Nigerian Solid Minerals Corporation: To oversee and manage mineral resources efficiently.
- Gathering Nationwide Geological Data: To de-risk investment and provide accurate data for informed decisions.
- Securing the Mining Environment: Through the establishment of a Mines Police unit, now known as Mining Marshals.
- Combatting Illegal Mining: By organizing miners into cooperatives and enforcing laws against illegal activities.
- Marketing Nigerian Solid Minerals: To attract Foreign Direct Investment (FDI) and increase global interest.
- Value Addition and Community Empowerment: Promoting local mineral processing and ensuring communities benefit from mining activities.
- Community Development Agreements: To foster positive relationships between mining companies and host communities.
Dr. Alake has made it a priority to promote these initiatives on various platforms. Speaking at a meeting with the Nigeria-China Chamber of Mines, he emphasized the Ministry’s deliberate policies and programs aimed at ensuring economic prosperity and achieving the objectives outlined in the recently launched mining roadmap.
He stressed that the establishment of the Solid Minerals Corporation and the promotion of public-private partnerships are critical to sustaining the sector’s growth and boosting government revenues, with a significant contribution to Nigeria’s GDP.
Recognizing the importance of investor security, Dr. Alake has committed to ensuring a safe and stable environment for both local and international stakeholders in the mining sector. During a mining conference organized by the Nigerian Institute of Policy and Strategic Studies (NIPSS), he outlined his vision: “My objective as Minister is to ensure that Nigeria becomes a global mining destination for the first time in history, and we are working to achieve this by removing bottlenecks and addressing the long-standing challenges in the sector.”
When he met with the Miners Association of Nigeria, Dr. Alake reiterated that Nigeria has long relied on a mono-cultural economy driven by oil, and that a shift to solid minerals is not only overdue but critical to the nation’s survival.
“Our vision is to make solid minerals a major contributor to Nigeria’s GDP,” he declared, emphasizing the sector’s potential as a key driver of economic diversification and its role in combating climate change.
Nigeria’s solid minerals sector holds enormous potential, with over 44 globally sought-after critical minerals, including 40 million tonnes of talc, around 1 billion metric tonnes of iron ore, and 10 million tonnes of lead and zinc spread across various states. These resources, if harnessed properly, could significantly boost Nigeria’s economy and reduce its dependence on crude oil.
Since taking office, Dr. Dele Alake has been actively working to implement his 7-Point Agenda, bringing renewed hope and clear prospects for sustainable development in the sector. His commitment to repositioning Nigeria as a global mining destination is not only revitalizing the sector but also creating pathways for long-term economic growth and stability.
