Dele Alake Projects 50% GDP Contribution From Nigeria’s Solid Mineral Industry

Dele Alake, the Minister of Solid Minerals has said that Nigeria is looking at diversifying the economy and is hoping that the ministry contributes at least 50% to the nation's GDP.

He stated this during the unveiling of the 'Agenda for the Transportation of the Solid Minerals for International Competitiveness and Domestic Prosperity' on September 3, 2023, in Abuja. He went on further to say that the ministry will focus on a seven-point agenda which will include the creation of the Nigerian Solid Minerals Corporation, Joint Ventures with Mining Multinationals, Big Data on specific seven priority minerals and their deposits, 30-day grace for illegal miners to join artisanal cooperatives, Mines Surveillance Task Force and Mine Police, Comprehensive review of all mining licenses and the creation of six (6) Mineral Processing Centres to focus on Value-Added products.

He said,

• President Bola Tinubu has taken firm, courageous decisions that have reset the logic of the Nigerian economy. The removal of subsidy and the adoption of a single exchange rate are among the fundamental transformational policies of this administration. This radical approach to making the economy resilient in the long term is the guiding principle of the management of the Ministry.

• The Ministry has to take the bull by the horns if the country must reap the harvest of the trillion dollars worth of minerals under the ground across the country. To achieve this laudable objective, there has to be a paradigm shift in the strategy by re-positioning the sector in terms of the human and capital factors that can drive its transformation.

• Mining is big business. Nigeria must assert its presence in this environment by replicating its strategic positioning in the petroleum sector by setting up a corporate body that plays in this field. Consequently, the Ministry shall work towards incorporating the Nigerian Solid Minerals Corporation.

The Minister also said that the corporate body will have sections that will focus on seven key priority areas that require attention and this include, Gold, Coal, Limestone, Bitumen, Lead, Iron-ore and Baryte. He also stated that existing enterprises like the National Iron-Ore Company and the ongoing Bitumen Concessioning Programme will be modified to fit in the new system.

He said,

• The proposed corporation will seek and secure partnership investment agreements with big multinational companies worldwide to leverage on the attractive investment-friendly regime operating in the country to secure massive Foreign Direct Investment for the mining sector. The positioning of the national corporation as a guarantor and protector of the partnership agreements is expected to assure partners of our seriousness and fidelity.

• Similarly, the Solid Minerals Corporation will provide robust support for Nigerian businessmen seeking funding abroad and help to authenticate their investment proposals to speed up the commitment of their partners to invest. Domestically, the Solid Minerals Corporation will engage the Nigerian financial system, which has demonstrated palpable reluctance to support mineral prospecting and mining because of the long-term gestation of value generation by developing a Fund to facilitate investments in mining at interest rates that will be mutually agreed.

He further stated that Nigeria will focus on the minerals available such as gold, bitumen, manganese, iron ore, lithium, lead, limestone, zinc, uranium, columbite, kaolin, gemstones, topaz, coal and copper which are in high proportions to attract investors globally.