By Patience Chat Moses
In a strategic quest to position the country’s mineral sector for global impact, the Minister of Solid Minerals Development, Dr. Dele Alake has assured Nigerians of the establishment of the Nigeria Solid Minerals Corporation, which he said will significantly transform the mining sector and lay the foundation for its sustainable development.
Alake spoke when the British Deputy High Commissioner to Nigeria, HE Jonny Baxter visited his office where he further disclosed that the initial setup of the new corporation will be driven by the Ministry of Finance Incorporation (MOFI), with the structure patterned after the Nigeria Liquefied Natural Gas (NLNG) model.
“The Solid Minerals Corporation will be an enduring legacy. No future government will be able to exert any political interference. The President has approved this, and we are looking at a 50% equity stake for the private sector, 25% for Nigerians, and 25% for the Federal Government,” the Minister emphasized.
Looking ahead to 2025, Alake outlined the government’s plans to create a more competitive and globally recognized mining sector.
According to him, “We are focused on improving access to mining sites through the development of intermodal transport along the mining corridor – including roads, rail, and waterways; strengthening the regulatory framework; remediating abandoned mining pits for productive use; ensuring investor security; and expanding exploration to generate comprehensive geo-data that will attract major players to the sector.”
The Minister also welcomed the support of the UK for capacity building, technical assistance, and knowledge transfer across the mining value chain while urging British investors to explore opportunities in Nigeria’s mining sector.
Describing 2025 as a pivotal year for the Tinubu administration, Dr. Alake emphasized the ongoing efforts to drive reforms across various sectors, noting that the fruits of these efforts are beginning to manifest.
Benefits to Nigeria
The Nigeria Solid Minerals Corporation is expected to bring numerous benefits to the country. The corporation will help increase revenue from the mining sector, which contributed N193.59 billion in 2021 alone.
The mining sector currently has over 2 million operators, including small-scale companies and registered miners. The corporation is expected to create more job opportunities and stimulate economic growth. A partnership with the private sector and international investors will be enhanced as it is expected to attract significant foreign direct investment, driving economic growth and development.
Nigeria is not alone in establishing a state-owned corporation to manage its solid minerals sector. Several countries have similar entities. In Australia, Geoscience Australia and the Australian Nuclear Science and Technology Organization (ANSTO) are in charge while the South African Mineral Resources Administration (SAMRA) and African Exploration Mining and Finance Corporation (AEMFC) rule in South Africa.
These entities demonstrate the importance of state-led initiatives in developing and managing a country’s solid minerals sector.