Nigeria has lifted a five-year ban on mining in Zamfara due to improved security, allowing for the country’s rich mineral resources to be explored again. The government aims to enhance mining’s contribution to GDP as part of its economic diversification strategy away from oil. New reforms and international partnerships are being pursued to attract investment and develop the sector.
Nigeria has officially reinstated mining operations in the northern state of Zamfara after a five-year hiatus originally imposed due to escalating security concerns. The Minister of Mines and Steel Development, Dele Alake, affirmed that advancements in security have allowed for the cessation of the ban, enabling Zamfara’s mining industry to resume activities and begin contributing to the national economy. The state is rich in valuable minerals such as gold, lithium, and copper, which had previously been targeted by illegal miners during the suspension.
The Nigerian government is keen to bolster its mining sector, currently contributing less than 1% to the nation’s GDP, as part of broader economic diversification efforts away from oil dependency. Several reforms have been introduced to attract foreign investors, including the revocation of inactive mining licenses, the establishment of a national mining company offering a 75% stake to investors, and restrictions on unprocessed mineral exports. Furthermore, the government has claimed that it will intensify efforts to combat illegal mining.
Additionally, to enhance its mining capabilities, Nigeria recently entered a training and development agreement with France, complementing previous partnerships with Germany and Australia. The Minister underscored the necessity of international partnerships for technical, financial, and capacity-building support to foster the growth of the sector.
The mining industry in Nigeria has faced significant challenges, particularly in the northwestern region of Zamfara, where banditry and insecurity have hindered exploration and production activities. The government’s decision to suspend mining operations in 2019 was aimed at addressing these security issues and protecting the state’s mineral wealth. With substantial deposits of gold and other valuable minerals, Nigeria views the reinforcement of the mining sector as crucial to its economic diversification strategy, aiming to decrease reliance on crude oil revenues.
The resumption of mining in Zamfara marks a pivotal moment for Nigeria, reflecting improved security conditions and a renewed commitment to enhancing the country’s mining sector. As the government enacts reforms to attract investment and combat illegal mining, the potential economic contributions from Zamfara’s rich mineral resources can significantly bolster Nigeria’s GDP, aiding the broader goal of diversifying the economy. This initiative, coupled with international partnerships, underscores the country’s strategic approach to evolving its mining landscape.
Original Source: www.mining.com
