Stakeholders canvass need to diversify the economy through responsible and accountable mining of solid minerals, insisting that earnings from the sector can triple those from crude oil
By Edu Abade
Some stakeholders in the Nigerian economy have made a case for increased mining of the abundant solid mineral resources in the country, arguing that if properly harnessed and regulated to discourage incursion of illegal miners from China, the nation could generate double or even triple its crude oil earnings estimated at billions of dollars.
Chief Executive Officer of Mallinsons & Partners, who doubles as former Chairman and Council Member, Non-Metallic Sector Group of the Manufacturers Association of Nigeria (MAN), Mr. Afarm Mallinson Ukatu, stated this at the annual Commerce and Industry Correspondents Association of Nigeria (CICAN) Conference and Awards in Lagos.
Ukatu, who spoke on behalf of MAN at the conference with the theme: Navigating Fiscal and Monetary Policy Challenges as Threats to $1 Trillion GDP Target by 2030, said for Nigeria to effectively diversify and grow the economy, there was the need to pay special attention to the solid minerals mining sector.
Specifically, lithium which has been described as ‘a transition mineral’ will play a crucial role as the world looks to greener and renewable source of energy. It is used in making batteries of electric cars, solar panels and cell phones batteries, which is why China and the United States of America are making inroads into every country and region where commercial quantities have been found.
Lithium is being vigorously mined in Nasarawa State for which the Federal and state government have given their support in establishing a Lithium mining company in the state.
Stressing that Nigeria is endowed with diverse solid minerals across the country, he said with proper regulation that would effectively check the activities of illegal miners and local content investments, which guarantees the sourcing of mining equipment locally, the country stood the chance of generating more revenue from mining than from crude oil and gas.
Ukatu explained that with commercial quantities of gold, lithium, lead, copper, uranium, bitumen, precious stones and other solid minerals in Zamfara, Nasarawa, Cross River, Kogi, Edo, Kwara and other parts of the country, the Nigerian economy should not remain dependent on a mono-product, crude oil, which often fluctuates due to the vagaries of global crises, market forces and political economy.
“It is dangerous to continue to place the fortunes of the Nigerian economy on one source of earning. That is like putting all ones eggs in one basket and assuming anything happens to the basket of eggs, the country will find itself in a dire situation, which must be avoided.
“God has blessed Nigeria with everything and therefore, we must avoid putting ourselves in a cull de sac. China has discovered the huge potential inherent in solid minerals and has unlocked the secret of mining such precious resources and that is why the country is ‘colonising’ every space where such minerals have been found in commercial quantities worldwide.
“We are aware of the environmental concerns being raised around mining from some segments of the society, particularly from civil society groups, but if the government at all levels put appropriate measures in place to regulate and check illegal mining activities in host communities, Nigeria stands to gain immensely from the extraction of solid minerals, especially Lithium that has been described as a transition mineral globally.”
He stressed that Nigeria’s economy is capable of reaching a $1 trillion Gross Domestic Product (GDP) and even exceeding the figure if the Federal and state governments put the right measures in place in the mining sector to liberate the country from the clutches of a mono-product economy.
In his welcome address, National Chairman of CICAN, Mr. Charles Okonji, commended Rite Foods Limited; Moniepoint Micro Finance Bank; Nestle; NACCIMA; SON; Dangote Group, which blazed the trail in local refining of petroleum products by a private investor, Mallinson & Partners, which have successfully established the first tiles manufacturing firm in Nigeria and Bullion Go-Neat Global Limited, which has overcome all obstacles to establish a thriving enterprise, among others.
He commended the companies for overcoming the belief that local firms could not make it in the manufacturing certain products locally, stressing: “Nigeria has huge potential and with determination, focus and the right direction, any hard working, disciplined person or group of persons can excel in the country.
“Government only needs to provide the enabling environment for private enterprises to thrive and further develop the country’s economy.”
A high point of the was the conferment of awards on Lagos State Governor, Babajide Sanwo-Olu for his administration’s infrastructure development; Gonbe State Governor, Muhammadu Yahaya for massive industrial revolution and Barrister Victor Opara (SAN) for his sustained advocacy in support of industrialists.
Other awardees are Chairman, Chief Executive Officer (CEO), Federal Inland Revenue Service (FIRS), Zacch Adedeji for tax efficiency and innovations; Managing Director and CEO of Bullion Go-Neat Global Limited, Ambassador Olufemi Ajadi, whose COCO Samba herbal drink clinched the product of the year award and Moniepoint Micro Finance Bank for Fintech Company of the year.
Meanwhile, to ensure responsible and accountable mining in host communities, environmental advocacy groups have commended the Nasarawa State House of Assembly for summoning a Chinese firm-Multiverse Synee Mining Company Limited to appear before it for questioning over mining impacts in Abuni Community, Awe Council of the state.
The groups, Renevlyn Development Initiative (RDI), Environmental Defenders Network (EDEN) and Citizens Free Service Forum (CFSF) had earlier petitioned the Nasarawa State House of Assembly through its Chairman, Committee on Environment, Hon. Adamu Omadefu on October 3, 2024 following a save our souls (SOS) from residents.
The community had complained about pollution of the Rafin Jaki River and other infractions being caused by mining activities including indiscriminate rock blasting and insensitivity to their plight after several complaints.
RDI, EDEN and CFSF had also met with Omadefu earlier this week and requested that the House carry out a fact finding visit to the community as well as Uke District where similar environmental challenges were being faced by the locals due to illegal mining.
In a swift response to the request, the lawmaker led other members of the committee to visit Multiverse Synee Limited mining sites in Abuni Community and Akurba in Lafia Council on Tuesday, November 26, 2024 where they inspected the environment and informed the firm that the committee was there to ascertain if the company fulfilled all the constitutional requirements to work in the state.
Omadefu said the House of Assembly wanted to find out what has been happening in Nasarawa communities, insisting that they would not allow what is happening in oil-bearing communities of the Niger Delta to happen in Nasarawa State.
He also heard from community youths including the Youth Leader of Abuni, Umar Shuaibu, who expressed disappointment with the company for failing to fulfill all the agreement reached with the community on provision of roads, electricity, scholarships and a hospital, among others.
Responding to the summons on the firm, Executive Director of RDI, Philip Jakpor, commended the Nasarawa State House of Assembly and particularly the Chairman, House Committee on the environment, Hon. Omadefu for the pro-activeness in inviting the firm accused by locals of violating their environment.
“We are determined to continue working with the Nasarawa State government in ensuring that in the extraction of lithium and other solid minerals in the state, the people and the environment are not impacted negatively,” he said.
Also reacting, Executive Director of EDEN, Barrister Chima Williams, said:
“This feat is not only commendable. We encourage Hon, Omadefu and indeed the entire Nasarawa State House of Assembly to remain steadfast because we know there are big shots backing the illegality that the House is now confronting. We promise our sustained support for this course”
In a similar vein, CFSF Executive Director, Comrade Sani Baba said: “The Nasarawa State House of Assembly acting through the committee on environment has sided with the people in the decision to stop the environmental crisis in Abuni and other parts of Nasarawa. We commend them and urge them to refuse any form of intimidation in forcing the mining firms to behave responsibly. Anything short of this is a time bomb.”
In their petition, the groups demanded a comprehensive environmental audit of Abuni, Uke district and their environs, among other requests.
They also urged the government to revoke the mining license of any mining firm found wanting of breaching Nigeria’s environmental laws, as well as a thorough scrutiny of agreements reached between mining firms and traditional rulers in the mining communities.
