Osinbajo: How mining sector can improve revenue generation

Vice-President Yemi Osinbajo says the mining sector will play a crucial role in increasing revenue generation in Nigeria for accelerated economic growth.

Osinbajo said this on Tuesday while delivering a virtual remark at the opening of the fifth edition of the Nigeria Mining Week Discourse Series.

According to a statement by Laolu Akande, Osinbajo’s spokesman, the event was organised by the Miners Association of Nigeria (MAN) in collaboration with private sector partners and supported by the ministry of mines and steel development.

Speaking on the theme, ‘Top Seven Reasons to Invest in Nigeria’s Mining Sector’, Osinbajo said while there have been achievements in the sector, there is room for improvement.

“It is significant that within the space of a year, we have recorded a 26.7 per cent increase in revenue generation from 2019 to 2020,” Osinbajo said.

“But while this is encouraging, we recognise that there is still a lot of work to be done.

“That is why this forum is so important; we are privileged to have in attendance so many distinguished experts and resource persons that deeply understand governance vis-à-vis the mining sector in Nigeria.”

Osinbajo further highlighted several high points recorded in the sector through strategic investments across the country.

“These investments include Thor Exploration Limited’s Segilola Gold Mine in Osun state, with an initial production capacity of 80,000 ounces of gold annually, representing the first large-scale gold mine in Nigeria,” he said.

“In June last year, I also had the privilege of commissioning the Dukia Gold & Precious Metals Refinery (DGPMR) project. The company set out to be a foremost indigenous refiner and trader of gold and other precious metals. Its potential impact on the gold sector is nothing short of revolutionary.

“By providing offtake opportunities through the establishment of Precious Metals Buying Centres, it serves as a spur for more small and medium scale mining investment. Its refinery symbolises its focus on value addition in the gold and precious metals industry in Nigeria and West Africa.

“A similarly remarkable investment is the integrated Iron Ore Mining and Processing Plant set up by African Natural Resources and Mines Limited (ANRML) in Kaduna. It has an initial production capacity of 4.704 million tons of iron per annum and will scale up to 5.88 million tons per annum.”

Osinbajo also said the legal framework in the sector has been reviewed in line with global developments, adding that the mining sector could help bolster economic growth.

“Concurrently, there is an ongoing review of the Nigerian Minerals and Mining Act 2007, aimed at bringing legislation into conformity with global best practices, limiting the role of government to that of regulation, and creating the space for the private sector to maintain a more expansive presence in the sector,” he said.

“What will be evident to a potential investor is that we have built a robust framework for the mining sector, line by line.

“In 2016, the ministry of mines and steel development, in collaboration with industry stakeholders, produced a clear roadmap for the growth and development of the Nigerian Mining Sector Industry.

“In pursuit of the goals set forth in the roadmap, government initiated an ambitious reform regime in the sector, the flagship of which is the National Integrated Mineral Exploration Programme (NIMEP).

“(It is) designed to rapidly generate geological data with the aim of de-risking the sector and attracting high calibre investments.”