Deputy speaker of Nigeria’s House of Representatives, Benjamin Kalu, has stated that the contribution of a paltry 0.3 percent to the country’s GDP by the solid mineral sector was unacceptable in view of the huge amount of deposits of various minerals across Nigeria.
“Despite boasting over 40 commercially viable minerals, the mining sector contributes a mere 0.3% to our GDP. This, my friends, is unacceptable. Our duty call today is to turn the tide,” the Deputy Speaker stated on Monday, when addressing participants at the Public Policy Dialogue on Nigeria’s Minerals and Mining Legislation.
The event was organised by the House of Representatives Committee on Solid Minerals, headed by Hon. Jonathan Gbefwi, who is lead sponsor of one of the bills under consideration, Nigerian Minerals and Mining Act (Amendment) Bill.
He said: “there are indications of a renewed vigor in our mining industry, fueled by a collective will to diversify our economy, create jobs, and unlock the immense potential that lies beneath our soil.”
Her said the 2016-2025 mining industry development roadmap, aiming to increase the sector’s GDP contribution to 3% by 2025, is already showing progress.
ects like the Segilola Gold Project in Osun state governed by a private-sector-led lens are injecting millions of dollars into our economy and attracting much-needed investment.
“To demonstrate this concisely, in the 3rd quarter of 2023, the Segilola Gold mine in Osun state, Nigeria’s first industrial-scale gold mine posted $118 million in revenue for its owners, Thor Explorations Limited after reporting $71.7 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2022 according to its publicly available financial statements for 2022 and 2023.
“Initiatives like the simplification of licensing and competitive royalty regimes attract global players like Thor Explorations, showcasing the potential for an industrial-scale mining sector. We have done it with gold mining in Osun state, we can replicate it across all the states of the federation and the value chains of 40 other commercially viable solid minerals that abound in the country,” he stated.
