Saturday, February 8, 2020

Mining contributes ‘only 0.3% to Nigeria’s GDP’

Mining contributes ‘only 0.3% to Nigeria’s GDP’
September 13
08:29 2017

Nigeria’s domestic mining industry is still underdeveloped as it contributes only 0.3 per cent to the nation’s gross domestic product (GDP).

Ebhota Al-Amin, a staff of the federal ministry of mines and steel development, said this on Tuesday while speaking at the maiden edition of the national council on mining and mineral development (NCMMRD) organised by the ministry.

The programme, which held in Abuja, was themed ‘enhancing mineral resources governance towards economic growth and diversification’.

Al-Amin said the nation’s mining sector has the potential of becoming a major catalyst for economic development but is usually hindered by export problems.

He also said but for the dominance of illegal miners, proceeds from coordinated exports in the sector could help in the diversification of the nation’s resources.

“What we need to do as a nation is to bring about a system that would help us export. In Ghana, for instance, all exports are paid for through the country’s central bank,” he said.

“Nigeria has significant solid mineral resources with potentials to attract investments for economic diversification from oil. But the mining sector is dominated by illegal mining carried out mainly by foreigners with collaboration from indigenes believed to be sponsored by money bags.

“In absence of petroleum, Nigeria is endowed with mineral resources and the development of mining industry appears to be an appropriate strategy for export expansion.

“Apart from the fact that many people have died in the process of illegal mining due to crude methods, it has also robbed the nation of huge revenue.”

Al-Amin further highlighted the export challenges being faced in the mining sector to include lack of suitable equipment, the absence of product marketing strategies and promotional programmes, absence of quantified reserves to attract investors as well as insufficient funds.

Mohammed Abbas, permanent secretary of the ministry, earlier said in his speech that the council’s main objective is to brainstorm and provide inputs into the governance of the sector in order to achieve desired results in the diversification of the economy.

“The federal and state governments must work together to address issues effecting the sector which borders along illegal mining and poor mining governance,” he said.


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