Economic Diversification: Senate, Ministry, Stakeholders Brainstorm on Solid Minerals Devt

Sunday Aborisade in Abuja

The Senate,  Federal Ministry of Solid Minerals Development and stakeholders in the solid minerals sub-sector of the economy yesterday agreed on the need to explore it for the purpose of tackling the current foreign exchange crisis in the country.

They gathered at a three-day Investigative Hearing on: “The Need to Comprehensively Review the Input and Output Values of the Nigeria Mining Industry in the Light of its Central Role to Economic Diversification, Foreign Exchange Earnings and Social Inclusion” It was organised by the Senate Committee on Solid Minerals Development.

Declaring the event open, Senate President, Godswill Akpabio, wondered why the national economy continues to rely solely on crude oil.

“Why can’t we infuse our economy with the richness of solid minerals and liberate ourselves from the shackles of oil dependence? How can we transform our mono-economy into a fully diversified economy?, Akpabio further queried.

He noted that his observations were  the fundamental questions that the stakeholders must confront and address.

He said: “Today, we embark on a three -day investigative hearing on the comprehensive review of the Nigeria Mining Industry, driven by the spirit of inquiry and the desire for economic diversification.

“I extend my heartfelt gratitude to the Committee on Solid Minerals Development for their unwavering dedication in organizing this significant event.

“Their commitment to the development of our nation’s mining sector and their leadership in driving the diversification of our economy is truly commendable.

“The resolution in the Senate that led to this investigative hearing underscores the pivotal role that the mining industry should play in our quest for economic diversification.

“We can no longer overlook the immense potential of this sector. The mining industry should be a cornerstone of our foreign exchange earnings and a catalyst for social inclusion and empowerment.

“Our beloved country, blessed with abundant mineral resources, has the potential to become a global powerhouse in the mining sector. However, to realize this potential, we must confront the challenges that hinder the growth of this sector.

“This investigative hearing presents us with an opportunity to ask the tough questions, identify these challenges, and develop effective strategies to overcome them. I implore all stakeholders present here today to actively engage in the deliberations of this hearing.

“Your expertise, concerns, perspectives, insights, and recommendations are invaluable in shaping the future of the Nigeria Mining Industry and propelling our economy towards new horizons.

“Let us engage in constructive dialogue, share best practices, and explore innovative solutions that will infuse the mining sector into the very bloodstream of our economy.

” It is through our collective and collaborative efforts that we can create an enabling environment for the mining industry to thrive, attract investments, generate income, boost our foreign exchange earnings, and create employment opportunities for our people.

He expressed the hope that the investigative hearing would serve as a catalyst for positive change, marking the beginning of a new era of growth and prosperity for the Nigeria Mining Industry and our great country as a whole.

The Minister of Solid Minerals Development, Mr. Dele Alake, said the reason that the forex problem remains was because  the nation is dependent solely on oil, hence  there was a free flow of petrol dollars.

He said: “We closed our eyes as a society to other critical sectors that could have stabilised and improved the infrastructural and technological development of Nigeria.

“We had free flow of oil and so we became quite indulgent and partisan. But like the Senate President said, that’s history now.

“We are being compelled by a global trend to now shift our focus to the solid mineral sector in this country because we don’t really have a choice than for us to open up the sector and of course give it the much needed life, that is, inject life into that sector.

“There are so many other countries in the world that don’t have oil, that have no options, but solely rely on their solid minerals. They are thriving and they are moving ahead and they are developed more than us. What has been the clog in the wheel of Nigeria’s economic progress, especially in the solid mineral sector?

“Again it is because we decided to shift our attention away. Now that we have been compelled by the trend in the world of shifting away from fossil fuel, from oil, into minerals and the global warming conditions have also compelled the world to shift attention away from global warming-inducing industrialization.

“Green energy is a watchword in the world today. And what are those things that ginger and sustain green energy? It’s the minerals. And this critical metals we have in abundance.

“So if the world is shifting attention away from fossil fuels and of course because of global warming going towards green energy, it then means this is a time for Nigeria’s resurgence, what I call Nigeria’s resurgimento is here.

“With due respect, the idea of ‘dwindled revenue’ derivable from the solid minerals sector is not reflective of the actual fact.

“This is far from the reality of revenue performance as reported by several credible research organizations, including Nigerian Bureau of Statistics in the last five years.

“With the above facts, I believe you will agree with our ministry that the idea of dwindling revenue is alien to the revenue performance of the Solid Minerals Sector, particularly in the last five years.

“The issue therefore, is not that the revenue is dwindling but that this increasing revenue is still too low compared to the economic potential of the Solid Minerals Sector and the level of economic activities in the sector.

“We agree with the conclusion of NEITI and other stakeholders that although the sector contributed 0.63 percent to GDP in 2021, from 0.45% in 2020 and 0.26% in 2019,‘the sector has not yet reached its full potential in making a significant impact on the overall Nigerian economy.

“As at now, the reality of the Solid Minerals sector and its contribution to the national economy is seriously under-investigated and under-reported. This is one of the reasons why the Ministry is partnering with the BS to improve the quality of its research and consequently, the credibility of its data.

“On our part, as the regulatory body, we are increasing our data gathering capacity, technological sophistication and visibility of the system.

“Three weeks ago, I issued a directive for monthly data turns towards our policy of disseminating Monthly Digest of Mining statistics to give every Nigerian access to data on the facts and figures of the progress we are achieving in transforming the sector.

“Very soon, we shall deploy advanced satellite technology that will use geo-spatial tools to capture each and every mining activity on Nigerian soil.”