Struggling to make N505 billion in five years, Nigeria’s mining industry still has a long way to go if the country’s target of increasing the sector’s contribution to Gross Domestic Product to three per cent will be achieved.
   
A new report published, yesterday, by PwC and authored by its Partner & Mining Leader, Cyril Azobu and Partner, Head Mining Sector Business Development, Habeeb Jaiyeola, showed that Nigeria may be attracting domestic and international investors, in line with global trends in the sector. But the industry in Nigeria remains underdeveloped.
   
Despite abundant solid resources, which include gold, lead, zinc, coal, bitumen, iron ore, limestone and barite, the report lamented that the mining industry only contributes 0.15 per cent to the GDP.
   
The contribution, projected to hit 0.34 per cent in 2025, is far from the three per cent target set out in the country’s mining roadmap. 
   
“Ensuring a secure environment for mining operations remains one of the matters requiring urgent attention of the new federal and state government administrations. Insecurity in the mining sector could be curbed using technology, collaboration with security agencies and mining host communities,” the report stated. 
   
It called for the harmonisation of policies and regulations, saying there was a need to have a harmonised approach to regulation of mining activities among federal, state and local councils.
   
The report urged the Nigerian government to drive strategic minerals development, especially the need to review the country’s current list of strategic minerals, in consideration of other minerals that align with global demand and current realities. 
   
“Environmental, social and governance factors are ever-increasing considerations in the mining sector. It is necessary that environmentally friendly methods are adopted in mining. Furthermore, governance is vital for mining entities as it mitigates risks, improves decision making and ensures transparency and compliance,” the report stated.

   Also, the Federal Government, through the Ministry of Mines and Steel Development, yesterday, sought partnership with states to eliminate illegal mining activities across the country.
    
Permanent Secretary, Ministry of Mines, Dr. Mrs. Mary Ogbe, disclosed this in Abuja, while receiving the governor of Taraba State, Dr. Agbu Kefas, during a courtesy visit to the ministry’s headquarters. 
   
Ogbe, who was represented by the Director, Human Resource Department, Alhaji Suleiman Muhammad Kabir, said there is a need for collaboration between the ministry and Taraba State to curtail incidences of  illegal mining in the state; which has become endemic, causing hemorrhage to government’s revenue.