The President, Miners Association of Nigeria, Alhaji Sani Shehu, has called on the new administration to provide adequate funds for the Solid Minerals Development Fund (SMDF) to ensure its development.
Shehu made the call on Wednesday in Abuja at the association’s news conference tagged “Mining is the answer”.
SMDF is, however, an agency under the Ministry of Mines and Steel Development, mandated to fund all the mining activities across the country.
According to Shehu, for Nigeria to regain its former glory on the global mining arena, the sector must be adequately funded through SMDF, which is yet to begin operations, three years after its inauguration.
Shehu said that the mining industry had, in the past, contributed significantly to the growth of the Nigerian economy, adding that Nigeria was a major producer of tin, columbite and coal.
“The industry also provides massive employment and was one of the sources of revenue for infrastructure development before it suffered a major setback.
“For decades afterwards, small scale operators and artisanal miners took over the sector.
“It is not appropriate to leave a sector with such huge potential to be dominated by artisanal and small scale miners.
“The sector still remains virgin and needs to be properly developed to actualise its full benefits to the nation,” he said.
Shehu also urged government to continue to generate credible geosciences data, extend the local content law to the mining sector, encourage mining cooperatives into clusters and facilitate human capacity development programmes.
He urged government to adequately fund the Ministry of Steel to strengthen its relevant departments to perform their statutory functions.
He implored government to promote local manufacture of mining equipment and create the enabling environment to allow operators to access funds more easily and at single digit interest rates.
According to Shehu, Nigeria has at least 33 viable solid minerals deposits; these contribute less than one per cent to the GDP as against the erstwhile 10 per cent generated from the sector before oil.
“South Africa, which is less endowed than Nigeria in this regard, depends on solid minerals exploitation for 18 per cent of its GDP and has created over one million jobs,” the president said.
He said countries like India, Mozambique and Ghana were fairing well in mining sector, adding that it was a viable economic alternative to oil.
Shehu said the association had resolved to work with the new government to actualise its aspirations of generating additional revenue and massively creating jobs for the citizens.
He said the association had developed a five-year Strategic Development Plan for the mining sector which would create 300,000 jobs annually as well as contribute 10 per cent to the GDP.
“The solid minerals industry is witnessing a renaissance and its relevance to Nigerian economy can no longer be downplayed, especially at a time when critical, diverse investments are needed to enhance the economic empowerment of our people.
“The vast occurrences of solid mineral resources in each state of the federation are yet to be accorded due attention; collective and affirmative action is desired in order to fully exploit the enormous prospects that exist.”
He said the union recognised measures were taken by the former administration to reform the mining industry by creating institutions which provided a platform for the sector in line with industrial best practices.
He said even with the reform, the sector still had challenges of inadequate skilled labour, inadequate geological and bankable data, multiple taxation as well as inadequate logistical support among others.
He commended the appointment of Mr Roberts Orya, the Managing Director, Nigerian Export-Import Bank, as the Honorary President of the Global Network of Export-Import Banks and Development Finance Institutions.
He condoled with the families of the victims of the recent lead poison in Niger and prayed God to grant them the fortitude to bear the loss.