Nigeria currently imports significant
amounts of coal and iron ore despite huge deposits of the mineral
resources in the country, the Federal Government has said.
The Federal Government said this in a
document entitled: ‘Road map for the Growth and Development of the
Nigerian Mining Industry’, with the forward written by the Minister of
Mines and Steel Development, Dr. Kayode Fayemi.
According to the report, the country was
also importing barites until 2003 when the Federal Government banned
its importation, adding that the country had since become a net exporter
of barites.
The report stated, “Today, mineral
production data in Nigerian mining is unclear and inadequate. A
reasonable conclusion can be drawn that the industry is constrained.
However, given the historical under-reporting of production by existing
firms, together with the fact that most of Nigeria’s mineral production
is conducted by artisanal miners, it is believed that the production
figures are understated.
“Mineral revenues are often in one of
the two markets: local consumption and exports. Local consumption
accounts for majority of the market, as minerals contributed only about
0.02 per cent of the reported exports in 2012.
“In a number of cases, the excess of
demand over local production makes Nigeria a net importer of minerals.
This is despite the presence of huge potential for some of these
minerals, highlighting the market opportunity that exists from import
substitution.
“For example, Nigeria imports
significant amounts of coal and iron ore despite the potential endowment
it has. Nigeria used to import barites until 2003 when the government
banned imports to boost production.”
The report added that the sector
contributed approximately 0.33 per cent to the Gross Domestic Product of
the country in 2015 and that the contribution was a reversal from the
historically higher percentages contributed by the solid minerals
sector.
One of the most critical factors for
creating an enabling environment for exploration and mining is investor
perception, the report noted.
It stated, “Undue interference by
communities and state governments, with expectations outside the
provisions of the law/regulations, cripples investments and the
development of the mining sector.
“Uncertainty and inconsistency in state
and federal laws, interpretation and enforcement will hamper
development. The perception of a change of regime affecting laws also
stalls investment and partnership.
“Fiscal policies that remain stable and
predictable in the face of changing regimes improve transparency and
foster good governance within the sector.”
The report also highlighted three phases
for putting the minerals sector on the path of growth. The phases are
the short, medium and long terms
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