Nigeria is revered both domestically and internationally as a “Blessed Nation,” endowed with abundant agricultural, mineral, and natural resources. Truly, our land embodies the vision of ‘a land flowing with milk and honey’. Yet, as history has shown, a blessing not properly managed can morph into a curse, inflicting misery upon a negligent steward.
This encapsulates the current state of Nigeria’s mining industry. The Nigerian mines, once heralded as promising veins of prosperity, have languished under the weight of under-development that has stifled its potentials for decades transforming it into a metaphorical curse.
Beginning from why we are the target of major foreign exploiters, to the menace it has caused to our society; in terms of corruption, theft, the hazards of illegal mining and its consequent damage to our agricultural sector. The Nigerian mines have been nothing short of a disaster marred with under-management and inadequate exploration. What was once considered a “blessing” has tragically transformed into a “curse”.
Despite this prevailing rhetoric, A blessing remains a blessing. The Nigerian mines expresses hope of future development. With proper management and strategic directives within the mining industry, Nigeria can defeat this self-imposed curse that has plagued its lands and economy.
A step towards redemption, is the strategic review and consequent revocation of the 924 dormant mineral licenses that was carried out on Wednesday by the Nigerian Government.
A new era for Nigerian mines
The first step has always been the purging, akin to the separation of the wheat from the tares in agricultural processes. Before any dilapidated system can thrive, there is always a need to rid the system of blood-suckers that have hindered its sustainability, only then can we effectively oversee the future development of our mines. The revocation of mineral licenses was implemented to combat “license racketeering” where companies and individuals secures title and then offers the license to the highest bidder.
This pervasive system has fostered a misconception in the minds of unsuspecting investors that they can only purchase licenses from the black market, essentially discouraging adequate investment in the sector.
As such, the revocation of the licenses obtained by these supposed black market operators will bring an end to the issue of license racketeering and encourage investment.
The Replanting
Since the field cannot be left bare, there is a need for new investors and miners to work the mines. In respect of this, the Nigerian government has extended invites for investors to apply for these licenses stating that the applications will be reviewed on a “first come, first served basis”. The revoked mineral licenses up for acquisition include 528 exploration licenses, 20 mining leases, 101 quarry licenses, and 273 small-scale mining licenses.
As they say, add a little spice!
In order to spice up the cooking, the federal government has offered tax waivers and full returns on profit to investors as incentives for investors who are willing to apply and obtain mineral licenses. This incentive is to encourage more investment in mines as in the past, Nigeria have struggled to extract value from its enormous mineral and natural resources due to lack of willing investors in the sector.
However, it comes with a caveat, the country will only grant mining licenses to companies and individuals that are willing to process minerals locally. This directive was given earlier in the year, as a detterance to foreign exploiters who mine in Nigeria and take the minerals to their home country for processing and sale. Miners can only obtain license, by proving that they have a plan to process locally, adding value and benefit to the communities in which the minerals were sourced.
Implementing a policy that requires minerals to be processed locally before exportation will invariably raise the standard of living of the ordinary Nigerians through creation of employment opportunities in mining, processing, transportation and other related industries. Moreover, It will also ensure that the wealth and profit generated from the mineral sales remains within the country thereby economically empowering local communities.
Furthermore, increased investment in mining and processing sectors may stimulate infrastructures development such as roads, schools, healthcare facilities, and utilities benefiting not only the industries but also surrounding communities. Engaging locals in mining and processing activities will necessitate the development of technical skills and expertise, offering opportunities for training and skill enhancement within the local workforce.
Additionally, local processing will lead to stricter environmental regulations, resulting in better environmental management practices and reduced environmental impacts. Ultimately, these measures will contribute to Nigeria’s prosperity, affirming the acknowledgment of Nigeria as truly blessed, a land flowing with milk and honey.
