Nigeria Resumes Mining in Zamfara State After Five-Year Suspension
Nigeria Resumes Mining in Zamfara State After Five-Year Suspension

Nigeria Resumes Mining in Zamfara State After Five-Year Suspension

  • 27-Dec-2024 1:15 PM
  • Journalist: Phoebe Cary

Nigeria has officially lifted a five-year ban on mining exploration in the northwestern state of Zamfara, signaling a significant shift in the nation’s mining industry. The suspension, which was enforced in 2019 due to escalating bandit attacks, had severely hindered the state's mining sector, which holds substantial gold, lithium, and copper deposits. The move comes after notable improvements in security, according to Dele Alake, Nigeria’s Minister of Mines and Steel Development.

In a statement released on Sunday, December 22, Alake highlighted the positive impact of increased security measures in the region, noting that “the security operatives’ giant strides have led to a notable reduction in the level of insecurity.” He added that with the lifting of the ban, Zamfara’s mining sector could gradually begin contributing to Nigeria’s revenue pool. The suspension had led to illegal mining activities, which allowed criminals to exploit the region’s abundant natural resources, further exacerbating the challenges the government was facing in ensuring security and regulatory compliance.

Zamfara has long been a crucial area for mining activities. However, the region had been plagued by banditry, kidnapping, and other forms of violence that led to the suspension of mining exploration in 2019. During this time, illegal miners capitalized on the lack of regulation, often contributing to the security challenges in the region. The lifting of the ban aims to restore order and bring the mining sector under proper government oversight.

Nigeria, Africa’s largest oil producer, is eager to diversify its economy, which has been heavily reliant on oil exports. The mining sector, which currently contributes less than 1% to the nation’s GDP, is seen as a key avenue for economic diversification. To foster growth in the industry, the Nigerian government has introduced a series of reforms, including the revocation of unused mining licenses, the establishment of a national mining company with foreign investors being offered a 75% stake, and policies to curb the export of unprocessed minerals.

As part of its efforts to build capacity in the mining sector, Nigeria has also turned to international partners for support. Earlier this month, the government signed a training and development agreement with France, aimed at enhancing technical and financial capabilities in the sector. Similar agreements have been forged with Germany and Australia, with the goal of providing the necessary expertise and assistance to strengthen Nigeria’s mining industry.

With security improving and reforms underway, the Nigerian government is hopeful that the mining sector will play an increasingly important role in the country's efforts to reduce its dependency on oil revenue.  

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