Adegbite shares post-COVID strategy for Nigeria’s mining sector

The Minister of Mines and Steel Development in Nigeria, Olamilekan Adegbite, recently shared insights on the post-COVID strategy for the country's mining sector in an exclusive interview with CNBC Africa. Adegbite highlighted the significance of boosting economic activities in the sector to drive growth and development in Nigeria. The strategy revolves around six major activities spread across the country's geographical zones to tap into the vast mineral resources Nigeria possesses. One of the primary focuses highlighted by Adegbite is the Baywright mineral, essential for exploration in Nigeria, particularly in the oil-producing regions. Adegbite pointed out the development of a Baywright Processing Center in Calabar, South-South Nigeria, to streamline the extraction and processing of Baywright for market distribution. In the South-West region, the focus is on gemstones, particularly in Ibadon, where an international market exists. Adegbite emphasized the need to formalize the gemstone market to ensure fair pricing and value recognition for sellers. Additionally, in the South-East region, efforts are underway to process lead-zinc from Abia State for market consumption. The North-Central region is targeted for gold processing in Kogi State, with a shift towards sustainable processing methods without the use of mercury. Adegbite also highlighted the revival of Cano as a gold hub in North-West Nigeria, with initiatives to train artisans in jewelry making and establish a gold souk for trading and value addition. Furthermore, the North-Eastern region is set to benefit from a teak smelter in Bauchi State to process teak efficiently for market supply. Adegbite outlined a three-phase approach for gold in Nigeria, including jewelry making, a gold-for-money exchange program, and the refinement of gold bullion to bolster the country's foreign reserves. A key objective of the post-COVID strategy is to elevate the mining sector's contribution to Nigeria's GDP. Adegbite aims to increase the sector's share to a minimum of 3% by 2025, up from the current 1%. The National Integrated Mineral Exploration Project (NIMEP) is pivotal in generating data to attract global mining companies and investors to Nigeria, thereby scaling up operations and enhancing economic impact. In addressing the concerns of host communities housing mineral resources, Adegbite emphasized the importance of community engagement and consent in mining activities. He highlighted the Community Development Agreement (CDA) as a tool to ensure that communities benefit from mining operations as promised, thereby fostering sustainable development and mutual prosperity. Adegbite's comprehensive post-COVID strategy underscores Nigeria's commitment to leveraging its abundant mineral resources for economic growth and diversification. By focusing on key minerals, sustainable practices, and community involvement, the mining sector is primed for significant expansion and contribution to the country's economy.