Why Mining sector Will Lift Nigeria out of the Woods- Mallinson Ukatu
A call has gone to the Federal Government for more investment in the non-metallic mining sector of the economy; if well harnessed, it could lift Nigeria out of the current economic quagmire.
A former Chairman of the Non-Metallic and Minerals Products Sectoral Group/Council Member of the Manufacturers Association of Nigeria, Mr. Afam Mallinson Ukatu, said this on Thursday at the 2024 Annual Workshop/Awards of Commerce and Industry Correspondents Association of Nigeria CICAN held in Lagos.
Describing the sector as very rich, he noted that it costs less to invest in the mining sector than in the oil sector, adding that it has more returns on investment.
He said, “Once again, I wish to use this opportunity to call for more investment in the non-metallic mining group sector of MAN. This is because this sector, if well harnessed can lift Nigeria out of the economic quagmire. This sector is very rich.
“Moreover, until the country looks away from the oil sector, it will be very difficult to come out of the woods. Important to note is that it costs less to invest in the mining sector than in the oil sector, which has more returns on investment.”
“On this note, I urge the Federal Government of Nigeria to urgently rework the policies of the sector, which has gone obsolete, to make it more investment-friendly and attractive.”
Expatiating on the potential of the mining sector further, Ukatu noted that the mining sector and its values chain could generate over 15 million jobs (direct and indirect jobs), thereby addressing the ever-growing unemployment ravaging the country.
While he emphasised that innovation, technology, and sustainability are key drivers of growth, he added that as the government shifts focus towards economic diversification, the mining sector “stands poised to play a pivotal role in Nigeria’s future development.”
The industrialist of repute explained that irrespective of the various obstacles we face, ranging from infrastructure deficits, regulatory burdens, the threat of substandard imports, and massive invasion of the sector by some foreigners who connive with some unpatriotic Nigerians to disorganize the sector, the players in the sector remained resolute.
On the rule of law, Ukatu advised the government to look into multiple taxes and how it is administered.
“The three tiers of government should encourage more people to participate in the mining and give others the opportunity to come up, knowing what is needed to boost the country’s GDP,” he said.
“Our industry has shown resilience, and with pragmatic solutions, and we must be prepared to compete both locally and across the continent. Together, we can drive our sector toward greater achievements and ensure our competitiveness on a global scale.”
Similarly, speaking on the theme of the event “Manufacturing: $1 Trillion GDP Target by 2030: Realities and Possibilities,” Olusola Obadimu, Director-General of Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) represented by William Inya
Research Officer, NACCIMA said it is important that the country’s manufacturing sector is urgently repositioned for it to actualise the $1 trillion GDP target.
In his words, “The manufacturing sector, which currently contributes approximately 9% to Nigeria’s GDP, has the potential to be a game-changer. With improved infrastructure, enhanced access to financing, and policies that promote local production, this sector could significantly boost economic output. Countries with similar aspirations have leveraged manufacturing to increase their GDP contributions to as much as 20–30%, creating jobs and fostering economic inclusivity.
“However, several challenges persist. The infrastructure deficit, which currently stands at 35% of GDP, undermines efficiency and increases production costs. Inadequate power supply, estimated to cost businesses over $29 billion annually, further complicates the operating environment. Additionally, recent fluctuations in the naira and inflationary pressures exacerbate these issues, emphasizing the need for robust and stable macroeconomic policies.”
It therefore urged the government to Prioritise investments in transportation, energy, and technology to reduce production costs; and Develop more industrial parks and special economic zones to enhance economies of scale and attract foreign investment. It also called for investment in local raw material sources to minimize reliance on imports and enhance competitiveness.
Earlier, the National Chairman of CICAN, Mr. Charles Okonji, in his welcome address, stressed the critical role of production in a nation’s greatness, saying without a vibrant private sector driving innovation and economic growth, Nigeria risks falling behind in the global market.
“It is imperative for policymakers and stakeholders to collaborate on effective strategies that will rejuvenate the private sector and attract investments that will propel Nigeria towards prosperity.”