Adewale Sanyaolu
The Federal Government has said that the country’s overdependence on oil and gas has led to 30 years of underdevelopment and stagnation of the solid minerals sector.
Minister of Mines and Steel Development, Mr. Olamilekan Adegbite, disclosed this on the sidelines of a symposium at the recently held UK-Africa Investment Summit in London convened by global law firm, Hogan Lovells.
He explained that, because Nigeria has primarily been known as an oil and gas producer and explorer, the country’s focus for the past four decades has been on this sector. However, he said the government now wants to diversify from oil and gas and revive Nigeria’s rich mining sector with attractive incentives for investors.
“Our approach to the enactment of a ‘Nigeria Beyond Oil’ era is holistic; this integrated method involves the development of the necessary infrastructure to support the mines and mining communities”.
Also speaking, Chairman of the symposium, Hogan Lovells Partner and Head of Africa, Andrew Skipper, said its intervention was part of its efforts to ensure sustainability in the Nigerian mining sector through a forum to discuss global best practices and establish solutions that can lead to sustainable growth in the sector.
During the session, it was noted that the Federal Government had embarked on several economic initiatives to make the mining industry attractive, robust and conducive for investors and operators.
These initiatives include: tax incentives on equipment and practical steps to encourage export and downstream processing, which are in line with the government’s agenda of diversifying the economy.
While addressing stakeholders, Skipper highlighted the significance of gaining insights into the Nigerian mining sector, stressing the need to understand the different laws backing the industry. He noted that there are huge opportunities in mining in Nigeria, which need to be recognised and harnessed by stakeholders.
“It’s vital that there is a thorough understanding of mining legislation, including applications for and renewals of exploration rights, mining rights and permits in all of the various mining sectors,” said Skipper.
In his presentation, Prof. Konyin Ajayi, Managing Partner at law firm of Olaniwun Ajayi LP lauded the strategies being put in place by the ministry, saying it would enhance the development of the sector for the realisation of the government’s agenda of economic diversification.
The panel of speakers at the forum included Kevin Pietersen, Partner at Hogan Lovells, Johannesburg; Nigeria’s Minister of Mines and Steel Development; Mr. Olamilekan Adegbite, Osam Iyahen, Director at Africa Finance Corporation (AFC); Abubakar Abba Bello, Chief Executive Officer at Nigerian Export-Import Bank; Kieran Harrington, Consulting Geologist at PW Nigeria Limited; and Catriona Laing, UK High Commissioner to Nigeria.
Twenty-one African leaders joined the UK-Africa Investment Summit in January, which was also attended by UK and African businesses, international institutions and young entrepreneurs.