Critical minerals such as lithium, cobalt, gold and nickel can boost the nation’s Gross Domestic Products, GDP and Government’s revenue.
A former Senior Special Assistanr to the former Minister of Mines and Steel Development’, Mr Olusegun Adedayo stated this during his presentation titled “Nigeria’s Critical Minerals and Economic Development” at the opening ceremony of the 60th international conference of the Nigeria Mining Geosciences Society in Abuja.
Mr Adedayo noted that mining would not only increase revenue but also reduce reliance on oil by diversifying into mineral exports and strengthens economic stability.
“Critical minerals as considered here helps in local value addition and manufacturing, infrastructure development, research, innovation, and skill development” he added.
Mr. Adedayo stressed that Nigeria’s vast untapped critical mineral resources could equally attract global investors adding that inadequate geo-science data, and funding were some of the challenges in the sector.
“Nigeria hosts significant mineral wealth, which can facilitate its growth and development. As the global demand for critical minerals continues togrow rapidly, it provides a unique opportunity for Nigeria to position itself as an important player in energy transition and to diversify its economy and provide greater opportunity for its people” he emphasized.
Adedayo who is a financial Expert and Consultant to the World bank explained that the economic benefits of Nigeria’s critical minerals include: Revenue Generation, Job Creation, Industrialization, diversification, tracting Global Investors, Infrastructure Development Research and Innovation and Local Value Addition:
“The sector can promote research, innovation, and skill development, enhancing overall economic progress. Critical minerals can support local manufacturing, research, innovation, and skill development, enhancing the overall economic landscape” Adedayo stated.
He stressed that Critical minerals are key to Nigeria’s clean energy transition which enable technologies that improve energy access, reduce reliance on fossil fuels, and enhance sustainability.
“Nigeria’s abundant sunlight makes solar power a key renewable energy source. The primary material in solar panels. Tellurium & Indium– Used inthin-film solar cells for rural electrification”
Nigeria faces several challenges in the mining sector, including: Inadequate Geo-science Data to effectively plan mining activities. Infrastructure Deficits like lacks of adequate transportation, energy, and processing facilities necessary for efficient mining operations, Limited Funding, Securing significant investment for the development of critical minerals is a challenging, Regulatory Framework is still evolving and can be unclear, which may deter investors”
Others are Environmental Concerns which can lead to pollution and habitat destruction, Unregulated mining activities which result in major revenue loss and environmental degradation as well as Supply Chain Disruptions” he added.
In his paper presentation, fellow of the Nigeria Mining Geosciences Society, Dr. Abimbola Durogbite stressed that indigenous miners find it difficult to access funds for exploration as no bank wants to finance mining projects.
He stressed that about 80% of the International Oil Company are leaving the country noting that it is time for the indigenous miners to brace up to boost the sector.
