LCCI: Revitalising Nigeria’s mining industry key to attracting investment

Nigeria's mining industry is at a critical juncture as the country looks to attract investment and revitalize the sector. The Lagos Chamber of Commerce and Industry (LCCI) is calling on the government to review its mining strategy to encourage mineral exploration investments, reignite mining project development, and accelerate new mineral discoveries. In a recent interview, Seun Olatunji, the Chairman of the Mining Sector Group at LCCI, underscored the challenges facing the industry and outlined key steps needed to drive growth. One of the major obstacles facing the mining sector in Nigeria is the regulatory inconsistencies and government policies. Olatunji highlighted the need for clear separation of powers between the federal and state governments to ensure smooth operations for investors. He mentioned instances where state governments interfered in mining operations, contrary to the Mining Act, sending negative signals to potential investors. Addressing these regulatory challenges is crucial to building investor confidence and driving industry growth. Security concerns also pose a significant challenge to the mining industry in Nigeria, as criminal elements threaten business operations. Olatunji acknowledged the global nature of security challenges but emphasized the government's role in supporting armed forces to protect businesses and create a conducive environment for investment. In terms of infrastructure and reviving dormant industry players like the Ajaokuta Steel Company and Nigerian Iron Ore Company, Olatunji pointed out the need for a diversified approach. While commending progress in resolving legal tussles and investments in the steel and iron ore mining sector, he stressed the importance of encouraging smaller investors to develop iron ore assets and reduce steel imports. By promoting private sector participation and focusing on value addition, Nigeria can enhance its self-sufficiency in steel production and create more job opportunities. Looking ahead, the growing global demand for lithium and battery technology presents a significant opportunity for Nigeria's mining industry. With lithium deposits in various states across the country, there is a strong potential to tap into this market and drive economic growth. Olatunji emphasized the importance of value addition and local processing to maximize the benefits of natural resources. By setting up processing plants for lithium and other critical battery metals, Nigeria can create a robust domestic industry and retain value within the country. In conclusion, revitalizing Nigeria's mining industry is not just about attracting investment but also about creating a sustainable and competitive sector. By addressing regulatory challenges, enhancing security measures, promoting private sector participation, and focusing on value addition, Nigeria can unlock the full potential of its mineral resources and drive economic growth. The government and industry stakeholders must work together to implement strategic reforms and create a conducive environment for mining investments in the country.