How will Nigeria's forensic audit sanitise mining sector?

Nigeria is gearing up to conduct a forensic audit of its mining sector in a bid to clean up the industry and enhance investors' confidence. The country's Minister of Solid Minerals Development has highlighted collaborations with the Ministry of Science and Technology, focusing on the use of satellite imaging to monitor activities at mining sites. Cyril Azobu, Partner and Mining Leader at PwC, sheds light on the importance of this initiative. The move towards a forensic audit stems from the need to address issues such as revenue assurance, leakage due to illegal mining, and the lack of clear documentation within the sector. Azobu stresses the significance of deploying technology, particularly satellite imaging, alongside the existing deployment of Marshall Cops across the country. The aim is to combat illegal mining and bolster surveillance efforts. While the exact approach and scope of the audit are yet to be detailed, the overarching goal is to provide accurate data on production status and ownership of mining licenses. When considering the execution of the audit, Azobu suggests a meticulous approach that involves conducting thorough groundwork to establish the current state of affairs. This includes evaluating royalties, ownership of licenses, and remittances made by mining companies. By working in conjunction with relevant bodies like NETI, the ministry can ensure a comprehensive audit that addresses the sector's challenges and sets the stage for future improvements. Key stakeholders within the mining sector have a host of concerns, ranging from security issues to data transparency. Azobu underscores the importance of addressing these concerns to promote a conducive environment for investors. He highlights ongoing initiatives, such as the Solid Minerals Development Fund's collaboration with the IFC to provide funding opportunities for stakeholders. In the quest to attract investors, Nigeria aims to portray its mining sector as an appealing destination. Azobu expresses optimism regarding the sector's mineral potential and the government's efforts to attract investment. He notes the increasing interest in minerals critical for emerging technologies, emphasizing the importance of beneficiation and in-country processing. Despite the progress made in wooing investors, Azobu acknowledges the need for continuous improvement and building upon past initiatives. He stresses the importance of sustainability and transparency in attracting investors to Nigeria's mining industry. As Nigeria prepares for the forensic audit, the focus remains on enhancing transparency, combating illegal mining, and creating a conducive environment for investors. The audit signifies a crucial step towards revitalizing the mining sector and instilling confidence among stakeholders and potential investors.