A Budgit report has highlighted that Nigeria must begin to maximise possibilities offered by the Mining sector, to diversify its economy.
The organisation noted that despite the Federal Government’s effort to diversify the economy from the oil sector to the non-oil sector, receipts from the oil and gas sector still accounts for a considerable chunk of the country’s total export earnings.
The report noted that if Nigeria will diversify the economy, it must consider the Mining sector.
“Despite being blessed with over 40 known types of solid minerals, the Nigerian mining industry is not contributing optimally to the country’s economy, accounting for only 0.26% of the country’s GDP” the report noted.
Lack of proper attention and ill-affected policy change are some of the reasons the sector is underperforming according to the report, but if transformed properly, the sector has the potential to transform Nigeria’s economy.
Nigeria’s Gold Refineries, located in Abuja and Ogun state could help to ‘unleash economic potentials of the mining sector. The maximisation of these refineries could help to increase the mining sector’s contribution to the GDP by 3% within the next five years.
Budgit recommended stronger governance in the extractive industry, as well as collaboration, noting that the government should collaborate with CSOs that have technical expertise in simplifying and providing data.
Other recommendations include, planning, budget monitoring and fighting against corruption were encouraged.
A Dataphyte report had earlier detailed how illegal mining thrives in the country and detracts from the potential of the sector despite promises made by the government to make the sector active and ensure its contribution to national economic growth.
Experts had told Dataphyte that there is a need for implementation of policies aimed at developing the sector, because promises may not be enough in helping the government actualise the goals and maximise the potentials the Mining sectors offer the country.