KEYNOTE ADDRESS

FEDERAL REPUBLIC OF NIGERIA
MINISTRY OF SOLID MINERALS DEVELOPMENT
OFFICE OF THE MINISTER
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KEYNOTE ADDRESS OF THE HONOURABLE MINISTER OF SOLID
MINERALS DEVELOPMENT ON THE OPENING CEREMONY
OF THE 52ND
CONFERENCE OF THE NIGERIAN MINING AND
GEOSCIENCES SOCIETY HELD IN ILORIN, KWARA STATE
ON THE 15TH
MARCH, 2016
PROTOCOLS
It gives me great pleasure to welcome all of you to this great occasion of the
52th edition of this conference. This professional association has played a very
significant role in our nation building since inception especially in the mining
and oil sectors where it played a key role in the acquisition, preservation and
dissemination of mining geoscientific and metallurgical knowledge. This
professional body remains the main repository of knowledge in the earth
sciences in our great country.
Once again I want to welcome you all to this great event, where the cream of
the nation’s experts in geosciences are gathering for few days to deliberate on
crucial national issues geared towards promoting the sustainable
development of the our mineral resources. The present regime has made the
mining sector one of the priority sectors aimed towards the diversifying the
economic base of the country, that is why the theme of this year’s conference
“ Economic Diversification Through Sustainable Mineral Resources

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Development” is apt and timely especially considering the present economic
reality of the country.
The Nigerian economy has for decades precariously leaned on the fragile leg
of crude oil. Consequently, it has had a chequered growth trajectory driven by
the vicissitudes of oil prices. An emerging trend suggests that the last few
years has seen the earnings from oil, which is the major source of foreign
reserve in Nigeria dwindle. The policy concern over the years has therefore
been to expand non-oil export in a bid to diversify the nation’s export base.
The diversification of the Nigerian economy is necessary for important
reasons. First, the volatility of the international oil market with the attendant
volatility of government revenue gives credence to any argument for
diversification of exports. Secondly, the fact that crude oil is an exhaustible
asset makes it unreliable for sustainable development of the Nigerian
economy. The adverse consequences of over dependency on oil trade
heightened the need and call to diversify Nigerian economy away from oil
towards the direction of non-oil export trade. Mono-economy needs to give
way to the productive development of various sectors of the economy. It was
found that for the economy to be diversified there has to be a very serious
paradigm shift in economic policies and the political will on the part of
government to focus on opportunities available in other sectors such as
mining. The discuss at this conference will therefore prove valuable to the
government and people of Nigeria to implement such change in policy.
DIVERSIFICATION THROUGH MINERAL RESOURCES
Mineral resources development is a significant economic activity that converts
natural mineral wealth into goods for industrial and domestic consumption.
The significance of mineral resources embraces several areas. They are an

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integral part of industrial development, economic progress, national security,
and struggle for survival.
Distinguish Ladies and gentlemen, Mining in Nigeria dates back to the early
1990s and early geological exploration has proved Nigeria is highly endowed
with at least 44 known mineral assets that include precious minerals, base
metals, bulk minerals and what are known as rare earth minerals. More
specifically, our most promising mineral assets include gold, iron ore, baryte,
bitumen, lead, zinc, tin and coal. These minerals when properly harnessed and
developed can provide the long expected succor and economic emancipation
for the nation.
The major trust of my ministry is to fulfill this mandate and make the Nigeria’s
solid mineral sector improve its contribution to the gross domestic product
(GDP) from 0.3% to at least 10% in the near future. To meet this target there
are challenges and constraints that must be surmounted.
The minerals industry has great opportunities for diversification and linkages
to the development of other sectors of the Nigerian economy. It is therefore
our determination to evolve policies and programmes that are predicated on
understanding the existing opportunities in the nation geology, beneficiation
and value addition of minerals produced and how these minerals can be
translated to an inclusive growth of our economy. We strongly believe that
the only way minerals development can be sustainable is through economic
linkages.
We shall promote the development of industrial minerals and encourage down
stream linkages leading to the processing of these minerals for our local

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industries. It is expected that huge foreign exchange will be conserved
through import substitution; jobs will be created, technological capacity will
improve and there shall be increase in resource rents. We shall concentrate on
developing minerals that are critical feedstock in oil and gas, agriculture,
manufacturing and infrastructure.
On a broader perspective, we shall develop comprehensive information of our
prioritized mineral endowment to attract investors.
Charting a New Course:
The Mining sector has witnessed extensive reforms since 1999, which
essentially crystallized around the Nigerian Minerals and Mining Act of 2007,
Nigeria is once again on the path to providing a transparent and workable
regulatory and policy environment for private sector led mining. In order to
inject freshness to the existing efforts, I inaugurated a road map committee on
the 1st
of March, 2016.This committee is headed by a distinguished member of
this Association, Professor Ibrahim Garuba, the Vice Chancellor of Ahmadu
Bello University, Zaria. The mandate of the committee is to look at some of
the challenges facing the sector and chart a new course.
Distinguished participants, at this juncture, permit me to highlight some of
these challenges and the effort the Ministry is making to resolve them.
Generation of Geosciences Data:
The generation of geosciences data to unlock the potential of the sector has
been a major challenge. Due to incessant poor funding of the sector in past
years, this critical exercise has been neglected. The present government has

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found it essential to improve generation of baseline data such as geophysical,
geochemical and geological datasets necessary to unveil the tremendous
geological potential of the nation. To this end the Nigerian Geological Survey
Agency and other similar Agencies will be adequately funded to accomplish
this goal.
Computerized Mineral Title Administration:
An improved Computerized Mineral Title Administration is a necessity to
ensure transparent transaction of online application to mineral titles. This
administration is geared towards ensuring best practices in this area to restore
investor’s confidence in the sector hence the Mining Cadastre will be given all
necessary support to attain excellence.
Accessibility of Information:
Accessibility to information on the nation’s mineral endowment has been of
concern of late. My Ministry intends to build an integrated geospatial web
portal which will serve as a one-stop shop data window to provide
unhindered access to information on the sector to stakeholders.
Illegal/Artisanal Mining:
Illegal Artisanal Mining and establishment of Mines field Police: Much of
Nigeria’s mining is conducted informally at levels as high as 80% of activity in
some regions of the country, but due to poor coordination the expected inflow
of revenue is not easily realized. This regime is going to accelerate the
formalization of artisanal and small scale miners to ensure sustainable
development of the mineral resources. The Ministry will also look into the

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possibility of using information technology solutions to empower this group
through the establishment of ICT Tele Centers. It is important that miners
have access to the most efficient supporting knowledge and technology.
You will all agree with me that the activities of illegal miners have been a
menace to the growth of this sector especially with respect to revenue
generation and smuggling of mineral commodities. This administration is
determined to stop this ugly trend by collaborating with the Ministry of
Interior to provide necessary security at mines fields and to checkmate illegal
mining nationwide. Already 3000 men of the National Civil Defense Corps
have been deployed as Mines police towards achieving this goal. The Ministry
is also in talks with other organs of government such as the Customs to stem
illicit smuggling activities at our borders.
Improving Marketing Systems:
Government is making determined effort to set up more mineral buying
centers in order to improve value additions and ensure adequate profit for
small scale miners.
Strengthening of Institutional Capacity:
The Ministry has undergone significant changes since 2007 but still remains
constrained with respect to enforcing existing laws and policies, supervising
mines, and leading the provision of geo-sciences data. The Ministry will
therefore need to add more technical staff and also upgrade the skill set of the
Mining Inspectorate staff as well as other staff in the Ministry and its agencies.
Stakeholders Engagement:

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Since my assumption of office, I have opened up interactions with various
interest groups in the sector to ensure that positive contributions are received
to ensure sectorial economic growth. In line with this efforts are underway to
encourage state governments to be more committed in participating in the
development of solid minerals located in their States. Modalities for a closer
working relationship between the Federal and State governments are being
reviewed.
Insufficient Funding:
Funding has been a challenge partially because the sector had not been a
focus area for both government and financial institutions. Thus, a number of
projects have drawn funding from offshore sources, while others have sought
capital from a few Nigerian banks. We have commenced constructive
engagement with the Central Bank of Nigeria (CBN) and with commercial
lenders to help them create the teams to sharpen commercial options for
Nigerian miners. Moreover, commercial banks are being encouraged to set up
solid minerals desk to facilitate access to loans.
Weak Ease of Doing Business and Perception Issues:
Nigeria still remains a challenging place to do business based on data from the
World Bank’s survey over the past decade; while we have improved, that has
had a negative impact on mining. Mining specific data such as the Fraser
Institute survey puts Nigeria near the bottom of investor friendly destinations,
even if that is mere perception than reality, it shapes investor decision making
process.
For Nigeria, the continued presence of these issues will hold back market
development. Therefore, we must resolve these set of issues as they impact

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how we choose to compete in the market. While external markets create
opportunities we can exploit, improving ease of doing business or reducing
transport costs will enable us to attack market opportunities as a lower cost
competitor for example. Indeed, the global mining party is ours to attend, but
we must dress appropriately and come with a competitive edge. My team and
I will be spending more time on building collaborative links with other key
ministries to enable us build a cost competitive industry.
Limited Infrastructure:
This is a key issue; the absence of appropriate infrastructure e.g. water,
railroads and port handling facilities for base and bulk minerals makes it
difficult for Nigeria to export iron ore for example. We need to improve
energy, transport and market links to mines.
Insufficient Geological Data:
While acknowledging the earlier work done 30 to 50 years ago, and
recognizing the contributions in generating Geoscience data and information
by a good number of the professionals seated here, a lot still needs to be
achieved in terms of bridging the huge information gap required to fully
catalyze the mining sector.
In conclusion, I wish to reaffirm the commitment of this government to
building a more diversified economy. Our task as a Ministry therefore is to
work assiduously to remove any obstacles to such growth. From working with
the National Assembly to receive the right budgetary provisions to ensuring
expansion in bulk handling terminals at multiple river and ocean ports, our role
is to ensure that things work as intended.

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Consequently, I believe strongly that the tasks of diversifying the economy
through sustainable exploitation of the mineral resources also rest on the laps
of all of us in this hall. The intellectual contribution of men and women of this
highly esteemed association will go a long way to chart a new course and
support the current effort of Mr. President to diversify the economic base of
this country.
I therefore wish you fruitful deliberations during this conference and hope the
final outcomes will get to the decision makers to enable us integrate your
suggestions on the way forward for the sector.
At this juncture I hereby declare the conference open and hope will explore
the hospitality and peace of this beautiful city of Ilorin.
Thank you.

KEYNOTE ADDRESS

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