Stakeholders in Nigeria’s solid minerals sector have called for an overhaul of the industry’s regulatory framework, arguing that weak governance, fragmented oversight and inadequate community engagement are undermining investment and slowing the sector’s development.
The experts made the call during a panel discussion on creating a clear, predictable and competitive policy environment for Nigeria’s mining industry.
A representative of the Nigerian Economic Summit Group (NESG), Lumun Amanda, identified weak governance as a major obstacle preventing the sector from realising its economic potential.
She noted that although geological data exists to support competitive mining auctions, its effective utilisation is hampered by a fragmented regulatory structure.
Amanda also expressed concern over tensions between federal and state authorities regarding control of mining activities, warning that unpredictable regulatory practices could discourage investors.
“On the vertical aspect, that’s between the federal and states… [some states] are taking extra-constitutional measures to take control of mining. It sends a wrong signal to investors because it’s so unpredictable,” she said.
Drawing comparisons with the telecommunications and power sectors, Amanda observed that independent regulatory commissions had helped promote professionalism and industry growth in those areas.
She argued that Nigeria’s mining sector could benefit from a similar institutional arrangement, noting that regulatory responsibilities currently reside within the ministry.
Amanda said the NESG was proposing the development of a comprehensive Nigerian Mining Vision that would provide a shared direction for government, investors and other stakeholders.
She stressed that a common vision would help establish clear priorities, strengthen coordination and create a more stable environment for investment.
Geological Data, Proper Licensing Key to Investment
The Vice President of the Nigerian Mining and Geosciences Society, Matthew Oyedokun, urged prospective investors to make better use of available geological information from the Nigerian Geological Survey Agency (NGSA) to reduce investment risks.
He acknowledged that existing geological data might not provide all the information investors require but described it as a useful starting point for exploration and investment decisions.
“The data in NGSA now may not offer you more than 50 per cent of the location you need, but that is a starting point,” he advised.
Oyedokun also cautioned investors against bypassing essential procedures, including obtaining the appropriate reconnaissance and exploration licences before commencing mining-related activities.
He warned that neglecting these preliminary steps could expose investors to unnecessary financial losses and other operational challenges.
Experts Advocate Sustainable Community Partnerships
Beyond regulatory reform, the panel highlighted the importance of building lasting relationships between mining companies and host communities, with experts advocating a shift from securing community consent to establishing a sustainable social licence to operate.
Madhurii Sarkar-Amoda of Segilola Resources emphasised the need for mining companies to manage community expectations and invest in initiatives that would continue to benefit residents beyond the operational life of a mine.
She advocated skills development, capacity building and sustainable livelihood programmes that would enable host communities to become economically self-reliant.
“You should be able to teach them to fish rather than give them the fish,” she said, citing a fish-farming initiative established for eventual transfer to the community as an example of a long-term empowerment strategy.
Sarkar-Amoda also stressed the importance of educating community members about their roles and responsibilities under agreements with mining companies.
She called for effective public relations and grievance-management systems to ensure that residents understand how to raise concerns and have their complaints addressed.
“Getting a strong PR management system and process in place to ensure that they understand that grievances will be addressed is also very important,” she added.
Maureen Mato of Ziva Community Initiative similarly urged mining companies to approach host communities with humility, respect and a willingness to listen.
She warned against assuming that companies possessed all the answers to community challenges, noting that residents had established social and economic systems long before mining operations entered their areas.
“You don’t go in with the perception that you have all the answers. They’ve been existing long before this mining company is coming,” Mato said.
She emphasised that building trust requires meaningful engagement and a clear understanding of community priorities.
Mato also challenged mining companies to consider the long-term impact of their interventions, asking what benefits they could provide that would endure beyond the life cycle of their operations.
Coordinated Reforms Needed to Unlock Mining Potential
The panel concluded that Nigeria’s solid minerals sector requires a coordinated reform strategy that combines regulatory independence, transparent governance, reliable geological information and meaningful community participation.
The experts maintained that without predictable regulations and stronger partnerships with host communities, the country could continue to struggle to attract and retain the long-term investments needed to develop its vast mineral resources.
They argued that a more transparent and inclusive mining framework would help strengthen investor confidence, promote sustainable local development and position the solid minerals sector as a stronger contributor to Nigeria’s economic diversification.
