What President Tinubu Must Do To Grow Non-Oil Export In Nigeria (10)

This is the tenth in the series of articles being written to advise the President of the Federal Republic of Nigeria on what must be done in order to grow the non-export volume to match and even surpass that of crude oil and gas exports. In this edition, the focus will be on the policies relating increasing volume of production of exportable solid minerals resources in order to boost the volume of Nigerian raw and processed minerals that are exported to different markets around the world

This policy is therefore aimed at growing the non-oil export volume by increasing the production volume of solid minerals in order to make the Nigerian mineral sector become a major contributor to the Nigerian export basket. This entails putting together different initiatives that will support and help the miners increase the output from their mining activities and consequently the export volume. This government policy will therefore involve the provision of different incentives and support to reduce the cost of exploration and mining exportable solid minerals .

To determine the vital components of the policies that the Nigerian government can use to boost the production volume in the Nigeria solid minerals sector, I would like to recommend what the top mining countries in the world have done to grow the sector. The countries that will be used as case studies include China, Australia and Russia.

The policies implemented by China which has led to a significant increase in its solid minerals production and export include investments in infrastructure, government incentives, research and development, regulatory frameworks, highly skilled workforce and sustainable mining practices.

Therefore the Nigerian policy on increasing solid mineral production and export should prioritise upgrading existing transportation infrastructure and building new roads and rail lines to mining regions. The government can seek partnerships with private investors and international development agencies to fund these improvements. In addition to this, the policy should also include the establishment of a dedicated mining development fund to provide grants, low-interest loans, and incentives for companies that invest in exploration and operational activities.

The policy should also Include the enforcement of regulations that require environmentally sustainable practices in mining operations, including regular environmental impact assessments and adherence to restoration protocols.

Furthermore, this policy should encourage collaboration between research institutions and the mining industry by offering grants for R&D projects focused on mining technologies and sustainable practices. Establishing innovation hubs can stimulate more exploration and technology development.

This policy must also streamline the mining regulations to reduce bureaucracy. Establishing clear guidelines for permits and licenses, as well as ensuring transparency in the process, will enhance investor confidence. Also the policy should include the establishment of vocational education programmes focused on mining-related skills. Collaboration with mining companies to develop tailored training programmes will improve the skill level of the workforce.

Australia is a major miner in the world because of its policies which are designed to grow and strengthen the production and export of solid minerals and these include the establishment of strong local mining companies, technological innovation, export oriented programmes, products diversification, Public-Private Partnerships (PPPs) and access to finance.

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Nigeria can copy the following from the Australian policies on solid minerals production and export and this includes a policy that encourages local firms to strengthen their capacity through incentives, such as export expansion grants, tax breaks for investments that lead to expansions or mergers with established companies.

This should also include tax incentives for companies that adopt new technologies and support partnerships with global firms to facilitate technology transfers for mining processes. This should be an export-friendly policy by reducing tariffs on imported equipment for mining and providing incentives for firms focused on international sales to boost competitiveness.

In addition to this, the policy should also promote the exploration of a diverse range of minerals (like lead ore, zinc ore, lithium ore, tin ore, iron ore etc) through research grants and tax incentives to encourage exploration activities. This reduces reliance on a single commodity and enhances market stability. In addition to this, the policy should also establish a framework to facilitate PPPs in mining, providing a legal and financial structure that encourages both government and private sector investment. The policy should also create specialized financing funds for the mining sector, facilitating access to capital through low-interest loans or guarantees for mining startups and projects.

READ ALSO: What President Tinubu must do to grow non-oil export in Nigeria (9)

Russia policies that boosted the growth of the mining sector include comprehensive geological surveys of different parts of the country, ongoing geological research and long term exploration commitments. Therefore Nigeria policy on mineral export growth should involve conducting comprehensive geological surveys to identify and quantify untapped mineral resources, ensuring effective resource management and exploration initiatives. Therefore policy should also cover investment in geological mapping programs in collaboration with international geological organizations to enhance knowledge of its mineral wealth and draw interest for exploration. Therefore policy should also focus on policies that promote long-term exploration licenses, providing stability and encouraging sustained investments in mineral resources.

Finally, it is important to state that a lot has been heard from the minister of solid minerals development about the increase in revenue being generated from this sector by the ministry but not much has been seen on the volume of production and export. I strongly believe that if the policies outlined in this article are given the right attention it deserves and implemented with necessary modifications, Nigeria will see a significant increase in the volume of solid minerals production and export. This will, in turn, support the government’s objective of boosting non-oil exports in the country, ultimately establishing this sector as a significant contributor to the nation’s foreign exchange revenues.

Bamidele Ayemibo, Ph.D

International Trade Consultant/Member, BoT Network of Practicing Non-oil Exporters of Nigeria (NPNEN). He can be reached on [email protected]