LCCI: FG Must Address Mineral Challenges To Reduce Oil Dependency

The Lagos Chamber of Commerce and Industry (LCCI), has charged the Federal Government that, even though the policy to regulate the solid minerals sector in Nigeria has potential economic benefits, the need to address the associated challenges will be necessary in order to realise its full potential and ensure sustainable and inclusive development.

With the decline in the global oil market, diversifying into the solid minerals sector reduces Nigeria’s dependency on oil revenues.

LCCI president, Gabriel Idahosa, said this would help mitigate the impact of oil price fluctuations on the country’s economy and enhance economic stability.

“The development of the solid minerals sector is likely to create job opportunities across various stages of exploration, mining, processing and marketing.

This can contribute significantly to reducing unemployment and fostering economic growth.

“The effective regulation of this sector can also lead to increased revenue generation for the government through taxes, royalties and other levies, which can then be utilised for infrastructure development, social programs and other public services. By regulating the sector, Nigeria can position itself to participate more effectively in the global market for solid minerals. This can open new opportunities for international trade and partnerships,” he said.

He added that the approval of this policy review allows for better management and utilization of the abundant solid mineral resources in Nigeria; ensuring that the resources are exploited judiciously, efficiently and sustainably, preventing their depletion and ensuring long-term economic benefits.

He added that the successful implementation of the policy may face various challenges, including regulatory hurdles, lack of infrastructure and bureaucratic inefficiencies, which could hinder the policy’s intended benefits.