By Osemudiamhen Gloria
The solid minerals extractive industry plays a vital role in the economic growth of a State or country and is as well viable in the diversification of its revenue streams.
Edo State is blessed with numerous solid minerals of various types and these have vast markets for both local and foreign investors. These minerals include limestone, marble, kaolin, gypsum, feldspar, gold, granite, dolomite, galena, tantalite, gemstone, quartz, bitumen, bentonite, laterite sand, sharp sand, river gravel and coal.
The Governor Godwin Obaseki-led administration has been very committed to harnessing these minerals, which explains why it is collaborating with the Federal Government through its continuous support for the sector; creating a business-friendly environment and encouraging investors through the provision of infrastructure, institutions and the various levels of partnerships.
According to Governor Obaseki, “Before my administration came on board in 2016, Edo State was sixth in Nigeria in terms of production output of mineral resources. But due to a conducive business environment, we have been able to move up the ladder. Today we are fourth in Nigeria.” The testimonial is the data of the National Bureau of Statistics on mineral production statistics 2021, which rated Edo to have achieved a combined output of 3.7 million tons of mineral products in 2021.
In order to address the challenges in the mineral sector of the State as a result of evolving trends, the current administration in the State has had a series of engagements with stakeholders in the sector to ensure Edo keeps up with the advancements and changes that are reshaping and transforming the sector as against what was obtainable decades ago. One of these is the Solid Minerals Stakeholders’ Forum held in Benin City with the theme: “Addressing the Gaps in the Mineral Sector of Edo State.”
Governor Obaseki further observed that mining has the capacity to provide jobs almost comparable to agriculture. According to him, “Our people can become gainfully employed through activities in the mining sector and just like Peter Diamandis rightly said “Mining asteroids will ultimately benefit humanity on and off the Earth in a multitude of ways”.
Some of the multiplier effects that follow leveraging solid minerals in the State are its production, which has the capacity to exert significant positive effect on economic growth. This might be through foreign exchange, reduction on reliance on external markets, revenue generation, amongst others.
As its production increases, this has a direct positive effect on the Gross Domestic Product (GDP). Increase in solid mineral products also has a direct influence on labor absorption. With the expansion in activities of the sector, more labor is employed ranging from mine workers, transportation workers, marketers and factory workers. This invariably reduces unemployment rate and as well increases standard of living through increased earnings.
Governor Obaseki has given the assurance that the State will continue to provide a conducive business environment for legitimate miners to thrive. In his words, “we will continue to push for the sector’s growth because we believe if the sector grows, Edo State will grow.” While mining is currently on the Exclusive List, Governor Obaseki affirmed, “We will not be deterred. We are well aware of the provisions of the Constitution and the Nigeria Mineral and Mining Act of 2007, and other relevant regulations governing the mining sector with respect to the roles of the Federal and State governments.
However, some of the challenges that militate against mining range from illegal mining, financing, market accessibility, licensing, security, taxation, amongst others. Accordingly, the State Government has put in place relevant policies and programs across sectors to tackle these challenges and as well ensure the sustainability of the positive reforms in the solid minerals sector.
It is no longer news that Edo is a place with ease of doing business; this is to encourage more investments in the sector. Roads have been built to enhance movements of goods and services, electricity has been provided, there is harmonization of taxes, security has been reskilled for more effective and efficient service delivery, amongst others. All these reforms have attracted local and foreign investors to the State like the Bua Cement and Dangote Cement.
To ensure the sustainability in the sector in Edo State, the former Vice Chancellor of Ahmadu Bello University and Geologist, Ibrahim Garba, has advocated for resolving regulatory conflicts between the Federal and the State’s stakeholders by improving enforcement of existing laws and regulations, attracting major mining companies into the industry by stabilizing long-term mining policy and incentivizing investments in large-scale mining equipment and infrastructure.
