Zamfara's Mining Renaissance: A New Dawn After Five-Year Hiatus

Nigeria has lifted a mining ban in Zamfara state after improved security, reviving hopes for its underperforming mining sector. The suspension in 2019 was due to bandit attacks. With reforms and international partnerships, the government aims to diversify its economy away from oil dependency.

Nigeria has lifted a five-year-old ban on mining exploration in the northwestern state of Zamfara, announced the nation's mining minister. The move follows notable improvements in the region's security situation.

Mining in Zamfara, abundant with gold, lithium, and copper, was halted in 2019 due to persistent bandit attacks. "The enhanced security by operatives has substantially reduced insecurity, allowing Zamfara's mining sector to slowly reintegrate into the national revenue framework," stated Mining Minister Dele Alake in his Sunday communique.

During the halt on legal mining activities, illegal exploitation of resources flourished. As Africa's largest oil producer seeks to reduce its over-reliance on oil, the mining industry currently contributing less than 1% to GDP is expected to invigorate economic diversification. Consequently, Nigeria has enacted several investor-friendly reforms, including revoking unused licenses and incentivizing stakeholders with a majority stake in a new national mining company. The latest move in this direction includes a cooperative training and development agreement with France.

"The support encompasses technical, financial, and capacity-building necessities," explained Alake, noting previous analogous agreements with Germany and Australia, underscoring Nigeria's dedication to repositioning its mining sector.

(With inputs from agencies.)