Market News

Mining has the potential to significantly boost the economy of Nigeria in several ways through job creation and employment

BY Dayo Ayeyemi, Nigerian Tribune

EXECUTIVE Managing Director, Silicon Valley Nigeria Economic Development (SV-NED) Mining Company Limited, Captain Dada Olaniyi Labinjo, has said that Nigeria can earn over N37trillion annually from mining if well harnessed and developed.

Besides, he said that mining has the potential to significantly boost the economy of Nigeria in several ways through job creation and employment.

It added that mining could generate significant revenue for the government through taxes, royalties and fees.

This revenue, the managing director of SV-NED mining company, said could be used to fund infrastructure development, social programs and other economic initiatives.

Looking in this direction, Labinjo stated that the company is poised to play a prominent role in the development of the country’s mining sector.

Labinjo, who also is an executive board member of the company, spoke to journalists on Monday on the sidelines of the company’s management visit to the Onigbeti of Igbetiland, Egr. Bashir Olalekan Abioye (Siyanbola 1) and Seriki of Igbetiland, Chief Emmanuel Ayodele Adediran, in Oyo State.

Related News Nigeria set to develop Diaspora City, attract foreign investors —Musawa Trump 2.0: What corporate brands in Nigeria must do —Expert IMF warns Nigeria’s declining GDP per capita signals shrinking prosperity

He said: “Mining can significantly boost the economy of Nigeria in several ways. Mining activities can create thousands of jobs, both directly and indirectly, for Nigerians in various fields, including geology, engineering, and environmental management.

“It can boost revenue generation as Nigeria can earn over N37 trillion annually from mining if it is well developed. Mining can generate significant revenue for the Nigerian government through taxes, royalties, and fees. It can increase government revenue through taxes as mining companies are subject to various taxes, including company income tax, value-added tax, and withholding tax. These taxes can increase government revenue.”

Chairman, SV-NED, Ambassador Temitope Amina Labinjo-Ajayi, in a statement, expressed commendation for President Bola Tinubu on his Renewed Hope Agenda, adding that the government’s efforts will transform Nigeria positively.

She said that mining could lead to economic diversification, noting that Nigeria’s economy is heavily reliant on oil exports, adding that mining can help diversify the economy, reducing dependence on oil and promoting economic stability.

She stated that mining activities often require the development of infrastructure, such as roads, bridges, and energy supply systems. She added that this infrastructure could also benefit local communities and other industries.

Labinjo-Ajayi said: “Mining will boost foreign exchange earnings. Mining can generate foreign exchange earnings for Nigeria through the export of minerals, helping to stabilize the country’s currency and improve its balance of payments.

“It can also promote local content development by encouraging the use of local goods and services, such as equipment, supplies, and expertise. Responsible mining practices can promote environmental sustainability, including rehabilitation and reclamation of mined lands, and reducing the environmental impacts of mining activities.

“Mining can stimulate economic growth by attracting investment, promoting economic diversification, and creating jobs.”

Adediran while expressing happiness over the coming of the company to Igbetiland, said its activities would promote economic development, skill acquisition, infrastructural development of the area as well as improve the living standard and quality of lives of the people.

He appealed to the government to provide a University of Agriculture in the area. He stated that the university will harness the agricultural, mining and skill potential in the area for national development.

He also appealed for the renovation of a hospital which he said had been built for over 50 years and still has no medical equipment and other facilities for a hospital.

“I am happy with SV-NED coming to do mining partnership with us. It is going to improve the town,” he said.