Insecurity, illegal mining threaten Nigeria’s mineral processing investments

Insecurity and illegal mining are threatening investments in Nigeria’s solid minerals sector, discouraging foreign technical partners and disrupting the operations of licensed miners, Joshua Egbagbe, Managing Director and Chief Executive Officer of Mining Technologies Company Ltd., has said.

Egbagbe disclosed this in an exclusive interview with BusinessDay in Jos, where he identified insecurity, policy inconsistencies, exchange-rate instability and the takeover of licensed mining sites by illegal miners as major challenges hindering the development of the sector.

“I have friends with mining projects in the Northeast, Northwest and North-Central regions. Insecurity discourages long-term planning and large-scale investment,” he said, adding that investors require a stable environment to commit resources to mining and mineral processing.

He said some illegal miners on the Plateau used claims of indigent to justify taking over mining sites, sometimes resorting to violence against licensed operators despite agreements with landowners and possession of the required licences.

Egbagbe said the situation had cost him foreign technical partners and disrupted his operations, disclosing that he had come close to losing his life during attacks on his vehicle, personnel and himself. He called on traditional rulers and security agencies to act swiftly against illegal mining.

He urged the Plateau State Government and the Federal Government to strengthen the protection of licensed miners, enforce mining regulations and ensure that disputes were resolved through lawful channels rather than violence.

The mining entrepreneur also identified value addition as critical to expanding Nigeria’s mineral market and increasing revenue, noting that local processing could improve the value of minerals currently exported largely in their raw form.

“For example, I work with columbite, which contains niobium and tantalum, as well as pegmatite-related mineral deposits. Setting up a processing plant for such minerals could require an investment of $10 million, $15 million or even $20 million,” he said.

Egbagbe, who is also a pastor and medical doctor, said Nigeria’s solid minerals sector had enormous potential to stimulate industrialisation through industries such as cement, paints, cables and construction.

He urged the government to give the sector greater attention and develop minerals with strong industrial and technological applications.

He also called for a coordinated approach involving traditional institutions, security agencies and government authorities to resolve disputes, protect legitimate mining operations and restore investor confidence, saying sustained investment in the sector could generate jobs, support host communities and diversify the Nigerian economy.