World Bank says mining can make double digit contribution to Nigeria’s GDP – by Luke Ajulo (World Stage Group – July 3, 2013)

http://www.worldstagegroup.com/worldstagenew/index.php

WorldStage Newsonline—From the current 0.5 per cent contribution of mining to Nigeria’s Gross Domestic Product (GDP), the World Bank believed that a duble digit figure can be achieved through proper planning.

Speaking at Stakeholders Workshop on the Australian and Canadian Externally Financed Output (EFO) Programme for Mining Sector Development in Nigeria, the World Bank Country Director, Marie Franciose Marie-Nell, said that in partnership with the Canada International Development Agency (CIDA) and the Australian Agency for International Development (Aid), the World Bank was launching a two-year mining sector intervention Programme as a continuation of the Sustainable Management of Mineral Resources Programme which ended last year.

Represented by Mr.Mr. Michael Wong, he said that “it is a stepping stone for a further programme and a wider engagement in the mining sector. As we know, the contribution from the sector is 0.5% GDP, and it can be increased to double digit if possible and we hope that contribution are needed and the Australian government will assist the ministry in developing the roadmap towards the development of the sector.”

He said the Programme is financing timely integrated infrastructural development, adding that the Programme fits into the country’s new system framework for development partners such as DFID, the African Development Bank and others.

In his remarks, the Australian High Commissioner, Jonathan Richardson also said that the contribution from the mining sector to the GDP is very low, adding that, “Basically, what are we going to deliver? We want to deliver something that is alive and that is why with the contribution of Australia and Canada we have broken down the programme into a number of tasks.

“I know that Nigeria has a very clear roadmap. And our contribution to this roadmap is to make it to have a continuous update, to ensure that with our continued support it is alive an implemented. Also, we are looking at a fiscal regime update for mining and to provide additional elements to the country. ”

The Minister of Mines and Steel Development, Musa Sada however, urged that agencies to commence the second phase of the SMMRP without delay.

He explained that the second phase of the World Bank support is a panacea for sustaining the gains of the recently completed SMMRP.

In his remarks, the Chairman, Solid Minerals Development Fund, Mr. Linus Adie said the out one of the reform progrmme in the sector has been very encouraging.

He noted that “major mines can only commence after thorough exploration and viability studies are concluded and this takes time.”

Adie said even as substantial part of the reform has delivered much still needs to be done to sustain the momentum of transforming Nigeria into an irresistible mining nation.

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