Monday, July 26, 2021

    Expert advises FG on mineral value addition

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    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    By Francisca Oluyole
    Abuja, June 30, 2021 A Metallurgical Expert, Mr Kehinde Olabusuyi, has advised the Federal Government to pay more attention on adding value to every mineral extracted in Nigeria.
    Olabusuyi gave the advice in an interview with newsmen on Thursday in Abuja.
    Nigeria has a wealth of extractive resources. However, most of its minerals are extracted and exported in their raw state.
    The processing of its minerals into higher value output and products is most often done elsewhere.
    Hence, the country is not only earning the minimum amount from its resources through the export of unprocessed ores but also restricting opportunities to diversify the economies, thereby leaving the country vulnerable to the fluctuations of global resource markets.
    In many countries, extractive industries operate as enclaves separated from other economic activities. Inherently capital intensive, they provide few opportunities for host country suppliers, assemblers or manufacturers.
    Olabusuyi said that adding value to minerals would help create more jobs for the youth, boost our Gross Domestic Product (GDP) and promote export of finished mineral products from the country.
    According to him, it will help to prevent our minerals from being exported in raw form in a manner that Nigeria crude oil is being exported.
    “Value addition on mineral is a way to prevent what has happened in the oil sector from happening in the mineral sector, so that our raw minerals will not be taken out, refined and sold to us at exorbitant rates like oil.
    “If we add value on our minerals they will sell at higher prices, government will make more money as well as creates jobs to our teeming youths,” he said.
    He said that without a legal backing, value addition would not be achieved, urging the Ministry of Mines and Steel Development to make corrections on its mineral value addition policy draft, that was rejected by the Federal Executive Council (FEC).
    According to him, the Federal government is making efforts to revive Ajaokuta Steel Company but trying to avoid repeat of past mistakes.

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