Australia and Canada have launched 2 year program to support the Ministry of Mines and Steel Development in developing the Nigeria’s mineral sector in an economically, environmentally and socially sustainable way.

The program is expected to contribute to improved employment, economic diversification and development of small to medium scale exploitation of quarry materials, gems, gold and industrial minerals in the country.

The project, designed and implemented by the World Bank, is financed by the governments of Australia and Canada with USD 940,000 and USD 950,000 respectively.

It will build upon earlier reforms implemented by the Federal Government with the support of the World Bank assisted USD 120 million Sustainable Management of Mineral Resources Project from 2004 till 2012. The assistance responded to a request from, and needs identified by the Ministry of Mines and Steel Development to sustain the process of the mining sector reform into the next phase.

The Australian Government’s support will help identify mineral resource corridors, improve education and training for mining sector employment, update the fiscal regime for mining, formulate an artisanal and small scale mining strategy and review the strategy for mid tier mine operators.

In addition to supporting the mining infrastructure planning, the Canadian government’s support is expected to contribute to strengthening the consolidated strategy for sustained mineral sector development in the country, finalize sector specific environmental and social regulations, upgrade the geosciences research laboratory to serve the industry and increase the opportunities for gender equality in the mining sector.

Mr Chris Cooter the Canadian High Commissioner to Nigeria observed that the mining sector in Nigeria was just beginning to take shape, noting that the embassy was pleased to work with her partners in the sector to help improve economic development in Nigeria.

Ms Marie Francoise Marie Nelly World Bank Country Director for Nigeria said that contributions from mining were still low at 0.15% but commended the country for re invigorating the sector following the first 5 years of the SMMRP supported reform. The mining reform cycle normally has a long timeframe of over 10 years to bring its full benefit to the economy and the Gross Domestic Product. It is important for the government to sustain the reforms and continue to place emphasis on institutional strengthening, transparency, and accountability and governance improvements in the mining sector.