Insecurity and illegal mining are deterring foreign investors and disrupting operations in Nigeria's solid minerals sector, according to Joshua Egbagbe, managing director and chief executive officer of Mining Technologies Company Ltd. In an interview, Egbagbe identified insecurity, policy inconsistencies, exchange-rate volatility and the seizure of licensed mining sites by illegal miners as the main obstacles to sector development.
Egbagbe said investors with mining projects in the Northeast, Northwest and North-Central regions face particular challenges. "Insecurity discourages long-term planning and large-scale investment," he said, explaining that miners need stable conditions to commit resources to mining and mineral processing operations. Some illegal miners on the Plateau have claimed indigent status to take over mining sites, sometimes using violence against licensed operators despite those operators holding agreements with landowners and possessing the necessary licences. Egbagbe disclosed that the situation had cost him foreign technical partners and disrupted his own operations, and that he had come close to losing his life when his vehicle, personnel and he himself were attacked.
Egbagbe called on traditional rulers and security agencies to act against illegal mining. He urged the Plateau State Government and the Federal Government to strengthen protection for licensed miners, enforce mining regulations and resolve disputes through lawful channels rather than allowing violence. He identified value addition as critical to expanding Nigeria's mineral market and increasing revenue, noting that most minerals are currently exported in raw form. Setting up a processing plant for minerals such as columbite, which contains niobium and tantalum, or pegmatite-related deposits could require investments of between $10 million and $20 million, he said.
Egbagbe, who is also a pastor and medical doctor, said Nigeria's solid minerals sector had significant potential to drive industrialisation through sectors including cement, paints, cables and construction. He urged the government to prioritise the sector and focus on minerals with strong industrial and technological applications. He called for a coordinated approach involving traditional institutions, security agencies and government authorities to resolve disputes, protect legitimate mining operations and restore investor confidence. Sustained investment in the sector could generate jobs, support host communities and help diversify the Nigerian economy, he said.
For savers and investors, the ongoing instability in Nigeria's minerals sector means that opportunities for returns from mining investments face significant risks from security and regulatory challenges.