Mining stakeholders seek local gemstone processing to boost revenue

Stakeholders in Nigeria’s solid minerals sector have called for increased local processing of gemstones, improved access to financing and greater foreign investment to boost revenue, create jobs and strengthen the country’s position in the global mining industry.

They made the call during panel discussions at the Nigeria Mining Week in Abuja on Wednesday, where industry experts and business leaders identified inadequate local processing, high lending rates, security concerns and limited technical skills as major challenges facing the sector.

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President of the Gemstones Miners and Marketers Association of Nigeria (GMMAN), Engineer Adeniran Ajibade, said Nigeria could generate greater economic benefits from its gemstone resources by organising artisanal miners into structured groups and developing local processing facilities.

Ajibade said small-scale mining operators could help bring artisanal miners into the formal sector, enabling them to comply with Community Development Agreements (CDAs), conduct Environmental Impact Assessments (EIAs) and adopt responsible mining practices.

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He explained that some small-scale operators had previously worked together through communal platforms to conduct baseline environmental studies and ensure accountability for land reclamation and environmental protection.

Ajibade also urged gemstone dealers to stop exporting unprocessed stones in mixed grades, saying the practice weakened their bargaining power and allowed foreign buyers to take advantage of their limited knowledge of the international market.

He cited Tanzania’s gemstone industry as an example of how branding and strategic partnerships could improve the global competitiveness of locally sourced minerals.

According to him, Nigeria has deposits of valuable gemstones, including Paraiba tourmaline, sapphire and emeralds, but needs stronger branding, specialised training and better organisation to maximise their commercial potential.

Ajibade further called for the establishment of a national gemstone buying centre where international traders could purchase locally processed stones, adding that Nigeria’s demand for jewellery and beads offered significant opportunities for domestic businesses.

He noted that imported costume jewellery, particularly products from China, dominated a market that local gemstone processors and jewellery makers could serve if the necessary skills and infrastructure were developed.

Similarly, the Country Manager of Adelia, Segun Okoh, advocated the establishment of gemstone processing clusters that would bring mining, grading, processing and manufacturing activities closer together.

Okoh said such clusters would enable miners to add value to their products before they reached the market, while creating employment opportunities for women and young people in mining communities.

He urged government agencies to conduct skills-gap assessments and provide continuous technical training, including the use of processing machinery and business management, to help local entrepreneurs build sustainable businesses.

The Chief Executive Officer of the Laurel School of Mining, Tope Adebanjo, also stressed the importance of gemological education and entrepreneurship in developing Nigeria’s gemstone industry.

Adebanjo cited Thailand as an example of a country that had built a thriving gemstone industry through processing and entrepreneurship despite having fewer natural gemstone resources than Nigeria.

He said Nigeria needed to invest in gemstone enhancement, evaluation and treatment to ensure that valuable minerals were processed locally rather than exported in their raw form, thereby creating jobs and retaining more economic benefits within the country.

Meanwhile, Exploration Manager at DFR Gold, Kieran Harrington, urged the Federal Government to attract more international investors to Nigeria’s gold mining industry to support systematic exploration and mineral development.

Harrington said security concerns in some mining locations continued to discourage foreign investors despite the opportunities available in the sector.

He noted that Nigeria already had an active local mining industry but required greater participation from international companies with the financial capacity to support large-scale exploration and development.

Harrington urged the government to sustain its support for the sector and prioritise measures to attract foreign investment, particularly in gold exploration and exploitation.

Also speaking, Sales Manager for Light and Heavy-Duty Commercial Vehicles at Mikano Motors Division, Michael Adekoya, called on the Federal Government to engage commercial banks on reducing interest rates on loans for mining equipment.

Adekoya said high borrowing costs had discouraged prospective buyers from acquiring equipment, with some customers abandoning purchases after approaching banks for financing.

He urged the ministry responsible for solid minerals development to work with financial institutions to provide affordable financing options for miners, saying improved access to equipment would encourage investment and support the growth of Nigeria’s solid minerals industry.

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