Miners Association Nigeria: Urges Clarity on Mining Investment Security Regulation

• The Miners Association of Nigeria identified insecurity and regulatory confusion between federal and state authorities as major barriers to investment in the solid minerals sector.
• Oba Ayandele Ayanleke, MAN President, called for addressing these challenges to build investor confidence and diversify the economy.
• Austin Menegbo of Segilola Resources Operating Limited highlighted regulatory uncertainty, illegal mining, and inadequate infrastructure as key issues.
• Segilola gold mine produced 91,910 ounces of gold in 2025, with 99% Nigerian workforce, demonstrating potential.
• Industry stakeholders at the 11th Nigeria Mining Week in Abuja emphasized the need for predictable regulations, safer operations, and stronger partnerships.

Investors can effectively manage stringent regulatory standards, but they encounter significant difficulties when faced with uncertainty arising from overlapping requirements, ambiguous approval schedules, or contradictory directives from government agencies.

The 11th Nigeria Mining Week, recently held in Abuja, served as a crucial platform for industry stakeholders to address significant challenges impeding investment in the nation's solid minerals sector. Oba Ayandele Ayanleke, President of the Miners Association of Nigeria (MAN), highlighted two primary obstacles: pervasive insecurity within mining corridors and persistent regulatory confusion stemming from overlapping federal and subnational authorities. Ayanleke underscored the urgent need for Nigeria to resolve these issues to cultivate investor confidence and attract essential capital for mining projects.

During the event, a consensus emerged among participants advocating for enhanced partnerships, the establishment of predictable regulations, the implementation of safer mining operations, and a greater emphasis on local mineral processing. These measures are seen as vital to unlocking the sector's vast economic potential. Ayanleke further articulated that bringing together both domestic and international stakeholders would foster a valuable exchange of ideas, technology, and investment, thereby promoting robust growth within the industry and contributing to broader economic diversification. He emphasized that the solid minerals sector holds the promise of becoming an alternative engine for economic growth and wealth creation for Nigerians, provided these fundamental challenges are effectively tackled.

A key concern for potential investors in Nigeria's mining sector is the prevailing federal state mining regulatory confusion Nigeria. Oba Ayandele Ayanleke specifically pointed to regulatory disagreements between federal and state authorities as a source of significant uncertainty, which actively discourages prospective investors. He stressed the importance of collaboratively developing a regulatory framework that is tailored to Nigeria's unique context, ensuring clarity for investors regarding operational environments and revenue expectations, ultimately fostering a conducive atmosphere for investment and returns.

These sentiments were echoed by Austin Menegbo, Country Manager for Segilola Resources Operating Limited Nigeria, who emphasized the necessity for more commercially viable mining projects to translate Nigeria's mineral wealth into sustained economic benefits. Menegbo identified a range of Nigerian solid minerals sector challenges, including regulatory uncertainty, illegal mining activities, persistent insecurity, inadequate infrastructure, limited access to exploration finance, and critical skills gaps. He noted that while investors are capable of managing rigorous standards, the true difficulty arises from uncertainty, particularly when requirements overlap, approval timelines are unclear, or government agencies issue conflicting instructions. This highlights a critical aspect of Nigeria mining investment security regulation.

Despite the identified challenges, the potential within Nigeria's solid minerals sector is evident through successful operations like the Segilola gold mine. In 2025, this mine produced an impressive 91,910 ounces of gold, with Nigerians constituting 99 percent of its workforce. However, Austin Menegbo cautioned that the success of a single commercial gold mine does not, by itself, transform an entire industry. He argued for the development of a robust pipeline of credible projects, necessitating more discoveries to evolve into mines, more mines to become enduring businesses, and increased mining activity to generate value for local communities, investors, and the nation as a whole.

To overcome the Miners Association Nigeria investment barriers and other impediments, Menegbo called for sustained collaboration between the government and the private sector. This collaborative effort is crucial for addressing the multifaceted issues that currently deter significant capital inflow. Oba Ayandele Ayanleke further noted that the full economic benefits of annual gatherings like the Nigeria Mining Week Abuja extend beyond quantifiable revenue and investment figures, encompassing broader social and developmental advantages that are harder to measure but equally vital for the sector's long-term prosperity.

Legal professionals advising on investments in Nigeria's solid minerals sector must account for significant regulatory uncertainty, including overlapping federal and state requirements, and heightened security risks, which are identified as major deterrents to capital inflow. Due diligence should specifically address these areas to mitigate client exposure.

Source: Original reporting via industry conference insights