The importance of reliable geological survey report has been emphasised by the African Continental Free Trade Area Agreement (AfCFTA).
The workstream lead, Mining and Extractives Workstream of AfCFTA, Engr. Auwal Ibrahim Bununu, who spoke during the recent mineral clinic organised by the Nigeria Geological Survey Agency (NGSA) in Abuja, generating and sustaining qualitative geological survey report are critical in attracting investors to the mining and minerals sector.
He stated that increase in Foreign Direct Investments (FDIs) in the Nigerian mining sector was attributable to the reliable geological study reports produced by the NGSA in the past four years, which had also reflected in the upsurge in the revenue generated by the sector.
Bununu, who is the technical adviser to the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), said: “It is because NGSA is able to provide reliable geological reports that the Mining Cadastre Office (MCO) and other agencies are welcoming more mining investors.”
The expert said dependable geological reports are necessary to win the confidence of investors, who he said would not take the risk of investing where high returns on investments are not guaranteed.
“It is only after Dr. Abdulrazaq A. Garba–led management of the NGSA addressed challenges and generated reserve estimates that the narration began to change. This was one of the hidden challenges that prevented the mining boom, until the current management of NGSA came on board.
“if Nigeria sustains the successes it recently recorded in attracting FDIs to the mining sector, the Nigerian Geological Survey Agency must not only uphold the current standard of geological reports, but must also embark on mineral exploration with regards to more minerals.”
Bununu described reliable geodata as the primary attraction for mining investment, stating that the ability of the NGSA to generate geoscience data and produce reliable feasibility reports led to influx of foreign investors.
“The investor is sure that his investment will yield the desired goals because the geological report is reliable and it is a source of confidence to him. Under such a circumstance, an investor would not hesitate to take a loan because he is not afraid since there is assurance based on the feasibility report.’
Speaking to journalists, the NGSA DG, Dr A. Garba, said though the agency is not a revenue generating outfit, its specialised work was enabling agencies under mining, like the Mining Cadastre Office, to rake in more money from mineral titles due to increased confidence in the sector.
