The mining sector holds the potential to make a substantial contribution to the economy of Nigeria, with the capacity to contribute up to 8% of the Gross Domestic Product (GDP) annually. These findings were shared by Ayo Salami, Partner & Head, Energy & Natural Resources, Tax, Regulatory & People Services at KPMG, during the KPMG 2024 Breakfast seminar in Lagos.
Salami underscored the evident potential for economic contribution from mining in Nigeria, particularly when compared to counterparts such as Ghana, South Africa, and Zambia. He highlighted Nigeria’s approximately 0.12 trillion reserves in terms of value of mineral deposits and tonnage, ranking 22nd globally in the dominance of minerals and mineral deposits, with an estimated value of about 1.12 trillion US dollars.
Currently, the mining sector contributes a mere 0.77% to Nigeria’s GDP. Salami stressed that this sector has the potential to significantly impact the country’s development, making it a crucial aspect of economic diversification.
Furthermore, Salami highlighted the launch of the mining brief by KPMG Nigeria, a publication aimed at providing essential information about the mining sector’s regulatory framework, tax incentives, and various types of mineral rights available in Nigeria. This initiative aims to provide investors, both local and foreign, with valuable insights into the sector.
The seminar also aimed to raise awareness about the potential of the mining sector in jump-starting Nigeria’s economic development and diversification. It also sought to highlight the interconnectedness between energy transition and mining, while fostering collaboration between public and private sector stakeholders to achieve the mandate of diversifying the economy and generating foreign exchange for the country.
In conclusion, the mining sector offers significant promise for Nigeria’s economic diversification and growth. The insights shared by Ayo Salami shed light on the untapped potential of this sector and the opportunities it presents for sustainable economic development.
As Nigeria continues to explore avenues for economic diversification, it is clear that the mining sector can play a pivotal role in driving growth and contributing to the nation’s GDP. With the right strategic initiatives and investments, the sector can be harnessed to propel the country’s development agenda in the years to come.