Despite possessing extensive mineral resources, Nigeria’s mining sector only contributed 0.85% to the GDP in 2022. The sector has seen a 32% growth from the previous year due to effective policies, but requires further development to compete with oil and gas for national revenue.
Nigeria has more than 44 priced solid minerals, but their contribution to the GDP remains low. In Q4 2022, Nigeria’s GDP grew by 3.52%, with the mining sector contributing 0.85%, a rise from 0.63% in 2021, marking a 32% year-on-year growth. This sector has shown consistent growth over the last five years due to effective policies from the current administration. However, additional measures are needed to enhance its growth potential, enabling it to compete with the oil and gas sector and aid in economic diversification. This newsletter discusses recent developments in the mining sector and their economic implications.
The Nigerian mining sector, despite its vast mineral resources, has lagged in contributing significantly to the nation’s GDP. The government’s recent policies have spurred growth, indicating a positive trend for the sector. However, its performance remains overshadowed by the oil and gas industry, which is crucial for the country’s revenue.
The Nigerian mining sector is on a growth trajectory, yet more aggressive policies and strategies are needed to enhance its contribution to the GDP. Continued improvements can position it as a key player in the economy, helping reduce dependence on oil revenues.
Original Source: kpmg.com