Edo State has outshone Ogun and Kogi in the mining sector, with Dangote controlling 54.2% of the market. NEITI’s audit reveals a 114% increase in mining licences and a rise in mineral production to 95 million tonnes. Despite substantial mineral reserves, Nigeria faces significant challenges, including infrastructure and regulatory issues, undermining sector potential.
Edo State has surpassed Ogun and Kogi in the mining sector as the Dangote Group has increased its market control to 54.2%, according to the 2023 Solid Minerals Industry Audit by NEITI. The audit highlights a surge in licences issued, increasing by 114% compared to the previous year. Nigeria possesses substantial mineral reserves, yet remains largely underdeveloped due to challenges such as lack of infrastructure, funding issues, and a weak regulatory framework.
During the audit period, mineral production rose to 95 million tonnes, an increase of 34.4%. Key contributors to this production were major companies like Dangote, BUA, and Lafarge, which collectively produced over 51 million tonnes and paid significant royalties. NEITI emphasises the need for improved monitoring and enforcement within the sector to counteract non-active operators and illegal mining, recommending penalties for non-usage of licences and enhanced governmental support for the mining industry.
The mineral sector in Nigeria, notably overshadowed by oil, is beginning to garner attention as new reports reveal significant activity from companies like the Dangote Group. NEITI’s audit report highlights both the increase in licences and the production of minerals, indicating a shift towards more robust mining operations. However, numerous issues still hamper growth, including inadequate infrastructure and lack of government support, which need addressing to realise Nigeria’s full mineral potential.
The latest NEITI report underscores a pivotal moment for Nigeria’s mining sector, showcasing rising production figures and increased licence issuance. With Dangote’s dominant share and significant contributions from other major companies, there is potential for substantial growth. However, resolving infrastructural deficits and regulatory challenges will be critical in fostering a sustainable mining environment and attracting foreign investment.
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