Unlocking Nigeria’s Mining Potential

Nigeria’s mining sector has the potential to achieve sustainable growth through various means, including affordable funding, legal reforms, and enhanced security measures. A recent report by KPMG highlighted the significant impact that these factors can have on the country’s mining industry.
The report revealed that Nigeria’s mining sector has experienced steady growth, with its contribution to the Gross Domestic Product (GDP) increasing by 327 percent over the past five years. Despite this growth, the sector’s contribution to the country’s GDP remains relatively low. KPMG pointed out that the current administration’s policies and strategies have been effective in reviving the sector, but additional efforts are needed to accelerate its growth and compete with the oil and gas sector.
The report emphasised the importance of the government’s commitment to sustainable growth in the mining sector, particularly through the provision of accessible and affordable funding, expedited amendment to mining laws, access to reliable geodata, tax incentives, and enhanced security measures. KPMG also highlighted the need for the pending Nigerian Minerals & Mining Bill 2023 to be fast-tracked and enacted before the current administration’s term ends on 29 May 2023.
The draft amendment of the Nigerian Minerals & Mining Act was approved by the Federal Executive Council on April 5, 2023, and has been submitted to the National Assembly for review. KPMG expressed hope that the new bill would address the outdated provisions of the existing law and enhance the sector’s attractiveness to potential investors. The report also stressed the importance of the incoming administration building upon the foundation laid by its predecessor to sustain the sector’s growth trajectory.
In conclusion, the report by KPMG underscored the tremendous potential of Nigeria’s mining sector to drive economic development, diversification, and industrialisation. By prioritising accessible funding, legal reforms, and security enhancement, the government can create an enabling environment for the sector to thrive and contribute significantly to the nation’s economy. As Nigeria looks to diversify its revenue sources and reduce its reliance on the oil and gas sector, unlocking the full potential of the mining industry will be crucial for achieving these objectives.