The Positive Growth of Nigeria’s Mining Sector During President Buhari’s Administration – Insights by KPMG

The mining sector in Nigeria has seen significant advancement during the tenure of President Muhammadu Buhari, as indicated in a recent report by KPMG. The report highlights the effective measures and strategies implemented by the current administration, resulting in the revitalization of the mining sector in the country.

According to KPMG’s mining sector watch report, Nigeria boasts a diverse range of solid minerals, with abundant deposits scattered across various regions. Despite its significant potential, the sector’s contribution to the country’s gross domestic product (GDP) has remained surprisingly low.

The report reveals that Nigeria’s GDP experienced a year-on-year growth of 3.52% in the fourth quarter of 2022, with the mining sector contributing 0.85% to the nation’s GDP in 2022, a substantial increase from the 0.63% contribution in 2021. This sustained growth over the past five years can be attributed to the effective policies and strategies implemented by the current administration. However, the report also stresses the need for additional efforts to further propel the sector’s growth and enable it to compete with the dominant oil and gas sector.

In light of these findings, the KPMG report underscores the importance of the incoming administration taking decisive action to drive continued development in the mining sector. The report offers key initiatives introduced by the Buhari administration and presents recommendations for further progress.

Some of the suggested initiatives include an awareness campaign to inform potential investors within and outside Nigeria about the benefits of the National Geodata Centre. Additionally, the report recommends thorough consultations with all relevant stakeholders to address the controversy surrounding the concession of the Ajaokuta Steel Company and the National Iron Ore Mining Company.

Furthermore, the report emphasizes the significance of regularly conducting mineral clinics to facilitate constructive dialogue and decision-making on critical issues impacting the mining sector. It also highlights the importance of enacting policies to regulate the exploration, production, and exportation of lithium, particularly in relation to the construction of Nigeria’s first lithium processing plant in Kaduna State.

The government is urged to implement policies aimed at controlling and mitigating the adverse environmental effects of mining and to consolidate local content laws to support indigenous players in the sector.

In conclusion, the KPMG report underscores the positive growth of Nigeria’s mining sector under the Buhari administration and stresses the need for sustained efforts to further maximize its potential. By considering the recommended initiatives, the government can steer the mining sector towards a path of robust growth and enhanced competitiveness in the global market.