The Nigerian Mining Industry: A Closer Look

The mining sector in Nigeria harbours an impressive array of forty-four solid minerals, scattered across different regions of the country. Despite its enormous potential, this sector has unfortunately made only a minimal contribution to the country’s gross domestic product (GDP).

In the fourth quarter of 2022, Nigeria’s GDP experienced a year-on-year growth of 3.52%. During the same period, the mining sector saw an increase in its contribution to the GDP, accounting for 0.85% in 2022, up from 0.63% in 2021. This represents a substantial 32% growth from the previous year. The chart below illustrates the sector’s steady growth over the past five years.

It is evident that the policies and strategies implemented by the current administration have had a positive impact on the revival of the mining sector. However, further efforts are necessary to propel the sector into a more accelerated growth trajectory. This will enable it to compete with the oil and gas sector, which currently serves as the primary revenue generator for the country and supports the diversification agenda.

This newsletter aims to shed light on some recent notable developments in the mining sector, providing insights into their potential impact on the economy.

In addition to this, the President has given the green light for the implementation of the 2023 fiscal policy measures and tariff amendments. This move is expected to have significant implications for the mining sector and the wider economy, and we will be closely monitoring the situation to assess its full impact.

It is crucial that the Nigerian government continues to create an enabling environment for the mining industry to thrive. This could involve streamlining regulatory processes, providing incentives for investment, and addressing infrastructure challenges. Such measures will be essential for unlocking the full potential of the sector and driving its future growth.

In conclusion, while the Nigerian mining sector has shown signs of improvement in recent years, more needs to be done to maximise its contribution to the GDP. With the right policies and support in place, the sector has the potential to become a significant player in the Nigerian economy, creating opportunities for employment, investment, and sustainable development.