Nigeria’s Ambitious Move to Harness Its Mineral Wealth and Strengthen Its Economy
On 12th February 2024, the Honourable Benjamin Kalu, Deputy Speaker of the House of Representatives in Nigeria, announced an ambitious plan to capitalize on the nation’s extensive mineral resources and decrease its dependence on oil and gas. This marks a significant milestone in diversifying Nigeria’s economy and boosting the contribution of the mining sector to the GDP.
Nigeria boasts over 40 commercially viable minerals, including natural gas, coal, iron ore, tin, limestone, and gold. Despite this abundance, the mining sector currently only contributes 0.3% to the country’s GDP. To unleash this potential, the government has put forward the Nigerian Minerals and Mining Act (Amendment) Bill, with the goal of increasing the sector’s GDP contribution to 3% by 2025.
Propelled by the Honourable Kalu, the bill aims to create a more favourable environment for mining sector investment by streamlining licensing processes and implementing competitive royalty systems. Already, these initiatives have attracted significant global players such as Thor Explorations, which has invested substantial sums in the Segilola Gold Project in Osun State.
The Segilola Gold Project, a prime example of Nigeria’s mining potential, generated $118 million in revenue in the third quarter of 2023. This success underscores the opportunities within the country’s untapped mineral resources. However, challenges such as insecurity, insufficient infrastructure, and a shortage of skilled labour persist.
Governor Abdullahi Sule of Nasarawa highlighted the necessity for sector reform to create employment opportunities and move away from reliance on oil. “Nigeria has the potential to become a leading player in the global chemical and fertilizer market,” stated Sule. “But to achieve this, we must establish a sustainable mining industry that benefits all Nigerians.”
Wigmore Trading, a key player in the chemical and fertilizer mining industry, supports the government’s objective to diversify the economy and promote environmental sustainability. By capitalizing on Nigeria’s rich mineral resources, the company aims to enhance value addition and create jobs for the nation’s citizens.
As Nigeria pursues its endeavour to harness its considerable mineral wealth, the world eagerly anticipates the outcome. If successful, the country could reshape its economic landscape and serve as a role model for other nations striving to diversify their economies.
In conclusion, Nigeria’s aspiration to leverage its mineral wealth represents a substantial stride in diversifying its economy and increasing the mining sector’s contribution to the GDP. The proposed Nigerian Minerals and Mining Act (Amendment) Bill and success stories such as the Segilola Gold Project illustrate the potential of Nigeria’s mineral resources. However, challenges must be addressed, and sustainable practices must be implemented for the long-term success of the mining sector.
