The latest report from KPMG, a global audit, tax, and business advisory firm, has illuminated the necessity for Nigeria to align itself with international mining organizations in order to attract Foreign Direct Investment (FDI) to the country’s extensive solid minerals sector. Nigeria boasts over 44 different minerals located in more than 500 locations across the nation, presenting the potential to become a preferred mining destination for multinational companies.
The report highlighted various mineral deposits found in Nigeria, including gold, barite, bentonite, limestone, coal, bitumen, and numerous others. Despite this abundance of resources, the sector has struggled to garner foreign investments due to challenges such as inadequate funding, insecurity, and insufficient data.
KPMG emphasized the significance of Nigeria becoming a member of recognized international mining organizations such as The Committee for Mineral Reserves International Reporting Standards (CRIRSCO), the Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development (IGF), and the International Council of Mining and Metals (ICMM). The firm believes that such affiliations would not only validate the presence of mineral deposits but also earn global trust by promoting high standards of reporting and strengthening the social and environmental performance of the mining sector.
In addition to these benefits, becoming a member of international mining organizations would assist Nigeria in enhancing its contribution to local communities and society at large. It would also aid in strengthening laws and policies to achieve sustainable development goals in the short and long term.
Despite the challenges facing the sector, KPMG commended the recent progress made in the Nigerian mining industry and urged the country to convey positive signals of readiness for business to the global community. By obtaining certifications from international organizations, Nigeria can significantly boost investor confidence and position itself as the preferred investment destination for mining majors.
The report also highlighted the challenges that the sector is currently facing, including the lack of critical infrastructure, limited geoscience data, and insecurity in some mineral-rich regions. However, it is encouraging to note that the Nigerian Geological Survey Agency has introduced the Nigerian Mineral Resources Decision Support System (NMRDSS), a web-based application that provides access to geo-scientific and geo-economic data of Nigeria.
Furthermore, with the strengthening of security measures and recent initiatives to tackle illegal mining activities, it is believed that a more secure climate for operators in the sector can be fostered.
Addressing the issue of project funding, KPMG noted that Nigeria has struggled to attract necessary investments due to various factors such as insufficient bankable projects, policy uncertainty, and the non-attractiveness of the existing fiscal framework for investors in the mining sector.
In conclusion, the report from KPMG serves as a valuable resource for policymakers and stakeholders in Nigeria’s solid minerals sector. It offers insights into the challenges faced by the industry and provides actionable recommendations for the country to unlock the full potential of its mineral wealth. By aligning itself with international mining organizations and addressing the identified challenges, Nigeria can pave the way for a thriving and attractive investment environment in the solid minerals sector.