Summary
KPMG emphasises Nigeria’s mineral wealth and potential for Foreign Direct Investment (FDI) but highlights significant obstacles like infrastructure deficits and security issues. The firm recommends joining international mining organisations to boost credibility. The Nigerian government is working on improving geological data and strengthening security measures to enhance investment attractiveness in the mining sector.
KPMG has highlighted Nigeria’s vast mineral wealth, emphasizing the need for initiatives to attract Foreign Direct Investment (FDI) into the country’s 44 solid minerals distributed across over 500 sites. The firm’s report points out that, despite this mineral abundance—which includes resources like gold, coal, and iron ore—Nigeria faces significant obstacles that hinder foreign investment. Solutions proposed include joining notable international mining organisations to enhance credibility and reporting standards in the mining sector. Notable organisations recommended by KPMG include CRIRSCO, IGF, and ICMM, which could help validate Nigeria’s mineral deposits, bolster global trust, and improve the sector’s environmental and social governance (ESG) standards. Additionally, KPMG indicated that existing operational challenges—such as infrastructural deficits, outdated geological data, and security issues in mineral-rich regions—need addressing to maximize investment potential. The recent launch of the Nigerian Mineral Resources Decision Support System by the government aims to resolve the data accessibility challenge. Despite some regions facing communal conflicts, ongoing safety measures are anticipated to strengthen the mining climate, ultimately positioning Nigeria as a premier destination for investors.
The article discusses the current state of Nigeria’s mining sector, focusing on the potential to attract Foreign Direct Investment (FDI) through international partnerships. Despite the abundance of mineral resources, including gold, barite, and limestone, the country struggles with challenges such as inadequate infrastructure, outdated geological data, and security issues. KPMG’s report suggests that joining global mining organisations could provide many benefits, including enhanced credibility and investor confidence. The government’s efforts to improve geoscientific data accessibility and enhance security measures are also highlighted as crucial steps towards revitalising the sector and attracting FDI.
KPMG’s report underscores the potential of Nigeria’s mining sector to attract foreign investment if it addresses critical challenges like infrastructure, data accessibility, and security. By joining international mining organisations, the country can improve credibility and investor confidence. Ongoing initiatives by the government aim to enhance mining operations and present Nigerian minerals more favourably on a global scale, creating a more attractive environment for investors.
Original Source: www.arise.tv