Nigeria is undergoing a significant transformation in its mining sector, aiming to attract investments and reduce its dependence on oil. The government is implementing comprehensive reforms that include policy changes, incentives for investors, and a focus on critical minerals to drive economic diversification.

The reforms have already garnered positive feedback from industry stakeholders. Geophysicist Alex Abiodun notes that recent years have instilled confidence among mining professionals, emphasising that sustained momentum could make mining a key revenue source for Nigeria. Despite its vast mineral resources, the mining sector contributed only 0.77% to Nigeria’s GDP in 2023, highlighting the need for continued reform.

The Nigerian Extractive Industries Transparency Initiative (NEITI) reports that Nigeria has over 40 types of solid minerals, with an estimated sector value exceeding $700 billion. Ongoing efforts, like investor incentives and local mineral processing, aim to increase foreign investments and improve the sector’s GDP contribution.

In May 2024, the Nigerian Geological Survey Agency introduced the Mineral Resources Decision Support System to provide investors with easy access to vital geological and policy information. Minister Dr Dele Alake emphasised that this portal enhances global access to relevant information for informed investment in the mining sector.

A major structural change occurred in August 2023, with the Ministry of Mines and Steel Development being split into two new entities: the Ministry of Solid Minerals Development and the Ministry of Steel Development, allowing for a more focused approach to mining and industry.

With significant resources like the Itakpe mine, boasting 2 to 3 billion tons of iron ore, the steel industry presents a major potential resource. Abiodun highlighted that creating a dedicated mining ministry was essential for addressing industry-specific challenges.

Legislative changes are ongoing, with the Nigerian Minerals & Mining Bill potentially becoming the sector’s primary legal framework, focusing on incentives, local content, transparency, and modern regulation that aligns with global standards.

These initiatives are attracting investors, particularly in green minerals such as lithium. Canadian firm Thor Explorers is leading lithium projects in Nigeria, while also operating the Segilola Gold Mine, which produced over 85,000 ounces of gold in 2024. Thor Explorations President Segun Lawson noted improvements in operations due to strategic planning.

Global interest is growing in Nigeria’s mining sector, exemplified by Glencore’s plans to explore opportunities, specifically in nickel, cobalt, and zinc. Glencore CEO Gary Nagle confirmed their intent to invest in the country’s mining landscape.

Nigeria is actively reforming its mining sector, focusing on attracting investment and reducing reliance on oil. The government has introduced initiatives to support industry growth, with significant legislative and structural changes in place. These reforms highlight Nigeria’s vast mineral wealth while seeking to boost the sector’s GDP contribution significantly. Increased interest from global mining firms indicates a positive outlook for Nigeria’s mining future.

Original Source: newscentral.africa

The post Reforms to Unlock $700 Billion Mining Fortune for Nigeria first appeared on Nigerian Mining News.