In the last two years, Nigeria has enacted crucial reforms to revitalise its mining sector, aiming to attract investment and enhance its GDP contribution. Initiatives have streamlined licensing processes and reduced barriers for international investors, improving mineral production across Nigeria’s 44 solid mineral types. The upcoming African Mining Week (AMW) 2025 will gather stakeholders and global investors to promote deals and sector growth.

The Nigerian Geological Survey Agency launched the Mineral Resources Decision Support System in May 2024. This platform offers global investors quick access to geological and policy data, showcasing Nigeria’s mineral wealth and infrastructure. By enhancing data transparency, it aims to facilitate investments and bolster investor confidence in the mining industry.

In August 2023, Nigeria restructured its Ministry of Mines and Steel Development into two entities to improve efficiency. The Ministry of Solid Minerals Development focuses on upstream activities, while the Ministry of Steel Development oversees steel and metallic resource development. This change is designed to enhance governance and attract targeted investments.

The Nigerian Minerals & Mining Bill, approved in April 2023, is currently under public review and aims to bolster foreign investment. It introduces incentives and strengthens local content requirements, serving as the primary legal framework for the sector. Once implemented, it will improve transparency and align the sector with global standards.

The Nigeria Mineral Value Chain Regulations, effective from July 2021, mandate local processing of certain raw minerals, fostering downstream investment. This policy spurred significant investments, such as Avatar Energy Materials’ lithium processing facility in Nasarawa State. These developments position Nigeria as a vital participant in the global critical minerals supply chain, which will be highlighted at AMW 2025.

African Mining Week is a prime event to explore the diverse mining opportunities across Africa, running alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Interested parties can contact [email protected] for more information on participation.

Nigeria’s mining reforms aim to revitalise the sector, attract foreign investments, and enhance GDP contributions through improved governance, transparency, and local processing initiatives. The restructuring of ministries, introduction of supportive legislation, and the launch of a data access platform demonstrate a robust commitment to unlocking the mining industry’s potential. The upcoming AMW 2025 will further provide a vital platform for collaboration between local and international stakeholders.

Original Source: energycapitalpower.com

The post Nigeria’s Mining Reforms: Attracting Investment and Driving Growth first appeared on Nigerian Mining News.

Nigeria, abundant in over 44 minerals across 500 locations, is evolving into a major player in Africa’s mining sector. The government aims to elevate the mining sector’s GDP contribution to 10% by 2026 by fully exploiting its vast mineral resources. Upcoming events like Africa Mining Week in Cape Town will spotlight investment opportunities in Nigeria.

Bitumen: Nigeria possesses 42.47 billion tons of probable bitumen reserves, ranking sixth globally. Major deposits are located in Lagos, Ogun, Ondo, Rivers, Bayelsa, and Edo States. A $1 billion investment by Owena Bitumen Exploration Nigeria Limited aims to develop these reserves in Ondo State.

Limestone: With approximately 10.6 billion tons, Nigeria has one of Africa’s largest limestone reserves, spread across 14 states. This resource is key for job creation and economic diversification, particularly in cement production through companies like Dangote Cement.

Coal: Nigeria’s coal reserves are significant, estimated at 2.75 billion tons, mainly found in Gombe, Kogi, Nasarawa, and Enugu States. The Zuma Coal Mining Project, operated by Zuma Energy Nigeria Limited, has a production target of two million metric tons annually over 25 years.

Iron Ore: The Itakpe mine in Kogi State hosts around 3 billion tons of iron ore, a crucial resource for Nigeria’s industrialization. The iron ore is processed to 67% purity and supplies steel plants like Aladja and Ajaokuta.

Gold: Nigeria, with 21.37 metric tons of gold reserves, is the sixth-largest gold holder in Africa. Major deposits are spread across Zamfara, Kaduna, Bauchi, Niger, and Osun States, while initiatives, including a new gold refinery by Kian Smith, aim to enhance the gold value chain.

Nigeria’s mining sector offers significant opportunities for investment and economic growth, driven by its vast mineral reserves in bitumen, limestone, coal, iron ore, and gold. By attracting global investors and focusing on sustainable exploitation of these resources, Nigeria aims to diversify its economy and improve its mining contributions to GDP.

Original Source: energycapitalpower.com

The post Five Emerging Mineral Resources in Nigeria first appeared on Nigerian Mining News.

The latest KPMG report on Nigeria’s mining sector indicates that the current investor framework is unattractive and does not address the unique challenges of the industry. Despite attempts by successive federal governments to revitalize this sector, the growth has been minimal, with mining contributing less than 1% to Nigeria’s GDP as of 2023.

In 1999, Nigeria aimed to refocus its mining strategy, leading to the 2007 Nigerian Minerals and Mining Act (NMMA). However, successes have been limited; the sector’s GDP contribution remains only 0.77%. The government previously set a target in 2016 for this contribution to rise to 10% of GDP by 2026 through a roadmap outlining industry development.

Although an N30 billion intervention fund was launched to attract multinational companies and promote exploration, tangible results have not followed. The mining value chain is categorized into exploration, processing, and marketing, but only upstream operations have seen some growth. Furthermore, fiscal incentives appear scattered across various laws, necessitating harmonization for clearer guidance to operators.

KPMG urges a complete review of the fiscal framework to align it with global standards, thus attracting investors. Moreover, updating the NMMA is essential to align provisions with the current mining ecosystem. Nigeria has over 44 minerals at 500 sites, yet seven strategic minerals—Coal, Bitumen, Limestone, Iron Ore, Barites, Gold, and Lead/Zinc—are prioritised for development due to their economic potential.

The KPMG report highlights that Nigeria’s mining sector framework is insufficiently attractive for investors, contributing less than 1% to GDP. It calls for a comprehensive review of the fiscal policies and updates to the Nigerian Minerals and Mining Act to enhance the sector’s appeal. The prioritisation of seven strategic minerals underlines the potential for growth if strategic measures are implemented.

Original Source: businessday.ng

The post KPMG Report: Nigeria’s Mining Sector Framework Fails to Attract Investors first appeared on Nigerian Mining News.