Edo State has surpassed Ogun and Kogi in the mining sector, achieving a production total of 19.4 million tonnes, primarily aided by the Dangote Group’s dominance, which now controls 54.2% of the market. The latest Nigeria Extractive Industries Transparency Initiative (NEITI) audit revealed that a record 2,833 licences were issued in 2023, a significant increase from the previous year, indicating a burgeoning interest in solid mineral operations. Challenges such as inadequate infrastructure, funding, and regulatory issues persist, but the sector saw a 34.4% rise in total production, reaching approximately 95 million tonnes. Regulatory recommendations from NEITI aim to enhance operational transparency and compliance, fostering an investment-friendly mining landscape in Nigeria.

The mining sector in Nigeria has long been overshadowed by oil, with limited government support and policy implementation for minerals. Despite possessing vast reserves of various minerals, including iron ore and gold, the industry faces significant underexploitation. The NEITI audit is crucial as it provides insights into financial flows and identifies obstacles within the sector, shedding light on operational transparency and regulatory compliance necessary for attracting investment.

Edo State’s ascent in the mining sector illustrates a significant shift, driven by increased licensing and production, despite ongoing regulatory and infrastructural challenges. The NEITI audit highlights the necessity for stronger governance to encourage serious investment and address the high incidence of speculative operators. Moving forward, addressing these concerns will be vital for harnessing Nigeria’s solid mineral potential effectively.

Original Source: www.thisdaylive.com

The post Edo State Leads Mining Sector Growth as Dangote Dominates with 54.2% first appeared on Nigerian Mining News.

Edo State has surpassed Ogun and Kogi in the mining sector as the Dangote Group has increased its market control to 54.2%, according to the 2023 Solid Minerals Industry Audit by NEITI. The audit highlights a surge in licences issued, increasing by 114% compared to the previous year. Nigeria possesses substantial mineral reserves, yet remains largely underdeveloped due to challenges such as lack of infrastructure, funding issues, and a weak regulatory framework.

During the audit period, mineral production rose to 95 million tonnes, an increase of 34.4%. Key contributors to this production were major companies like Dangote, BUA, and Lafarge, which collectively produced over 51 million tonnes and paid significant royalties. NEITI emphasises the need for improved monitoring and enforcement within the sector to counteract non-active operators and illegal mining, recommending penalties for non-usage of licences and enhanced governmental support for the mining industry.

The mineral sector in Nigeria, notably overshadowed by oil, is beginning to garner attention as new reports reveal significant activity from companies like the Dangote Group. NEITI’s audit report highlights both the increase in licences and the production of minerals, indicating a shift towards more robust mining operations. However, numerous issues still hamper growth, including inadequate infrastructure and lack of government support, which need addressing to realise Nigeria’s full mineral potential.

The latest NEITI report underscores a pivotal moment for Nigeria’s mining sector, showcasing rising production figures and increased licence issuance. With Dangote’s dominant share and significant contributions from other major companies, there is potential for substantial growth. However, resolving infrastructural deficits and regulatory challenges will be critical in fostering a sustainable mining environment and attracting foreign investment.

Original Source: www.thisdaylive.com

The post Dangote Dominates Nigeria’s Mining Sector with 54.2% Market Share first appeared on Nigerian Mining News.