INTRODUCTION
The Nigerian mining sector showed considerable resilience and potential for growth in 2024, despite ongoing challenges. The National Bureau of Statistics recently reported that Nigeria’s GDP grew by 3.19% year-on-year in real terms in the second quarter of 2024, surpassing the 2.51% growth recorded in the same period of 2023. This growth, while still tepid, signals a resilient and adaptable economy, with certain sectors emerging as clear beneficiaries of President Bola Ahmed Tinubu’s economic policies since he took office.
Nigeria, endowed with abundant mineral resources, seeks to diversify its economy away from oil dependency, and the mining sector, although historically underutilized, is trying to gain traction as a vital component of the national economic strategy.
The metal ores sector, has recently surged, posting a notable 58.12% increase in Q2 2024. This growth is attributed to a significant boost in mining activities and heightened global demand for metals. The sector’s progressive expansion underscores its crucial role in Nigeria’s economy, fueled by global market trends and increased investments in mining.
Despite these gains, the metal ores industry and the mining sector at large face numerous challenges, including illegal mining, environmental harm, insufficient infrastructure, and security threats in mining regions. Moreso, navigating a complex regulatory and policy landscape poses an additional challenge to achieving long-term sustainable growth in the sector.
This Report provides an overview of the mining sector in Nigeria, analysis of the key highlights and developments in 2024, and potential opportunities for 2025.
INDUSTRY OVERVIEW
The mining sector contributes significantly to Nigeria’s GDP, accounting for approximately 1-2% in recent years, with the potential for much higher contributions. The sector provides employment opportunities, particularly in rural areas, and supports local economies. However, it is estimated that about $9 billion worth of gold is smuggled out of Nigeria yearly. Ola Olukoyede, the chairman of the Economic and Financial Crimes Commission, EFCC said illegal mining, if not curbed, in another five years would be much worse than the environmental degradation that oil and gas exploration has caused.
These illegal mining activities are also fuelling terrorism which generates sufficient revenue used to procure arms and weapons making it more difficult for the government to combat terrorism, smuggling, degradation and pollution of the environment.
