Mining, Insights

The Nigerian Mining Sector in 2023 – Future Outlook

Despite abundant solid mineral resources, which include gold, lead, zinc, coal, bitumen, iron ore, limestone and barite, the Nigeria mining industry only contributes 0.15 percent to the nation’s GDP. The contribution, projected to hit 0.34 percent in 2025, is far from the three percent target set out in the country’s mining roadmap. The Federal Government, in a bid to attract investment, generate revenues and develop the local mining industry, has begun legal, regulatory, institutional, and fiscal reforms for the mining sector, some of which include the digitalizing (upgrade and automation) of the mining cadastral office, the national electronic geo-databank which would assist in quick and effective information management and investment decisions, amongst others.

While there has been a year-in-year-out steady growth in the mining sector for some time now, the industry is still plagued by certain challenges that have become seemingly unsurmountable. In this Report, we have briefly discussed some of the major challenges and our recommendations whilst focusing on current developments in the sector as well as future outlook even as the world transitions to cleaner energy.

CHALLENGES IN THE MINING SECTOR

Insecurity & Illegal Mining

Insecurity can be said to be the most prominent challenge encountered in the mining sector and this spans through illegal mining, rural banditry and smuggling.

Illegal mining refers to mining activities that are undertaken without State permission, land rights, mining licences, and exploration or mineral transportation permits. It can take the form of a subsistence activity such as artisanal mining, or it can manifest in large-scale organised crime spearheaded by illegal mining syndicates…

 

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