Nigeria Mining Outlook: Wrap-up of Recent Development and Updates

Introduction

In view of the increasingly decisive role that the global mining industry plays in the realization of a carbon-free future and Nigeria’s status as the largest economy on the African continent, it is impossible to ignore the Nigerian mining sector. Based on reports from the Federal Ministry of Mines and Steel Development, Nigeria is abundantly endowed with 44 different types of minerals available in commercial quantities across more than 500 locations in the 36 states of the Federation, including the Federal Capital Territory. Although the Nigerian Mining Sector (the “Sector”) has encountered various challenges in the past, the Sector has demonstrated a gradual but steady growth trajectory. Several indicators contribute to this progress, which to date, include technological advancement, intensified efforts aimed at combating illegal mining activities, increased global recognition, revenue generation and accountability among other factors.

These positive developments highlight the Sector’s potential to attract foreign investment which will, in turn, help the country diversify its economy towards a non-oil revenue source for increased economic sustainability.

It is therefore no gainsaying that whilst the Sector’s performance is improving, more effort is required to set the Sector on a steady growth path and to earn Nigeria a prominent place on the global mining map.

This newsletter provides an overview of key recent developments within the Sector and their overall impact on the Nigerian economy.