Bird Interview: A Conversation With a Mining Insider On Nigeria’s Path to Unlocking its Mineral Wealth
Despite its vast mineral wealth, Nigeria’s mining sector struggles with underinvestment, weak regulation, and operational hurdles. Mining analyst and entrepreneur Omaka Nathaniel Chukwuemeka shares his perspective on the sector’s progress, policy gaps, and what it will take to turn potential into prosperity. The interview has been edited for length.
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Nigeria’s mining sector holds immense potential as a pillar of economic diversification, yet persistent structural bottlenecks and operational challenges keep it from reaching full throttle.
In this Q&A, a seasoned mining analyst and entrepreneur with firsthand industry experience dissects the sector’s current state, identifies key roadblocks, and maps out its trajectory for the next decade.
Drawing from data-driven analysis and years of direct engagement with local miners, he offers an unfiltered look at the realities of deal-making, policy shifts, and what it will take to transform Nigeria’s mining industry into a true economic powerhouse.
This interview has been edited for clarity and length.
How would you assess the current state of Nigeria’s mining sector and its economic significance, particularly in the context of efforts to diversify from oil dependence?
Nigeria’s mining sector teeters at a crossroads — a tantalizing prospect for diversifying an oil-dependent economy, yet mired in neglect and untapped potential.
As a nation tethered to petroleum, the urgency to harness solid minerals like gold, lithium, and lead-zinc has intensified. Having tracked this industry through policy shifts and on-the-ground deal-making, I see a story of progress, pitfalls, and pragmatism.
With different reforms in force aiming to boost GDP contribution, do you see real progress?
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Recent years have brought notable policy strides. The 2007 Nigerian Minerals and Mining Act laid a foundation, bolstered by the 2021 roadmap from the Ministry of Mines and Steel Development, aiming for a 3% GDP contribution by 2025, up from 0.3% in 2022.
Under President Tinubu’s administration, tax holidays, streamlined licensing, and crackdowns on illegal mining signal intent. The US$150 million World Bank loan in 2023 for geoscience data and regulatory reform stands out, promising clearer mineral maps that could lure investors.
Yet, execution falters. I’ve haggled with miners in Ebonyi, watching policies gleam on paper but crumble in practice. Artisanal miners, who dominate output, remain in a gray zone untouched by formalization efforts. Bans on illegal mining ring hollow without infrastructure or livelihoods to replace them.
For real progress to be achieved, policy must wed ambition to reality, a lesson etched in deals lost to trust and cash-flow gaps.
You’ve seen firsthand how investment in Nigeria’s mining sector plays out — from deal tables to policy corridors. What will it take to turn present promise into sustained commitment?
Investment trickles rather than floods. The Nigerian Investment Promotion Commission reported US$422 million in FDI for 2022 down from US$581 million in 2021, though Q1 2024 spiked to US$3.4 billion, per the Nigerian Economic Summit Group, largely from portfolio investments rather than mining-specific FDI.
Lithium discoveries in Kogi and Nasarawa have piqued interest from firms like Australia’s Thor Explorations and Canada’s Allied Gold, but insecurity, banditry and kidnappings and unreliable power keep wallets cautious.
My own attempt at a lead ore deal in March 2025 underscored this: miners demanded US$200,000 up front, while investors hesitated without guarantees. The World Bank’s US$150 million and the US$73 million Natural Resource Fund are steps forward, but they pale against the billions needed for scale. Ghana’s US$2 billion mining FDI in 2022 dwarfs Nigeria’s haul. Our potential outshines theirs, yet investor faith lags.
Security and energy fixes are non-negotiable to turn interest into commitment.
With job creation in the sector still skewed toward artisanal labor, revenues trailing far behind oil, and infrastructure struggling to support growth, do you believe the sector is planting seeds for long-term impact?
Nigeria’s mining sector provides jobs, but mostly informally — over two million artisanal miners endure grueling work, far outnumbering formal roles. The Segilola gold mine, with 1,000 workers, shows mining’s structured potential, yet many miners lack capital and training to transition. With 33% unemployment in 2023, the sector could create jobs but has yet to scale meaningfully.
Revenue remains modest. In 2022, mining contributed N2.9 billion (US$6.9 million), with a projected 25% rise in 2023. While promising, this pales against oil’s US$40 billion earnings. Still, royalties and taxes are growing—one lead ore deal alone could have yielded US$67,000 in profit.
Infrastructure remains a bottleneck. The Road Infrastructure Tax Credit Scheme helps, but mining corridors lag behind Zambia’s Copperbelt. Power shortages and high diesel costs further stifle growth. A Lagos-bound delivery I planned collapsed due to logistics. Until transport, power, and security improve, mining’s full economic potential will remain unrealized.
**Where do you see the biggest roadblocks, and what practical steps could unlock the sector’s full potential?**
Nigeria’s mining sector holds promise but remains stifled by weak regulation, illegal mining, and poor value addition. Raw ores are exported unprocessed, electricity is unreliable, and transport costs cripple deals.
Real solutions lie in reforming the Mining Act, formalizing artisanal miners through loans and co-ops, and investing in value-addition industries. Tax breaks for refineries, solar energy for mines, and better transport infrastructure are critical. Without execution, Nigeria’s mining sector will remain a missed opportunity rather than an economic powerhouse.
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