"Nigeria’s Mining Sector Policy Reforms Could Unlock a US$700 Billion Industry"

" Nigeria's Mining Sector Policy Reforms Could Unlock a US$700 Billion Industry \r\n\r\n Nigeria is rapidly transforming its mining sector through bold reforms aimed at attracting investment, enhancing local mineral processing, and reducing reliance on oil. With policy overhauls, investor incentives, and a focus on critical minerals, the country is positioning mining as a key driver of economic diversification. \r\n\r\n Bonface Orucho, bird story agency \r\n\r\nGovernment-led reforms in Nigeria\u2019s mining sector are reshaping the industry, attracting rapid investments as the country accelerates economic diversification beyond oil and gas.\r\n\r\nAccording to Alex Abiodun, a geophysicist at Ibadan Explorers, a Nigerian mining company, \u201cThe past two years have been encouraging for many, especially those interested in the extractive sector.\u201d\r\n\r\n\u201cEven when we discuss among peers, the level of confidence that industry players have in the industry is encouraging. If this momentum can be sustained, there is no doubt the mining sector will be a big part of Nigeria\u2019s revenue generators\u2026 but more needs to be done,\u201d he shared in an online call.\r\n\r\nNigeria hosts a wide range of mineral reserves, ranging from precious metals like gold to critical minerals vital for the global energy transition.\r\n\r\nThe Nigerian Extractive Industries Transparency Initiative (NEITI) reports that the country has over 40 types of solid minerals and precious metals, estimating the sector's value at more than US$700 billion.\r\n\r\nYet, despite this abundance, the mining sector contributed just 0.77% to Nigeria's GDP in 2023, according to the National Bureau of Statistics. This figure includes contributions from coal mining, metal ores, quarrying, and other mineral extraction activities.\r\n\r\nOngoing reforms \u2014 ranging from investor incentives to policies promoting local mineral processing \u2014 aim to attract foreign investment, streamline operations, and boost the sector\u2019s GDP contribution.\r\n\r\nThe Nigerian Geological Survey Agency launched the Mineral Resources Decision Support System in May 2024 to facilitate investor access to geological and policy data.\r\n\r\nAccording to the Minister of Solid Minerals Development, Dr Dele Alake, the portal will \u201cexpand access for prospective investors to critical information on Nigeria\u2019s mineral deposits, policies guiding the mining sector, and incentives for investment from anywhere in the world.\u201d\r\n\r\n \r\n\r\n\u201cAnywhere you are in the world, with a click of a button, you can access all the information you require to make informed investment decisions about the mining sector,\u201d he emphasized during the launch of the portal last year.\r\n\r\nSince 2023, significant structural changes have taken shape. In August 2023, Nigeria restructured the Ministry of Mines and Steel Development, splitting it into two entities: the Ministry of Solid Minerals Development, focused on upstream activities and investment facilitation, and the Ministry of Steel Development, dedicated to advancing steel and metallic resources for industrial growth.\r\n\r\nSteel is a major potential resource in the country. According to Energy Capital & Power, the Itakpe mine in Kogi State is home to one of the largest iron ore reserves in Nigeria and globally, estimated to hold between 2 and 3 billion tons of iron ore, grading at 32-36% iron metal.\r\n\r\nAccording to Abiodun, \u201cthe creation of a dedicated ministry for mining was a much-needed step at the time.\u201d\r\n\r\n\u201cMining should be treated as a standalone industry with its own challenges. The federal government\u2019s decision to allocate resources to establish a separate ministry signaled its readiness to handle the sector differently,\u201d he explained.\r\n\r\nFurther legislative efforts are underway. The Nigerian Minerals & Mining Bill, still under public review, could become the industry\u2019s primary legal framework if passed.\r\n\r\nKey provisions include expanded investor incentives, stronger local content requirements, enhanced transparency, and modernized regulatory oversight to align Nigeria\u2019s mining industry with global best practices.\r\n\r\nThese reforms appear to be yielding results, particularly in attracting investors to green minerals like lithium.\r\n\r\nCanadian mining firm Thor Explorers is spearheading expansive lithium projects across a 600km\u00b2 area spanning West Oyo, Kwara, and Ekiti states, home to what the company identifies as Nigeria\u2019s most significant lithium pegmatite deposit.\r\n\r\nThor also operates the Segilola Gold Mine, Nigeria\u2019s first large-scale commercial gold producer, which generated over 85,000 ounces of gold in 2024.\r\n\r\n\u201cThe mining and processing operations have run smoothly following successful implementation of new blasting strategies and improved mine planning processes,\u201d said Thor Explorations President and CEO Segun Lawson in the company\u2019s 2024 end-year statement.\r\n\r\nOther global mining companies have also shown interest in investing in the country\u2019s mining sector. For example, in April 2024, Glencore, one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities, expressed intent to explore investment opportunities in Nigeria.\r\n\r\n\u201cWe are looking at opportunities in the mining sector, with an emphasis on nickel, cobalt, and zinc, among others,\u201d said Glencore Group CEO Gary Nagle.\r\n\r\n bird story agency \r\n\r\n \r\n\r\n "

"Nigeria’s Mining Sector Policy Reforms Could Unlock a US$700 Billion Industry"

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