Mining has become an important sector, contributing immensely to the growth of Nigeria’s economy. With a range of solid mineral resources now the focus of Nigeria’s mining industry, the government, in its recent National Development Plan which covers 2021-2025, has set a 3% contribution of non-oil mining to the country’s GDP. With a deposit of about 44 mineral resources including coal, bitumen, gold, lead/zinc, limestone and iron ore, Nigeria is constantly working on prioritizing its mining industry to further ensure its contributions to the country’s economic development.
In spite of the numerous untapped metal deposits that Nigeria has, the extractions have been mostly done by artisanal miners who work on a small scale basis. As a result, the government misses out on taxes that should be remitted from these mining operations. These operations have also been reported to be financing criminal groups that perpetrate crimes across the country. In fact, some Chinese nationals have been detained for their illegal activities of trading minerals, with crude sales accounting for about 90 percent of their export earnings.
Formal operations will enhance mining industry and Nigeria’s economy.
Nigeria, the biggest crude oil producer in Africa, has been making significant efforts to pivot away from its dependence on oil and last year, the country’s industrial gold mine output produced about 98,000 ounces of the precious metal. The Minister of Mines, Olamilekan Adegbite, during his tour of Thor Exploration Ltd Segilola Mine in December, noted that further development and formal operations would enhance the mining industry and Nigeria’s economy. This project which was ramped up late in 2021 is now situated at about 155 miles from Lagos’ commercial hub.
Martin Lokanc, a senior mining specialist with World Bank, in an interview, indicated that though mining had been ignored in Nigeria over the years, the sector had now grown to be a strategic priority for the federal government. He further noted that the first industrial scale mine was an important proof of concept, demonstrating the existence of attractive mineral deposits that can be developed to a higher technical standard. However, there is potential for additional gold projects, as mine discovery sometimes take about 10-15 years.
Incoming president of Nigeria urged to modify the mining law.
Last year, Thor reportedly paid $3.3 million in royalties to the government for the gold exported to a Swiss refinery and now, the company is working on plans to transport about 4.2 kilogram bars which is presently worth about $260,000 to the International Airport in Lagos. About $120 million was invested into building the Segilola Mine and processing plant through a debt equity package from Africa Finance Corp. Compared to the Barrick Gold Corps, Kibali and the Loulo-Gounkoto which produced 812,000 and 700,000 ounces of gold last year respectively, the Segilola Mine is actively looking to develop.
The firm’s Chief Executive, Segun Lawson, in an interview, confirmed that the funds from selling the gold which generated about $160 million last year, was being implemented into facilitating the exploration works around the site with the sole aim of expanding the project’s five year mine operations. On the obstacles faced and to be faced, he noted that the incoming presidency would play an impactful role in further modifying the mining law that offers mining firms multi year tax holidays and import waivers. Peter Leon, Africa’s Chair at a London-headquartered law firm noted that with Nigeria being a new mining destination, it would be important for the government to incentivize investors.
Mining industry must not repeat the mistakes of the crude oil sector.
Again, Lokanc insisted that the mining industry must do more to not repeat the oil sector mistakes that turned the country into a resource cursed one. Instead of improving the living standard of Nigerians, especially the residents of Niger Delta, crude oil revenue enhanced corruption and environmental hazards which destroyed the lives of numerous Niger Delta residents. He noted that whilst the country was attracting investors, the environmental and social status quo must be properly managed.
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New gold project set to attract more miners. – Mining sector has grown to be a strategic priority of the federal government. – Express your point of view.
I hope when the new gold attracts good investors and producers, it will help to generate more revenue for the government and will in turn be used for the benefit of the people.
The mining sector is seen to be a strategic priority for the federal government. I hope the incoming president would play an impactful role in further modifying the mining law and offers other benefiting services.
Mining has developed into a significant industry and is making a significant contribution to the expansion of Nigeria’s economy.
To further ensure that the mining industry can continue to contribute to the overall growth of Nigeria’s economy, Nigeria is continually working to prioritize the mining industry.
Although Nigeria has a wealth of undiscovered metal reserves, much of the extraction has been done by artisanal miners working at a very small scale.
There is a loss of revenue for the government in the form of taxes that should have been remitted from these mining operations.
A number of Chinese citizens have been detained for their involvement in criminal activities involving the selling of minerals, with crude sales accounting for almost ninety percent of their earnings from exports.
There a huge potential in the mining sector of the economy if the federal government do the right thing,it can turn around the economy face of the country to better.
The first large-scale mine proved the concept, showing that valuable mineral resources do exist and can be exploited using modern mining techniques.
The largest producer of crude oil in Africa, Nigeria, has been exerting a lot of effort in recent years to wean itself off of its reliance on the oil industry, and it finally succeeded in doing so in 2017.
This new gold project will attract miner more investor which will serve as revenue for the country the project should bring more fund for the country
Nigeria is indeed blessed with numerus mineral resources that if will utilized will general huge revenue for the country and reduce the dependence on crude oil. If the Federal Government can enforce the rule of law on mining activities in Nigeria rather than allow the extractions to be done by artisanal miners which is a criminal offense, take up the mining project then there is possibility of generating more revenue for the country.
The concept was validated by the success of the first large-scale mine, which demonstrated the existence of valuable mineral deposits that could be extracted using current mining methods.
Many in government view mining as an area of strategic importance. Among other things, I’d like to see the new president make significant strides in modernizing our mining laws.
With any luck, the new gold will bring in responsible investors and producers, who will then be able to put the money they make to good use for the people.
Nigeria is constantly attempting to give the mining industry priority in order to further ensure that it can continue to contribute to the overall growth of the economy.
It’s hoped that the new gold will attract ethical buyers and sellers who will be able to spend their earnings for the benefit of society.
If the federal government takes the correct steps, the mining industry can help turn the country’s economic fortunes around.
New gold project set to attract more miners. Definitely it attract more miners and also generate big revenue.
Nigeria is blessed with abundance mineral resources that can generate revenue for the country. Every mineral resources should be invested in rather than concentrate only on crude oil. Gold is a bumming business that government can leverage on.