The non-oil sector has continued to be the lifeblood of the Nigerian economy. As at the third quarter of 2022, the non-oil sector contributed 94.34% (in real terms) to the nation’s Gross Domestic product (GDP), higher than the share recorded in the third quarter of 2021 which was 92.51% and higher than the second quarter of 2022 recorded as 93.67%1. However, the Nigerian mining sector (“the Sector”) only contributed a meager 0.3% to Nigeria’s GDP in Q3 of 20222, although higher than the GDP contribution recorded in Q3 of 2021 i.e., 0.2%.
Notwithstanding the seemingly insignificant contribution to the nations GDP, the Sector can boast of a slow but progressive growth trajectory, based on a number of parameters, including but not limited to revenue generation and accountability, technological development, more reliable geoscience data, improved clampdown on illegal mining, more global visibility, and gender inclusivity amongst others. For instance, as of November 2022, FGN’s actual revenue from mineral and mining stood at ₦3.99Billion3, exceeding the prorata target of ₦2.19Billion expected during that period.
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 highlights some of the recent developments in the Sector and their overall impact on the economy.
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