Nigerian Mining Sector Watch - Volume 5

Introduction

Nigeria currently boasts of over forty-four (44) priced solid minerals in the mining space, with huge deposits scattered over different parts of the country. However, the contribution of this sector (with such huge potentials) to the gross domestic product (GDP) of the country remains surprisingly abysmal.

Nigeria’s GDP grew by 3.52%¹ (year-on-year) in the fourth quarter of 2022. The Nigerian Mining Sector (“the Sector”) also witnessed growth in its contribution to the Nation’s GDP, having contributed 0.85% in 2022 (2021: 0.63%), representing a 32% year on year growth over 2021². Interestingly, the Sector has witnessed sustained growth to the GDP over the last five (5) years, as depicted in the chart below:

Evidently, the policies and strategies being employed by the current administration have been effective in reviving the Sector over the period. However, more efforts are required to set the Sector on a faster growth trajectory, to compete with that of the oil and gas sector, as the main revenue earner for the country and facilitate our diversification agenda.

This newsletter highlights some of the notable recent developments in the Sector and our views on their overall impact on the economy.