Nigeria is a country with incredible natural beauty and vibrant landscapes. But you might be amazed to know that beneath this land lies a treasure—a way for the country to boost its economy, a game-changing element that can transform the country. In this article, you will learn about this treasure of mineral resources—an untapped wealth that can be of incredible value to the country and its people.

But you might be amazed to know that beneath this land lies a treasure. A way for the country to boost its economy. A game-changing element that can transform the country. In this article, you will learn about this treasure of mineral resources. An untapped wealth that can be of incredible value to the country and its people.

Article Highlights

• Nigeria’s rich mineral potential promises significant economic growth.
• What the current condition of the mining industry in Nigeria is like
• Legislative reforms that aim to attract investments and streamline mining operations.
• What to learn from global mining successes to enhance local practices?
• Why should you know about Nigeria’s mining sector?

Beneath Our Feet: The Hidden Wealth of Nigeria

Nigeria is a country rich in natural resources. Its mining sector was once a significant contributor to its annual GDP, around 5% in the 1960s and 1970s. However, the industry took a hit due to the discovery of crude oil. Its contribution to the GDP in the last five years has decreased to about 0.17%.

According to Nigeria’s mining roadmap, some minerals are considered strategic for mining. They are Gold, Lead and zinc, Coal, Bitumen, Iron ore, Limestone, and Brite. The country should focus on the many potentials and barriers of the industry. . Many deposits and reserves are available across the entire country. The government is working to increase this industry’s contribution to the GDP. Mining companies are now focusing on ESG expectations and sustainable mining practices.

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Beyond Oil: A Look into Nigeria’s Rich Mineral Reserves

According to OPEC, Nigeria discovered the world’s tenth-largest crude oil reserves in 1956. Back then, Nigeria had an established Mining and Quarry Industry. But, as crude oil extraction started, the mining industry fell from grace. This sector needs focus despite having 700 million USD worth of mineral deposits.

Gold

The southwestern part of Nigeria holds the country’s gold reserves. These reserves contain both alluvial and primary gold. Although alluvial gold is the main find, this sector is only exploited on a small scale.

Lead and Zinc

Lead and Zinc reserves span all across Nigeria. A total of 10 million tonnes of reserves are present across eight states of the country. The Government encourages various joint ventures to invest in this sector.

Bitumen

Nigeria has almost 42 billion tonnes of bitumen reserves. It is almost twice the amount of crude petroleum reserves. Yet all the bitumen used for road manufacturing in Nigeria gets imported.

Coal

Nigerian coal is eco-friendly because of its low sulfur and ash content. It is also considered to be the world’s most bituminous coal. The country’s coal reserves are around 3 billion tonnes and 17 identified coal fields.

Iron Ore

Nigeria has 3 billion metric tonnes of iron deposits in various states nationwide. These existing mines produce iron billets that are ready for consumers and industries. Some of the existing mines are in Kogi, Enugu, Niger, and the Federal Capital Territory.

Barite

Barite is the main ingredient in the mud used for drilling oil wells. The Taraba and Bauchi states have over 7.5 million tonnes of barite.

Digging Deep: Current State of the Mining Landscape in Nigeria

The current state of the mining landscape can be better understood by looking at the past. The achievements and steps taken before have resulted in the current situation.

The government launched a licensing platform, eMC+. It grants access to and manages titles for existing investors and prospects worldwide. This has made the situation transparent for the investors.
The Operationalization of the Mineral Resources and Environmental Management Committee (MIREMCO) was formed. It was a part of the Mining Act of 2007. This has made it possible to oversee and track everything, from daily operations to environmental aspects. An annual Nigerian Mining Week is held for all the industry’s stakeholders. During this week, many people take part, including public and private investors worldwide wanting to do business in Nigeria.

The President formed the Presidential Artisanal Gold Mining Initiative (PAGMI). It was designed to mine added gold from small-scale miners. Developing a market plan for the gold sector has refined the industry in specific ways.

The National Integrated Mining Exploration Programme (NIMEP) was formed in 2018 to de-risk investments in the mining sector.

These initiatives have helped create a sustainable environment for the industry stakeholders.

From Minerals to Money: Reshaping Nigeria’s Economy Through Mining Development

Mining promises a major economic transformation in Nigeria. By 2025, the sector could increase its contribution to the GDP from a mere 0.3% to the targeted 3%.

The growth is expected to create thousands of jobs and reduce economic dependence on oil. The ongoing shift aims to ensure that this growth is environmentally responsible. It is also beneficial to local communities, thus promoting long-term economic stability.

Lessons from Global Goldmines: Mining Success Stories from Around the World

Nigeria can learn lessons from mining leaders like Canada and South Africa. Solid legal positions and advanced technologies enabled prosperous mining industries in these countries. These countries show the importance of creating environments that attract investment and focus on sustainable development.
By using best practices, Nigeria can improve its regulatory frameworks and operational standards to unleash the full potential of its mineral wealth.

The Road Ahead: Crafting Laws and Policies for the Mining Industry

The future of Nigeria’s mining industry hinges on robust legislative and policy frameworks. Some recent parliamentary actions have been taken. Proposed amendments to the Nigerian Minerals and Mining Act are one of them. It aims to create a more structured and transparent regulatory environment.
These changes can attract more foreign investment. The act can streamline operations and promote responsible resource management. These are crucial for the sector’s integration into the global mining economy.

Innovation at Work: The Next Generation of Mining Technology

Technology is set to play a pivotal role in the evolution of Nigeria’s mining sector. Technologies such as artificial intelligence and remote sensing will increase efficiency. They will reduce environmental impact and enhance safety in mining operations. These advancements could transform traditional mining methods in Nigeria and pave the way for a more competitive industry that can be global.

Nigeria endeavors to diversify its economy from oil. The mining sector emerges as a pivotal area ripe for development. With reforms and a focus on sustainable practices, Nigeria can unlock the potential of its mineral wealth. The nation can transform these untapped resources into economic growth by learning from global mining successes and technological innovations. This transformation will also ensure a prosperous future for its industries and communities.