How to unlock Nigeria's mining potential

Nigeria, a country rich in mineral resources, has the potential to become a major player in the global mining industry. However, despite the significant commercial reserves of minerals such as lithium, nickel, cobalt, and tin, the mining sector in Nigeria still faces several challenges that hinder its growth and development. In a recent report by PwC, it was highlighted that the new administration in Nigeria should re-evaluate the list of National Strategic Minerals and implement strategies for value addition to unlock the full potential of the mining industry. Over the years, Nigeria has made some progress in the mining sector, with the administration of President Muhammadu Buhari launching a roadmap in 2016 to moderate expectations and boost growth. Despite initiatives aimed at increasing production, the sector still lags behind in terms of contribution to the economy, with an average contribution of only 0.15 percent. The projected growth by 2025 is also not significant, indicating the need for more substantial efforts to drive the sector forward. One of the key drivers for the potential growth of the mining industry in Nigeria is the global demand for minerals that support clean energy initiatives. With the focus shifting towards decarbonization and cleaner energies, minerals like lithium, cobalt, nickel, and tin are in high demand. However, there is a gap in the regulation and focus on these critical minerals that drive the clean energy sector, highlighting the need for continued attention and investment. Investors have shown interest in Nigeria's mining sector, but the challenge lies in the lack of value addition and beneficiation. The government is emphasizing the need for local processing and value addition to create more jobs and stimulate economic growth. Setting up factories for battery production and establishing a complete value chain can significantly benefit the country and promote sustainable development. On the regulatory front, the mining industry in Nigeria faces various challenges, including security issues and illegal mining activities. Ensuring a secure and enabling environment for miners is crucial to attract investments and drive growth in the sector. Addressing security concerns and tackling illegal mining activities will be key for the new administration to redefine the industry and create a favorable environment for mining companies. In conclusion, while Nigeria possesses significant potential in the mining sector, unlocking this potential will require concerted efforts from the government, investors, and other stakeholders. By re-evaluating strategic minerals, focusing on value addition, and improving the regulatory environment, Nigeria can position itself as a key player in the global mining industry and harness the benefits of its rich mineral resources.