Will Nigeria's mining reforms unlock fresh investments?

Nigeria's mining sector is set to experience a significant boost as the country implements key policies and reforms aimed at revitalizing the industry, attracting investment, and strengthening its contribution to the GDP. PricewaterhouseCoopers (PwC) is optimistic about the recent developments, such as the introduction of the 10-Year Steel Sector Roadmap and the issuance of new licenses, which are expected to support mining activities. In addition, investments in surveillance equipment to counter illegal mining activities are underway. Cyril Azobu, Partner and Mining Leader at PwC, highlighted these advancements and discussed the opportunities on the horizon for Nigeria's mining sector. Mr. Azobu emphasized the importance of reforms in ensuring that gold is not only mined but also processed locally in Nigeria. He cited the example of K&S Smith, a company contributing to the gold processing value chain in Nigeria, as a testament to the reforms aimed at increasing local beneficiation and value addition. Azobu noted that standardizing gold production to meet global requirements is crucial for Nigeria to position itself as a competitive player in the global gold market. Moreover, Azobu pointed out the growing interest in critical minerals such as lithium, particularly in states like Nassarawa and Kaduna. He mentioned that both foreign investors, predominantly Chinese, and local Nigerian entrepreneurs are exploring opportunities in mining and processing critical minerals for various industries, including electric vehicles. In terms of recent developments, Nigeria unveiled the Minerals Resources Decision Support System to provide global investors with access to geological and policy data, streamlining the investment process. The restructuring of the Ministry of Mines and Steel Development into two separate entities focusing on investment facilitation and industrial growth is expected to drive sectoral development. The ongoing talks with the Russian government to revitalize the Agilkuta Steel Company and the National Iron Ore Mining Company are significant steps towards enhancing Nigeria's industrial capabilities. Azobu stressed the importance of integrating backward linkages in the steel sector to leverage the country's iron ore resources for domestic industrialization. Looking ahead, the establishment of a UN agency's facility on critical minerals in Nigeria and the upcoming Africa Mining Week indicate a growing momentum in the country's mining sector. The focus on critical minerals and sustainable mining practices is expected to attract further investments and propel Nigeria towards becoming a prominent mining destination in Africa. As Nigeria continues to drive reforms and attract investments in its mining sector, stakeholders are optimistic about the sector's growth potential and the positive impact on the country's economy. With a strategic approach to leveraging its mineral resources, Nigeria is poised to unlock new opportunities and solidify its position in the global mining industry.