Nigeria’s GDP growth decelerated in 2022 amid global headwinds, including elevated commodity prices and soaring inflation resulting from Russia’s invasion of Ukraine. The IMF’s GDP growth projection of 3.2% for 2023 is in recognition of the measures Nigeria has undertaken to boost oil production. Nevertheless, the country’s medium-term economic plan, the National Development Plan (NDP) 202
In 2019 the government made the decision to revise the Nigeria Minerals and Mining Act (NMMA), the law that has governed the sector since it came into force in 2007. However, as a result of the disruption caused by the Covid-19 pandemic, as well as other international and domestic challenges, the passage of the revised law was delayed. In November 2021 the government announced plans to move forward…
Emerging markets are taking steps to strategically position themselves in the global value chain for electric vehicles (EVs), with several recent projects focused on the decentralised production of batteries for EVs. At the same time, however, these industrial developments highlight the carbon-intensive nature of mining the raw materials needed to produce EVs, though hopes remain that the process…
Alongside its vast oil reserves, Nigeria has significant natural gas resources. According to the Nigerian National Petroleum Corporation (NNPC), the government- owned energy company, in 2021 the country’s natural gas reserves amounted to 206.5trn cu feet. While oil exploration and production have driven energy policymaking in recent decades, attention is beginning to shift to natural gas. To help…
Emerging markets are exploring opportunities to help meet the EU’s energy demand following the bloc’s announcement to ban seaborne imports of oil from Russia. The move, announced in May 2022 and implemented at the end of the year, formed part of the sanctions crafted in response to Russia’s invasion of Ukraine in February 2022. Previously, roughly 90% of the EU’s oil imports from Russia arrived…
Nigeria’s mining sector is entering a new phase following the Covid-19 pandemic, with greater government support and a growing role as an important generator of export earnings amid post-pandemic economic recovery. Many of Nigeria’s mineral resources remain unexploited, with considerable potential in gold, precious and semi-precious stones, gemstones, iron ore, industrial minerals and – in a…
Nigeria remains a key global energy player, exporting significant amounts of crude oil and natural gas. In 2021 it had Africa’s second-largest proven crude oil reserves – at 36.9bn barrels – after Libya. Although the export of hydrocarbons has gradually become a key source of revenue, wider economic headwinds and governance challenges have continued to impede the full development of the energy…
To what extent can the Lagos Commodities and Futures Exchange (LCFE) help drive investment? OWOLABI: Under Basel III banking regulations gold, similar to cash, is deemed a zero-risk-weighted asset, enabling financial institutions to hold part of their investment in gold. Facilitating this requires a structured and regulated platform on which gold and other investment precious metals (IPMs) can…
INTERVIEW: Olumide Adeosun In what ways can the downstream sector benefit from the Petroleum Industry Act (PIA)? OLUMIDE ADEOSUN: Political will and private sector engagement are necessary to benefit from liberalisation under the PIA. Separating the Nigerian National Petroleum Corporation’s roles as regulator, operator, competitor and price determiner should stabilise fuel prices and availability,…
With greater government support and a growing role as a generator of export earnings, Nigeria’s mining sector is poised to maximise its considerable potential in precious metals and gems. Total revenue from the sector is expected to rise by 25% to N3.6bn ($8.5m) in 2023, reflecting its resilience, as well as continued federal and state support. The implementation of new mining regulations is expected…
