Mining
From The Report: Nigeria 2016
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During the 1970s Nigeria had a prosperous, export-orientated mining industry. Before the discovery of oil, the West African nation had developed strong production operations for coal, tin and columbite. The discovery of hydrocarbons eclipsed these activities and relegated mining to an economic footnote. However, with the recent decline in the global price of oil and reductions in production due to violence in the oil-producing Delta states, the government in Abuja is looking to revive the country’s mining sector. The government is becoming aware of the latent prospects of the industry and, as such, is putting in place a strong regulatory and taxation environment that should reassure investors about the security and potential of their capital in Nigeria. Nevertheless, given the paucity of mineral data and the high capital requirements of exploration in this nascent market, foreign entrance into the sector is likely to come from acquisitions and partnerships in the short to medium term.

This chapter contains an interview with Kayode Fayemi, Minister of Mines and Steel Development.

Articles from this Chapter

Overview

Digging deep: Significant and largely untapped mineral reserves could aid the goal of economic diversification
OBG
plus

During the 1970s Nigeria had a prosperous, export-orientated mining industry. Before the discovery of oil, the West African nation had developed strong production operations for coal, tin and columbite. The discovery of hydrocarbons eclipsed these activities and relegated mining to an economic footnote. However, with the recent decline in the global price of oil and reductions in production due to violence in the oil-producing Delta states, the government in Abuja is looking to revive the country’s…

Interview

Mineral rich: OBG talks to Kayode Fayemi, Minister of Mines and Steel Development
OBG
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Interview:Kayode Fayemi How can the sector support the government’s diversification efforts? KAYODE FAYEMI: Over the last three or four decades mining has not been a major focus of the government’s economic programme. However, mining has been a part of Nigeria for over a century and used to play a pivotal role in the economy until the discovery of oil. With the global downturn in oil prices, President Muhammadu Buhari has given mining new attention. Even if oil prices were to rise, it…

Analysis

Bitumen source: Substantial deposits of a valuable mineral offer great potential for the sector
OBG
plus

In 2016 the government turned its attention to bitumen – also known as asphalt, which is used in road-surfacing – placing the country’s large standalone deposits of the hydrocarbon mixture at the centre of its plans to bolster the extractive industries and support economic diversification and growth. While this has the potential to support community development in the south of the country and increase the mining sector’s contribution to GDP, exploitation of this resource does have its challenges. New…