Mining
From The Report: Nigeria 2024
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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 to help reorganise, decentralise and localise production, while efforts to combat illegal mining and the resulting environmental and social damage are progressing. Re-investing new wealth into infrastructure development is crucial, given that mining is a power-intensive industry that requires modern equipment, as well as reliable transport and logistics infrastructure.

This chapter contains an interview with Bose Owolabi, Managing Director, Dukia Gold & Precious Metals Refining Company.

Articles from this Chapter

Overview

In reserve: Vast mineral resources could be an increasingly valuable asset, particularly as regulatory reforms take shape
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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 recent discovery – lithium. Channelling fresh, sustainable investment to the sector is therefore…

Analysis

Second act: The revised Nigeria Minerals and Mining Act aims to bring more power to state authorities to enact reforms at the local level
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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 with the reforms, and sector players and investors hope that 2023 will see an updated NMMA on Nigeria’s…

Analysis

Driver of change: The rise of electric vehicle battery manufacturing in emerging markets raises questions for the global metals mining industry
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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 can be further decarbonised. Supply Chain Shift The world’s two largest producers of EV batteries…

Interview

Golden opportunities: Bose Owolabi, Managing Director, Dukia Gold & Precious Refining Company, on bolstering investment
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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 be traded efficiently. The LCFE constitutes such a platform, as it is regulated and licensed by Nigeria’s…