Nigeria is abundantly blessed with over 40 valuable mineral deposits, spanning various categories such as clay and kaolin, gold, gypsum, iron ore, lead and zinc, phosphate, and tin. This diverse range of mineral resources presents a significant opportunity for economic growth and diversification beyond the traditional oil-dependent sectors.
In 2020, the non-oil mining sector in Nigeria contributed N656.1 billion ($1.6 billion) to the economy, representing approximately 0.43% of the total GDP. This highlights the potential and economic significance of the sector beyond oil-related activities. However, this contribution is still relatively modest compared to the vast potential that exists within the country.
To put Nigeria’s mining sector in a global context, it’s essential to consider the broader trends in the global mining market. In 2019, the global mining market had a size of USD 121,694.3 million, and projections indicate an expected increase to at least USD 165,827.8 million by 2027. This growth is anticipated to be driven by various factors, including increased demand for minerals and metals globally.
Despite its immense potential, Nigeria’s domestic mining industry faces multifaceted challenges that impede its growth. The sector’s productivity falls short of meeting local demands, compelling the country to import minerals that could be sourced domestically. This inadequacy stems from various factors:
- Unfavorable Business Environment: The lack of an attractive environment for private-sector mining hinders investment and development.
- Institutional Bottlenecks: Poor performance of institutions and limited enforcement of regulations create barriers to sustainable and responsible mining practices.
- Community Insecurity: Issues of insecurity in host communities further complicate mining operations, affecting the safety and continuity of projects.
- Skills and Capacity Deficiency: There exists a notable gap in human skills and capacity required for the efficient management of the mining process.
- Insufficient human skills and capacity within the sector further hinder effective management of the mining process.
As a proudly Nigerian company, we recognize the importance of skilled human capital in driving the mining sector’s growth, Earthcore prioritizes skills development to create a knowledgeable and competent workforce that can effectively contribute to the sustainable growth of the mining industry and elevate Nigeria’s position as a competitive player in the global mining market. We will actively engage in international partnerships, adhere to global best practices, and contribute to the positive image of the Nigerian mining industry on the global stage. Through alignment with international standards, Earthcore seeks to attract foreign investments, foster economic growth, and play a pivotal role in enhancing Nigeria’s standing within the global mining community.