Nigeria has many solid minerals, including gold, iron ore, limestone, lithium, and tantalite, spread across different states. However, despite this immense wealth, the mining sector remains largely underdeveloped, with the Mining & Quarrying sector contributing 7.72% to the overall GDP of the country in the third quarter of 2024, according to the National Bureau of Statistics.
While mining has the potential to transform the economy, several obstacles continue to hinder its growth. One of the most pressing challenges the country faces is illegal mining, which is rampant across states such as Zamfara, Osun, Niger, and Kaduna. Gold-rich areas like Bagega in Zamfara and Ilesa in Osun have seen extensive illegal mining operations, often controlled by unlicensed local and foreign groups. This unregulated activity not only leads to revenue losses for the government but also contributes to environmental degradation and security threats. The lead poisoning crisis in Zamfara in 2010, which resulted in a large number of childhood deaths due to exposure to toxic mining waste, highlights the dangers of illegal mining. Additionally, illegal mining sites in Niger State have been linked to criminal activities, including banditry and smuggling.
To curb illegal mining, the government has been working to formalise the sector by encouraging artisanal miners to join registered cooperatives. In addition, security agencies have intensified crackdowns on illegal mining operations, particularly in Zamfara, where mining activities were temporarily banned due to concerns over funding of armed groups. However, more needs to be done in terms of monitoring and enforcement. Providing financial support, modern equipment, and training to small-scale miners could help them transition into legal operations and reduce the dominance of illegal mining networks.
Another major issue is the lack of infrastructure, which significantly increases the cost of mining operations. Many mineral-rich areas, such as the Mambilla Plateau in Taraba, the Jos Plateau in Plateau State, and the Itakpe iron ore site in Kogi, suffer from poor road networks, unreliable power supply, and a lack of modern rail transport. For example, the Itakpe-Ajaokuta-Warri railway, which was supposed to aid mineral transportation, took decades to complete and only became fully operational in 2020. Even then, inadequate road connectivity to other mining areas still hampers efficiency. Without better infrastructure, investors are discouraged from committing to large-scale mining projects. The government must prioritise road construction in mining zones and invest in a reliable electricity supply to power processing plants. Additionally, the expansion of rail networks linking major mining hubs to ports would reduce transportation costs and make Nigerian minerals more competitive in global markets.
Inconsistent government policies have also been a significant challenge in the mining sector, leading to uncertainty for investors. For years, frequent policy changes, slow licensing processes, and conflicts between federal and state governments over resource control have made it difficult for mining companies to operate smoothly. However, under the current Minister of Solid Minerals, Dele Alake, there have been notable improvements. His administration has introduced initiatives to streamline the licensing process, combat illegal mining, and attract foreign investors. For example, efforts to digitise the operations of the Mining Cadastre Office (MCO) have made it easier for investors to apply for mining licenses without unnecessary delays. Additionally, the government has established a 30-day timeline for processing mineral titles, a significant improvement from the bureaucratic bottlenecks that previously plagued the system. Despite these positive steps, more needs to be done to ensure policy consistency. Stronger legal frameworks and transparent regulatory guidelines are essential to building investor confidence.
Another obstacle is limited geological data, which has made it difficult for investors to assess the commercial viability of Nigeria’s mineral resources. In countries like South Africa and Australia, advanced geological surveys provide mining companies with detailed data on mineral deposits, making it easier to plan exploration and extraction. In contrast, Nigeria’s geological mapping is incomplete, with many mineral-rich areas still unexplored. Although the government has initiated efforts to update geological surveys, such as partnerships with international agencies, more funding and modern exploration technologies are needed to provide accurate data that will attract investors.
A shortage of skilled labour and outdated technology further hamper the mining sector. Many mining operations, particularly in some areas in Plateau State and Kaduna, still rely on crude methods, leading to inefficiency and significant mineral wastage. Unlike mining hubs in countries like Canada or Chile, where advanced machinery and skilled labour drive high productivity, Nigeria’s mining sector struggles with a lack of modern equipment and expertise. To address this, the government should invest in vocational training programmes, establish specialised mining institutes, and encourage partnerships between universities and mining firms. By equipping the workforce with modern skills and technology, Nigeria can improve mining efficiency and increase the sector’s contribution to GDP.
Despite these challenges, Nigeria’s solid minerals industry has the potential to thrive. By addressing these challenges, the government can transform mining into a major pillar of the economy. While recent reforms under Dele Alake’s leadership are promising, sustained efforts and strategic investments are needed to create a mining sector that drives industrialisation, generates employment, and contributes significantly to national development. If Nigeria can overcome these obstacles, its solid minerals sector could emerge as a key player in Africa’s mining industry, unlocking prosperity for future generations.
