Nigeria’s economy has long been dominated by oil, stifling the growth of other sectors, including solid minerals. However, President Bola Tinubu’s administration is now focusing on the solid minerals sector as a key driver of economic diversification. With an estimated $700 billion worth of untapped mineral resources, the sector presents significant potential for economic expansion and job creation.
The government has taken steps to attract foreign investment to the mining sector. A recent example is the mining investment roadshow held in South Africa, where Nigeria showcased its mineral resources, including lithium, gold, and tantalite, which are in high demand globally. This initiative is part of Nigeria’s broader strategy to position itself as a major player in the global minerals market, especially with the growing interest in critical minerals like lithium for electric vehicle batteries.
Despite its vast potential, the sector faces numerous challenges that must be addressed for Nigeria to realise its economic benefits. Key issues include inadequate infrastructure, persistent corruption, and insecurity, which continue to deter both local and foreign investment. The lack of reliable transport networks, energy supply, and security in mining areas further complicates efforts to fully harness the sector’s potential.
To overcome these obstacles, the government has introduced strategic reforms, including tax incentives for investors and a focus on in-country processing. By promoting value-added processing, Nigeria can reduce its dependency on raw mineral exports, retain more wealth within the country, and create additional jobs. Developing local processing facilities will not only add value to Nigeria’s minerals but also reduce the risks associated with exporting unprocessed ores.
If these reforms are effectively implemented, Nigeria’s solid minerals sector can contribute significantly to the nation’s GDP, reduce its reliance on oil, and provide long-term economic sustainability.