Global economic growth is expected to fall to 2.6% in 2024, according to UN Trade and Development (UNCTAD), which is slightly higher than the 2.5% mark that is typically linked to a recession. This year’s growth is less below the pre-pandemic rate for the third year in a row, averaging 3.2% from 2015 to 2019. A UN Trade and Development report issued prior to the IMF and World Bank Spring Meetings in 2024 cautions that the current emphasis on inflation obscures more pressing problems like trade disruptions, climate change, and growing inequality.
A main aftereffect of the economic recession has been a reduction in the market demand for minerals extracted from Nigeria. The demand for commodities like lead, tin, and iron ore has declined as the world economy has slowed.
As a result, lower prices for certain minerals, which would cut into Nigerian mining companies’ profits. Furthermore, supply networks have been disrupted by the economic downturn, which makes it more challenging for Nigerian mining companies to sell their goods to other markets. The cost of transportation has gone up, and trade obstacles have been put up to impede the flow of commodities. Nigerian miners now find it difficult to compete with foreign producers as a result of these disruptions.
The Nigerian government has responded to these obstacles by putting in place a number of initiatives to help the mining industry. These include infrastructural improvements, tax incentives, and initiatives to draw in foreign capital. These actions have had varying effects, though, and the business still faces formidable obstacles.
Notwithstanding the difficulties, there are chances for the mining industry in Nigeria to recover. The local market is expanding, and the country boasts a wide variety of minerals. Nigerian mining businesses may set themselves up for long-term success by supporting sustainable practices, increasing efficiency, and investing in technology.
The mining industry in Nigeria has been significantly impacted by the global economic crisis. Notwithstanding its difficulties, the sector offers chances for expansion and advancement. Nigeria has the potential to maintain its significant position in the global mining industry by adjusting to evolving market conditions and putting into practice efficient tactics.
