The National Bureau of Statistics (NBS) reports that the Mining & Quarrying industry provided 4.47% of GDP to the total in the fourth quarter of 2023. This is less than the 8.32% contribution from the previous quarter and less than the 4.51% contribution from the industry in the same quarter in 2022.
The mining industry has enormous potential, but it has faced numerous challenges, such as poor infrastructure, inconsistent regulations, difficulty obtaining funding, and security issues at mining sites. All of these difficulties have made it more difficult for the industry to grow, attract investment, and play its part as an industrialisation catalyst.
Nigeria aimed to have established a strong basis for the mining industry to start stimulating growth and industrialisation in an environmentally sustainable way, as stated in the National Development Plan 2021–2025. in 2025, which is one year from now. The government introduced a new mining plan in 2016 in reaction to the underwhelming performance of the industry, with the goal of creating a top-tier mining and minerals ecosystem suited for a specific domestic and international market. These were all designed to put the industry in a position where it would contribute 3.0 percent of GDP by 2025. Nigeria’s mining industry is beset by serious infrastructure issues that impede its expansion. Few water supplies, inadequate roads, and a lack of electricity are some of the main issues that mining firms deal with.
Deficits in the infrastructure lead to higher expenses, lower productivity, and restricted market access. Additionally, they deter international investors, who are frequently reluctant to make investments in areas with poor infrastructure.
Taking care of infrastructure problems necessitates significant financial outlay and long-term preparation. The infrastructure that is required can be provided in large part by the government, either directly through investment or by fostering an atmosphere that encourages private sector involvement. Using public-private partnerships to finance and carry out large-scale infrastructure projects can be a good idea.
