Mining in Nigeria shifts focus beyond oil and gas
Insights and Case Studies
Information
The mining industry plays a vital role in an economy’s development, and Nigeria has highlighted this industry as an area for growth for their economy. The mining industry in Nigeria is a critical backbone of the industrialized value chain in the country. It provides essential input materials for significant sectors such as construction, electronics, shipbuilding and more. The current Nigerian administration is actively working to diversify the mining sector by incentivising investment in the sector.
Cresco is proud to be the appointed as an advisor to support the Nigerian Ministry of Mines and Steel Development in analysing and implementing a roadmap for economic corridor development, with a specific focus on the Central Economic Corridor.
In 2017 the World Bank provided $150 million credit to investors who are starting projects that will improve the mining sector or infrastructure used by the mining industry in Nigeria. In line with this commitment from the World Bank, Nigerian Mines and Steel Development Minister Olamilekan Adagbite announced the Nigerian government’s goal to develop the ‘Nigerian Mining Corridor’ as a way to revitalise the economy and assist in infrastructure development last year. Cresco Director Francois Viljoen points out: “The significant investment by the World Bank and the various initiatives and incentives implemented by the Nigerian government shows their commitment to diversifying their mining sector. Done correctly, the project will bring about enormous growth to the economy and infrastructure of the country.”
Nigeria has a wealth of high value commodities that have yet to be extracted, with over 44 minerals deposited in more than 500 locations across the country. The lack of infrastructure for extracting, processing, and transporting these commodities are a significant barrier to the growth and diversification of the mining sector.