Mining to lift Nigeria’s GDP in 2020 by 10%

Mining activities may lift the nation’s Gross Domestic Product (GDP) by 10 per cent in the next five years, given an industry assessment by Pricewater House Coopers Nigeria (PwC) .

Indeed, the group believed that the optimal exploitation of the 44 varieties of minerals in over 500 locations in the country could re-launch Nigeria as a great mining destination.

Meanwhile, the Lagos State Government has restated its commitment to ensure internationally accepted standards in the mining industry in the state.

The PwC Nigeria said the country’s mining sector presents incredible opportunities for both the private and public sectors, given the country’s vast natural resources and the current drop in oil prices.

It stated that the North-Central, North-East and North-West regions are known to have some of the country’s major mineral deposits. Due to the persistent plague of terrorism and civil unrest, mining activity in these areas has slackened.

The solid minerals sector has been targeted by the previous administration to contribute five per cent to GDP by 2015 and 10 per cent to GDP by 2020. Current contribution of the solid minerals sector to GDP averages about 0.46 per cent.

According to the group, it is estimated that about 80 per cent to 85 per cent of current mining activities in Nigeria is via artisanal and small scale mining.

Besides, it stated that most mines in Nigeria are typically green fields, and in the exploratory phase, adding that infrastructure is a key element for the success of the industry.

“There is therefore a need to develop a master plan for roads and rail for federal and states’ adoption,” it stated.

Mining Sector Leader and Head Consulting at PwC Nigeria, Cyril Azobu, stated that Nigeria’s mining sector will improve the GDP growth of the economy if revamped, noting that at the upcoming iPAD Nigeria Mining Forum in Abuja, which is regarded as a long overdue strategic investment platform, will gather key role players in the Nigerian mining space to discuss the way forward.

“The reduction in global crude oil prices has once again highlighted the need for Nigeria to diversify the revenue base of the economy and we hold strongly that one key sector which offers great potential in achieving this is the sold minerals sector”

The iPAD Nigeria Mining Conference and exhibition is slated for 18-19 November 2015, at Transcorp Hilton, Abuja.

According to the Event Director, Nicole Smith, the solid minerals sector has been targeted by the previous administration to contribute 5% to GDP by 2015 and 10% to GDP by 2020 and current contribution of the solid minerals sector to GDP averages about 0.46%.

The Director, Human Resources and Administration, Lagos State Ministry of Energy and Mineral Resources, Adeyemi Taofik Fashola, recently conducted on-the-spot assessment of some sand mining sites in the Ajah/ Lekki axis of Lagos State

Fashola, after the assessment disclosed that the ministry is poised to ensure that miners in the State operates according to laid down regulations that will ensure sustainable development in the State.

He said further that to obtain this mining standard, the ministry has to continually monitor the activities of sand miners and ensure that laid down rules are followed strictly.

He said: “In furtherance of the ministry’s mandate to ensuring a sustainable mining operation, constant monitoring and clinical review of mining methods and its impacts, taking stock of degraded area as well as putting in place a restoration plan is been done by the ministry”.