Nigeria can attract FDI to its solid minerals by joining international mining organizations
According to a report by KPMG in June 2024, Nigeria has over 44 solid minerals scattered in over 500 locations nationwide.
However, the sector faces several challenges that hinder its ability to attract and retain foreign participation and investments. To address this issue, KPMG recommends that Nigeria become a member of renowned international mining organizations.
Membership in these organizations would confer several benefits to Nigeria and mining stakeholders. It would validate the veracity and existence of mineral deposits, especially of critical metals, earn and maintain global trust by promoting high standards of reporting of identified mineral estimates, strengthen social and environmental performance of the mining sector, build recognition of the mining sector contribution to local communities and society at large, and strengthen laws and policies to achieve short and long-term sustainable development goals.
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As of May 2024, there were 7,182 companies and individuals licensed to operate in the upstream subsector of the Nigerian mining industry. However, challenges persist in the form of insufficient infrastructure, particularly electricity supply and access roads to mineral deposit sites; limited geoscience data; insecurity; project funding; policy uncertainty; security concerns; and global economic dynamics.
To mitigate some of these challenges, the federal government introduced the Nigerian Mineral Resources Decision Support System (NMRDSS), a web-based application that provides read-only access to geo-scientific and geo-economic data of Nigeria. Additionally, efforts have been made to tackle illegal mining activities through the Mines Surveillance Task Team and the Transport and Mining Marshals.
