Mining Nigeria’s Way To Prosperity

Against a backdrop of economic pressures in Nigeria and a need to avoid long-term over-dependence on the oil industry, Nigeria is looking to other extractive industries in order to diversify the economy, notes Doye Balogun of Mayer Brown.

While 2016 was a challenging year for the Nigerian economy, 2017 has seen it bounce back to a degree. For several months between 2015 and 2016, the Central Bank of Nigeria had held firmly to an exchange rate policy from which the parallel market drifted wildly, leading to high levels of inflation in an economy which is heavily reliant on imports. In the second half of 2016, the government finally allowed some devaluation of the Naira, Nigeria’s currency.

Coupled with the easing of the restrictions on the availability of foreign currency, some investor confidence has returned and the economic outlook is looking healthier.

Against this background, economic diversification continues to be the topic of the day and mining remains one of the sectors that could enable Nigeria to successfully implement that policy.

Nigeria’s minister of solid minerals development, Kayode Fayemi, is the man tasked with leading the revival of the Nigerian mining sector, which has commercial deposits of about 37 different minerals including gold, iron ore, coal, tin and columbite.

At a recent conference in Abuja, Fayemi spoke about his plan in more detail, which would include a greater level of engagement with foreign investors, as well as publicising useful information on the country’s resources and policies. Both of those steps would be hugely welcome and this article examines a number of other considerations that would also need to be addressed, in order for Nigeria to make meaningful progress in the mining sector.


http://www.minesandsteel.gov.ng/2017/07/07/mining-nigerias-way-to-prosperity/