Investing in Nigeria

Nigeria had a glorious mining history before the discovery of oil.  Some of the minerals were tin, coal and columbites.  Mining was neglected with the oil boom of the 70s but Nigeria is now determined to diversify the economy, with mining holding the key to the success of this strategy.

The Federal Government commenced a robust reform programme in 2005 and has put in place an attractive mining code that creates easy access to mineral titles for all investors, guarantees security of tenure and transferability of titles and also provides sound environmental and community development programmes.  A well organised interactive and non-discretionary mining cadastre system has also been established.

The Nigerian Geological Survey Agency (NGSA) has also been strengthened to generate and disseminate credible geoscientific data to potential investors and stakeholders.  As a result, Nigeria now has 100% coverage of high resolution airborne magnetic and radiometric survey data with interpretation. A comprehensive programme on the geochemical survey of the country is on-going.

To ensure adequate manpower for the emerging mining industry, the Nigerian Institute of Mining and Geosciences (NIMG) was established; and presently runs postgraduate courses skewed towards practical aspects of mining exploration, exploitation and processing of minerals.

The geology of Nigeria has favourable conditions for mineral exploration.  The Basement Complex and the Sedimentary Basins are host to several mineral deposits including:-
i) Gold:  Primary gold belt has been established stretching from the south-west to the north-west states of the country.  Already, an Australian Company has proven reserves of 600,000 ounces of gold in Osun State.
ii) Lead/Zinc:  Lead-zinc mineralisation is located along north-east and south-west belts in Lower, Upper and Middle Benue.  There are new exploration findings in several parts of Nigeria.
iii) Iron-ore:  Nigeria has two broad types of iron ore with general Fe concentration of between 35 - 50%.  Itakpe iron ore deposit is currently mined and processed for the Ajaokuta Steel Mill.  There are also several other iron finds in the north-west and north-east states of Nigeria.
iv) Oil-Sands:  There are huge reserves of oil sands in Nigeria occurring as surface/near surface impregnated sediments and as subsurface bituminous sands.  Extensive exploration work has been carried out in the belt with delineation of blocks ready for concessioning.
v) Coal:  Coal occurs in 13 states of the country, with current exploration results indicating over one trillion tonnes. Priority of government is to develop coal for power generation.
vi) Gemstone:  Nigeria is endowed with variety of coloured gemstones ranging from aquamarine, tourmaline, emerald, sapphire, garnet, ruby to topaz, amethyst and zircon.
vii) Dimension Stones:   Nigeria has vast deposits of colourful granites and marbles.  A baseline study has been carried out confirming a large domestic market for dimension stones and a huge potential for the export of blocks.  Government is implementing a development programme to train local operators in dimension stone quarrying and processing, and a DS testing laboratory is being established.

With guaranteed fiscal regime (capital allowances, custom duly exemptions, tax relief and a conducive atmosphere for mining investments), Nigeria remains a preferred destination for exploration funds.