FG Eyes $1bn Investment, 500,000 Jobs in Mining Sector Boost
The Federal Government has projected that the mining sector would raise employment from the current 0.3 per cent to 500,000 jobs by 2030 amid expectations of attracting $1bn in foreign direct investment annually by 2025.
The government also targeted increasing the sector’s contribution to the Gross Domestic Product to eight per cent by 2030 and 10 per cent by 2035 as part of efforts to deepen economic diversification and industrial growth.
These targets are contained in the Nigerian Industrial Policy unveiled on Tuesday in Abuja, where the government outlined strategies to unlock the potential of the country’s mineral resources.
The policy document stated that “the share of the mining sector in total GDP is expected to be eight per cent by 2030 and 10 per cent by 2035”, noting that the sector has recorded significant growth in recent years but remains below its full potential.
The document noted that the mining industry attracted $100m in FDI in 2022, up from $78m in 2019, with investments from countries including China, Brazil, and India.
It added, “The outlook of this industry is bright, as the government is projecting that it will bring in $1 bn of FDI annually by 2025.”
The policy emphasised that the sector currently contributes about 0.3 per cent to employment in Nigeria but has the potential to create up to 500,000 jobs by 2030 if properly harnessed.
It added that the sector contributed N400bn, representing 0.33 per cent of GDP in 2015, and rose to N4.4tn, or 5.54 per cent of GDP, in 2024.
The government said Nigeria’s industrialisation trajectory would be significantly enhanced by unlocking its mineral wealth and pledged to create a framework that promotes sustainable development, economic growth, and social responsibility in the mining sector.
“Government is therefore committed to creating a framework that promotes sustainable development, economic growth, and social responsibility in the mining sector,” the document stated.
To achieve this, the Federal Government said it would establish clear regulations and guidelines for mining activities, including licensing, environmental impact assessments, and safety standards. It also promised to offer incentives such as tax breaks, subsidies, and investment guarantees to attract investors.
The document stated, “The government will establish clear regulations and guidelines for mining activities, including licensing, environmental impact assessments, and safety standards; offer incentives to attract investments in the mining sector, such as tax breaks, subsidies, or investment guarantees; and encourage value-added activities, such as processing and manufacturing, to increase the economic benefits of mineral resources.”
The government added that it would ensure environmentally sustainable mining, foster community participation through benefit-sharing arrangements, and build local capacity through training and development.
Nigeria is endowed with solid minerals such as coal, gold, bitumen, gypsum, iron ore, lead/zinc, rock salt, talc, bentonite, baryte, kaolin, and limestone. Other minerals include tin, columbite, and gemstones such as sapphire, ruby, aquamarine, and emerald.
According to the policy, aggregate mineral production grew 39.19 per cent from 64.29 million tonnes in 2020 to 89.48 million tonnes in 2021, reflecting improved performance following reforms aimed at attracting investors and deepening collaboration with stakeholders.
Under the solid minerals and metals strategy, the government said it would reposition domestic industries to compete globally, increase value added to local raw materials, promote local content in industrial machinery, and sustain human capacity development in engineering design.
It also pledged to support mineral processing zones and industrial parks near mining belts, encourage industries such as steel, aluminium, and battery manufacturing to source raw materials locally, and establish a blended Artisanal Mining Transition Fund to formalise operations and provide low-interest financing to artisanal miners.
In his foreword to the policy document, the Minister of State for Industry, Trade and Investment, John Enoh, said the new framework marked a turning point in Nigeria’s industrial development.
“The Nigeria Industrial Policy is a comprehensive framework that reaffirms our national resolve to diversify the economy, create inclusive prosperity, and secure Nigeria’s rightful place as a leading industrial hub in Africa and the wider global economy,” Enoh said.
He added, “Industrialisation is not an aspiration; it is an imperative. For decades, the absence of a coherent, forward-looking, and actionable industrial policy constrained our ability to unlock the full potential of Nigeria’s abundant resources, human talent, and entrepreneurial dynamism. Today, through this policy, we seek to reverse that narrative.”
Enoh explained that the policy sets out “a clear and actionable roadmap for Nigeria’s industrial transformation” and identifies priority sectors, enabling reforms, and incentives to ensure accelerated and inclusive growth.
He stated, “At the heart of this policy is a robust incentive framework: fiscal, monetary, export, and industrial measures that reduce the cost of doing business, spur investment, and foster innovation.”
The minister noted that the government would strengthen development finance by recapitalising the Bank of Industry, scaling sectoral intervention funds, mainstreaming credit guarantees for Micro Small and Medium-sized Enterprises, and introducing interest-drawback and equity-based financing schemes.
“By setting aside up to five per cent of GDP for industrial financing and leveraging public–private partnerships, this government demonstrates its commitment to matching ambition with resources,” Enoh remarked.