COUNTRY IN FOCUS •
Image by Natanaelginting on Freepik
NIGERIA – A RISING MINING POWERHOUSE?
Edited by Sharyn Macnamara
Nigeria, Africa’ s largest economy with a GDP of approximately USD469-billion, continues to rely heavily on oil and gas revenues, writes Dr Nicolaas C Steenkamp.
The mining sector in Nigeria contributes more than 32 % to nominal GDP, relying predominantly on oil and gas revenues. However, declining commodity prices in recent years have eroded this share. By contrast, the mining industry remains underdeveloped, accounting for just 0.3 % of employment, 0.02 % of exports, and around USD1.4-billion of GDP. Yet, Nigeria’ s vast geological wealth points to enormous potential for growth in the years ahead.
Geological setting The geology of Nigeria is dominated by extensive Precambrian formations, most notably the Basement Complex and younger Phanerozoic rocks located in the eastern and north-central regions. The Basement Complex consists of migmatite – gneiss – quartzite sequences dating to the Archean and Early Proterozoic eras, between 2.7 and 2.0 billion years old. Northeast – southwest trending schist belts are particularly well developed in the western half of the country, while granitoid intrusions from the“ Older Granite Suite” were emplaced between 750 and 450 million years ago.
Large sedimentary basins further define Nigeria’ s geology, including the Yola, Anambra and Bida basins of the Benue Trough, as well as the distinct Lullemeden, Bornu and Gongola basins. The Benue Trough itself formed during the Cretaceous because of rifting along the Central African Shear Zone. This process was aided by abnormal mantle plume activity that weakened the crust and facilitated the development of rift basins.
Mining Exploration has revealed widespread mineral potential across all 36 states in the country. In its effort to stimulate investment and modernise the sector, the government has prioritised seven minerals: coal, bitumen, limestone, iron ore, barite, gold and leadzinc as strategic resources for development.
Nigeria has also become West Africa’ s most important source of coloured gemstones, particularly sapphires found in Plateau, Kaduna and Bauchi states. These gemstones are typically recovered from secondary deposits associated with weathered alkali basalts. The coloured gemstone industry has expanded steadily over recent years, offering significant opportunities for investors. The government is seeking to harness this momentum by encouraging international financing to strengthen and diversify its mining enterprise.
Gold exploration is also advancing, most notably through Thor Explorations at its Segilola mine. Positive drilling results suggest additional mineralisation below the current open pit, with the potential to extend the life of one of Nigeria’ s most important gold projects.
Infrastructure push Nigeria has approved an ambitious USD2.4-trillion master plan to address its infrastructure deficit. The country’ s transport and energy backbone is extensive, though in need of modernisation. The railway network extends to nearly 3 800km, while the road network comprises more than 193 000km, of which fewer than 30 000km are paved. Nigeria operates 26 airports, five of which serve international destinations, and generates electricity through 23 power plants fuelled largely by natural gas and hydropower. These infrastructure commitments are critical to supporting mining operations as well as the wider goal of economic diversification.
Renewables leadership Nigeria is also positioning itself as a leader in Africa’ s renewable energy transition. More than 85 million Nigerians still lack access to electricity, making decentralised solar and other renewable technologies essential to future development. Large-scale solar projects are projected to generate close to 34 000 direct jobs by 2030, while the micro-solar sector is already providing opportunities for youth employment as local energy officers.
www. africanmining. co. za African Mining Publication African Mining African Mining • January 2026 • 17