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| Mining Sectors |
Nigeria’s mining industry stands at a familiar crossroads. Vast mineral wealth estimated at more than $700 billion lies largely untapped, while the sector still contributes only around 1–1.8 percent to GDP despite recent growth and reform momentum.
At the opening of the 11th Nigeria Mining Week in Abuja this week, operators, investors, government officials and international partners delivered a clear message: without clearer rules, stronger security and genuine coordination across agencies and levels of government, the country’s ambition to turn solid minerals into a meaningful engine of diversification will remain stalled.
The three-day gathering, held 12–14 October 2026 at the Abuja Continental Hotel under the theme “Unlocking Investment and Growth through Partnerships,” brought together more than 3,000 participants, over 90 sponsors and exhibitors, and stakeholders from dozens of countries. Organised by the Miners Association of Nigeria in partnership with PwC Nigeria and with NEITI as transparency partner, the event featured forums on critical minerals, gold, steel, financing, ESG and a deal room designed to match projects with capital. The discussions reflected both rising global interest in Nigeria’s lithium, gold, iron ore and other resources—and the stubborn structural barriers that continue to deter serious investment.
Insecurity and regulatory conflict as primary obstacles
President of the Miners Association of Nigeria, Oba Ayandele Ayanleke, identified insecurity along mining corridors and conflicts between federal and subnational authorities as major factors undermining operations and investor confidence. He called for stronger partnerships among local and international stakeholders to drive technology transfer, attract capital, create jobs and generate wealth, while urging government to deliver a clearer, more predictable regulatory framework. On a recent mining-related incident, he noted that an investigative panel had been established and advised stakeholders to await its findings.
These concerns are not abstract. Mining areas in states such as Zamfara, Niger, Plateau and parts of the Middle Belt have been plagued by banditry, illegal mining networks and, in some cases, violence linked to control of mineral sites. Illegal mining remains widespread, with enforcement actions by Mining Marshals yielding hundreds of arrests but limited long-term formalisation. Recent tragedies—including the deaths of dozens of miners from toxic gas exposure at a site in Plateau State earlier in 2026 and separate custody-related deaths of suspected illegal miners in Niger State—have underscored the human and governance costs of weak oversight and unsafe practices. Revenue from solid minerals has risen sharply under Minister Dele Alake’s reforms (from roughly ₦16 billion in 2023 toward or beyond ₦70 billion in 2025), yet the sector’s overall economic footprint remains tiny relative to its potential.
Federal-state friction compounds the problem. Mining falls under the exclusive legislative list, yet state governments increasingly seek greater roles in licensing, community relations and revenue, creating overlapping requirements and uncertainty for operators. Investors can navigate rigorous standards; what deters them is unpredictability in timelines, conflicting directives and unclear jurisdiction.
Segilola as proof of concept—and a cautionary single success
Country Manager of Segilola Resources Operating Limited, Austin Menegbo, used the platform to highlight both progress and unfinished business. Nigeria’s first large-scale commercial gold mine produced 91,910 ounces of gold in 2025, with Nigerians accounting for 99 percent of its workforce. The operation, run by Thor Explorations, has demonstrated that responsible investment, technical expertise, effective regulation and sustained community engagement can deliver competitive results.
Yet Menegbo stressed that one successful mine does not transform an industry. Nigeria needs a pipeline of bankable projects. He listed regulatory uncertainty, illegal mining, insecurity, inadequate infrastructure and limited access to finance as urgent challenges. He called for coordinated government approvals, predictable timelines, dialogue among operators, investors, host communities and other stakeholders, and formalisation of artisanal and small-scale mining through safety training, finance access, technical support and cooperative structures. Environmental protection, worker safety and responsible community engagement must accompany any push to improve the investment climate, he said.
Segilola’s story illustrates what is possible when capital, technical know-how and local content align.
It also highlights how rare such outcomes remain in a sector still dominated by informal activity and under-explored deposits.
International partners emphasise value addition, traceability and trust
Ambassador Anna Westerholm, Head of Mission of the Swedish Embassy in Nigeria, urged partnerships that prioritise local value addition, worker safety, community welfare and transparency. Sweden, with its advanced mining technology, automation expertise and strong track record in responsible production, stands ready to deepen cooperation through technical support, trade and investment.
She emphasised that project success ultimately depends on positive impacts on host communities and the environment, and that companies must earn public trust. Mineral traceability—proving origin and production conditions—will become increasingly important for accessing premium international markets as supply-chain rules tighten around critical minerals.
Cyril Azobu, Partner and Mining Industry Leader at PwC Nigeria, framed the challenge in investment terms: Nigeria must convert its vast resources and growing international interest into bankable projects and sustainable growth. This requires a predictable climate, credible projects and partnerships that link local opportunities with international capital, technology and expertise. Moving beyond raw exports toward domestic processing and value addition is essential to maximise economic benefits.
PwC reaffirmed its commitment to supporting the sector through technical expertise and regulatory guidance.
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Broader context and the path forward
Nigeria’s solid minerals endowment includes gold, lithium, iron ore, tin, columbite, limestone, bitumen and many others across hundreds of locations.
Global demand for critical minerals linked to energy transition, batteries and electric vehicles has heightened interest. Recent reforms—licence clean-ups, Mining Marshals, improved community development agreement guidelines, efforts to improve geological data and a push for beneficiation—have produced measurable gains in revenue, formal registrations and some new investment commitments. Yet exploration spending remains low, infrastructure and power deficits persist in mining corridors, and artisanal mining continues largely outside formal systems.
The week’s emphasis on partnerships is pragmatic. No single actor—government, domestic operators, foreign investors or development finance institutions—can solve the interlocking problems of security, regulation, data, infrastructure and skills.
Coordinated approvals, clearer federal-state roles, sustained formalisation of small-scale miners, investment in geological surveys, and consistent enforcement that distinguishes legitimate operators from illegal networks are all necessary. ESG standards and community trust are no longer optional; they determine social licence and access to capital.
Success will be measured not by another conference declaration but by the number of new commercial mines that reach production, the share of minerals processed domestically, the reduction in illegal activity and insecurity around mining sites, and a meaningful rise in the sector’s contribution to jobs, revenue and GDP. Segilola shows it can be done. The question Nigeria’s stakeholders must now answer—through clearer rules, stronger security and genuine collaboration—is how many more Segilolas the country can build.
Samuel O. Sulaimon is the founder and Editor-in-Chief of Naijapiz. He covers News, Sports, Finance, Faiths, Education, Politics and Technology.
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