So much has been said about the solid minerals sector of the Nigerian economy as having the prospects of being a major contributor to the nation’s Gross Domestic Product (GDP). In fact, the Economic Recovery and Growth Plan (2017 to 2020) as set out by the federal government, projected that the minerals and metals sector will be one of the sectors that will drive Nigeria’s economic recovery.
It is estimated that the sector’s contribution to GDP would grow from N103 billion (recorded in 2015) to N141 billion in 2020, at an average annual growth rate of 8.5%.
According to the National Bureau of Statistics (NBS), the production of solid minerals in Nigeria hit 55.85 million tons in 2018 representing a growth rate of 22% in 2018, despite the fact that the mining and quarrying sector received the lowest credit from the banking sector to the private sector.
It must however be noted that this growth was achieved more in the quarrying segment where limestone, granite and laterite production grew and contributed more than 63.7% of the total solid minerals production in the country; limestone alone grew by 95% (27.1 million tons) in 2018 as against the 2017 production of 13.9 million tons.
Most, if not all, of these productions were consumed in the infrastructure industry of the country. Growth of the high value and foreign exchange earning metals sector has remained rather very sluggish. Investments have been insignificant despite the quantum of proven and estimated reserves of various metals in the country.
Some efforts have been made to sensitize investors on the potential of this sector, but these efforts seem not to have addressed the issues of presenting the sector as a veritable and robust business opportunity to investors.
Presently local investment in the segment pales in value and volume in comparison with investments by foreign companies. There is a need to attract critical local investment to the sector in order to maximize the benefits of the industry to the nation.
It is in the light of these gaps that the Lagos Chamber of Commerce and Industries (LCCI) and the Association of Metals Exporters of Nigeria (AMEN) are coming together to organize the first Nigeria Mining and Investment summit. The summit, which is a local initiative, is designed to take a practical look at mining and the ancillary businesses that make up the mining value chain.
The summit will also view the sector from an investor’s perspective and would be bold enough to explore avenues of attracting investable equity funds and structured de-risked debt facilities to boost the sector. Some of the objectives of the summit include the identification and appraisal challenges in mining and metals exports in Nigeria, and a clear definition of the value chain in mining and metals exports in Nigeria.
Further, the summit will attempt to appraise existing financing opportunities for mining and metals export in Nigeria, if any. More importantly, it will proffer practical and workable solutions to the challenges militating against mining and metals exports in Nigeria.
One of the targets of the summit is the production of an investor’s guide in mining and mining business for investors and potential investors in the Nigerian mining sector. Stakeholders will also use the opportunity of the summit to review recent events in the Nigerian solid minerals sector, as they pertain to mining and metals exports.
The event which is a two-day program that will run from the 23rd to the 24th of April 2019, is slated for the OPTS Hall, LCCI Conference and Exhibition Center, Plot 10A Nurudeen Olowopopo Way, Behind MKO Gardens, Ikeja, Lagos.
The summit has been designed to offer local and international players in the industry an opportunity to meet and deliberate on the fortunes of the industry with a view to making Nigeria indeed an investor’s destination in mining and metals exports. Expected to be in attendance are key regulators of the industry, captains of industry, investors and budding investors in the sector, financiers, bankers and insurance companies and all critical players to the successful development of any business venture.
Speakers at the event have been drawn from practitioners with hands on experience in the industry, providers of financial services, regulators and renowned business development consultants.
The aim of the summit is to unravel all the mysteries surrounding mining and mining business in order to present it as an attractive business opportunity to the investing community.
BABATUNDE ALATISE
Otunba Alatise is the chairman, mining, solid mineral & allied services group of Lagos Chamber of Commerce and Industries (LCCI), Lagos.
