Given the bright outlook and huge economic potentials embedding in the mining sector, the Federal Government will come up with clear regulations and guidelines for mining activities.
The guidelines shall cover areas like licensing, environmental impact assessments, and safety standards; incentives to attract investments in the mining sector, such as tax breaks, subsidies, or investment guarantees that will encourage value-added activities.
These and other provisions are contained in the Nigeria Industrial Policy ( NIP) document, which was released this month by President Bola Tinubu.
Despite its verse untapped economic potential, Nigeria’s mining sector faces significant challenges that hinder its contribution to GDP (currently less than 0.5%).
The primary obstacles include critical infrastructure deficits (power and transport), rampant illegal mining, severe security risks in mining areas, limited access to finance, and regulatory inconsistencies between federal and state governments.
In the new NIP document, a copy obtained by New Telegraph, the Federal Government projects the mining sector’s share of GDP at 8 per cent by 2030 and 10 per cent by 2035.
“The projection is premised on the sector’s potential to attract Foreign Direct Investment of $1 billion annually by 2025.
Currently, the sector is contributing about 0.3% to employment in Nigeria, with the potential of raising it to 500,000 by 2030.
“The outlook of this industry is bright, as the government is projecting that it will bring in US$1 billion of FDI annually by 2025”, according to the NIP document unveiled last week in Abuja.
In the construction sector, the government plans to scale up activities in order to accelerate the pace of development.
To position the construction sector as a job creation enabler, the government said it will increase investment in infrastructure development to stimulate economic growth and create jobs by promoting the use of local materials.
“Opportunities abound in the increasing demand for residential construction, which drives developers towards cost-effective construction methods. Government-backed infrastructure projects, including transportation and energy infrastructure, offer stability in construction businesses.
Additionally, institutional construction in the education and healthcare sectors, including modernisation of facilities to provide a steady stream of business for operators in the sector,” the NIP document revealed.
