The establishment of the Nigeria Mining Cadastre office has gone some way to encourage further exploration for minerals in Nigeria. But potential investors are likely to look elsewhere until some of the major risks have been removed from the Nigerian investment equation.
Nigeria’s economy is dominated by oil, but before significant amounts of the fuel were discovered in 1956 it had an established mining sector. The focus soon turned, however, and its reserves of iron ore, put at 2.7Bt and coal, estimated at 3Bt, have been largely neglected.
Government has made efforts to encourage investment in the country’s mineral wealth but success has been limited. The Nigeria Mining Cadastre Office was established in collaboration with the World Bank a few years ago with the aim of promoting the sector, and to manage and administer mining titles. This came about as a result of a reform programme that was carried out by the ministry in the sector.