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Poor geo data, funding crippling mining businesses in Nigeria

Poor Geo Data, Funding Crippling Mining Businesses In Nigeria

The mining Sector in Nigeria over the years has been moribund due to inadequate exploration and over dependence of Nigeria on oil, Daily Trust reports.

A report on growth forecasts of the Economic Recovery and Growth Plan (ERGP), which projects the mining sector as one of Nigeria’s most promising sectors, acknowledges that its contribution to GDP doubled from N52 billion in 2010 to N103bn in 2015. The ERGP anticipates that revenue from the mining sector would grow from N103bn in 2015 to N141bn 2020 at an average annual growth rate of 8.54 per cent.

In spite of these promises for a sector mostly dominated by artisans and Small and Medium scale entrepreneurs (SME), there are still insufficient geo-data, poor marketing channels and access to funds for miners. As obtained in other climes, adequate geo-data on the locations of the about 40 mineral resources and their possible exploration would enhance the mining activities of businesses in the field. For now however, it is difficult for artisans and government to deploy machineries and make the sector more promising.

For instance, South Africa uses coal, a vibrant natural resource for 40 per cent of its power generation. This has however been abandoned in Nigeria, the energy mix document obtained from the Ministry of Power, Works and Housing revealed. To boost operations in the sector, experts have identified collaborations between the Federal Ministry of Mines and Steel Development with states. However these collaborations to engage SME owners is still at a very low level and fraught with disputes, reports have shown.

The post Poor geo data, funding Crippling Mining Businesses in Nigeria appeared first on Energy News | Oil and Gas News.



This post first appeared on Energy Mix Report, please read the originial post: here

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Poor geo data, funding crippling mining businesses in Nigeria

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