Nigeria's mining sector faces structural headwinds despite 50% GDP target

Insecurity, data gaps, and illegal operations threaten the government's ambitious plan to transform the mining industry into the economy's primary growth engine.

By Handelsavisen Newsroom · Automated 2026-07-12 05:27 UTC · 1 min read

Nigeria's strategic objective to elevate the mining sector's contribution to gross domestic product to 50 percent is encountering significant structural resistance.

The government's long-term vision for economic diversification is being undermined by a combination of persistent insecurity, inadequate geological data, and widespread illegal mining activities.

These challenges are compounded by chronic underinvestment, creating a gap between policy ambition and on-the-ground reality.

The security situation remains a primary deterrent to formal investment in the sector.

Inadequate geological data further complicates efforts to attract serious capital, as investors face heightened uncertainty regarding resource viability and extraction costs.

Meanwhile, the prevalence of illegal mining operations erodes state revenue and distorts market dynamics, making it difficult for compliant operators to compete effectively.