$700B in solid minerals across 36 states. Less than 1% of GDP tapped so far.

Mining

Strategic Kogi state Nasarawa state Plateau state Zamfara state Ebonyi state Edo state
Minerals

Overview of the Landscape

Nigeria's mining sector represents one of the most underdeveloped yet high-potential investment frontiers in Africa. Despite being richly endowed with over 40 commercially viable minerals across 500+ locations in 32 of its 36 states, the sector currently contributes less than 1% to national GDP, a clear indication of massive untapped opportunity and a compelling commercial entry window for investors willing to move before the market is priced accordingly.

Ongoing reforms by the Federal Government (particularly through the Ministry of Solid Minerals Development) are reshaping the sector into a more transparent, investment-ready industry. Key reforms include digitisation of mineral licensing through the Mining Cadastre system, enhanced regulatory oversight, and active investor engagement campaigns. The Federal Government has committed $630 million to exploration and sector development, while private and foreign investors have injected over $2 billion, particularly into lithium projects.

The Global Energy Transition Is Reshaping Nigerian Mining Economics

Lithium (critical for EV batteries) has been identified in Nasarawa, Kogi, Cross River, and other states. As global demand for critical minerals surges, driven by the energy transition and the growth of electric vehicles, Nigeria is uniquely positioned to become a major global supplier. Project returns are estimated at 25%, with project costs typically ranging from $5 million to $100 million.

Investment Opportunities by Sub-Sector

  • Lithium Exploration and Processing
    Rising global demand for electric vehicles and battery storage has placed lithium at the centre of the energy transition. Nigeria's deposits in Nasarawa, Kogi, and Cross River present strong opportunities for exploration, mining, and processing into battery-grade lithium carbonate and hydroxide for export.
  • Gold Mining and Refining
    Gold mining in Nigeria is currently dominated by informal and artisanal operations. Industrial-scale mining, modern extraction technologies, and certified refining facilities that meet international export standards can multiply output dramatically while enabling access to global bullion markets.
  • Iron Ore and Steel Production
    The Itakpe iron ore deposit is one of West Africa's largest, yet remains underutilised. Investment opportunities exist across the full value chain, from extraction and beneficiation to integrated steel production via both integrated complexes and electric arc furnace mini-mills.
  • Industrial Minerals — Limestone, Gypsum, Barite
    These minerals are essential inputs for cement, oil drilling, and construction industries. Nigeria's domestic demand ensures strong local market absorption, while surplus production can be exported regionally under AfCFTA to the ECOWAS construction and industrial market.
  • Mining Support Services
    Opportunities exist in drilling services, geological surveying, laboratory testing, equipment leasing, haulage logistics, and mine safety services, all currently undersupplied in Nigeria's mining ecosystem and able to serve multiple clients across the emerging formal sector.
  • Lead-Zinc Mining
    Lead and zinc deposits across Benue, Ebonyi, and Cross River states offer strong potential for large-scale mining and export. With proper processing infrastructure Nigeria can become a competitive supplier of base metals to global smelters seeking supply chain diversification.
By the numbers

Mining in Numbers

Estimated Mineral Deposits Value

Ministry of Solid Minerals Development

Mining's Current GDP Contribution

NBS — vast underrepresentation of potential

Commercially Viable Mineral Types

Nigerian Geological Survey — 500+ locations

States with Identified Minerals, including FCT

Nigerian Geological Survey

Mining Production Growth

September 2025

Peak Mining GDP Share

Q2 2025

Natural endowment

Why Nigeria
for Mining ?

Nigeria has $700B+ in minerals across 32 states but mining contributes under 1% of GDP. The energy transition is improving economics, drawing early large-scale investment.

Estimated Mineral Deposits $700B+
Mining GDP Contribution <1%
Mining Production Growth 7.02% (Sept 2025)

$700B in Minerals — Less Than 1% of GDP Currently

Nigeria’s minerals are vast yet underexplored: 40+ types across 500+ sites in 32 states, with mining under 1% of GDP. Government has committed $630M, while private and foreign investors have put in $2B+, especially into lithium.

$700B+ solid mineral deposits

Itakpe: West Africa's Largest Iron Ore Deposit

Kogi’s Itakpe Iron Ore Mine is among West Africa’s largest deposits but underutilised, with expansion able to meet Nigeria’s growing steel demand.

West Africa's largest iron ore

Returns of 25% Expected

Projects cost $5M–$100M with ~25% expected returns, making mining a high-growth, high-return opportunity versus global benchmarks.

Expected returns benchmark

Global Energy Transition Placing Nigeria at the Centre

Lithium deposits in Nasarawa, Kogi, and Cross River, alongside gold, iron ore, lead-zinc, tin, and columbite, position Nigeria for rising demand. Largely untapped reserves offer strong first-mover advantage.

$630M govt exploration support

Mining Cadastre Reform Reducing Friction

The Nigerian Mining Cadastre has been upgraded, speeding licence approvals and improving transparency for investors and licence holders.

Digital licensing now operational

Full Foreign Ownership Permitted

Policy allows full foreign ownership in mining, with duty waivers on equipment imports and tax credits for qualifying exploration spend.

100% foreign ownership permitted

Regulatory Framework & Investor Incentives

Nigeria's mining investment is anchored by the reformed Mining Cadastre, Mining Act capital allowances, duty-free equipment imports, and government roadshows actively drawing global capital to sector.

Regulatory Framework

Ministry of Solid Minerals Development & Mining Cadastre

The Ministry of Solid Minerals Development administers exploration licences, mining licences, and small-scale mining permits through the Nigerian Mining Cadastre, a digital mineral title administration system significantly improved in recent years. The Cadastre provides greater transparency, efficiency, and investor protection for licence holders and reduces administrative timelines for new applications. The Ministry is actively conducting global investor roadshows and provides dedicated support for exploration licence applications.

Artisanal and Small-Scale Mining (ASM) Formalisation

A significant share of current Nigerian gold and gemstone production occurs through artisanal and small-scale mining, largely outside the formal regulatory framework. The government's ASM formalisation programme (providing legal frameworks, certification, and market access for ASM operators) is a reform actively underway. Investors in formal industrial mining benefit from this formalisation as it reduces unlicensed competition and improves market transparency.

Nigeria Tax Act 2025

Consolidates all prior Nigerian tax legislation into a single Act. Governs corporate income tax, VAT, capital allowances, and sector-specific reliefs. It is the primary fiscal reference for investors entering Nigeria.

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Nigeria Tax Act, 2025

Consolidates Nigeria's income tax laws into a single framework, replacing the Companies Income Tax Act, Personal Income Tax Act, and related legislation.
View
Date 1/08/25

ECOWAS Regional Investment Framework

The binding regional investment treaty for all 15 ECOWAS member states. Provides the legal basis for investor protections and the preferential access underpinning Nigeria's ECOWAS gateway position.

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Supplementary Act Adopting ECOWAS Common Investment Code

The ECOWAS Supplementary Act formally adopting the ECOWIC as binding on all member states, giving legal force to the regional investment code across the West African community.
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Date 1/12/19

Investor Incentives

Mining Act Fiscal Incentives

The Mining Act provides for royalty stabilisation (protecting investors from future royalty rate increases), capital allowances on exploration expenditure, investment tax credits for qualifying exploration spending, and tax deductions on environmental fund contributions. Section 64 of the Nigeria Tax Act 2025 offers mining companies engaged in solid mineral extraction a 3-year tax holiday, applicable to newly established mining entities.

Import Duty Exemptions on Equipment

Duty-free importation of mining equipment and machinery significantly reduces capital expenditure for investors establishing or expanding extraction and processing operations. This applies to drilling rigs, processing plant, laboratory equipment, and mine safety systems, all currently undersupplied in Nigeria's mining ecosystem.

Investment Tax Credits for Exploration

Credits are available for qualifying exploration and mineral development activities, providing direct tax relief for the high up-front costs of geological surveys, drilling programmes, and feasibility studies. These credits are applicable from the pre-production phase, supporting capital recovery during the typically lengthy exploration period before revenue generation begins.

AfCFTA Export Market Access

Preferential market access across 54 African nations under the AfCFTA framework provides Nigerian mining exporters with reduced-tariff routes for processed minerals, concentrate, and refined metals. Industrial minerals such as limestone, gypsum, and barite (with strong domestic demand absorption) can also target regional export markets under AfCFTA terms.

Mining Cadastre System

The improved digital licensing platform provides greater transparency in mineral title administration, online licence applications, real-time title status tracking, and reduced bureaucratic delays, directly improving the investor experience for exploration and mining licence acquisition.

Full Incentives Reference

The definitive NIPC reference to all investment incentives and statutory reliefs under the Nigeria Tax Act 2025. Covers sector-specific credits, EDTI, SEZ benefits, and all applicable conditions and provisos.

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Nigeria Investment Incentives and & Statutory Reliefs 2026

A practical reference to all investment incentives, tax exemptions, and statutory reliefs available in Nigeria. Organised by incentive type, sector, and tax category, with statutory references and administrative guidance for each entry.
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Date 1/01/26

Latest updates and developments shaping this sector.

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Guidance and Support at Every Stage of Your Journey.

General enquiries
+234 707 490 8911 +234 707 490 8912
infodesk@nipc.gov.ng

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osicinfodesk@nipc.gov.ng

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+234 707 490 8914