Mining Sector Expands Despite Low Credit Facility

Australian Iron Ore
  • Mining Sector Expands Despite Low Credit Facility

Activity increased in the mining sector in 2018 despite low credit facility to the sector.

Production of solid minerals increased from 45.79 million tonnes produced in 2017 to 55.85 million tonnes in 2018, according to the state disaggregated mining and quarrying data released by the National Bureau of Statistics (NBS). This represents a 22 per cent growth between the two periods.

The break down of the report showed limestone recorded the highest production with 27.19 million tonnes, up by 95 per cent from 13.9 million tonnes produced in 2017.

Limestone represents around 49 per cent of the total solid minerals produced in 2018.

Followed by granite with 9.63 million tonnes or 17 per cent of the total tonnes of minerals produced in the year, while laterite produced was 5.07 million tonnes or 9 per cent of the total minerals produced in 2018.

Ruby and Garnet are the least produced solid minerals in the year.

Ogun State produced the highest tonnes of solid minerals among the 36 Nigerian states and the FCT in 2018. The state produced 16.49 million tonnes or 30 per cent of the total mineral produced during the year under review.

According to data from the NBS, the mining sector received the lowest credit facility from banks in 2018, while the oil & gas sector received the most.

Still, the sector expanded by 22 per cent. Suggesting that if more funds could be allocated to the sector, it would do a better number.

According to the NEITI secretary: “There is no doubt that Nigeria has a lot of potentials in the solid minerals sector, but having potential is not enough. Potentials by itself would not translate to improved revenue for improved fortunes for the country and for its people.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]; Tel: +2347065163489.

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