The Nigerian mining and quarrying sector recorded growth in the production of solid minerals in 2018. The total quantity of solid minerals produced rose from 45.7 million tons in 2017, to 55.9 million tons in 20181 – representing a 22% increase. Disaggregated by type of solid mineral, Limestone was the most produced – production grew by 95% to 27.2 million tons in 2018, and accounted for about 49% of the total tons of minerals produced. The growth witnessed in the sector may have emerged from the government’s efforts and incentives to develop the sector and also in a bid to diversify the economy. The government had offered mining companies a three to five year “tax holiday”, duty and tax-free importation of equipment, full ownership of their businesses and the ability to take profits out of the country2. In addition, the government committed about $100 million intervention fund for the sector and awarded mining contracts to ten exploration and consulting firms, in 20183. In addition to ongoing interventions, there is need to minimize the indiscriminate export of mineral commodities especially gold, tin and lead-zinc to foreign smelters, as formalizing these activities offers great potential for a significant source of revenue for Nigeria, away from oil.
Macroeconomic Report & Economic Updates
International Monetary Fund (IMF) revised down growth forecast for Sub-Saharan Africa by 0.2 percentage points, while retaining growth estimates for Nigeria and South Africa in 2017. Precisely, growth rate forecast for Africa was reduced from 2.8 percent in January 2017 forecast to 2.6 percent in April 2017 forecast while growth estimates were retained at 0.8 percent for both South Africa and Nigeria. In contrast, global economic growth outlook was increased by 0.4 percentage points from 3.1 percent to 3.5 percent within the same period. Growth in Sub-Saharan Africa is hampered by adverse cyclical and supply side factors, weak fiscal buffers and rising public debt amongst non-commodity exporters as well as severe drought was experienced in Eastern and Southern Africa