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KPMG, a global audit, tax, and business advisory firm, has emphasized the importance of Nigeria joining relevant international mining organizations in order to fully attract Foreign Direct Investment (FDI) into the country's abundant solid minerals found in over 500 locations nationwide.
According to KPMG's June report on Nigeria's solid minerals sector, the country's mineral wealth should make it an attractive mining destination for multinational companies.
The report identified a wide range of mineral deposits in Nigeria, including gold, barite, bentonite, limestone, coal, bitumen, iron ore, tantalite/columbite, lead/zinc, gemstones, granite, marble, gypsum, talc, iron ore, lead, lithium, nickel, and silver.
However, the sector has been facing numerous challenges that have hindered its ability to attract and retain foreign participation and investments.
KPMG recommended that in addition to addressing domestic challenges and improving the ease of doing business in Nigeria, the federal government should consider joining internationally recognized mining organizations such as CRIRSCO, IGF, and ICMM.
The firm said membership in those organizations could bring several benefits to Nigeria and its mining stakeholders and position the country to attract more FDIs.
KPMG highlighted several benefits of obtaining certifications in the mining sector, including validating mineral deposits, promoting high standards of reporting, and improving social and environmental performance.
It also emphasized the importance of signaling readiness for business to attract global investment.
The firm, however, indicated that the sector still faces challenges such as inadequate infrastructure and outdated geological data, which are hindering investors' confidence.
KPMG suggested that addressing those challenges could help maximize the country's mining potential and attract more investment.
