Joomla TemplatesBest Web HostingBest Joomla Hosting

In order to view this object you need Flash Player 9+ support!

Get Adobe Flash player
Joomla! Slideshow
Click on the slide!

Agriculture

From Rediscover Nigeria desk

  AGRICULTURE   The wealth of a nation is partially measured by its ability to guarantee its citizenry food security.In…

More...
Click on the slide!

Manufacturing

From Rediscover Nigeria's Desk

Manufacturing in Nigeria concentrates mainly on the production of consumer goods. With a population estimated today at over 156 million…

More...
Click on the slide!

Nigeria! Overview

About rediscovernigeria! >> About us

From Rediscover Nigeria's Desk

Tourism in Nigeria has huge potentials to be a major foreign exchange earner. The Obasanjo administration has created awareness among…

More...
Click on the slide!

Nigeria's Resources

Image taken from the movie "Transformers"

Nigeria's total verified external debts as at December 2010 was US$4.578 billion as against US$3.947 billion in 2009. Total scrutinized…

More...
Frontpage Slideshow (version 1.7.2) - Copyright © 2006-2008 by JoomlaWorks
Rediscover Nigeria Nigeria!Overview Nigeria's Resources

Nigeria Resources

Nigeria is one of the most endowed countries in the world. All the component units of Nigeria have rich mineral resources. The country's vegetation has also greatly helped in the diversity of the mineral resources available. These vary from the oil deposits in the Niger Delta to the phosphate in the semi - desert area. As there is a variety of food and cash crops, mineral deposits of different varieties also abound all over the country.

Industrial Material

Solid Mineral

Precious Metals/Stones

Hydrocarbons

Salt, Phosphate, Gypsum, Kaoline, Lead, Zinc, Bentonite, Limestone, Marble, Mica, Talc Iron Ore, Tantalite, Tin, Columbite, Lignite, Tranium, Bauxite, Coal

Gold, Amethyst, Beryl, Emerald, Tourmaline, Aquamarine, Sapphire, Ruby, Topaz, Zircon, Garnet

Oil, Gas, Bitumen

Other Industrial minerals include Glass sand, Diatomite, Clay, Dolomite, Feldspar and Barytes.

COAL

Geological surveys show that there are proven reserves of more than 600 million metric tonnes of coal and indicated reserves of about 2.6 billion metric tonnes. The surveys show that there are different varieties of this resource found in many parts of the country. These include Lignite, Sub  Bituminous and Bituminous Coal found in both underground and open cast mines. Coal is spread over 13 States of Nigeria and is currently not being commercially exploited.

It is an enormous resource and Nigeria is seeking partnership with private sector entrepreneurs to develop the mines. Current mines located in Enugu, Okaba and Owukpa are dormant. The Nigerian Coal Corporation located in Enugu is the statutory body entrusted with the management of the coal resources of Nigeria. The current privatization effort of the Federal Government of Nigeria creates enormous opportunities for competent and reputable private sector organizations to acquire coal sites for exploration, exploitation and export.

The Power Sector Reform Bill of Nigeria which has de-regulated the generation and distribution of electricity equally provides enormous opportunities for organizations willing to exploit coal to supply electricity. This creates a big avenue to meet Nigeria's energy deficits.

BITUMEN

Enormous deposits of bitumen abound along a 120 km stretch spanning three states of Nigeria. The tar sand is one of the very few in Africa with elemental sulphur in addition to nickel and vanadium. Preliminary surveys indicate the equivalent of more than 40 billion barrels. Presently, no appreciable progress has been recorded in its exploitation but the Federal Government fully aware of its enormous downstream prospects, has delineated the belt into blocs and has called for bids.

Investors interested in exploiting bitumen resources can take advantage of the massive rehabilitation of highways going on across the country  and the construction of super highways that have been approved by the Federal Government. Nigeria is going through a major structural reform which has created investment opportunities. The sub-regional markets for this product equally makes it an area of key investment in the immediate future.

OIL

Over the last ten years, proven reserves of crude oil have increased from about 25 billion barrels to 37 billion barrels. With greater investment in exploration through new incentives, new fields especially in the Gulf of Guinea, are being discovered. The target is to move reserves from their current level to 40 billion barrels, and a production capacity of 3 million barrels per day (MBPD) up from the current 2.5  MBPD by 2015.

The growing potentials of Nigeria in the world's energy supply equation should be a continuous source of encouragement for investors in both the upstream and downstream sectors.

GAS

Gas is certainly more in abundance in Nigeria than oil. Today, about 40% of the associated gas in oil drilling is flared. With an estimated 176 trillion cubic feet, gas will be the cardinal revenue earner for Nigeria in the next five years.

There is a Liquified Natural Gas (L.N.G) Plant with a capacity for about 22 million metric tonnes of L.N.G and 4 million metric tonnes of Liquified Petroleum Gas (L.P.G). Other L.N.G plants are being planned in two locations in Nigeria and as world energy demand continues to soar, it is a worthy venture exploiting this clean and cheaper source of energy to meet global demands.

LIMESTONE

Limestone deposits in different parts of Nigeria are in excess of 2 billion metric tonnes. The country till date imports cement because of the dearth of cement factories to meet domestic demand. Annual demand for Portland cement is about 17 million metric tonnes (MMT) while domestic production stands at below 12MMT.

The massive infrastructural development planned for execution with the Transformation Agenda will shoot demand for Cement to 25MMT annually over the next five years.Investors have a very lucrative opportunity by taking advantage of these deposits to set up cement factories in different parts of the country to meet domestic demand and export to the sub-region.

GOLD

Substantial Gold deposits in both alluvial and eluvial occurrences have been identified in states such as Niger, Kaduna, Zamfara, Osun, Kebbi, Kogi and Edo. This presents opportunities for mechanized mining particularly for alluvial gold.

BARYTES

Barytes is a major component of drilling by oil companies operating around the world. The mineral is in very high demand with the increased activity in oil exploration. It is abundantly available in various grades in Nigeria. Its production to date is still mainly in the hands of small scale miners. The opportunities presented by the sector in the establishment of processing plants have become more attractive considering the ongoing economic reforms in Nigeria and a guaranteed local market. The main deposits identified till date are in Nasarawa, Benue, Taraba and Cross River States.

GENERAL

The Ministry of Solid Minerals Development, the Nigerian Geological Survey Agency (NGSA) and the World Bank have helped to create a data base, Produce Maps and reports in addition to publications through National Surveys. In 2010, the Federal Government created a Solid Mineral Development Fund to boost Mining activities. The Mining Cadastre Department of the Ministry has computerized its documentation and its system of processing applications granting more than 10,000 licenses since 2008. It is possible to apply and have on-line access and registration of mining titles.

Mining in Nigeria is still largely dominated by artisanal miners who are estimated to be mine than 500,000 in number. They are unorganized and engage in highly risky business.

INCENTIVES

Investors are being invited into Nigeria with a combination of incentives to participate in Nigeria's extractive industry.

Before 1972, mining contributed a reasonable portion of Nigeria's export earnings particularly from Coal, Tin and Columbite. An indigenization decree was promulgated which transferred mining holdings into the hands of local entrepreneurs who had little capital and management skill in the industry. Today, it contributes about 0.3% of Nigeria's total Gross National Product. The law has been repealed. Among the new incentives in place are:-

  • 3 - 5 year Tax holiday for new investors.
  • Deferred royalty payments.
  • Custom Duty exemption on agreed list of Mining equipment, machinery and accessories.
  • 10% reduction in Capital Gains Tax (from 20% - 10%
  • 5% reduction in Companies Profit Tax (from 35% - 30%)
  • Capitalization of expenditure on surveys.
  • 100% foreign ownership of enterprise.
  • Investment protection guarantee.
  • Repatriation of profit on venture.



6737 guest(s) read this Article today

 
Activity Stream
 
Banner