The Solid Minerals, mining and quarrying sector contributed a total sum of N1.39tn to Nigeria’s Gross Domestic Product in 2024, according to the GDP report recently released by the National Bureau of Statistics (NBS).
Thia represents a 21 per cent decline from the N1.76tn contribution recorded in 2023 despite various reforms and policy changes aimed at revitalising the sector under the current administration.
The report also revealed an uneven performance during the year under review. For instance, the sector contributed 6.33 per cent to the overall GDP in the fourth quarter of 2024, higher than the contributions recorded in fourth quarter of 2023, at 4.47 per cent.
Overall, the sector’s year-on-year contribution fell by N370bn.
The report reads, “The Mining Quarrying sector contributed 6.33 per cent to the overall GDP in the fourth quarter of 2024, higher than the contributions recorded in 2023 fourth quarter at 4.47 per cent and lower than the previous quarter at 7.72 per cent.
“However, the contribution of the sector in 2024 was 6.87 per cent relative to 6.47 per cent in 2023. In real terms, the Mining and Quarrying sector grew by 2.23 per cent (year-on-year) in the fourth quarter of 2024. Compared to the same quarter of 2023 and the third quarter of 2024, it was lower by 5.81 percentage points and lower by 1.03 percentage points respectively.
“Quarter-on-quarter, the growth rate recorded was -3.35 per cent during the quarter. Overall, the sector grew by 4.85 per cent in 2024 relative to -2.84 per cent in 2023. In total, the sector contributed 5.64 per cent to aggregate GDP in 2024, compared to 5.56 per cent recorded in 2023.”
Low coal output, strong on metals
According to the report, a signicant underperforming mineral was coal. The coal mining sub-sector rexordes a major drop, contributing only N9.29b in 2024, a notable decrease of N15.69b or 62.8 per cent compared to N24.95b it recorded in 2023, reflecting diminished investor interest.
Similarly, the quarrying and other minerals sub-sector’s contribution fell from N1.69t in 2023 to N1.28t in 2024, marking a notable decline of N410b or 24.26 per cent.
On a more positive note, the metal ores sub-sector recorded substantial growth, with its contribution rising from N44.22b in 2023 to N103.51b in 2024, reflecting a N52.29b or 134.07 per cent increase of economic activity and investor confidence within this segment.
Overall, the quarrying and other minerals sector recorded the highest contribution of N960.32b in the fourth quarter of 2024.
In total, the sector remitted a total sum of N38.19bn to government coffers for disbursement to the three tiers of government in 2024.
*With report from SyndiGate Media Inc.
