Why Nigeria is auctioning N12.7 billion mining contract

Why Nigeria is auctioning N12.7 billion mining contract

To diversify its export revenue, Nigeria, Africa’s largest economy said it is auctioning mining contracts worth N12.7 billion.

The contracts will be given to eight mining firms who are chosen after the auction.

The state minister of mineral resources, Abubakar Bawa Bwari, said:

“Today the Federal Executive Council (Nigeria’s cabinet) approved the contract for exploration and consultancy on some of our targeted minerals – like gold, industrial minerals, earth metals, iron ore – for four companies in exploration and four companies in consultancy.”

Cited by Reuters News, Bwari said the exploration and consultancy work would result in data that would encourage potential mining firms to invest in Nigeria.

“Our major challenge is the bankable data, most mining companies will not want to come into your country when they are not sure of what they are going to meet,” he said.