Coal mining, once written off as a relic of Nigeria’s industrial past, is staging an unexpected comeback. The sector rebounded from a steep 22% contraction in the year’s first quarter to a staggering 57.5% growth in the second quarter, making it one of the fastest-growing segments of the economy.
This turnaround is not happening in isolation. It reflects a broader shift in Nigeria’s economic priorities, where solid minerals are taking center stage after decades of reliance on oil. The government has rolled out reforms designed to add value to raw minerals before export and to secure mining operations against illegal activities.
From Decline to Momentum
Analysts note that the surge in coal mining points to both increased demand and improved regulation. Beyond coal, the wider solid minerals sector is being repositioned as a foundation for industrial growth, job creation, and foreign exchange earnings.
At the heart of these efforts is a policy that compels mining companies to present value addition plans before licenses are issued — ensuring minerals contribute more to Nigeria’s industrial chain rather than leaving the country unprocessed.
Security as a Catalyst
The turnaround has also been shaped by stronger oversight. The Mining Marshals, a special unit under the Nigeria Security and Civil Defence Corps, have been tasked with protecting mining sites nationwide. Since their deployment, over 300 illegal operators have been arrested, and nearly 100 sites reclaimed. Officials say this has created a safer environment for licensed operators to invest and expand.
Part of a Larger Recovery Story
Coal’s resurgence is one piece of a broader economic recovery that has defied expectations. Nigeria’s GDP grew by 4.23% in the second quarter of 2025, its fastest pace in four years and well above IMF projections. Inflation has also eased to its lowest point in three years, offering some relief to households and businesses.
The Road Ahead
While coal mining’s rebound underscores the potential of Nigeria’s underutilized mineral wealth, challenges remain. Industry watchers caution that long-term growth will depend on sustained security, consistent policy, and global demand trends — especially as the world gradually transitions to cleaner energy sources.
For now, coal’s unlikely resurgence is offering a glimmer of optimism: a sign that with the right policies, Nigeria can diversify its economy and tap into resources long overshadowed by oil.
