Globally, the Mining Industry suffered negatively from the impact of COVID-19 Pandemic (the Pandemic) in 2020. Although the sector was classified as “essential services” in many countries, the rapid outbreak of the novel Corona Virus at mining sites forced many mines to suspend operations for extended periods of time. While the industrial metals sector was more impacted due to limited production, the precious metals sector recorded better fortunes, especially Gold. This was largely due to the uncertainties around global crude oil prices and capital markets.

In Nigeria, despite the wide spread economic impacts of the pandemic, the Mining Sector (the Sector) exceeded budgeted revenue of the Federal Government (FG) in 2020 by about 10% (N2.09billion as against N1.9billion)1, and increased its contribution to the Nation’s Gross Domestic Product (GDP) by about 23% (2020: N656.18 billion; 2019: N369.00 billion2).

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Chibuzor Anyanechi

Risk Management partner in KPMG Nigeria and Ghana

KPMG in Nigeria