Mining and Infrastructure Development in Nigeria: Appraisal of the Legal and Policy Framework for Investment and Sukuk

This research study focuses on the extractive minerals sector as limited current research exists on the Nigeria‟s mining sector, compare to oil and gas which has been extensively researched. Nigeria has distinctive opportunities and challenges in relation to its extractive industries. Over the years, Nigeria has recorded significant fortunes in terms of revenue generated from oil and gas sector. However, failure to manage these resources effectively, diversify the economy and invest in infrastructure to create inclusive growth, has kept the country entangled in development challenges. Furthermore, the recent instability in global oil markets has resulted in considerable drop in Nigeria‟s revenue and thereby compounded the problem, hence, diversification is necessary. While Nigeria‟s mining sector is considered to be a potential alternative source of revenue, poor regulatory and policy frameworks, inadequate infrastructure and lack of investment create a serious setback to the sector. This study seeks to investigate the factors that can improve foreign direct investment and enable the use of innovative financial instruments for financing mining projects in Nigeria. Overall, the study explores key issues underpinning debates on mining and development. It finds that reviving the mining industry in Nigeria requires integrated reform to address issues of investment, industrial infrastructure and effective regulation. Adopting a three-pronged approach of analysis through legal, spatial and economic dimensions, this thesis interrogates how foreign direct investment and Islamic Finance instruments, particularly Sukuk could stimulate Nigeria‟s mining sector.