UPDATE 2-Nigeria sets ambitious target for mining sector growth

* Nigeria looks for investment in fledgling mining sector
* Minister aims to boost mining to 3% of GDP by 2025
* Mining sector growth aim is unrealistic - analyst

(Updates with analyst quotes, companies)
By Wendell Roelf
CAPE TOWN, Feb 5 (Reuters) - Nigeria expects its mining
sector to grow to 3% of GDP within the next five years from just
0.3% currently as the government seeks to diversify the economy
away from oil, the minister for mines and steel development said
on Wednesday.
Nigeria has been trying to boost the sector as part of
efforts to diversify its economy. Gold, lead, zinc, limestone
and coal are among seven strategic minerals Nigeria has
identified for investment.
"We've seen steady growth ... and we're now poised for
exponential growth as investments start crystallising,"
Olamilekan Adegbite told Reuters on the sidelines of the Mining
Indaba in Cape Town.
But insufficient geo-spatial data, weak infrastructure and
limited enforcement of regulations have held the industry back.
The government's aim is unrealistic, said Alexandre
Raymakers, senior Africa analyst at risk consultancy Verisk
Maplecroft.
"Nigeria's national infrastructure network is currently
ill-equipped to sustain major industrial mining operations that
would be needed to raise mining's GDP contribution to that
extent," he said.
Most mining of gold, tin and zinc in Africa's largest
economy is carried out on an artisanal basis.
Gold in the northwestern state of Zamfara is routinely
smuggled to neighbouring Niger and Togo. The government banned
mining in Zamfara last April due to banditry, but aims to lift
the ban by end-March. Foreign miners investing in the country include Australia's
Symbol Mining SL1.AX , developing lead and zinc projects in the
Benue Trough region, and Toronto-listed Thor Explorations
THX.V which owns the Segilola gold project north of Lagos.
Drumming up enthusiasm for the country at the conference,
Adegbite emphasised companies operating in Nigeria can wholly
own their projects, unlike in other African countries where the
state must hold a stake.
He said he expects 50 active mines by the end of his tenure,
in 2023.
Adegbite said the government would require mining companies
to sign agreements with local communities, who remain unhappy
with a perceived lack of development and benefits, before
investing.
"We've learnt our lessons from the oil industry and we're
not repeating that mistake, so one of the major fundamental
requirements before you can do anything in Nigeria is local
community agreements," he said.