However, after the discovery of oil, the Railway Corporation began to replace its coal-burning trains with diesel-powered engines.
An additional negative impact came when the Electricity Corporation of Nigeria began converting its power generation equipment from coal to diesel and gas as well.
The discovery of bituminous coal suitable for use in coke production for the iron and steel industries opens up potential new domestic markets.
With the loss of its largest domestic consumers, the NCC began exporting coal to Italy and the United Kingdom, as its low sulphur content is desirable.
[8] In 2003, the Nigerian government announced plans to create a technical advisory committee that would be tasked with reviving Nigeria's coal industry.
To raise funds, it began to sell off some of its assets in an attempt to pay off its mounting debt, including salary that was owed to its employees.