For long, the Nigerian economy has been literally seating on a goldmine, courtesy of the huge but largely untapped potential of the solid minerals sub-sector. Over 34 solid mineral deposits across the six geopolitical zones of the country are waiting to be exploited for the benefit of Nigerians. Rather than take proactive steps to develop the sector, government at all levels are focusing on oil — a situation that made the country a mono-product economy with its attendant negative implications.

However, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, understands the connection between the opening up of the solid mineral deposits sub-sector and the economic growth and development of Nigeria and is determined to turn things around. The group rose from its 49th annual conference in Abuja last week, calling for the establishment of a Solid Minerals Venture Risk Fund and a specialised minerals development bank in order to realise the potential of the country’s solid minerals sub-sector.

NACCIMA did not stop there. It also made a case for government support to the sector through guarantees and grants, as well as robust advocacy and awareness campaigns on the vast potential of Nigeria’s minerals. The awareness campaign, NACCIMA said, should be carried out by all the three tiers of government and other relevant stakeholders on continuous basis throughout Nigeria through workshops, seminars, roadshows and conferences.

Simon Okolo, president, NACCIMA, explained that the association’s call for a Solid Minerals Venture Risk Fund and a specialised mineral development Bank became necessary against

the backdrop of ongoing national discuss on repositioning the economy in a way that would reduce its overwhelming dependence on oil and create a diversified springboard for steadier and sustainable growth and development. This, he said, also informed the choice of the theme of the conference: ‘Promotion and Development of Solid Minerals Exploration and Exploitation–A Veritable Strategy towards Economic Diversification.’

Okolo noted that it was universally acknowledged that the ability of a nation to generate foreign exchange determines the strength of its currency and economy, especially where foreign exchange was derived from diverse sources and not from a single product as is the case in Nigeria. He said the unexplainable neglect, coupled with the non-prioritised nature of the mineral resources sub-sector in Nigeria has increasingly become worrisome to the citizens.

The NACCIMA president disclosed that geological survey had shown positive indication of the existence of economic mineral deposits criss-crossing the six geopolitical zones of the country. “It is, therefore, disturbing that despite this encouraging discovery, Nigeria has continued to remain a mono-cultural economy based on crude oil exploration and exploitation, thereby neglecting this sub-sector, which is equally capable of generating as much foreign exchange earnings as crude oil if given the much needed attention and investment,” he said.

Okolo listed some of the available solid minerals in the country to include kaolin, barite, limestone, galena, pyrite, chalcopyrite, iron-ore, lead-zinc deposits, tin, quartz, and feldspar. Others include beryl, coal, tou

tourmaline, clay, sand, bentonite, wolframite, phosphate, and diatomite, among others. All these, he said, were expected to create opportunities for export and use in domestic industries to generate foreign exchange and boost internal revenue. The sector is also capable of creating employment opportunities for Nigerians particularly in the rural areas where these minerals are found. As far as he is concerned, the solid mineral sector could easily be the largest employer of labour in the economy since deposits abound in virtually every state of the federation.

Okolo highlighted a number of factors in favour of solid minerals in the country. For instance, the country is diverse with metallic and non-metallic minerals. Besides, international investors, he said, were prepared to bear exploration costs and risks if they were given a favourable policy framework. Already, the new national solid minerals policy of the federal government, which replaced the old mining laws and regulations offers a competitive environment for solid minerals development. He also pointed out the availability of international technology market and low cost mineral production process, which if properly sourced and assembled would minimise production costs thereby ameliorate the impact of falling mineral commodity prices.

Moreover, he noted that the deregulation of the mining sector under the Nigerian Investment Promotion Council Decree 1995, allowed 100 per cent foreign ownership of mining operations and other related enterprises. “The free repatriation of capital profits and dividends are added incentives. World Bank finance for mining is now readily available through several agen

agencies including the Multilateral Investment Guarantee Agency, MIGA of the World Bank, the International Finance Corporation, IFC, which funds mostly private sector activities and the International Development Association, IDA,” Okolo added.

 

Okolo: Highlights solid minerals sector’s potential