It is no longer news that Nigeria’s solid minerals sector faces numerous challenges that include illegal mining, inadequate infrastructure, regulatory hurdles, and a lack of investment in creating value addition. Others are unfavourable laws in the sector, high capital outlay, inadequate professionals in the sector, etc. These problems hinder the sector’s potential to contribute significantly to Nigeria’s economic growth.
Across various states with solid mineral deposits, the exploitation of these minerals and natural resources has had severe environmental consequences, often leading to the destruction of habitats, pollution of water bodies, and soil erosion, among other problems.
At the regulation and management level in Nigeria, the nation has been contending with issues of accountability, transparency, good governance, uncertain regulatory frameworks, environmental sustainability, and unreliable power supply, which have consistently hindered the smooth operations in the solid minerals sector.
As the adage goes, recognising your problem is the beginning of the solution. This, most times, is not the case with Nigeria, as Nigeria will always need something extra to make things work – the political will.
Meanwhile, if Nigeria desires to manage its solid minerals for long-term, sustainable growth, an example of Zambia’s practice in copper mining offers a good case study – both achievements and shortcomings.
From records, copper is to Zambia what crude oil is to Nigeria. Copper forms the base of Zambia’s economy, accounting for about 70 percent of its export earnings. In 2022, Zambia earned $6.6 billion from copper exports, making it the world’s top exporter of raw copper. Apart from foreign exchange, copper mining provides jobs and contributes significantly to Zambia’s gross domestic product. It is also a major source of government revenue through corporate taxes, mineral royalties, and other fiscal instruments. This revenue helps Zambia finance public services, infrastructure, and other social programmes.
However, Zambia’s experience has also underscored the importance of governance and transparency, with associated issues such as tax avoidance by multinational mining firms, weak regulatory oversight, and limited capacity to monitor environmental standards plaguing the industry, according to Olajide Abiola, a visitor to Zambia’s copper field, in a recent article.
Although Nigeria’s solid minerals sector is still in its infancy compared with Zambia’s copper industry, Nigeria can draw lessons from Zambia:
Diversification is non-negotiable: Zambia’s overdependence on copper should serve as a warning. Nigeria must avoid replicating this mistake by ensuring that its solid minerals sector is part of a broader strategy for economic diversification. Mining should complement, not replace, efforts to boost agriculture, manufacturing, and services. A multi-sectoral approach will help reduce vulnerability to commodity price shocks and foster more stable, inclusive growth.
Governance and transparency must be core: Nigeria must prioritise strong institutions, clear regulations, and transparency in its solid minerals sector. This includes ensuring that mining licences are granted through transparent processes, revenues are properly tracked and used, and environmental regulations are strictly enforced. The establishment of an independent regulatory body and public disclosure of mining revenues, possibly through initiatives like the Extractive Industries Transparency Initiative, can build investor confidence.
Local communities deserve a fair share: A major lesson from Zambia is the need to ensure that mining benefits reach local populations. Nigeria should implement policies that promote local content, including job creation, skills training, and infrastructure development in host communities. Revenue-sharing arrangements, community development agreements, and participatory decision-making processes can help prevent conflicts and ensure that mining contributes to local well-being.
Value addition: Zambia remains largely an exporter of raw copper, missing out on the higher value that comes from refining and manufacturing. Nigeria should strive to avoid this by investing in value-added activities such as mineral processing, smelting, and manufacturing. This approach not only creates more jobs but also helps build industrial capacity and retain more value within the country.
Environmental sustainability: Mining unavoidably impacts the environment, but these impacts can be minimised with proper planning, regulation, and oversight. Nigeria should adopt strict environmental standards, require environmental impact assessments, and enforce restoration obligations for mining firms. Integrating sustainability from the outset can prevent long-term damage and protect the livelihoods of affected communities.
More importantly, Nigeria must adopt a strategy that integrates lessons from other solid minerals mining nations, such as creating a clear legal and regulatory framework that encourages responsible investment, and build institutional capacity to monitor and enforce compliance. Others may include encouraging public-private partnerships in infrastructure and skills development; strengthening data collection and geological mapping to attract investors; and promoting public awareness and community participation in mining governance.
As another adage goes, an intelligent person learns from his mistake, but a wise person learns from others’ mistakes. The world has realised that crude oil exploration is nearing its end; Nigeria should, with the right political will, be deliberate to make the solid minerals sector, to a large percentage, add to the nation’s internally generated revenue instead of constantly waiting on customs duty and crude oil revenue to make up our annual budget.
