Background

Nigeria’s untapped solid mineral deposits include over 34 mineral types that are situated in about 450 different locations across the country. The variety ranges from metallic minerals, mineral fuel, gemstones, and precious metals to dimension stones. As at the end of the first quarter of 2010, however, their contributions to the GDP was an abysmal 0.29%; denying the country of much needed reduction in unemployment levels and revenue.

Past Reform and Achievements

A new minerals policy was developed to encourage greater private sector participation in an orderly and sustainable solid minerals exploration environment. As part of this policy, government planned to produce a comprehensive and high quality geosciences data and formalize the existence of artisanal and small mining (ASM) operators. Government embarked on the continuation and improvement of the Minerals and Mining act of 2007 to ensure security of tenure, competitive fiscal terms, and private sector participation in the sector. A policy initiative, Commerce 44, was introduced to actively promote the exports of tantalite, coal, gold, silver, ilmenite-rutile, cassiterite, bitumen, lead-zinc, iron-ore, wolframite and manganese.

The Mining Cadastre Office (MCO) was created as an autonomous agency to administer mining titles with integrity and transparency on a ‘first-come, first-served’ basis. Fiscal incentives were designed for the solid mineral sector as a way of ensuring that the private sector is recognized as the explorers of Nigeria’s solid mineral resources.

The preparation of several comprehensive geosciences data sets has been completed, and it includes 27 new geological maps, airborne magnetic survey of the entire country and airborne radiometric survey of required areas, 2,385 interpreted airborne geophysical maps, and geochemical mapping of four global reference network cells. Geosciences research laboratories have been upgraded to world-class status. The processes and procedures of granting mineral titles have been computerized.

High-grade iron ore resources have been discovered. Ten additional minerals have been discovered in commercially viable quantities, to bring the number of Nigeria’s solid minerals to 44 from 34. Steel production has increased

Challenges and Next Steps

The problems of illegal mining should be urgently addressed, to prevent poisoning of illegal miner’s communities as it has been occurring in Zamfara State where lead from the illegal mining of gold has created a number of health hazards, especially on children. Investment in the sector should be increased. Mining regulations should be improved and inspection enhanced. Foreign investment in solid minerals should be intensified, to stimulate job creation.