Mining sector and Nigeria’s industrialization

Mankind has strived in different ways to evolve, survive, develop, create wealth, organize safe societies and sustain human survival. Of the three different responses by mankind to survive – urbanization, industrialization and mining, mining is the oldest. Accessing specific mineral materials for the good of humanity has been an essential part of human existence since the prehistoric era. In Nigeria, a country endowed with over 44 different mineral types, occurring in commercial quantities in over 500 locations across the 36 states and the Federal Capital Territory, is naturally situated for regional and global industrial productivity. Cutting across various mineral spectrums, we have industrial minerals such as barite, kaolin, gypsum, feldspar, limestone, bitumen, lignite, uranium, gold, cassiterite, columbite, iron ore, lead-zinc, copper, among others. With these mineral endowments, Nigeria is naturally positioned for limitless opportunities for industrialization and economic growth. How then can Nigeria embrace the mining sector for productivity? To build our economy better, boost the Gross Domestic Product (GDP), achieve high rates of employment opportunities and create a thriving enterprise ecosystem, we need a functional mineral sector governance.

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As Nigeria’s mining sectors continue to attract investor interests, extractive sector governance is required to ensure that our regulatory framework and laws are implemented

As the world moves towards digitization and automation revolution, there are immense opportunities linking mining and technological development. Minerals constitute a core component of inputs used in the production of technological gadgets like batteries, solar panels, laptops, mobiles and other ICT gadgets. To fully explore the opportunities of the sector for productivity, the federal government, which has the constitutional exclusivity of ownership, management and revenue collection, distribution and management, must strengthen Nigeria’s geosciences base – which is to drive investment growth into exploration and mining industries through improvements in data accessibility for investors and other participants in the sector.

The mining sector has remained evident as a viable alternative to Nigeria’s oil-based mono-economy. With the potential for inter-sector growth, increase Nigeria’s export ratio, and with a global commodity price rise, there has been both local and foreign investor interests in Nigeria’s extractive sector. To unlock the full potential of Nigeria’s mining sector in galvanizing Nigeria’s industrialization, government regulatory institutions must maintain the required reforms that would underpin the 2017 roadmap for the growth and development of the sector. The government must ensure that we have a competitive minerals and mining climate that is capable of contributing to processing quality products, creative wealth creation, providing jobs for the people and enhancing social wellbeing. As Nigeria’s mining sectors continue to attract investor interests, extractive sector governance is required to ensure that our regulatory framework and laws are implemented and that the mineral rights and responsibilities of investors and firms as provided particularly by the principal law governing the sector – the Nigerian Minerals and Mining Act, 2007, are secured.

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Beyond local approval and cooperation, companies’ activities must comply with the principles of the environmental, social and governance (ESG) standards and requirements of the global marketplace. Given the multinational nature of extraction, processing, production and transportation of mined products, mining firms must abide by global standards. With decades of stagnation in the Ajaokuta steel project and illegal mining across many states in Nigeria, greater transparency is required in the Nigerian mineral and mining ecosystem.

With increasing demand for energy and low-carbon technologies, an unprepared extractive industry is likely to struggle to meet rapid increases in demand of mineral and metals for production. In examining future energy demand and composition through the year 2040, renewable energies are the fastest growing sources of energy and renewable energy technologies such as electric vehicles, solar photovoltaics and wind turbines, all have huge and significant material needs. Government, therefore, must remember that the key factors limiting mineral extraction are not physical limitations, but also environmental, social and economic challenges. This requires state intervention to ensure that these connected challenges are met.

As global warming becomes more pronounced, the mining sector has a huge role to play in the world’s transition to a low-carbon economy and in the mitigation of the climate crisis. Though mining firms are natural targets for emission-reduction efforts, legislation and lack of lending from investors looking to minimize their own climate risks, regulators must ensure that mining firms’ projects are not inhibited by carbon taxes. To achieve Nigeria’s industrialization through the mining sector, both regulators and mining firms must work to ensure sustained aversion to high-carbon projects. It is to this drive that Blu Quarry and Mines ‘extractive activities are confined to environmentally friendly technologies in almost all of our processes.

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To advance and drive Nigeria’s development goals, embracing the mining revolution is critical in achieving industrialization. Perhaps, embracing the revolution will start with a secured sector security. Without security, it is difficult to attract credible, sustained and profitable investments in the sector, given that most mining locations are within rural areas. Social infrastructures like good road networks are directly linked and connected to physical security in the sector, hence, public-private partnership is required to ensure that mining firms contribute to providing basic infrastructure that also benefit host communities. With good infrastructures, regulation, credible firms and cordial host communities’ engagement, the mining sector holds the key to Nigeria’s industrial and sustainable development.