Making the mineral sector a blessing

In 2012, Michael L. Ross penned a book titled "The Oil Curse: How Petroleum Wealth Shapes the Development of Nations," which became a landmark work. The book highlighted the paradox surrounding oil wealth, asserting that it generates less economic growth than expected, disproportionately benefits men over women, exacerbates challenges for the impoverished, and fuels corruption due to foreign companies extracting resources in impoverished nations.

The book also noted that countries rich in petroleum are often less democratic, economically unstable, and prone to civil unrest. This phenomenon, Ross argued, appears to mirror the situation of mineral-rich African countries.

The Democratic Republic of Congo (DRC), one of the world's richest in solid minerals, struggles to thrive despite its wealth. Niger, with a uranium deposit and now petroleum, battles survival as it depends on foreign aid. Nigeria, similarly blessed with 44 solid minerals, has seen its mineral sector contribute to its GDP, with limestone being a major contributor.

The sector's growth is attributed to investments in processing and value addition. With measures aimed at local processing and refining, as suggested by the African Development Bank, the sector is expected to further contribute to Nigeria's GDP.

In the past two years, the mineral sector has brought about a significant increase in Nigeria's GDP, with limestone accounting for nearly 69% of total production. Companies like Romolus Mining are expanding their gold and lithium investments, and other domestic plants are expected to boost the sector's performance. The government's commitment to local processing and refining, as seen in Zimbabwe and Burkina Faso, could potentially enhance the sector's contribution to GDP.

However, challenges remain. Nigeria's Ministry of Solid Minerals Development faces scrutiny as some states enter into agreements with foreign entities without federal oversight, contrary to the Constitution. Criminality and conflict in mineral-rich states like Zamfara, Plateau, Kaduna, and Niger hinder progress. Despite efforts to address these issues, the sector's vulnerability persists due to criminal activities, environmental degradation, and insufficient transparency in mining operations.