Nigeria: Blessed Beyond Curse (The Solid Minerals Transformation Agenda)

The recent economic (GDP) prediction by the IMF and Goldman Sachs for 2075 gave a glimpse of hope for a country like Nigeria, can rise to be the giant of Africa (and why not the world)! https://www.goldmansachs.com/intelligence/pages/the-global-economy-in-2075-growth-slows-as-asia-rises.html

For concerned stakeholders, 2075 seems a long time to wait for achieving a fortune of that magnitude since most of them especially those who have suffered the most from mismanagement of resources under past administrations cannot keep waiting for too long when they are still been blessed from nature with minerals that are majorly at their primitive stage of mining.

The countries with abundant blessings from nature are still suffering and struggling when what should be a blessing has now become a curse that has even taken lives and turned them into deserted nations with their citizen running to seek better lives outside their native countries.

Nigeria is not an exemption even though not in the worst situation yet but a lot of the abundant blessings from nature have been lost through corruption, mismanagement, lack of foresight, bad policies, and selfish leadership. However, despite all the uncountable losses, it has if we are just scratching the surface in terms of the abundance of mineral resources beyond just crude oil.

An abstract on the “Solid Mineral Deposits of Nigeria: Potentials, Challenges and Prospects” written by some concerned Professors (Hafizullah Abba Ahmed, Musa Bala Girei, Abdullateef Omeiza Ibrahim, Victor Ikechkwu Vincent, and others) concluded that despite all the current challenges faced, Nigeria is richly endowed with significant mineral occurrences of high economic potentials and the new strategic roadmap drawn by the present government, if vigorously pursued, thoroughly implemented and religiously sustained will significantly revamp the mineral sector.

The Ministry of Solid Minerals Development under the new leadership is revamping the ministry toward achieving the mandate that can facilitate the transformation of the Nigerian Minerals and Metals sector for sustainable Industrial Growth and Economic Surplus. It is anticipated that the approach will at least achieve 50 percent value to the Nigerian economy and poised to attract foreign direct investment to the country.

The current challenges in the industry have led to a lot of revenue leakages, promoted more insecurity, and other negative social impacts including environmental hazards which are now part of the need to urgently transform the industry.

In addressing these challenges, the Ministry has developed a strategy termed "Agenda for the Transformation of the Solid Minerals for International Competitiveness and Domestic Prosperity" with the following seven (7) deliverables:

1. Establishment of the Nigerian Solid Mineral Corporation

2. Joint venture with mining multinationals

3. Big Data on 7 specific Minerals and their deposits

4. Establishment of miners' cooperative and 30days grace period for illegal miners

5. Mine surveillance task force and police

6. Comprehensive review of all mining licenses

7. Creation of six Mineral Processing Centres (for VAS)

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With the above seven (7) agenda, it is expected that the industry will be transformed towards the potential of higher contribution to GDP, destination (attraction) for Foreign Direct Investment (FDI), and opportunity to facilitate economic activities that can birth employment and social development.

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Suggestions for a successful implementation of the seven (7) Transformation agenda:

1. Establishment of the Nigerian Solid Mineral Corporation

- Adopt an enhanced framework that can deliver better value for the implementation

- A framework that allows the establishment of a respective State Owned Solid Mineral Corporation, an SPV that will represent all stakeholders within the state including the Federal Government representation.

- The composition of the board and their shares should be weighted by each stakeholder's critical contribution and role to the industry

- The primary purpose of the SPV is to develop a database for miners, gather intelligence on solid minerals, off-takers of minerals, storage of the minerals, fix the market price, engage with buyers, and protect the interest of all stakeholders

- The management of the SPV will be handled by professionals to optimize the potential of high returns and greater value to all stakeholders

- The proposed Nigerian Solid Mineral Corporation should then act as a supervisory and representative of the Federal Government at the respective State Solid Mineral Corporations to protect the interest and drive the overall strategy for the industry

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2. Joint venture with mining multinationals

- The proposed framework (Stated Owned Solid Mineral Corporation) will be the engagement entity with respective mining multinationals for both technical and business partnerships while the licensing will be the sole responsibility of the Federal Government through the Ministry of Solid Minerals

- Because the engagement is at the state level, several factors that can protect the interest of stakeholders will be considered including social development through CSR from those multinational

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3. Big Data on 7 specific Minerals and their deposits

- Through the proposed framework, develop a digital register for all stakeholders within the state

- In addition, develop a digital register for all minerals having their location, deposit, and current state

- Conduct an environmental assessment of the community to identify infrastructural gaps

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4. Establishment of miners' cooperative and 30days grace period for illegal miners

- The proposed framework will encourage several miners' cooperation establishments to protect their interests and provide opportunities for representation

- This will be done at the state level but consolidated at the central to have a holistic database and effective stakeholder engagements

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5. Mine surveillance task force and police

- The proposed framework will be responsible for policing and surveillance, and it become more effective since all stakeholders within the state are fully represented

- The use of digital (or virtual) security solutions will be deployed to give a real-time view of both proactive and reactive measures

- In addition, at the central, intelligence will be shared towards enhancing and supporting emerging challenges across all the respective states

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6. Comprehensive review of all mining licenses

- This aspect will be coordinated at the central having input from all the proposed State-Owned Solid Mineral Corporations

- The central in addition will also license all the proposed State-Owned Solid Mineral Corporations with clear guidelines and support

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7. Creation of six Mineral Processing Centres (for VAS)

- Develop a framework for VAS across all the solid minerals

- Identity and engage possible partners

- Facilitate the establishment of those VAS

With all hands on deck and the serious commitment of stakeholders, the fortune of Nigeria can surpass the prediction and become a reality long before 2075!

Oluwaseun Adesanya (GS)