Nigerian mining clusters and the new quest for economic diversification

One of the core policies of President Muhammadu Buhari when he assumed office in 2015 was to diversify the economy from the dominantly based oil to other resources like solid minerals in order to sustain the economy.

The agenda for the solid mineral sector was to create wealth, expand the range of economic opportunities and help the sector increase its contribution to Gross Domestic Product (GDP).

Before the emergence of this current administration, the sector was inactive and was not able to contribute even N1 billion into government coffers. Under the Buhari administration, the sector came up with a robust RoadMap and policy initiatives to propel its activities.

However, the COVID-19 pandemic which disrupted and destabilised global economies also amplified the urgency of economic diversification.

To curtail the devastating effect of the pandemic on the livelihood of Nigerians, the President approved the implementation of the Nigeria Economic Sustainability Plan.

Part of the plan entails the development of Artisanal and Small-Scale Mineral Processing clusters for the development and harnessing of revenue from the mineral sector.

To facilitate the process, the Federal Government gave N6 billion to the Ministry of Mines and Steel Development for swift response to the economic impact of COVID-19 pandemic.

Mr Olamilekan Adegbite, the Minister of Mines and Steel Development, said that the fund which serves as palliative for the sector was committed to the setting up of six mineral clusters in the six geo-political zones of the country.

“During the lockdown, I was invited by the Vice President, Prof. Yemi Osinbajo, to come up with things to be done Post COVID-19 to help stimulate the sector. N6 billion was given to our sector as a palliative measure. We came up with setting up mineral clusters in the six Geopolitical zones. We have six regions in Nigeria and we are doing six projects,” he said.

The minister said that the ministry came up with building of a Gold Souk in Kano, Northwest to enhance gold trade and processing in the state.

He said the initiative would also help restore goldsmith profession that was almost extinct in Nigeria in order to add value to our raw gold rather than taking the mineral to Dubai.

He said that Bauchi was selected in the Northeast for its abundant kaolin, noting that the mineral was being imported by pharmaceutical and paint companies in Nigeria.

“The mineral is used for the production of mix kaolin and other drugs; Bauchi has a lot of kaolin and we are planning to develop them.”

Adegbite said that Kogi was selected in the North Central, as the state was also blessed with gold, adding that the ministry would build a Smelting plant there to aggregate the gold.

He said that Ibadan in Oyo State was selected in the Southwest for its abundant Gemstones market.

“The gemstone market in Ibadan is informal and the government is not getting anything out of the mineral. Therefore, the government is now going to formalise it.

“It is an international market , people come from outside the country but we are being exploited, we are going to regulate the market and also train people on gemstones cutting and polishing to add value to the mineral.”

He said that Ebonyi in the southeast was selected due to its large quantum of lead mineral, adding that a smelting plant would be built in the state to enhance activities of the artisanal miners in the zone.

The minister also said that Calabar was chosen in the South-South for its abundant Barite mineral. For the success of these projects, some of the selected state governors have given their supports, such as land for the development of clusters.

The Minister of State, Mines and Steel Development, Dr Uchechukwu Ogah, who visited the six states to seek for their Governor’s supports, said the clusters would seek to agglomerate Artisanal and Small-Scale miners, customers and other stakeholders, based on geographical proximity.

Ogah said it would promote efficiency, increase specialisation in minerals exploitation and marketing to generate desired revenue, job and wealth creation.

He said that the Ministry would focus on artisanal and small-scale mining activities as it constitutes over 90 per cent of the mining industry in Nigeria.

He said that the Federal government would soon embark on infrastructural development of the cluster areas, adding that “upon completion, the cluster would provide common facilities to enable easy formalisation of the artisanal mining activities in lead/zinc supply.

The Cross River State Government has handed landed property for the establishment of the clusters for south south zone.

The Governor of Cross River, Dr Ben Ayade, who was represented at the event by the Deputy Governor, Prof. Ivara Esu, said the state has approved five hectares requested by the Ministry for the cluster project.

Ayade said that the land would serve as a major centre for barite artisanal and small-scale miners in the South-South Zone.

He disclosed that the Federal government choose the state based on its large commercial deposits of the minerals; urging the ministry to ensure the immediate take off of the project.

He stated that the Certificate of Occupancy (C of O) for the land would be ready for collection soon.

The Governor of Ebonyi State, Dave Umahi who keyed into the programme and provided land, said that the choice of Ebonyi cluster was predicated on the fact that it was endowed with large commercial deposits of these minerals.

Umahi appreciated the Federal Government for choosing Ebonyi as host for the project in the zone, saying it would develop the South-East immensely.