While countries with less mineral deposits are attracting investors we are left wondering why Nigeria with its huge mineral deposits is not only heavily dependent on oil but why there are so many illegal mining activities going on in the country when systematic mining can boost the economy.
The Nigerian Extractive Industries and Transparency Initiative, NEITI report suggests that there are about 40 different kinds of solid minerals and precious metals buried in Nigerian soil waiting to be exploited.
Just before the discovery of oil in the late 1950s The country was one of the world’s largest producer of Columbite and the sixth largest producer of tin.
After oil was discovered, the mining sector became plagued with illegal mining, smuggling of gemstones and other high value minerals. Also, the country suffered from the loss of local and international expertise, loss of revenues in taxes and royalties and the degradation of the environment.
This sector was finally devastated by the government’s policies which discouraged private sector participation especially after the establishment of the Nigerian Mining Corporation and numerous other government agencies to regulate the sector.These agencies have obviously bogged down the mining sector due to inefficient systems and practices and the immense opportunities missed to capitalize on the upswing of commodity prices.
Government involvement was triggered by Nigerian Civil war which resulted in withdrawal of foreign companies thus leaving a vacuum.
This very rich sector could be Nigeria's lifeline, but only if Nigeria can harness its resources and potentials thus destroying this poverty wallowing legacy that seems almost insurmountable.
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