CPEEL Monograph Series - Volume 1, Issue 3, 2014
Volume 1, Issue 3, 2014
Source: CPEEL Monograph Series 1, pp 1 –11 (2014)More Less
Nigeria is better known for its energy mineral resources (oil and gas). Yet, it is also well endowed with a variety of strategic solid mineral resources that are widely distributed across the 36 states of the country. The most important minerals are coal, iron ore, tin ore (cassiterite), columbite, manganese, lead-zinc, uranium, gold, barite, bitumen, marble, limestone and gypsum. However, the Federal Government has identified nine of the more than 34 minerals, namely, coal, iron ore, tin ore (cassiterite), manganese, lead-zinc, gold and barite as its key focal points.
The need to harness more efficiently these significant and widely diversified mineral resource endowments, has been further brought to the fore with the rebasing of the GDP in 2013, which made Nigeria the 26th largest economy globally. The data showed significant diversification of the economy from natural resource sector dependence. The natural resource sector, agriculture, and oil and gas, have lost their dominance in the production structure. The change in the emerging structure of the economy is important in that it will provide new economic opportunities that can be leveraged upon by investors and entrepreneurs in support of sustained economic growth and inclusive development. Also, the rebased GDP figures suggest the emergence of the post-petroleum era in Nigeria. Clearly, as increased economic activities (through more robust investment and production effort) along the value chain in the mining and metallurgy sectors are strengthened, further diversification of the economy will emerge. However, it must be noted that such positive development in the mining and metallurgy sectors will also be accompanied by a range of distinctive and challenging political, regulatory, economic, social, and environmental issues for the government, industry, other stakeholders and the local population.
Source: CPEEL Monograph Series 1, pp 12 –28 (2014)More Less
The main objective of this section is to provide an overview of the economic, political, social and environmental contexts of extractive industry in Nigeria and focus on the magnitude and complexity of its social and economic problems. Extractive industry dependence and vulnerabilities in the context of MDGs will also be highlighted. In addition, the regional and global settings as well as related issues will be discussed.
Source: CPEEL Monograph Series 1, pp 29 –34 (2014)More Less
The Minerals and Mining Act of 2007 and the Minerals and Mining Regulations of 2011 embody the sector's policy, regulatory and institutional frameworks. The Act empowers the Minister for Solid Minerals Development on behalf of the Federal Government to issue mining licenses. There are six types of licenses that can be issued. These are:
i. Reconnaissance permit;
ii. Exploration license;
iii. Small-scale mining license;
iv. Mining license;
v. Quarrying license; and
vi. Water use permit.
Artisanal and small-scale miners are not qualified to apply for mining license. They are entitled to reconnaissance permit, exploration and small-scale mining license. However, there are operators who do not have mining licenses and are illegally involved in mining, especially, of precious metals and gemstones. Two major requirements for a license, namely, 'proof of sufficient working capital' and 'technical competence to carry on the purpose' have pushed numerous small-scale miners into operating without mining license. The scale of illegal mining in Nigeria is widely known in the sector and across the country.
Source: CPEEL Monograph Series 1, pp 35 –48 (2014)More Less
Source: CPEEL Monograph Series 1, pp 49 –54 (2014)More Less
The robust long-term domestic economic growth fundamentals and prospects, the size of the domestic market, the upward trend and prospects in the global mining sector and the enabling mining environment highlighted by the Mining and Mineral Act of 2007, are necessary but not sufficient condition for achieving robust and sustainable mineral exploitation. Despite these positive initial conditions, the quest to achieve sustainable development of the solid minerals and the metal sectors as an essential element in the strategy to achieve a more diversified and inclusive economy, faces several challenges as highlighted.
Source: CPEEL Monograph Series 1, pp 55 –70 (2014)More Less
The exploratory research design is adopted for this study. Mining companies were visited in locations across the 14 states of the federation namely Kwara, Kogi, Ebonyi, Ekiti, Gombe, Oyo, Enugu, Osun, Edo, Sokoto, Niger, Plateau, Zamfara and Bauchi. These locations were purposively selected based on information retrieved from inception and discussions with the President of the Nigerian Miners Association. Specifically, a list of the key minerals in each of the states was provided. Further to this, contact was made with key members of the Miners Association in the respective states. Their consent was sought and, in most of the cases, the key officials agreed to facilitate the execution of the field work by identifying mining companies and employees within those companies that will take up the task of filling out the questionnaires.
Sustainable mineral development, inclusive growth and development : linkages and results from a general equilibrium modelSource: CPEEL Monograph Series 1, pp 71 –81 (2014)More Less
This section discusses the methodology and results obtained from the use of a Computable General Equilibrium (CGE) model to examine the macroeconomic impacts of mineral policy on the Nigerian economy. CGE Models have several advantages such as the following:
i. They incorporate all economic interactions in an economy,
ii. They provide a laboratory for quantitative assessments of total effects (direct and indirect) of policy changes,
iii. They capture the interdependencies among economic sectors, economic agents and economic markets, and
iv. They capture feedbacks among production block, income block, expenditure block and trade blocks.
In addition, the underlying database is provided by the Social Accounting Matrix (SAM) which ensures data coherency and consistency and they help to isolate the economic effects of specific policy shocks. The CGE model utilized for this report is a variant of the PEP 1-1 Single Country Model developed by Decaluwe et al. (2010).
Source: CPEEL Monograph Series 1, pp 82 –97 (2014)More Less
This study has attempted to provide a preliminary assessment of what is required to build a new, more diversified and environmentally sustainable economic future and inclusive development for Nigeria with robust mineral resource development strategy as the catalyst. In conclusion, as the country seeks to achieve sustainable wealth creation and economic prosperity through mineral resource development in the next two decades, the search for answers to realize a robust and sustainable solid mineral development strategy and implementation will involve a variety of stakeholders, politicians, government officials, industrialists, bankers, geoscientists, legislators, lawyers and economists.