Economist Seeks Establishment Of Mineral Processing Zones Across Nigeria

News Investigators/ An Economist,  Abdul Ibrahim, has called for the establishment of mineral processing zones across Nigeria to promote value addition, create jobs and boost revenue from
Ibrahim, the Head of Economics Department at the Nasarawa State University, Keffi,   said the zones should be established based on the specific mineral resources available in each state to maximise comparative advantages and promote local processing.
He made the call while delivering a lecture titled “Harnessing Nigeria’s Economic Potential for Greater Prosperity” at the celebration of the Nigeria Union of Journalists (NUJ), News Agency of Nigeria (NAN) Chapel, at the agency’s headquarters in Abuja.
“States should identify their unique mineral endowments and establish processing facilities to support local industries, generate employment and increase the value of mineral products before export.
“For example, in Nasarawa, you can find lithium, in Jos, you can find tin,” he said
He stressed that the proposed zones should be established according to the mineral resources available in individual states rather than strictly along geopolitical zones.
He said Nigeria’s estimated 44 solid minerals, distributed across the 36 states, offered significant economic opportunities that remained largely untapped.
The expert said the estimated value of the minerals stood at about 700 billion dollars, but the sector contributed only 1.8 per cent to the country’s Gross Domestic Product (GDP).
Comparing Nigeria’s performance with other African mining economies, the economist said South Africa’s solid minerals sector contributed 6.2 per cent to its GDP, while Botswana’s contribution ranged between 30 and 38 per cent.
He said the figures showed the need for Nigeria to strengthen its mining sector through local processing, investment and improved productivity.
The economist identified the export of raw materials without adequate local processing as one of the major obstacles to Nigeria’s economic prosperity.
“We export and then import finished product from that raw material,” he said.
He said the practice denied the country employment opportunities while allowing other countries to benefit from processing its mineral resources.
“Because as we export our critical raw materials, what we are simply doing in economic perspective, is that you are importing unemployment to your own economy and you are creating employment opportunity elsewhere,” he said.
The economist cited lithium and tin as examples of minerals that could support processing activities in states where they were available.
The economist acknowledged existing government efforts to promote value addition in the mining sector but stressed the need for effective implementation of policies requiring investors to present value addition plans before obtaining mining licences.(NAN)