By Engr Alexander Elemo, MNSE (Nig), FIEAust (Aus), & CPEng (Aus).
Nigeria, blessed with an abundance of natural resources, remains a land of untapped potential when it comes to mineral wealth. While the country has historically leaned on oil as it’s economic mainstay, its vast deposits of underexplored and unexploited minerals hold the key to significant economic diversification. Unlocking these resources offers a path to sustainable growth, industrialization, and poverty alleviation.
A Treasure Trove of Minerals
Nigeria is endowed with over 40 mineral types scattered across its 36 states and the Federal Capital Territory. Among these, some key minerals remain underexplored, offering immense opportunities for growth and development.
1. Bitumen
Nigeria boasts one of the largest bitumen reserves in the world, yet this resource remains largely untapped. Found in states such as Ondo, Lagos, Ogun, and Edo, Nigeria’s bitumen deposits are estimated at over 42 billion tons. As global demand for bitumen in road construction and industrial applications grows, developing this resource could significantly enhance infrastructure and create jobs.
2. Gold
Gold mining in Nigeria remains predominantly artisanal and small-scale, despite the
country’s significant deposits in Zamfara, Kebbi, Kaduna, Niger, and Osun states. With
proper regulation, mechanization, and investment, gold mining could become a leading export commodity, rivaling the success stories of Ghana and South Africa.
3. Lithium
As the world transitions to cleaner energy sources, lithium—a key component in rechargeable batteries—has emerged as a mineral of strategic importance. Nigeria’s lithium deposits, primarily found in Nasarawa, Kwara, and Kogi states, have yet to be exploited on a large scale. This presents a golden opportunity to integrate Nigeria into the global electric vehicle and renewable energy value chain.
4. Iron Ore
Iron ore, vital for industrialization, is found in vast quantities in Nigeria, particularly in Kogi,
Enugu, and Niger states. Despite hosting over 2 billion metric tons of reserves, the country
imports significant quantities of steel. Revitalizing iron ore mining and developing local steel production would drastically reduce imports and boost construction, automotive, and manufacturing sectors.
5. Rare Earth Elements (REEs)
REEs are indispensable in modern technologies, from smartphones to military equipment.
Nigeria’s deposits, particularly in states such as Plateau and Nasarawa, are among the least explored. With rising global demand, tapping into this resource could position Nigeria as a
critical player in high-tech manufacturing.
Challenges Hindering Exploitation
Despite the wealth of opportunities, several barriers have hindered the exploration and
development of these resources:
• Infrastructure Deficits: Many mining regions lack adequate transportation and
energy infrastructure, which increases the cost of extraction and processing.
• Regulatory Bottlenecks: Overlapping policies and inconsistent regulations
discourage foreign and local investment.
• Insecurity: In regions rich in minerals, illegal mining and insecurity create instability,
threatening legitimate operations.
• Funding Constraints: The capital-intensive nature of mining deters small-scale
operators, while limited government funding hampers large-scale projects.
Seizing the Opportunities
Addressing these challenges requires a multi-pronged approach:
• Policy Reforms: Streamlining regulations and offering investor-friendly incentives
can attract international mining companies. Ghana’s success in gold mining serves as
a blueprint for policy-driven growth.
• Infrastructure Development: Investing in railways, roads, and power plants in
mining regions will reduce operational costs and attract investors.
• Environmental Management: Adopting sustainable mining practices will ensure
minimal environmental degradation while maximizing resource extraction.
• Capacity Building: Training and equipping local artisans with modern tools can
transition them from informal to formal mining operations.
Global Lessons and Local Prospects
Countries like Australia, Canada, and Chile have shown that with the right policies and
investments, mining can become a cornerstone of economic growth. For example, Australia’s strategic development of its lithium reserves has positioned it as a global leader in renewable energy materials. Similarly, Chile’s dominance in copper mining stems from sustained government support and international partnerships.
By emulating such strategies and fostering collaborations between private and public sectors,
Nigeria can unlock its untapped mineral wealth. The Ministry of Solid Minerals
Development, under the leadership of Dr. Dele Alake, has recently introduced policies aimed
at formalizing artisanal mining and attracting global investors. These efforts, combined with
Nigeria’s abundant resources, present a unique opportunity to reshape the nation’s economic
trajectory.
Conclusion
Nigeria’s underexplored mineral wealth is a goldmine of opportunities waiting to be
unlocked. From lithium to gold, iron ore to bitumen, these resources hold the potential to
diversify the economy, create jobs, and drive industrialization. However, achieving this
vision requires overcoming current challenges through policy reforms, infrastructure
investments, and sustainable practices.
