Nigeria’s financial system has lengthy been dominated by oil, however our nation is sitting on a wealth of untapped alternatives within the stable minerals sector.
From gold to limestone, tin, and iron ore, Nigeria is richly endowed with assets that may remodel its financial fortunes. Nevertheless, the crucial query stays: how can Nigeria handle its stable minerals for long-term, sustainable progress?
Zambia’s expertise in copper mining affords a invaluable case examine. From my visits to the southern African nation, it’s evident that it has relied closely on copper for many years, and whereas the trade has introduced vital advantages, it has additionally uncovered the nation to a bunch of financial vulnerabilities and social challenges. Nigeria would do nicely to look at each Zambia’s achievements and its shortcomings to develop a extra balanced, inclusive, and sustainable technique for its personal mineral wealth.
From financial data, copper is to Zambia what oil is to Nigeria. The metallic varieties the bedrock of Zambia’s financial system, accounting for an estimated 70% to 80% of export earnings. In 2022 alone, Zambia earned $6.6 billion from copper exports, making it the world’s prime exporter of uncooked copper. These earnings are crucial for financing imports, paying off overseas debt, and supporting nationwide improvement efforts.
Past overseas trade, the copper mining trade offers a considerable variety of jobs and contributes considerably to Zambia’s GDP. Additionally it is a serious supply of presidency income, by way of company taxes, mineral royalties, and different fiscal devices. These revenues assist finance public companies, infrastructure, and social programmes.
However this success story comes with caveats. Zambia’s deep dependence on copper has uncovered it to the wild swings of worldwide commodity costs. When copper costs drop, so does Zambia’s financial stability. Revenues shrink, overseas trade turns into scarce, and finances deficits widen. Sounds acquainted? This boom-and-bust cycle has lengthy hindered constant financial planning and poverty discount.
Regardless of the billions earned from copper, a big portion of Zambia’s inhabitants, like in Nigeria, continues to stay in poverty. Inequality stays stubbornly excessive, and plenty of communities affected by mining actions see little profit from the sector. In the meantime, environmental degradation, air pollution, and displacement brought on by mining operations have change into factors of competition between firms, communities, and the federal government.
Zambia’s expertise additionally underscores the significance of governance and transparency. Points akin to tax avoidance by multinational mining firms, weak regulatory oversight, and restricted capability to watch environmental requirements have plagued the trade. Whereas there have been efforts to reform mining legal guidelines and enhance income assortment, implementation stays inconsistent.
Nigeria’s stable minerals sector continues to be in its infancy in comparison with Zambia’s copper trade, which presents a golden alternative to get issues proper from the beginning. I’m significantly excited by the reforms of the present Minister of Strong Minerals Improvement, Dr Dele Alake. Going ahead, listed here are among the key classes Nigeria can draw from Zambia:
Zambia’s overdependence on copper ought to function a warning. Nigeria should keep away from replicating this error by guaranteeing that its stable minerals sector is a part of a broader technique for financial diversification. Mining ought to complement, not exchange, efforts to spice up agriculture, manufacturing, and companies. A multi-sectoral strategy will assist cut back vulnerability to commodity worth shocks and foster extra steady, inclusive progress.
Nigeria should prioritize robust establishments, clear laws, and transparency in its stable minerals sector. This consists of guaranteeing that mining licenses are granted by way of clear processes, revenues are correctly tracked and used, and environmental laws are strictly enforced. The institution of an impartial regulatory physique and public disclosure of mining revenues—probably by way of initiatives just like the Extractive Industries Transparency Initiative (EITI)—can construct investor confidence and public belief.
A serious lesson from Zambia is the necessity to make sure that mining advantages attain native populations. Nigeria ought to implement insurance policies that promote native content material, together with job creation, abilities coaching, and infrastructure improvement in host communities. Income-sharing preparations, group improvement agreements, and participatory decision-making processes can assist stop conflicts and be certain that mining contributes to native well-being.
Zambia stays largely an exporter of uncooked copper, lacking out on the upper worth that comes from refining and manufacturing. Nigeria ought to try to keep away from this pitfall by investing in value-added actions akin to mineral processing, smelting, and manufacturing. This strategy not solely creates extra jobs but additionally helps construct industrial capability and retain extra worth throughout the nation.
Mining inevitably impacts the setting, however these impacts will be minimised with correct planning, regulation, and oversight. Nigeria ought to undertake strict environmental requirements, require environmental influence assessments, and implement restoration obligations for mining firms. Integrating sustainability from the outset can stop long-term injury and defend the livelihoods of affected communities.
To unlock the total potential of its stable minerals sector, Nigeria should pursue a well-coordinated, forward-looking technique that integrates classes from international locations like Zambia. This consists of:
Nigeria stands at a crossroads. It may possibly both fall into the identical entice of commodity dependence -replacing oil with metals or forge a brand new path the place stable minerals change into a part of a diversified, resilient, and inclusive financial system.
Zambia’s expertise with copper is a invaluable case examine of each the potential and the pitfalls of counting on pure assets. For Nigeria, the message is evident: managing stable minerals correctly requires extra than simply extracting and exporting. It calls for strategic planning, personal sector-led initiatives, inclusive insurance policies, robust governance, and a dedication to sustainability. By studying from Zambia’s journey, Nigeria can be certain that its mineral wealth turns into a blessing, not a burden, for future generations.
This text is written by Olajide Abiola, an entrepreneur based mostly in Abuja.
