Classes from Zambia: How Nigeria can handle its stable minerals for sustainable growth
Nigeria’s economic 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 {economic} fortunes. Nevertheless, the crucial query stays: how can Nigeria handle its stable minerals for long-term, sustainable development?
Zambia’s expertise in copper mining gives a helpful 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 business has introduced vital advantages, it has additionally uncovered the nation to a bunch of {economic} 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.
Zambia’s Copper: A Pillar of the Financial system
From {economic} information, copper is to Zambia what oil is to Nigeria. The metallic kinds the bedrock of Zambia’s economic 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 international debt, and supporting nationwide growth efforts.
Past international trade, the copper mining business gives a considerable variety of jobs and contributes considerably to Zambia’s GDP. It is usually a serious supply of presidency income, via company taxes, mineral royalties, and different fiscal devices. These revenues assist finance public companies, infrastructure, and social programmes.
The Value of Overreliance
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 {economic} stability. Revenues shrink, international trade turns into scarce, and price range deficits widen. Sounds acquainted? This boom-and-bust cycle has lengthy hindered constant {economic} planning and poverty discount.
Regardless of the billions earned from copper, a big portion of Zambia’s inhabitants, like in Nigeria, continues to reside in poverty. Inequality stays stubbornly excessive, and lots 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 turn into factors of rivalry between firms, communities, and the federal government.
Governance and Transparency: A Blended Document
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 observe environmental requirements have plagued the business. Whereas there have been efforts to reform mining legal guidelines and enhance income assortment, implementation stays inconsistent.
What Nigeria Can Study
Nigeria’s stable minerals sector remains to be in its infancy in comparison with Zambia’s copper business, which presents a golden alternative to get issues proper from the beginning. I’m notably excited by the reforms of the present Minister of Stable Minerals Improvement, Dr Dele Alake. Going ahead, listed below are among the key classes Nigeria can draw from Zambia:
1. Diversification Is Non-Negotiable
Zambia’s overdependence on copper ought to function a warning. Nigeria should keep away from replicating this error by making certain that its stable minerals sector is a part of a broader technique for {economic} diversification. Mining ought to complement, not substitute, efforts to spice up agriculture, manufacturing, and companies. A multi-sectoral strategy will assist cut back vulnerability to commodity worth shocks and foster extra secure, inclusive development.
2. Governance and Transparency Should Be Entrance and Centre
Nigeria should prioritize robust establishments, clear laws, and transparency in its stable minerals sector. This contains making certain that mining licenses are granted via clear processes, revenues are correctly tracked and used, and environmental laws are strictly enforced. The institution of an unbiased regulatory physique and public disclosure of mining revenues—presumably via initiatives just like the Extractive Industries Transparency Initiative (EITI)—can construct investor confidence and public belief.
3. Native Communities Deserve a Truthful Share
A significant 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, expertise coaching, and infrastructure growth in host communities. Income-sharing preparations, group growth agreements, and participatory decision-making processes may help stop conflicts and be certain that mining contributes to native well-being.
4. Add Worth at House
Zambia stays largely an exporter of uncooked copper, lacking out on the upper worth that comes from refining and manufacturing. Nigeria ought to attempt 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.
5. Environmental Sustainability Is Important
Mining inevitably impacts the setting, however these impacts might be minimised with correct planning, regulation, and oversight. Nigeria ought to undertake strict environmental requirements, require environmental impression 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.
The Path Ahead for Nigeria
To unlock the complete potential of its stable minerals sector, Nigeria should pursue a well-coordinated, forward-looking technique that integrates classes from nations like Zambia. This contains:
- Creating a transparent authorized and regulatory framework that encourages accountable funding;
- Constructing institutional capability to observe and implement compliance;
- Encouraging public-private partnerships in infrastructure and expertise growth;
- Strengthening knowledge assortment and geological mapping to draw traders;
- Selling public consciousness and group participation in mining governance.
Nigeria stands at a crossroads. It could possibly both fall into the identical lure of commodity dependence -replacing oil with metals or forge a brand new path the place stable minerals turn into a part of a diversified, resilient, and inclusive economic system.
Zambia’s expertise with copper is a helpful case examine of each the potential and the pitfalls of counting on pure assets. For Nigeria, the message is obvious: 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 primarily based in Abuja.