Economic Diversification in Nigeria: Any Role for Solid Mineral Development?

Abstract

For over four decades, the Nigerian economy has mostly depended on proceeds from the sale of crude oil. This is at the expense of other sectors such as solid minerals and agriculture that hitherto, contributed significantly to the economy of Nigeria. Employing both qualitative and quantitative analysis, this paper shows that the solid mineral sector in Nigeria has the potential to contribute immensely to the economy of Nigeria. Specifically, the paper reveals that the development of the solid mineral sector could help to combat poverty in Nigeria via job creation; especially, given its forward linkage with other sectors of the economy. Most importantly, it could help alleviate some of the problems associated with “enclave” nature of the Nigerian economy that has for too long being vulnerable to fluctuations in global oil prices. To realize these potentials, the paper highlights the need for a strengthening of Nigeria’s existing solid mineral development policy. It also points out the need for the government to create an enabling environment for the private sector to take the lead in the sector.

DOI: 10.5901/mjss.2013.v4n6p691