Character of Extractive Industries on Solid Minerals - Cateiffn.org

An Evaluation <strong>of</strong> the Nature and <strong>Character</strong> <strong>of</strong>
The Nigerian <strong>Extractive</strong> <strong>Industries</strong>

An Evaluation <strong>of</strong> the Nature and <strong>Character</strong> <strong>of</strong>
The Nigerian <strong>Extractive</strong> <strong>Industries</strong>
Vol 2
Solid Minerals

© Coalitions for Change, 2010
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copyright owner.
ISBN: 978-978-906-653-7
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Affirmation
In Nigeria’s monocultural economy, the extractive industries are at the heart <strong>of</strong> effective use <strong>of</strong>
resources and formal accountability. The oil and gas industry is the major source <strong>of</strong> revenue for
the country. It has therefore attracted a lot <strong>of</strong> attention both locally and internationally, for
obvious reasons. The DFID Drivers <strong>of</strong> Change research places events in this sector at the centre
<strong>of</strong> its analysis too. The research found that Nigeria needs to address three key issues standing
in its path to national development . These are system to manage our resources well, processes
<strong>of</strong> accountability to citizens and others whom we owe obligations and diversification <strong>of</strong> our
revenue source - oil alone cannot lift us out <strong>of</strong> poverty. The Coalitions for Change (C4C)
Programme is DFID’s flagship programme to support Nigerians in leading institutional change
towards better resource management. C4C does this by bringing together Nigerians from
within and outside government to work side by side in designing interventions that can help
Nigeria achieve the Millennium Development Goals, through the Issue Based Approach (IBA).
The Issue Based Approach
C4C has utilised the issue based approach in creating spaces where voices can connect. Nigerians
are brought together to tackle an issue, which has traction with majority citizens, a possibility
<strong>of</strong> demonstrating impact and room for replication at the federal and other levels <strong>of</strong> governance.
The issue so selected has to be inclusive. This means that its resolution would have impact on
majority citizens and the process <strong>of</strong> resolution should also bring marginalised voices together
with drivers <strong>of</strong> policy. The learning from such processes is documented so it can influence
another circle <strong>of</strong> replication <strong>of</strong> the philosophy and method <strong>of</strong> the Issues Based Approach.
Naturally, the extractive industries were a focal issue. The <strong>Extractive</strong> industries issue based
project seeks to make extractive revenue processes better understood to Nigerians. It has worked
to create an atmosphere <strong>of</strong> trust and mutual respect between civil society, government, private
sector, media and communities about the sector, since 2008. The project has done this with
attention to the oil and gas sector but also by giving voice and visibility to a comparatively less
known other half <strong>of</strong> the extractive industry - the solid minerals sector.
One <strong>of</strong> the key gains <strong>of</strong> the extractive industries issue based project is the research seeking
to share knowledge about the nature and character <strong>of</strong> the extractive industry in Nigeria. The
research sets out to produce a report that raises the critical consciousness <strong>of</strong> ordinary Nigerians
v

y enabling Nigerians have the necessary tools to understand the extractive industries processes
and thus protect their interest in the sector as citizens <strong>of</strong> Nigeria.
In demonstrating the issue based approach, access and control were critical to the research
in interpreting ‘inclusivity’. The outputs aim to demystify the extractive industry that is generally
perceived as very closed and shrouded in a lot <strong>of</strong> technical jargons that is alienating to the
ordinary person on the street.
The research coordinating committee comprised <strong>of</strong> demand (non -government) and supply
(government) side actors. The committee formed the core <strong>of</strong> experts, advocates and practitioners
that provided leadership in design, methodological rigour and validation <strong>of</strong> the research. Series
<strong>of</strong> validation sessions were held involving members <strong>of</strong> pr<strong>of</strong>essional associations with the research
team from academia and legislature and the executive agency NIETI. This has laid the
foundation for a pr<strong>of</strong>essional work and broad acceptance <strong>of</strong> the research report and the strategies
for mobilization contained therein. We are happy to note that the DFID annual review 2009
described the research as qualitative.
Research Outputs
The research has five outputs all <strong>of</strong> which from part <strong>of</strong> the strategy <strong>of</strong> citizen engagement,
which the issue based approach advocates. They are:
a. Glossary <strong>of</strong> Terms: This contains simplified definitions and explanations <strong>of</strong> terms
commonly used in these industries. It is very useful for quick reference. This is targeted
at a wide range <strong>of</strong> stakeholders including students.
b. A Policy Brief: This document highlights the main findings and recommendations <strong>of</strong>
the entire research. It contains action points for various stakeholders. The policy brief
has as focal audience, decision makers i.e. heads <strong>of</strong> organisations in the extractive
industries, other Government Ministries, Departments and Agencies, the Legislature
and other policy makers.
c. Existing Laws and Policies: This looks at <strong>of</strong> the laws and policies that govern the
Nigerian extractive <strong>Industries</strong>. It gives a brief explanation <strong>of</strong> the laws and policy
frameworks in Nigeria, highlighting the strengths, weaknesses and application <strong>of</strong> each
one. Its focal audience is all industry stakeholders especially members <strong>of</strong> the legal
pr<strong>of</strong>ession and law makers.
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d. An Illustration <strong>of</strong> Industry Processes: this is a graphical illustration <strong>of</strong> the processes
in the Nigerian extractive industries. It is easy to understand and its focal audience are
the communities, industry and non industry watchers and students.
e. An Evaluation <strong>of</strong> the Nature and <strong>Character</strong> <strong>of</strong> the Nigerian <strong>Extractive</strong> <strong>Industries</strong>.
This is a 2 volume, detailed research into the nature and processes <strong>of</strong> the extractive
industries. its focal audience is academics and researchers. It is also an up- to -date
resource on the Nigerian <strong>Extractive</strong> <strong>Industries</strong> <strong>of</strong> the Nigerian <strong>Extractive</strong> <strong>Industries</strong> (2
volumes) – Solid Minerals and Oil and Gas: This is a
Adding value
We acknowledge that there have been a number <strong>of</strong> researches carried out on the Nigerian
<strong>Extractive</strong> <strong>Industries</strong>. However the process adds value to what is available in 4 ways. First
through a focus on both oil & gas and solid minerals. Secondly, it updates the knowledge
available in the industry. Thirdly, the methodology is just as important as the content. The
series <strong>of</strong> methodology fora and validation sessions is an affirmation <strong>of</strong> the issue based approach
which places traction around an issue and inclusivity at the heart <strong>of</strong> institutional change.
Validated by policy makers, industry practitioners and other Nigerians, increase the likelihood
<strong>of</strong> ownership <strong>of</strong> the issue. Fourthly, The research was designed on a strong communication
strategy. Namely, the use <strong>of</strong> the research as a set <strong>of</strong> tools for evidence based policy advocacy
and presentation <strong>of</strong> knowledge in accessible language, which makes the extractive industry
processes less bewildering for those who must understand its dynamics.
Appreciation
We could not have achieved this task without the goodwill, knowledge commitment and passion
<strong>of</strong> Nigerians and friends <strong>of</strong> Nigeria.
First, the Research Coordinating team (RCC). A core <strong>of</strong> Nigerian academics, researchers,
activists and policy makers, who provided the needed theoretical and practical blend for meeting
our research for advocacy objective. The Executive Secretary <strong>of</strong> the Board <strong>of</strong> NEITI Mallam
Haruna Saeed led the Coordinating Committee. As Chairperson, he made out time to lead,
participate and stay in touch with the trends proposed by the coordinating committee. The
members <strong>of</strong> the RCC are undeniably among Nigeria’s top 10 academics and oil and gas and
solid minerals experts. The collective <strong>of</strong> Dr. Festus Iyayi, Mr. George Lekien Kobani, Ms. Laraba
Machunga – member <strong>of</strong> the C4C Advisory Panel, Mr. Uche Igwe, Comrade Babatunde Ogun,
Ms Preye Olowo, Mr. Babatunde Adegbesan, Pr<strong>of</strong>. Adeniyi Gbadegesin, Mr. Soji Apampa,
Pr<strong>of</strong>essor Ademola Ariyo and Dr Abiodun Folawewo, gave technical direction to the research
process.
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The NEITI team as a whole led by the Chair <strong>of</strong> Board, Pr<strong>of</strong>essor Asisi Asobie, was exceptional.
As the true academic that he is, the NEITI Board Chairperson monitored progress and shared
advice as <strong>of</strong>ten as we needed it. He wrote the foreword to this volume. We thank and affirm
other NEITI board members and the secretariat team for their strategic support.
We thank our researchers, contributors and copy editors, the women and men whose very
impressive pr<strong>of</strong>iles are listed at the end <strong>of</strong> this work, for their perseverance and fidelity even in
the face <strong>of</strong> grueling peer reviews.
We required an anchor for the research. An experienced consultant to interpret design and
implement strategies and objectives. The Centre for Public Private Cooperation (CPPC) played
that role to the admiration <strong>of</strong> all. We thank Pr<strong>of</strong>essor Ademola Ariyo Chair <strong>of</strong> the Centre, its
Coordinator Dr. Abiodun Folawewo and their team for the pr<strong>of</strong>essional leadership.
Waiting to take the findings <strong>of</strong> the research forward is CATEIFFN, the civil society coalition
on accountability and transparency in the extractive industry, forestry and fisheries in Nigeria,
which emerged out <strong>of</strong> the government / nongovernmental partnership on the industry. The
C4C extractive industry issue based project birthed the George – Hill Anthony led civil society
coalition. This would not have been possible without the help <strong>of</strong> friends from Transparency in
Nigeria (TIN). As secretariat to the extractive industry project, TIN’s President,General Ishola
Williams and the Secretary General Dr. Osita Ogbu and the National Coordinator, Mr.
Emmanuel Uche, worked closely with the senior project <strong>of</strong>ficer <strong>of</strong> the extractive industry
project Ms Oyinda Adedokun to bring this research to a logical conclusion. They were inspiring
in their energy and hard work.
At DFID, we had advisers and friends <strong>of</strong> Nigeria who guided the process in ways that
enabled Nigerians lead the change they want to see. We thank Ms. Lindsey Block DFID
adviser on the extractive industry, Mr. Sina Fagbenro Governance Adviser, Mr. Graham Gass,
former lead adviser on C4C and Dr Abdulkareem Lawal, lead adviser on C4C.
The EIRTI team in C4C; Halima Wali – Inuwa the project manager who has the primary
responsibility for the extractive industries issue based project, Olumide Olaniyan and Martin
Obono. They worked well together managing expectations, perfecting our communication
strategy with partners and modeling the way towards a safe harbor for the research.
We look to the future. We wish NEITI and CATEIFFN well as they work together and with
others from government, civil society and the private sector towards expanding the space in
the extractive industry in Nigeria.
Amina Salihu
Coordinator Coalitions for Change Programme, 2009
Abuja
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Contents
Affirmation v
List <strong>of</strong> Abbreviation xi
Foreword xv
Exceutive Summary xix
Introduction xxv
1. The History, Evolution and Geography <strong>of</strong> the Solid Mineral Industry in Nigeria
Adefemi Olokesusi 1
2. Ownership Structure and Level <strong>of</strong> Participation in the Nigerian <strong>Extractive</strong>
<strong>Industries</strong>: Solid Minerals
Dung Pam Sha
3. Labour and Gender Issues in Solid Minerals Mining: The Case Study <strong>of</strong>
Tin and Gold
Fatima L. Adamu 92
4. The Legal And Regulatory Framework Of Solid Minerals
And Mining In Nigeria
Lanre Aladeitan 124
5. Transparency and Accountability In Nigeria’s <strong>Extractive</strong> Industry:
The Solid Mineral Sub- Sector
Ogoh Alubo 157
6. A Survey on the Impact and Consequences <strong>of</strong> Solid Mineral Extraction
in Dorowa Community <strong>of</strong> Barkin Ladi Local Government Area <strong>of</strong>
Plateau State
Rahila Gowon 181
7. Best Practices In Solid Minerals: International Dimension and
Comparision
Victor A.O. Adetula 219
Conclusion 245
Researcher’s Bio 253
Research Coordinating Committee 255
Project Managers 257
Index 259
ix
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List <strong>of</strong> Abbreviations
ASC Ajaokuta Steel Company
ASM Artisanal and Small Miners
ASSM Artisanal and Small-scale Mining
BCC Benue Cement Company
BPP Bureau <strong>of</strong> Public Procurement
CATEIFFN Coalition for Accountability and Transparency in <strong>Extractive</strong> <strong>Industries</strong> Forestry
and Fisheries in Nigeria
CBO Community Based Organisations
CDA Community Development Agreement
CFRN Constitution <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria
CIDA Canadian International Development Agency
TCPI Transparency International’s Corruption Perception Index
CPPC Centre for Public Private Co-operation
CSO Civil Society Organisations
C4C Coalitions for Change
DRC Democratic Republic <strong>of</strong> the Congo
ECC Enugu Coal Corporation
ECD Environmental Compliance Department
ECN Electricity Corporation <strong>of</strong> Nigeria
ECOWAS Economic Community <strong>of</strong> West African States
EI <strong>Extractive</strong> Industry
EIA Environment Impact Assessment
EIs <strong>Extractive</strong> <strong>Industries</strong>
EIRTI <strong>Extractive</strong> <strong>Industries</strong> Revenue Transparency Initiative
EITI <strong>Extractive</strong> Industry Transparency Initiative
EMS Environmental Management Service
FCT Federal Capital Territory
FDGs Focus Group Discussions
FEPA Federal Environmental Protection Agency
FIRS Federal Inland Revenue Service
FOS Federal Office <strong>of</strong> Statistics
FRN Federal Republic <strong>of</strong> Nigeria
GDP Gross Domestic Product
GEF Global Environmental Facility
GSA Geological Survey Agency
GSN Geological Survey <strong>of</strong> Nigeria
GSN Geological Survey <strong>of</strong> Nigeria
IBA Issue Based Approach
IBP Issue Based Project
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IBRD International Bank for Reconstruction and Development
IDA International Development Association
IDDC Industrial Development Coordination Committee
IFC International Finance Corporation
IMF International Monetary Fund
LHR League for Human Rights
MCO Mining Cadastre Office
MEC Mines Environmental Compliance
MID Mines Inspectorate Department
MIGA Multilateral Investment Guarantee Agency
MNCs Multinational corporations
MOU Memorandum <strong>of</strong> Agreement
MSMD Ministry <strong>of</strong> Solid Minerals Development
MTC Mining Technological Company
NCPC Nigerian Clay Products Company
NDDC Niger Delta Development Commission
NEEDS Nigerian Economic Empoerment Development Strategy
NEITI Nigerian <strong>Extractive</strong> Industry Transparency Initiative
NESREA National Environmental Standards and Regulation Enforcement Agency
Act
NGO Non Governmental Organisation
NGSA Nigerian Geological Survey Agency
NIMOCO National Iron Ore Mining Company
NIPC Nigerian Investment Promotions Commission
NMC Nigeria Mining Corporation
NMDC National Metallurgical Development Centre
NOMCO National Iron Ore Mining Company
NSDA Nigerian Steel Development Authority
NSM Nigerian Solid Mineral
NSRMEA National Steel Raw Materials Agency
PEC Plateau Environmental Coalition
PHCN Power Holding Company <strong>of</strong> Nigeria
RMRDC Raw Materials Research and Development Council
SML Small-scale Mining Lease
SMMRP Sustainable Management <strong>of</strong> Mineral Resources Project
SOMPADEC Solid Mineral Producing Areas Development Commission
SSMIMS State Solid Minerals Information Management System
STDs Sexually-Transmitted Diseases
UK United Kingdom
UK-DfID United Kingdom Department for International Development
UNCED United Nations Conference on Environment and Development
UNCTAD United Nations Conference on Trade and Development
xii

UNEP United Nations Environment Programme
WAPCO West African Portland Cement Company
WB World Bank
WCED World Commission on Environment and Development
ZCCM Zambia Consolidated Copper Mines
xiii

Foreword
<strong>Extractive</strong> Industry Transparency Initiative is at the forefront <strong>of</strong> the global movement promoting
prudent use <strong>of</strong> natural resource wealth in the contemporary world. The fundamental principle
<strong>of</strong> the movement is the belief that sustainable economic growth and development depend
critically on a number <strong>of</strong> governance principles and practices. First is the recognition by
governments <strong>of</strong> all sovereign states that it is their sacred duty to manage the country’s natural
resource wealth for the benefit <strong>of</strong> its citizens. Second, is the recognition that public understanding
<strong>of</strong> government revenues and expenditure over time could help public debate and inform choice
<strong>of</strong> appropriate and realistic options for sustainable development Third is the belief that
transparency in revenue management, coupled with the principle and practice <strong>of</strong> accountability
by government to all citizens, for the stewardship <strong>of</strong> extractive industry revenue streams and
public expenditure, constitute the hallmark <strong>of</strong> good governance in the contemporary world.
The series <strong>of</strong> studies commissioned by the Coalitions for Change programme(C4C) to the
Centre for Public-Private Cooperation (CPPC), to work with the Nigeria <strong>Extractive</strong> <strong>Industries</strong>
Transparency Initiative (NEITI) and the Coalition for Accountability and Transparency in
<strong>Extractive</strong> <strong>Industries</strong>, Forestry and Fisheries (CATEIFFN) has, as its subscript, an affirmation
<strong>of</strong> these key EITI cardinal objectives and principles.
The studies are on one theme: “End-to-End Process <strong>of</strong> the Nigerian <strong>Extractive</strong> Industry”.
However, they are produced in six volumes: Oil and Gas; Solid Minerals; Glossary <strong>of</strong> Terms-Oil
and Gas; Glossary <strong>of</strong> Terms-Solid Minerals; Existing Laws and Policies in the Nigerian <strong>Extractive</strong>
Industry; and Policy Brief Document on the Nigerian <strong>Extractive</strong> Industry.
The largest volume is the one on the Oil and Gas sector; it is three hundred and seventyfour
pages long and consists <strong>of</strong> seven chapters. The thinnest is the Policy Brief Document,
which is eleven pages in length. Overall, the research was meant to enhance Nigerian public’s
understanding <strong>of</strong> the Nigerian extractive industry and, thereby, arm the citizens to help check
the corruption, and other excesses and abuses in the sector. The rationale is that those who
operate in the industry as investors, producers, exporters or as regulators take undue advantage
<strong>of</strong> the low level <strong>of</strong> knowledge among Nigerians about the structure and functioning <strong>of</strong> the
industry to perpetrate wrong or substandard industrial practices, or corrupt practices as well
as other abuses in the industry.
In the volume on the oil and gas sector, the authors concentrated on the provision <strong>of</strong> baseline
information on activities, practices, and issues on the Nigerian <strong>Extractive</strong> Industry. They also
set out to deepen people’s understanding <strong>of</strong> how to address some <strong>of</strong> the common and most
contentious issues that concern the development <strong>of</strong> the industry. How much money does the
Nigerian government derive from the industry? What is the impact <strong>of</strong> the industry on the
environment and the oil-bearing communities? How does the industry contribute to the
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eduction <strong>of</strong> the level <strong>of</strong> poverty in Nigeria? And so on. These are fairly familiar questions and
issues; but in this set <strong>of</strong> studies, they have evoked some new answers.
A variety <strong>of</strong> methods were used by the researchers in seeking answers to these questions.
Both primary and secondary sources were relied upon for gathering information and data.
Literature reviews were conducted to establish the state <strong>of</strong> knowledge in respect to each topic
or theme; new facts and interpretations were exposed through the instruments <strong>of</strong> oral interviews,
focus group discussions and questionnaires.
In the studies on the oil and gas sector, some interesting findings emerged. It was found, for
instance, that, in spite <strong>of</strong> the numerous laws and regulations meant to bring order to the sector,
it remains under-regulated. This paradox is explained by the fact that majority <strong>of</strong> the laws and
regulations are now obsolete; moreover, the extant laws are inadequate in scope, reach and
relevance, in the face <strong>of</strong> new challenges and contemporary issues. The inadequacy <strong>of</strong> the legal
and regulatory framework is compounded by the weakness <strong>of</strong> the law enforcement mechanisms
in the sector. Even more interesting is the findings relating to the <strong>Extractive</strong> <strong>Industries</strong>
Transparency Initiative (EITI). The study revealed that, although Nigeria has been implementing
the EITI for seven years, there is a ‘pr<strong>of</strong>ound’ lack <strong>of</strong> public awareness <strong>of</strong> the initiative in the
country, even in those areas where some public awareness programmes have been implemented,
by the Nigerian <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative (NEITI). Nevertheless, when the
researchers explained to the respondents the nature, specific objectives and ultimate goals <strong>of</strong>
NEITI, support for it was very strong and huge, even when many respondents expressed doubts
about the commitment to the initiative by government and companies in Nigeria.
The interesting findings are not limited to the oil and gas sector. The study on solid minerals
begins with the not so well known fact that Nigeria is also very rich in solid minerals, with no
less than thirty-four types, located in several parts <strong>of</strong> the country, many <strong>of</strong> them with huge
proven deposits capable <strong>of</strong> generating highly significant amounts <strong>of</strong> national income. The
production figures <strong>of</strong> the principal minerals, in metric tonnes, for the period 1970-2006, were
even provided. The study <strong>of</strong> the sector goes on to show that, until recently, the legal and regulatory
framework <strong>of</strong> the solid mineral sector was not just inadequate, but extremely weak; however,
the Nigerian Minerals and Mining Act <strong>of</strong> 2007 improved the situation significantly. An
interesting angle <strong>of</strong> the legal framework brought out by the researchers is the finding that a
substantial part <strong>of</strong> the legal framework ‘appears to be addressing the needs <strong>of</strong> the foreign firms
that constituted less than 10%’; and that the Nigerian government ‘lost control over the mining
activities, with unauthorised foreign mining companies mining the resources within any control’.
The researchers also reveal that the opacity that besets the oil and gas sector is even worse in the
solid minerals sector. It is not only that there is lack <strong>of</strong> accurate record-keeping, equally
important, there is in the sub-sector, a dominance <strong>of</strong> illegal miners; and corruption is pervasive
as well; and among the factors responsible for this is weak monitoring, supervision and
enforcement <strong>of</strong> the laws and regulations. The research on this sector also deals with gender
and labour issues, highlighting low remuneration for the labour or women and gender ideology
xvi

that restricts women to certain jobs in the industry. These are issues that are not <strong>of</strong>ten raised in
respect <strong>of</strong> the extractive industries.
One significant aspect <strong>of</strong> these studies is that each chapter ends with a set <strong>of</strong>
recommendations for improving the governance process in Nigeria’s extractive industries. In
the same vein, there is a separate policy brief document, which brings together in one piece the
key policy recommendations, emanating from the research. Many <strong>of</strong> these recommendations
are very helpful to the work <strong>of</strong> NEITI. They will therefore, be carefully studied and applied to
enhance the process <strong>of</strong> transparency, due process, and accountability in the extractive industries
in Nigeria. Nigeria will benefit greatly from that application.
The research commissioned by Coalitions for Change in collaboration with NEITI, coupled
with the undertaking to publishing this set <strong>of</strong> studies, is very important for our country. Its
utility goes way beyond enlightening the public. The information and data base <strong>of</strong> NEITI and
the extractive industry itself is much the richer by the research. Consequently, our work has
been made much easier by the publication. Still, there are some gaps which can be filled by
other researchers.
For instance, while the issues highlighted in these studies are hugely important questions, a
different focus is now needed. Time has come to shift the debate on the extractive industries to
even more critical issues. For example, taking a global perspective <strong>of</strong> the industry, do the Nigerian
state and Nigerian citizens receive an equitable share <strong>of</strong> the social product generated by the oil
and gas industry? Or does the bulk <strong>of</strong> the benefits from the industry accrue to foreign states
and foreign nationals and companies? This was addressed, somewhat, by the chapter on best
international practices in the oil and gas sector study and another in the solid minerals sector,
but rather unsatisfactorily. Then how are the benefits accruing to Nigeria distributed internally,
among social groups and especially social classes? Is the oil and gas structured and programmed
to benefit mainly the privileged classes; if so, why, and how can the situation be reversed? The
chapter on NEITI touched on an aspect <strong>of</strong> this question, but only fleetingly. A class analysis <strong>of</strong>
the structure and functioning <strong>of</strong> the mineral, as well as the oil and gas industry in Nigeria is
likely to provide a much deeper insight into how it works, and why its current modus operandi
tend to reproduce poverty, rather than reduce its level.
Pr<strong>of</strong>essor Humphrey Assisi Asobie
Chairman,NEITI

Executive Summary
Since Nigeria first appeared in Transparency International’s Corruption Perception Index (CPI)
in 1996, it has come under sustained international pressure to do something about the levels <strong>of</strong>
corruption perceived to characterise public and private life in the country. Pressure has mounted
on successive administrations from ordinary people in Nigeria asking why formal accountability
remains weak and why Nigeria is not adequately managing its resources in ways that reduce
disparities in income and wellbeing between different groups in society. The accumulated effect
<strong>of</strong> the way Nigeria’s resources have been managed over many years and the hitherto
unsatisfactory response to the yearnings and aspirations <strong>of</strong> resource-rich communities has led
on a number <strong>of</strong> occasions to conflict and in the case <strong>of</strong> certain parts <strong>of</strong> the Niger Delta, rebellion.
The government <strong>of</strong> Nigeria demonstrated its responsiveness to the calls <strong>of</strong> its citizens to do
something about the situation in a number <strong>of</strong> ways including but not limited to signing on to
the <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative (EITI) and domesticating this by enacting the
Nigeria <strong>Extractive</strong> <strong>Industries</strong> Initiative (NEITI) Act <strong>of</strong> 2006. The better-known work <strong>of</strong> the
NEITI has been to arrange and receive audits <strong>of</strong> the extractive industries in Nigeria and make
the findings public. This development has been well received by Nigerians however the audit
reports have, as one might expect, been very technical in nature and unfortunately less accessible
to civil society and ordinary Nigerian citizens than could have been hoped for. This limits the
potential impact <strong>of</strong> the work <strong>of</strong> the NEITI.
The NEITI in its sensitivity to the need to drive popular understanding <strong>of</strong> its work and
challenges in ways that will be accessible to ordinary citizens even at sub-national levels is
supporting through this independent research, efforts to provide a better understanding <strong>of</strong> the
end-to-end processes within the industry. The authors acknowledge the rising clamour for forestry
and fisheries to be included explicitly in the NEITI framework but the scope <strong>of</strong> this study is
limited to the oil and gas and solid minerals industries. The purpose <strong>of</strong> this research is to raise
critical consciousness <strong>of</strong> citizens on key aspects <strong>of</strong> the history and workings <strong>of</strong> both <strong>of</strong> those
industries so the research has been done from the perspective <strong>of</strong> the needs <strong>of</strong> ordinary citizens
and from their viewpoint. The choice <strong>of</strong> topics also flows from that perspective.
In the main, the report has sought to interpret the predicament that ordinary citizens find
themselves in as a result <strong>of</strong> the tensions, contradictions and paradoxes inherent in the way the
solid minerals industry has evolved in Nigeria and is currently operated. It explores the tensions
between national and host community interests; the debate around ownership and control <strong>of</strong>
these resources; the current artisanal versus needed large scale activities; tensions between the
structure <strong>of</strong> the industry and the need for gender inclusion. Legal provisions are contrasted
with what is actually possible to implement and what happens in practice; access to information
that can support the demand for accountability versus the need for government responsiveness;
the survival instinct and the price host communities are paying for the choices made and allowed
xix

y actors in the industry as well as tensions between the demands <strong>of</strong> globalisation and local
agendas. What the report does not succeed in doing is pinpoint sufficiently what must be done
in order for ordinary citizens to “transcend the spiritual bonds and fetters that tie them into
existing social patterns and thus realise their full potential” in the words <strong>of</strong> Burrell and Morgan
(1979).
In the section below, a prÖcis <strong>of</strong> each chapter <strong>of</strong> the report is presented in turn.
CHAPTER 1: THE HISTORY, EVOLUTION AND GEOGRAPHY OF THE SOLID
MINERAL INDUSTRY IN NIGERIA – FEMI OLOKESUSI
The chapter asserts that prior to the discovery <strong>of</strong> oil in commercial quantity in 1956, solid
minerals played a major role in economy <strong>of</strong> the country with tin accounting for GBP Ü7,
297,490 out <strong>of</strong> GBP Ü132,168,856 representing 5.5% <strong>of</strong> total money realised by government
from export in 1956 while estimating that unearned income from this sector in form <strong>of</strong>
opportunity costs are substantial as estimated loss for Barite and Gypsum are US$750 million
and US $3,000 million annually. In addition, the government was receiving Ü500,000 annually
from tin royalties, apart from mining fees and rents. In the early 1940s to late 1960s, Nigeria
was the sixth largest exporter <strong>of</strong> Tin in the world but this has since declined.
The chapter shows that Nigeria has an array <strong>of</strong> solid mineral resources, which fall into four
groups – fossil fuels, metallic and non-metallic resources as well as radioactive minerals- spread
across the different regions <strong>of</strong> the country. It also states that it was only with the coming <strong>of</strong> the
first Obasanjo regime that the nature <strong>of</strong> government participation changed from owner-operator
to administrator-regulator to allow for better performance and a sustainable solid minerals
rich country. It is hoped that with the restructuring <strong>of</strong> the sector, gross production value from
small-scale and artisanal mining should reach about US$ 75-125 million by 2010 and with
adequate investment climate, foreign direct investment in large scale mining should boost
solid mineral production to US$ 500-700 million by 2015.
It advises that with the potentials <strong>of</strong> the solid mineral sector, government should ensure that
the revenues are invested for lasting wealth purposes and distribute the benefits equitably,
balancing and managing conflicting local and national-level concerns and interests while at
the same time promoting transparency without compromising environmental sustainability
CHAPTER 3: LABOUR AND GENDER ISSUES IN THE SOLID MINERALS
MINING: THE CASE STUDY OF TIN, AND GOLD - FATIMA L. ADAMU
This chapter sets out that central to any analysis <strong>of</strong> labour in the solid minerals sector <strong>of</strong> the
Nigerian extractive industries is its artisanal and small scale nature and reveals that currently
there is no medium- large-scale mining in the solid mineral sector. Most active mining in the
xx

country today is being undertaken by small entrepreneurs and artisans putting the whole
activities <strong>of</strong> artisan and small-scale miners at 95% thus making it unorganised and difficult to
control. Arising from the activities <strong>of</strong> these artisan are issues <strong>of</strong> health and safety where unlike
South Africa, Zambia and Tanzania, there are no specific health and safety measures and even
where they exist, are difficult to enforce due to the nature <strong>of</strong> the industry.
The study reviews all labour issues with regards to gender and how women have been
sidelined in the industry though it represents a good opportunity for women to move out <strong>of</strong>
poverty. It also reviews that the present mining laws and policies are inadequate in addressing
the issues <strong>of</strong> labor, employment and gender.
CHAPTER 4: THE LEGAL AND REGULATORY FRAMEWORK OF SOLID
MINERALS AND MINING IN NIGERIA - Lanre Aladeitan
Owing to the need for diversification <strong>of</strong> the economy from oil based to non-oil based, this paper
seeks to review the regulatory framework <strong>of</strong> the solid minerals sector with the aim <strong>of</strong> creating
a favorable environment for the development <strong>of</strong> the sector. The Nigerian Mineral and Mining
Act 2007 forms the crux <strong>of</strong> the paper discussing such issues as ownership and control which is
vested on the Federal Government by the Constitution <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria with
the dire implication that the primary responsibility for planning and development <strong>of</strong> both
states and local government in ensuring that the interests and traditional values <strong>of</strong> the
communities are taken into consideration can hardly be implemented. The paper analyses the
provisions <strong>of</strong> the Act as it pertains to all aspect <strong>of</strong> the activities <strong>of</strong> the industry from exploration
to how products are marketed.
The chapter reviews that the Act makes provision for rights <strong>of</strong> host communities which includes
prohibition to mine in areas that are held sacred to the host communities as well as such other
objects that are venerable to them. It would seem that the Act is all encompassing but it will
need to make clarifications on security <strong>of</strong> tenure, the unduly wide discretionary powers <strong>of</strong> the
minister in charge <strong>of</strong> the solid mineral sector, the pre-emptive right <strong>of</strong> government on all minerals
extracted and inadequate environmental provisions, all <strong>of</strong> which resulted in the inability <strong>of</strong> the
sector to attract desired investment. The paper remarks that the impressive provisions <strong>of</strong> the
Nigerian Minerals and Mining Act unlike the deluge <strong>of</strong> legislation governing the oil and gas
sector may not be unconnected with the fact that it was enacted at a time when transparency
initiatives gained prominence in the country.
CHAPTER 5: TRANSPARENCY AND ACCOUNTABILITY IN NIGERIA’S
EXTRACTIVE INDUSTRY: THE SOLID MINERAL SUB- SECTOR - Ogoh Alubo,
Audu, N. Gambo
Central to this chapter is the how accountability and transparency can be enhanced in the solid
mineral sector <strong>of</strong> the extractive industry considering that the extraction <strong>of</strong> natural resources
xxi

within a territorially defined space is one <strong>of</strong> the most critical functions <strong>of</strong> modern states. Pertinent
to this chapter is the opinion <strong>of</strong> stakeholders in respect <strong>of</strong> the openness and answerability <strong>of</strong>
actors within the solid mineral sector <strong>of</strong> the extractive industry as well as the challenge <strong>of</strong>
mobilising and sensitizing Nigerians to engage the state towards a direction <strong>of</strong> promoting
transparency and accountability in the operation and management <strong>of</strong> the industry.
With regards to three case studies- Benue, Enugu and Plateau states, the study showed how
responsive or otherwise the companies have been in the issue <strong>of</strong> transparency and accountability.
The issue <strong>of</strong> availability and access to information forms the greatest concern <strong>of</strong> Nigerians as
that is the only means through which activities can be monitored. These concerns are in addition
to all other challenges that affect all mining communities
The chapter in its conclusion says that Nigeria’s tragic experience <strong>of</strong> corruption and the culture
<strong>of</strong> impunity has entrenched the culture <strong>of</strong> non-transparency in the conduct <strong>of</strong> government
business with the solid mineral sector being one <strong>of</strong> the hardest hit by this culture <strong>of</strong> impunity
and regrets that Nigerians have not even marginally harvested the dividends <strong>of</strong> the mining <strong>of</strong>
these providential resources.
CHAPTER 6: A SURVEY ON THE IMPACT AND CONSEQUENCES OF SOLID
MINERAL EXTRACTION IN DOROWA COMMUNITY OF BARKIN LADI LOCAL
GOVERNMENT AREA OF PLATEAU STATE- RAHILA GOWON
The study reviews the impact <strong>of</strong> mining activities in Dorowa community <strong>of</strong> Barkin Ladi LGA
<strong>of</strong> Plateau state, which is predominantly involved in small-scale as well as illegal mining with
all the attendant health and safety risks. The chapter identifies the high rate <strong>of</strong> sexually
transmitted diseases as well as high risks <strong>of</strong> developing skin, lung and liver cancer due to
exposure to radioactive materials amongst people within mining communities. Loss <strong>of</strong> forest
lands has led to further degradation <strong>of</strong> the environment as well as affecting the natural habitats
<strong>of</strong> wild life.
This author traces the sectarian crisis <strong>of</strong> Jos to be remotely linked to the activities <strong>of</strong> miners
as a result <strong>of</strong> indigenes been displaced by skilled workers who were hired by foreign miners in
the area. Literature reviewed revealed that even as gains are made in the solid mineral mining
sector, communities where mining took place and are still taking place are greatly affected
because; Their physical and socio-economic environment is affected, which also affects the
lives <strong>of</strong> the people. The aftermaths are; poverty, water and air pollution, diseases, devastated
and barren lands and social displacement <strong>of</strong> values.
xxii

CHAPTER 7: BEST PRACTICES IN SOLID MINERALS: INTERNATIONAL
DIMENSION AND COMPARISON
Victor A.O. Adetula
The chapter discusses current global developments that are affecting solid mineral mining and
development notably globalisation and how it has quickened the involvement <strong>of</strong> international
NGOs, human rights groups, media groups etc., in promoting global consciousness around
the issue <strong>of</strong> environmental degradation, famine, conflicts and refugee settlement. It also reviews
the growing global competition for mineral resources and the challenges <strong>of</strong> globalisation which
has put nation-states under pressure to adopt neo-liberal reform agenda like privatisation and
deregulation thereby signing away the power <strong>of</strong> nation-state to regulate and enact policy visa
vis foreign actor.
There is also a review <strong>of</strong> the link between mining processing and development as well as
trends and development in the solid mineral industry and the extent to which the benefits and
loses are influenced by global realities and draws a comparison between global north and
south and what is obtainable.
xxiii

Introduction
Toward the Broadening <strong>of</strong> Transparency and Accountability in
the Nigerian’s <strong>Extractive</strong> <strong>Industries</strong>
Solid minerals development plays very significant roles in the economies <strong>of</strong> both the mineralrich
and consuming countries. However, while the few mineral-producing countries in developed
countries such as Australia, Canada, and the United States <strong>of</strong> America have benefited greatly
from mining and mineral processing and utilisation, only a handful <strong>of</strong> their counterparts in the
developing regions have succeeded in transforming the revenues accruing from mining into
concrete and demonstrable sustainable development. Three notable examples in the latter group
are Botswana, Chile and China.
The benefits acquiring to countries from mining as well as the risks associated with the
process vary depending on a number <strong>of</strong> internal and external factors that affect the discovery,
geophysical and economic assessment, as well as production. Perhaps the overarching factor
determining equitable distribution <strong>of</strong> accruing benefits, transparency, accountability and
judicious investment is the established sectoral governance framework. Governance comprises
the complex mechanisms, processes, and institutions through which citizens and groups articulate
their interests, mediate their difference and exercise their legal rights and obligation. In other
words translation <strong>of</strong> solid mineral resources into explicitly tangible societal benefits including
poverty reduction requires appropriate policies, legal and institutional framework, transparency,
state power and control over foreign capital and the international regime on mining.
Since the end <strong>of</strong> the Cold War rather than reap the benefits, African countries have been
the scene <strong>of</strong> natural resources-induced conflicts as experienced in Angola, Chad, Congo
Democratic Republic, Liberia, Nigeria, Sierra Leone, and Sudan amongst others. Consequently,
political and economic analysts began to search for non-ideological underlying factors, such as
ethnic and economic competition. Collier (2003) established a very strong correlation between
the emergence <strong>of</strong> armed conflict and a country’s dependence on one or two readily exploitable
natural resources, like gold, petroleum or diamonds. The existence <strong>of</strong> such pr<strong>of</strong>itable resources
was also perceived as perhaps the most critical factor in the diffusion <strong>of</strong> high-level corruption,
a further source <strong>of</strong> resentment by the citizenry and conflict. Thus, some policy makers bought
the concept <strong>of</strong> “resource curse” which means that valuable natural resources generate armed
conflict and those insurgent forces more <strong>of</strong>ten than are motivated more by greed for money
from the control <strong>of</strong> the natural resources rather than altruistic reasons.
xxv

This viewpoint has since been countered by other researchers based on their studies that
established the ‘paradox <strong>of</strong> plenty’ concept whereby many resource-abundant developing
nations have experienced significantly lower rates <strong>of</strong> growth than resource-poor nations. The
researchers involved such as Ishman (2002), Graham and Tilto, (2001), Auty (2000), Sachs and
Warner 1995 have proposed several explanations but the most plausible seems to be institutional
and policy failures. Also, the ‘resource curse’ concept has been described as simplistic by Naftziger
(2006) who argues that natural resources are themselves not a curse but there is bad stewardship
<strong>of</strong> natural resources. In the same vein, the Director <strong>of</strong> the United Nations Office <strong>of</strong> the Special
Adviser for Africa (OSAA) contents that the possession <strong>of</strong> diamonds or any other minerals is
not a curse and cited the example <strong>of</strong> Botswana under good governance to buttress his argument
(Harsch, 2007).
Together, these factors have contributed to the emergence <strong>of</strong> a natural resources
development-and-governance agenda particularly in the developing countries, which contains
three main issues: first, the effect <strong>of</strong> lack <strong>of</strong> transparency and accountability on poverty; second,
the non-inclusive nature <strong>of</strong> mining as a trigger <strong>of</strong> discontent and conflict; and third, the sort <strong>of</strong>
international regimes that can contribute to making solid minerals development compatible
with equity and development needs in host countries.
In response to the foregoing challenges the Government <strong>of</strong> the United Kingdom in
2003, launched the <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative (EITI), with the objective <strong>of</strong>
improving management <strong>of</strong> revenues from oil, gas and solid minerals. EITI encourages
multinational firms to exhibit greater transparency and accountability in their mining operations.
Other stakeholders such as the World Bank, the European Union, Canadian International
Development Agency, UK-Department for International Development and Oxfam amongst
others have since joined forces w ith the UK Government to bolster support for EITI. 1
With particular reference to Nigeria, it is on record that for many years multinationals
and local compatriots have operated in the country’s extractive industries with opacity thereby
obscuring their activities and concealing the details <strong>of</strong> their operations even to regulatory and
tax collection agencies. Even when the Federal Government collects the minuscule royalties
and taxes from these operators there is little if any, trickle down effect especially to the solid
minerals bearing communities. It was with a view to changing this mode <strong>of</strong> operation and
promote transparency that the Federal Government collaborated with the Governments <strong>of</strong>
UK and Canada and the World Bank to establish the Nigeria <strong>Extractive</strong> <strong>Industries</strong> Transparency
Initiative, (NEITI), - as a mechanism established for determining the payments, receipts and
revenues accruing to the Federal Government. The NEITI Act was signed into law on May 28,
2007. Even though the 2004 accounts <strong>of</strong> the oil and gas sector have been audited by NEITI, this
has not been extended to the solid minerals sector.
This book, then, analyses these aspects <strong>of</strong> the multi-dimensional relationships between
solid minerals mining, transparency, equity, and sustainable national development. The volume
begins with next chapter by Femi Olokesusi which provides a panoramic view <strong>of</strong> the solid
minerals sector in the country. He canvassed evidence to show that Nigeria is endowed with
about thirty-five assorted solid minerals many with huge proven deposits and spread all over
xxvi

the national landscape. Prior to the discovery <strong>of</strong> petroleum in commercial quantities in the
1970s, solid minerals especially tin ore, columbite and coal constituted the cash cow generating
a very significant proportion <strong>of</strong> the national income and foreign exchange. Also, the sector
possesses extremely vast untapped potentials and it was with a view to harnessing these that
prompted the Federal Government <strong>of</strong> Nigeria (FGN) to establish several agencies and parastatals
such as the Nigerian Coal Corporation, National Clay Corporation, Nigerian Iron Ore Mining
Company, Ajaokuta Steel Company and Steel Rolling Mills.
In spite <strong>of</strong> the existence <strong>of</strong> policies and legal instruments the environment in the country
is characterised by underdeveloped structures and institutions, which presents veritable
opportunities for corruption, hence the failure <strong>of</strong> these parastatals. Some <strong>of</strong> the challenges
confronting the sector which are further addressed in subsequent chapters include: irreversibility
<strong>of</strong> losses since minerals are non-renewable natural resources, determination and protection <strong>of</strong>
property rights, need for robust system <strong>of</strong> governance and macro-economic management,
imperative <strong>of</strong> value chain addition and integrated industry, necessity to formalise activities <strong>of</strong>
artisanal and small-scale miners, environmental restitution and community concerns such as
social deviance, conflicts leading to loss <strong>of</strong> lives and property, ownership tussle as host
communities improved wealth creation and distribution <strong>of</strong> benefits.
Dung Pam Sha in the following Chapter discusses the structure <strong>of</strong> ownership and
participation <strong>of</strong> Nigerians in the sector with concrete examples from Plateau State. He points
out that before colonial intervention in the affairs <strong>of</strong> the country, community ownership and
control <strong>of</strong> land and minerals resources was the norm in present day Plateau State. Communities
participated in tin mining and smelting and they sold their products without hindrance. The
situation however changed as the colonial power imposed state ownership on the tin mining
industry, while the Europeans took over control <strong>of</strong> the industry. Since the collapse <strong>of</strong> the tin
sub-sector, ownership and participation in current mining activities has again reverted to
Nigerians.
Whereas there are laws conferring ownership <strong>of</strong> land and mineral resources on the
FGN, in Plateau State there are other forms <strong>of</strong> ownership and control <strong>of</strong> mining operations
reflecting the pre-colonial situation. Both men and women are actively involved in tin mining
but there are however some immigrants from the ECOWAS zone. Unlike before, mineral bearing
communities are now much more sensitive to the issues <strong>of</strong> compensation, resource control,
environmental degradation and transparency.
In Chapter 4 Fatima Adamu dissects the issues related to policy and laws, compensation,
health, safety, women access, control and ownership <strong>of</strong> mineral titles in selected gold and tin
mining areas. She argues that although women are fairly well represented in the sector, the
minerals policy and legislation appear to be gender neutral to the peculiarities <strong>of</strong> gender relations
and in particular, the constraints faced by women in the sector. Notable among such constraints
are low remuneration relative to men, restriction <strong>of</strong> women to certain types <strong>of</strong> employment in
the mining industry and women’s lack <strong>of</strong> access to land. Other than selling food, women and
xxvii

the girl child are not very involved in gold mining because <strong>of</strong> religion and other reasons, whereas
they are very prominent in tin mining.
Lanre Aladeitan in the next chapter further examines the legal and regulatory framework
<strong>of</strong> solid minerals and mining in the country. While he discusses several relevant legislations, his
central point is that the Nigerian Minerals and Mining Act <strong>of</strong> 2007 are very superior to all
preceding laws. The Act clearly separate the role <strong>of</strong> government from that <strong>of</strong> ‘owner-operator’
to ‘administrator-regulator’ thus allowing the private sector to take a pivotal role in the growth
<strong>of</strong> the mining sector and also provide the possibility for efficient and effective utilisation,
exploration and exploitation <strong>of</strong> solid minerals in the country.
He furthermore observed that the Second Schedule, Legislative Powers Part <strong>of</strong> the 1999
Constitution <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria vests the entire property in and control <strong>of</strong> all
mineral resources in the Government <strong>of</strong> the Federation for and on behalf <strong>of</strong> the people <strong>of</strong>
Nigeria in section 1 (1) <strong>of</strong> the Act, the exclusive power <strong>of</strong> the State to own, control and regulate
the activities <strong>of</strong> minerals, mineral oils, and it’s by product. The implication <strong>of</strong> this is that the
primary responsibility for planning and development <strong>of</strong> both States and Local Government in
ensuring that the interests and traditional values <strong>of</strong> the communities are taken into consideration
can hardly be implemented. This is more so given the provisions <strong>of</strong> the Land Use Act Section
1(2) that all lands, in which minerals have been found in commercial quantities, shall from the
commencement <strong>of</strong> the Act be acquired by the Government <strong>of</strong> the Federation. He concludes
that both the new law and Land Use Act should be reviewed in order to meet the basic tenets <strong>of</strong>
true federalism.
Using a case study approach, Ogoh Alubo in chapter 5 turns our attention to the
operation and management <strong>of</strong> the solid minerals sector. The major concern <strong>of</strong> this contribution
is to establish the place <strong>of</strong> transparency and accountability as twin ethical principles in the
operation <strong>of</strong> the solid mineral sector in the country. He posits that the long military intervention
promoted opacity, and lack <strong>of</strong> accountability which is yet to abate in spite <strong>of</strong> the return to
democratic governance since mid-1999. Other major findings include the following: limited
openness and responsibility in the operation and management <strong>of</strong> the extractive industry; lack
<strong>of</strong> accurate records keeping by the extractive companies surveyed; inadequate flow <strong>of</strong>
information about actors in the solid mineral sub-sector; limited sense <strong>of</strong> corporate responsibility;
absence <strong>of</strong> civil society organisations as watchdog <strong>of</strong> the industry; dominance <strong>of</strong> illegal miners
within the industry as a result <strong>of</strong> weak monitoring and supervision, among others. The
contributor recommends the active involvement <strong>of</strong> civil society organizations in scrutinising
the activities <strong>of</strong> extractive industry actors to ensure strict compliance with prescribed operational
rules aimed at promoting transparency and accountability; and the coalition <strong>of</strong> civil society
organisations under the umbrella <strong>of</strong> ‘publish what you pay’ to be supported by government to
raise the consciousness <strong>of</strong> Nigerians about activities <strong>of</strong> the solid minerals sector.
Globally, the solid minerals sector is regarded as having heavy and widespread ecological
footprints hence Rahila Gowon examines the impact <strong>of</strong> solid mineral mining in Plateau State
which is the oldest mining zone in the country. She found that mining activities were unregulated
xxviii

just as the communities are unaware <strong>of</strong> the divergence between existing mining practices,
mining policy and legislations as well as their rights as obligated in these instruments <strong>of</strong>
governance. Some <strong>of</strong> the pressing impacts <strong>of</strong> artisanal and small-scale mining operations include
land degradation which exacerbates soil erosion, loss <strong>of</strong> arable land, respiratory problemsand
body pains experienced by miners, exposure to hazardous chemicals used in mining and sexually
transmitted diseases such as HIV/AIDS. In addition, the social structure <strong>of</strong> the population has
been affected because the people have developed new life styles and livelihoods due to the
arrival <strong>of</strong> new persons with new values and changes in their physical environment.
Victor Adetula in chapter 7 surveys the experience <strong>of</strong> other solid minerals producing countries
with a view to drawing lessons for Nigeria. He traces the internal factors and the global context
<strong>of</strong> mining and mineral processing as well as consumption and best practices. In this regard the
chapter points out the differences in the issues driving the sector in developed and developed
nations. In Nigeria and other developing nations some <strong>of</strong> the pertinent issues are the role <strong>of</strong>
mineral exploitation in economic development, the Dutch disease, and the links between mineral
wealth on one hand and corruption and conflict on the other, environmental effects <strong>of</strong> mining
and material use, the role <strong>of</strong> government policy and corporate social responsibility for controlling
them, impact <strong>of</strong> mining on indigenous people and their communities. On the other hand
concerns in the developed countries include easy access to and availability <strong>of</strong> mineral
commodities, the threat <strong>of</strong> supply interruptions in strategic and critical minerals.
The chapter notes that the emerging trends in global economy are wielding significant
influence on the solid mineral sector with serious implications for both producing and
consuming countries. The contribution <strong>of</strong> solid minerals to the phenomenal rise <strong>of</strong> China and
India and the growing global competition for mineral resources and China’s growing influence
in the political economy and <strong>of</strong> Africa and ‘common security’ were examined. The exemplary
performance <strong>of</strong> Botswana was also highlighted. He concludes that for solid mineral exploitation
to contribute to growth and development in the host countries especially, notable best practices
such as sound governance systems, reliable human capacity to administer and monitor the
sector, and optimal linkages between the solid mineral sub-sector and other sectors <strong>of</strong> the
domestic economy are very germane.
The concluding chapter brings together all the strands, and points out that the sector has
huge untapped resources.
xxix

References
Anty, R. (2000) “How Natural Resources Affect Economic Development.” Development Policy
Review 18(4):347-64.
Campbell, Bonnie and Jennifer Clapp (1995) “Guinea’s Economic Performance Under Structural
Adjustment: Mining and Agriculture”, Journal <strong>of</strong> Modern African Studies, Vol.33 (3):
425-450.
Collier, Paul (2003), Natural Resources, Development and Conflict: Channels <strong>of</strong> Causation and
Policy Interventions, World Bank, Washington, D.C.
Davis, Graham A., and John E. Tilton (2001) Should Developing Countries Renounce Mining?
A Perspective on the Debate. Colorado School <strong>of</strong> Mines, Colorado.
Falk, R. (1996) “An Inquiry into the Political Economy <strong>of</strong> World Order”, New Political Economy,
1(1): 13-26.
Harsch, Ernest (2007) “Conflict Resources: From ‘Curse’ to Blessing”, African Renewal, January,
pp.17-22.
Isham, J., M. Woodcock, I. Pritchett, and G. Busby (2002) The Varieties <strong>of</strong> Rentier Experience:
How Natural Resource Endowments Affect the Political Economy <strong>of</strong> Economic Growth.
Draft. The World Bank. http://www.worldbank.org/research/growth/pdfiles/rentier.pdf
Accessed on August 19, 2009.
NEST, (1991) Nigeria’s Threatened Environment: A National Pr<strong>of</strong>ile, NEST, Ibadan.
Olokesusi, Femi and Osita Ogbu (1995) “Dirty <strong>Industries</strong>: A Challenge to Sustainability in
Africa”, in: O. M. Ogbu, B. O. Oyeyinka and H.M. Mlawa (eds), Technology Policy and
Practice in Africa, IDRC, Ottawa, pp. 367-381.
Sachs, Jeffrey D., and Andrew M. Warner (1995) Natural Resource Abundance and Economic
Growth. NBER Working Paper No. 5398, 1-48.
World Bank (2005), <strong>Extractive</strong> <strong>Industries</strong> and Sustainable Development-An Evaluation <strong>of</strong> World
Bank Group Experience, World Bank, Washington, D.C.
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Mining in Developing Countries. Mining Department, The World Bank Group,
Washington, D.C.
xxx

1
The History, Evolution and Geography <strong>of</strong> the Solid
Mineral Industry in Nigeria
Femi Olokesusi
1

2 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Abstract
Against the background <strong>of</strong> lack <strong>of</strong> transparency, inequity and the need to address
longstanding community concerns about environmental degradation and
compensation in Nigeria’s extractive industries, this chapter provides an overview
<strong>of</strong> how these critical challenges and issues are addressed in the solid minerals
industry. This is with a view to develop an actionable agenda for repositioning
and improved-outcome in a transparent and sustainable manner. Using secondary
data in the form <strong>of</strong> published and unpublished materials from diverse sources
including the Ministry <strong>of</strong> Mines and Steel Development and Internet, the study
examines the history, nature and activities, geography as well as evolution <strong>of</strong> the
industry in the country.
The study reveals that before the discovery <strong>of</strong> oil in commercial quantities,
solid minerals contributed very significantly to economic development. Nigeria at
a point in time accounted for 94% <strong>of</strong> the global columbite production. The mining
industry suffered from the ‘Dutch Disease’ syndrome as it was neglected while
attention was diverted to the petroleum industry. Successful mining depends on
advanced technology requiring huge capital outlays with long gestation period.
It is also prone to boom and burst cycles since as a primary commodity, the prices
are externally derived. Moreover, mining is <strong>of</strong>ten described as an enclave industry
because mining operations take place in isolated areas <strong>of</strong> a country and sometimes
with little linkage with other developmental sectors.
The five major activities <strong>of</strong> the mining industry are: prospecting and
exploration; development and mining; treatment and processing; application and
utilisation; and marketing and distribution. The key stakeholders in the industry
include the national and sub-national governments with the former dominating
the scene due to constitutional provisions, the private sector such as foreign investors
and local artisans and small-scale miners who are in the majority, development
partners such as the World Bank, UK-DFID and host communities.
Since 1903, when mineral exploration commenced in Nigeria, more than
thirty-four assorted solid minerals have been discovered in substantial quantities
and scattered across the three main geological formations. With a view to developing
the industry, the federal government took some far-reaching decisions in the areas
<strong>of</strong> policy and legislative initiatives, institutional and capacity development as
well as direct investment in exploration, development, treatment, utilisation and
marketing. The Ministry <strong>of</strong> Solid Minerals Development was created in 1995,

The History, Evolution and Geography... 3
although before then, the Nigerian Steel Development Authority, Nigerian Mining
Company, Nigerian Clay Products Company, among others had been established.
A new Mining and Minerals Act was produced in 2007 while in 2008, a Mining
and Minerals Policy was adopted.
The industry has huge but untapped potentials. Although there is an acute
dearth <strong>of</strong> reliable data on revenue pr<strong>of</strong>ile such as royalties anecdotal evidence
strongly suggests that due to the underdeveloped nature <strong>of</strong> the industry, unearned
income in the form <strong>of</strong> opportunity costs are quite substantial. Estimated losses for
barites and gypsum are US $750 million and US $3,000 million annually. With
a view to realising the potentials in an equitable, pro-poor and transparent
manner, some <strong>of</strong> the challenges to be addressed include the following: irreversibility
<strong>of</strong> losses since minerals are non-renewable natural resources, determination and
protection <strong>of</strong> property rights, need for robust system <strong>of</strong> governance and macroeconomic
management, improved wealth creation and distribution <strong>of</strong> benefits. In
a similar vein, some issues are currently at the front burner on which the
government and other stakeholders should focus attention. These are: the imperative
<strong>of</strong> value-chain addition and integrated industry, need to formalise activities <strong>of</strong>
artisans and small-scale miners, re-organisation and empowerment, environmental
degradation and climate change, community concerns such as social deviance,
conflicts leading to loss <strong>of</strong> lives and property, ownership tussle as host communities
want to be involved in all phases <strong>of</strong> mining and benefit-sharing as well as the
issue <strong>of</strong> transparency and rule <strong>of</strong> law in order to avoid the longstanding and
unresolved issues in the petroleum industry.
The study therefore made some pertinent recommendations some <strong>of</strong> which
are: establishment <strong>of</strong> the Solid Minerals Development Bank, the Solid Minerals
Producing Areas Commission and a Solid Minerals Trust Fund, implementation
<strong>of</strong> the environmental protection provisions in the new policy and legislation,
developing the industry’s value chain and improved governance <strong>of</strong> the industry
with greater emphasis on revenue management, equity and transparency.

4 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Explanation <strong>of</strong> Key Terms
Adit
An adit is a type <strong>of</strong> entrance to an underground mine which is horizontal or nearly horizontal.
Artisanal and Small-Scale Mining
ASM is mining by people working in small groups with simple tools and equipment, usually in
the informal sector, outside the legal and regulatory framework. The vast majority are poor,
exploiting marginal deposits in harsh and <strong>of</strong>ten dangerous conditions – and with considerable
negative impact on the environment.
Beneficiation
Beneficiation <strong>of</strong> minerals is chemical process <strong>of</strong> improving the inherent properties and quality
(e.g. tensile strength, cocking potentials) <strong>of</strong> an ore in order to maximise its utility. Due to the
non-cocking character <strong>of</strong> the Enugu coal it is suitable for thermal power generation but
unsuitable for steel production as was envisaged under the Ajaokuta Steel Company project
unless it undergoes beneficiation.
Borrow Pit
An excavation from which materials such as sand or gravel is removed for construction or
other commercial purposes.
Commodity
A commodity is a primary or unprocessed substance such as cocoa, rice, beans, timber,
petroleum, livestock and mineral resources. In many countries, commodities are traded on a
commodity exchange such as the Nigeria Commodity Exchange in Abuja and the Chicago
Commodities Exchange in Illinois, United States <strong>of</strong> America.
Dirty <strong>Industries</strong>
Dirty industries are classified as such because they pollute and consume excessive natural
resources. Examples are mining, cement, chemicals, textiles, asbestos, pulp and paper, iron
and steel and rubber. Dirty industries are characterised largely by:
(i) high intensity <strong>of</strong> energy use per unit <strong>of</strong> output;
(ii) high intensity <strong>of</strong> toxic release per unit <strong>of</strong> output;
(iii) high cost <strong>of</strong> pollution control per unit <strong>of</strong> operating cost;
(iv) high level <strong>of</strong> environmental pollution and high socio-economic costs (e.g. ill health
relative to the benefits such as employment).
Drilling
Drilling is the cutting process <strong>of</strong> using a drill bit in a drill to cut or enlarge holes in solid materials,
such as metals or wood. Different tools and methods are used for drilling depending on the

The History, Evolution and Geography... 5
type <strong>of</strong> material, the size <strong>of</strong> the hole, the number <strong>of</strong> holes, and the time to complete the operation.
Dutch Disease
Dutch Disease is an economic concept that tries to explain the apparent relationship between
the exploitation <strong>of</strong> natural resources such as solid minerals or petroleum and a decline in the
manufacturing or agricultural sector. On the other hand, it could also mean the neglect <strong>of</strong> a
natural resource sector by the discovery <strong>of</strong> another natural resource with higher market value.
The term was coined in 1977 by The Economist to describe the decline <strong>of</strong> the manufacturing
sector in the Netherlands after the discovery <strong>of</strong> a large natural gas field in 1959, culminating in
the world’s biggest public-private partnership N.V. Nederlandse Gasunie between Esso (now
Exxon Mobil), Shell and the Dutch government in 1963 (The Economist, November 26, 1977,
pg. 82-83).
<strong>Extractive</strong> <strong>Industries</strong>
In this chapter, extractive industries include oil, gas, and mining <strong>of</strong> minerals and metals. It also
includes mining <strong>of</strong> construction materials such as sand and stones.
Feasibility Study
Feasibility study is to evaluate the financial viability, technical and financial risks and robustness
<strong>of</strong> the proposed mining project. In developed countries, feasibility study helps investors to raise
capital because proven ore reserves are bankable. Essentially, once a deposit has been brought
up to reserve status, it becomes an economic entity and an asset upon which loans and equity
can be drawn-generally to pay for its extraction hopefully at a pr<strong>of</strong>it.
Feasibility Parametres
Feasibility parameters in this chapter refer to the quantifiable and unquantifiable measures
including estimated costs, sales and break-even period etc, used in the feasibility study.
Fossil Fuel
Fossil fuels are materials for burning or as a source <strong>of</strong> heat and power. Fossil fuels are fuels
containing carbon - coal, oil and gas - that were formed over millions <strong>of</strong> years through the
decay, burial and compaction <strong>of</strong> rotting vegetation on land, and marine organisms on the sea
floor.
Geophysical Exploration or Investigation
This is the first major step in the process <strong>of</strong> mining. It involves using appropriate equipment
and machinery to prospect and discover the ore body as well as defining its extent and location.
Intergenerational Equity
Intergenerational equity calls for equality among generations in the sense that each generation
is entitled to inherit a robust planet earth that is at least as good as that <strong>of</strong> the previous generation.
Each generation should pass the planet earth on in no worse condition than it received it in and

6 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
to provide equitable access to its resources and benefits. This means that the present generation
<strong>of</strong> human beings holds the earth in trust for future generations.
Lowlands
These normally occur near the coast where the land drops in height to sea level. But in Nigeria,
as in elsewhere, they are sometimes also found in the interior. The lowlands along the coast
stretch from Badagry in the south-west through Koko town in the Niger Delta to Calabar in
the south-east. Well-defined interior lowlands are found in the Chad Basin, Niger-Benue Valley,
Cross River and Sokoto plains. All these plains are less than 330 metres above the sea level.
Metal
A metal is a chemical element or elements physically combined and have some or all <strong>of</strong> the
following properties; strength, ductility, hardness, malleability, solid and is a good conductor <strong>of</strong>
electricity and heat.
Mineral
A mineral is a naturally occurring inorganic substance, possessing a definite chemical
composition and atomic structures. For this purpose, it includes rocks such as coal, marble,
limestone, oil and bitumen, among others.
Mineral Deposit
Mineral deposit is the concentrated, natural occurrence <strong>of</strong> one or more minerals. Mineral deposits
can form within any kind <strong>of</strong> rock and consist <strong>of</strong> any type <strong>of</strong> mineral. They are valuable
economically because they contain high concentrations <strong>of</strong> metallic and nonmetallic elements
or other valuable materials that are essential to an industrial society.
Mineral Exploration
Mineral exploration or prospecting is the act <strong>of</strong> searching a terrain for the purpose <strong>of</strong> discovery
<strong>of</strong> unknown mineral ore, oil, gas, or water.
Mineral Reserves
Mineral reserves are the resources which are known to be economically feasible for extraction.
Reserves are can be either proven reserves or probable reserves. Proven reserves means that
geological activities have actually confirmed the quantities <strong>of</strong> a specific mineral while probable
reserves implies that geological activities and inventory indicate the existence <strong>of</strong> the mineral
but its quantity has not been accurately determined. Generally, reserves can be economically
and legally extracted at the time <strong>of</strong> evaluation.
Mining
Mining is the extraction <strong>of</strong> valuable minerals or other geological materials from the earth,
usually from an ore body, vein or coal seam. Mining in a wider sense comprises extraction <strong>of</strong>
any non-renewable resources such as the ores <strong>of</strong> gold and tin, petroleum and even water.

The History, Evolution and Geography... 7
Ore
The term ore describes rock that contains high enough concentrations <strong>of</strong> a metal to be mined
pr<strong>of</strong>itably.
Outcomes
The extent to which the mining project’s key relevant objectives were achieved, or are expected
to be achieved efficiently. Outcomes represent the impact <strong>of</strong> long-term effects <strong>of</strong> a mining project.
Radioactive Substance
A radioactive substance is a material that emits radiation. Uranium and plutonium are typical
examples <strong>of</strong> radioactive substances.
Spatial Distribution
Spatial distribution refers to the specific location or arrangement <strong>of</strong> objects such as human
settlements, population, physical infrastructure, natural resources and industries among others
on land by time.

8 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
1.0 Introduction
The mining sector <strong>of</strong> the <strong>Extractive</strong> <strong>Industries</strong> (EIs) produces essential inputs in the form <strong>of</strong>
energy, metals and minerals for the global economy. They are very critical to modern industrial
activities for socio-economic development and enhanced quality <strong>of</strong> life. Solid minerals are
recognised as the most valuable sector <strong>of</strong> the industrialised economy, their exploration and
development exerts enormous capacity to support and catalyse growth in almost all economic
sectors. Indeed, the per capita consumption <strong>of</strong> solid mineral resources is generally regarded as
a major index <strong>of</strong> national prosperity. Some developed countries especially the United States <strong>of</strong>
America, Canada and Australia owed their initial success to the exploration and development
<strong>of</strong> solid minerals. In the same vein, South Africa, Chile and Botswana have leveraged their
endowments in solid minerals into sustainable growth through investment-friendly policies,
fiscal discipline and long-term planning.
Solid mineral resources are considered as special economic goods because they are natural
resources, not produced by human beings. They will yield economic pr<strong>of</strong>its that is, rents if
properly governed. These rents can be a very significant source <strong>of</strong> development finance, as
exemplified by good management practices in the aforementioned countries. There are in reality
neither sustainable diamond mines nor sustainable gold deposits, rather, there are sustainable
diamond and gold-mining nations. The foregoing statement assumes implicitly that it is possible
to transform one form <strong>of</strong> wealth such as diamond or gold underground into alternative forms
<strong>of</strong> wealth, such as physical infrastructure, buildings, machines, industry and human capital.
In order to successfully realise this transformation, appropriate policy instruments and set <strong>of</strong>
institutions (formal and informal) and practices are required. This framework would ensure
better management <strong>of</strong> the mineral resources, collecting rents on them and directing the accrued
rents into pr<strong>of</strong>itable ventures and investments while equally involving the resource communities,
safeguarding both the welfare <strong>of</strong> the people and environmental sustainability.
Prior to independence in 1960, solid minerals contributed significantly to Nigeria’s
economic development in diverse ways. In that era, coal was a major source <strong>of</strong> energy for
electricity and the railways and foreign exchange earner through export. Also, Nigeria was a
key producer <strong>of</strong> tin and columbite, accounting for about 94% <strong>of</strong> global columbite production
at a particular point in time (Federal Republic <strong>of</strong> Nigeria, 2008:3). The revenue that accrued
from solid minerals was expended on the development <strong>of</strong> roads, facilities for education and
health, and the petroleum industry. However, poor management, changing economics and
poor management <strong>of</strong> state-owned enterprises such as the Ajaokuta Steel Company 1 culminated
into drastic decline in existing operations as well as constraints to investment in new fields.
1 The Federal Government has since 1980s invested several billions <strong>of</strong> naira on the Ajaokuta Steel Company Ltd
yet, the project has failed to meet its objectives. On March 23, 2009, the Minister <strong>of</strong> Mines and Steel Development
Mrs. Dieziani Allison-Madueke declared that the project has failed (The Guardian 23 March, 2009:19).

The History, Evolution and Geography... 9
1 Objective <strong>of</strong> the Chapter
The overarching objective <strong>of</strong> this chapter is to appraise the governance <strong>of</strong> the Nigerian solid
minerals industry with a view to determining the extent to which it is transparent, equitable
and sustainable. Towards this end, the chapter traces the history <strong>of</strong> the industry, its geography,
role <strong>of</strong> key stakeholders, how it has evolved and developed overtime with a view to developing
an actionable agenda for repositioning and realising improved-outcomes in a transparent and
sustainable manner.
1.2 Research Questions
Some <strong>of</strong> the key questions raised and answered in the chapter include the following:
1. What is the nature <strong>of</strong> the solid minerals industry in Nigeria?
2. What are the major activities?
3. How has the industry evolved overtime and drivers <strong>of</strong> change?
4. What are the production outputs in the industry?
5. How transparent and accountable is the industry?
6. Which solid mineral resources are available in the country and where?
7. What are the challenges militating against the realisation <strong>of</strong> the country’s full potentials?
8. What should the government and other stakeholders do in order to realise the potentials
<strong>of</strong> the industry in a transparent, accountable and environmentally sustainable manner?
1.3 Research Methodology
This chapter relied very extensively on secondary materials sourced from the Federal Ministry
<strong>of</strong> Solid Minerals and Steel Development, Raw Materials Research and Development Council,
relevant libraries and the Internet. The published and unpublished materials inform <strong>of</strong> books,
ministerial briefings, periodicals, newspapers and electronic resources including data bases
were content analysed and complimented with personal observations. The chapter also benefitted
from the Stakeholders Review Seminar held in Abuja, early in 2009.
1.4 Nature and Activities <strong>of</strong> the Nigerian Solid Minerals Industry
Nature <strong>of</strong> the Industry
The mining industry has some unique characteristics because it is based on natural resources
otherwise regarded as the “gifts <strong>of</strong> nature”. Africa’s dependence on fossil fuel and mining was
noted in the Outcome Document <strong>of</strong> the 2005 World Summit, which, while reaffirming the
significance <strong>of</strong> commodities for financing the continent’s development, also called for global,
collective action to support the efforts <strong>of</strong> commodity dependent countries to restructure, diversify,
and strengthen the competitiveness <strong>of</strong> the sector. Dependence on minerals extraction and export
are associated with political and economic risks. Commodity prices and accruable revenue are
volatile due to their vulnerability to external shocks since the prices are externally determined.
Extensive literature has emerged on the problem <strong>of</strong> economic distortions that characterise
mineral resources exploration and development. Because the income elasticity <strong>of</strong> global
commodities is low, the resultant revenue to exporting countries is also low. These two factors

10 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
leave minerals-rich nations quite susceptible to lower rates <strong>of</strong> economic growth unless appropriate
policies are put in place. Also, the mining industry is an enclave and capital-intensive industry.
That is, despite the high capital investments for exploration and exploitation, mining operations
might have little discernible local impacts because more <strong>of</strong>ten than not, deposits are widely
scattered and worked in locations, many <strong>of</strong> which are isolated. Thus, it is <strong>of</strong>ten difficult for the
industry to establish strong forward and backward linkages and opportunities for economic
growth.
Prior to the emergence <strong>of</strong> the petroleum industry after the Nigerian Civil War in 1970, solid
minerals and agriculture constituted the key sectors <strong>of</strong> the country’s economy. From the early
1930s up till about the late 1960s, coal and tin were mined and exported on a large scale. In
particular, tin mining was the major focus, during which larger enterprises were first established.
For instance, in 1956, tin accounted for 7,297,490 UK Pounds out <strong>of</strong> 132,168,856 UK Pounds
representing 5.5 % <strong>of</strong> the total money realised by government from exports (Nigerian Trade
Summary, Vol. 41, No. 12). In addition, the government was receiving Ñ500,000 annually from
tin royalties, apart from mining fees and rents (Hodder, 1959:121). In the early 1940s to late
1960s, Nigeria was the sixth largest exporter <strong>of</strong> tin in the world but this has declined (Hodder,
1959:121).
In the 1970s, there was an emergence <strong>of</strong> Artisans and Small-ScaleMiners (ASMs) for metals
and gemstones, mostly due to declining tin prices and the Civil War (1967-1970), devaluation
<strong>of</strong> the naira, labour movement and retrenchments. Increased global demand for mineral
commodities combined with the collapse <strong>of</strong> the tin market and the introduction <strong>of</strong> the Structural
Adjustment Programme in Nigeria in the 1986 further created another favourable environment
for a flourishing ASM industry, coupled with a rising proportion <strong>of</strong> intermediate traders and
informal mineral smugglers. The industry has therefore experienced the classical ’Dutch Disease’
because this once robust industry and agriculture were neglected by the government after
petroleum was discovered in commercial quantities.
1.5 Activities in the Industry
Activities in the industry can be classified into five major categories as depicted by Figure 1.
The first involves prospecting and exploration which, in the main, entails using modern
prospecting methods to discover anomalies in the earth’s magnetic field, electrical fields, or
radiation patterns in order to define the most promising locations; visual examinations <strong>of</strong> the
surface area for colouring, rock formations, and plant life; chemical analyses <strong>of</strong> soil and water
in the area; and surface work with geophysical instruments. This phase also involves digging
pits, sinking exploration shafts, and core-drilling operations, all <strong>of</strong> which tend to define the
physical limits <strong>of</strong> the ore body and permit a more reliable estimate <strong>of</strong> its economic value. Mode
<strong>of</strong> access to the deposit is determined by the depth <strong>of</strong> the mineral deposits. If the ore body lies
at/or near the surface and extends to a depth <strong>of</strong> not more than a few hundred feet, it maybe
developed by an open-pit excavation, using power shovels and large trucks. Otherwise access
maybe made through a vertical or inclined shaft, an adit, or crosscut tunnels, if it is deep.
Others include assessing the size, shape, location, and economic value <strong>of</strong> the deposit.
Development and mining constitute the second set <strong>of</strong> major activities. This set involves

The History, Evolution and Geography... 11
appraisal <strong>of</strong> field discoveries, acquisition <strong>of</strong> land, actual mining or extraction <strong>of</strong> raw materials
involving extraction technology. The latter includes excavations in underground mines and
surface excavations in open-pit, or open-cut (strip) mines and processing <strong>of</strong> the raw materials
using the appropriate technology. Treatment and processing activities include crushing,
classification, beneficiation, blending, refinement and concentration, among others.
Consumption <strong>of</strong> the minerals as raw materials in industry and in other ways, such as jewelry
among others, represents the fourth set <strong>of</strong> activities. The fifth set <strong>of</strong> activities involves marketing
and distribution both within and outside the country. Growth <strong>of</strong> the industry has been negatively
affected by excessive reliance on imported and expensive technology which makes such
technology out <strong>of</strong> reach <strong>of</strong> the artisans miners because they lack access to finance at reasonable
interest rates.
Prospecting and Exploration: Find geology, mapping; appraisal, geophysical and geochemical
methods; quality grade, reserves, drilling, surveying, sampling, analysis, testing, feasibility
parametres, etc.
Development and Mining:Appraisals, land acquisition, compensations, extraction by surface
or underground methods, environmental management, stock piling etc.
Treatment and Processing: Crushing, classification, separation, beneficiation, blending,
refinement, reduction, concentration, purification, industrial specifications, and so on.
Application and Utilisation: Industrial raw material consumption, for various functional
uses, and manufacture <strong>of</strong> product.
Marketing and Distribution: Block raw materials, dressed items, by-products, manufactured
and finished products; for internal consumption, and exportation.
1.5 The Key Stakeholders
The key stakeholders and nature <strong>of</strong> their involvement are shown in Table 1. Since mining is on
the Exclusive List in the 1999 Federal Constitution, the federal government plays a domineering
role in the industry with other tiers <strong>of</strong> government playing minor roles. Box 1 indicates the
licensing requirements to be met by prospective miners under the new legal framework operated
by the Minerals Cadastre Office.

12 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Figure 1: Layout <strong>of</strong> the Main Sub-groups and Operations in Mineral-based Industry
Prospecting and Exploration: Find geology, mapping;
appraisal, geophysical and geochemical methods; quality
grade, reserves, drilling, surveying, sampling, analysis,
testing, feasibility parametres, etc.
Development and Mining: Appraisals, land acquisition,
compensations, extraction by surface or underground
methods, environmental management, stock piling etc.
Marketing and Distribution: Block
raw materials, dressed items, byproducts,
manufactured and finished
products; for internal consumption,
and exportation.
Treatment and Processing: Crushing, classification,
separation, beneficiation, blending, refinement,
reduction, concentration, purification, industrial
specifications, and so on.
Application and Utilisation: Industrial raw
material consumption, for various functional uses,
and manufacture <strong>of</strong> product.
Source: Elueze (1988)

Table 1: Key Stakeholders and Nature <strong>of</strong> their Involvement
The History, Evolution and Geography... 13
Stakeholder Nature <strong>of</strong> Involvement Remarks
Federal government Provision <strong>of</strong> policy, legal and Until 2000, the governregulatory
framework; exploration ment was active in
and development (E & P); E & P.
Revenue collection (excise duty and
royalties); Promotion <strong>of</strong> the industry’s
potentials for investment and provision
<strong>of</strong> an enabling environment.
State government Providing an enabling business Some states such as
environment; Promotion activities; Nassarawa, Kaduna and
Collection <strong>of</strong> royalties and establish- Osun are involved
ment <strong>of</strong> State Committees on in E & P.
Environmental Management and
Solid Minerals Development.
Local government Providing a conducive environment
at the grassroots for E & P
activities.
Private enterprises Exploration and development <strong>of</strong> Dominated by artisans
minerals, marketing and and small-scale
utilisation. operators.
Civil society Advocacy for fairness and This is a relatively
transparency in the industry. recent development
commencing from about
199.
Development
partners Advocacy for poverty
(e.g. The World Bank, reduction, equity,
UK-DFID, Coalitions accountability,
for Change) transparency and
environmental sustainability.
Mining communities Providing a conducive
living and working environment
for E & P activities.
Nigerian Institute <strong>of</strong> This is a pr<strong>of</strong>essional association
Mining and Geo- for qualified geologists, mining
sciences engineers,
metallurgists, and hydrologists
in the extractive industries
providing capacity building
for members; advocacy; liaison
with government for policy
making and regulation <strong>of</strong> the
pr<strong>of</strong>ession.
Source: Author, 2009.

14 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Box 1: Major Requirements for Issuance/Revalidation <strong>of</strong> Minerals Titles in
Nigeria
i) Minimum work programme
ii) Pre-feasibility report
iii) Evidence <strong>of</strong> financial capacity
iv) Evidence <strong>of</strong> technical competence
v) Notice to land owner/land occupier
vi) Consent from land owner/land occupier
vii) Survey <strong>of</strong> the area (for lease)
viii) Payment <strong>of</strong> surface rent (for lease)
ix) Specify mineral(s) to be explored or exploited.
Source: Advertorial by the Federal Ministry <strong>of</strong> Mines and Steel Development, Abuja, The Punch
26 May 2009 pp. 46.
With a view to accelerating the industry’s development, the government established several
enterprises which were involved in mineral exploration, processing and development. Salient
among such enterprises are the Nigerian Coal Corporation, Nigerian Steel Raw Materials
Exploration Agency, Ajaokuta Steel Company, the Steel Rolling Mills in Osogbo, Katsina and
Jos, and the Nigerian Mining Corporation, among others. Since the mid-1980s, there are no
medium or large-scale mining operations rather majority <strong>of</strong> active mining in the country is
being undertaken by artisans and small miners and entrepreneurs. These mostly unlicensed
enterprises and individuals work deposits <strong>of</strong> precious, semi-precious, construction and industrial
minerals, and also operate beyond the parameters <strong>of</strong> the license they hold (NEITI, 2005).
1.6 The Geography <strong>of</strong> Solid Minerals in Nigeria
Nigeria’s array <strong>of</strong> solid minerals resources fall into four major groups: fossil fuel and metallic,
non-metallic and radioactive minerals. The list <strong>of</strong> economic solid minerals is very impressive
and available information on the on-going geological surveys strongly suggests revelation <strong>of</strong>
more viable deposits. The geological formation <strong>of</strong> the country contains a very remarkably
comprehensive example <strong>of</strong> the types <strong>of</strong> lithology and landforms in the Western or lowland
Africa. The solid minerals resources abound in the three major geological areas namely: the
basement complex rocks, igneous volcanic rocks and the sedimentary rocks (See Figure 2).
Figure 3 shows the spatial distribution <strong>of</strong> the country’s mineral resources. Appendices 1 through
12 confirm the huge endowments <strong>of</strong> more than thirty-four assorted solid minerals that the
country is blessed with.

Figure 2: Map Showing the Major Geological Formations <strong>of</strong> Nigeria
The History, Evolution and Geography... 15
Source: Akintola, F. (1982)

16 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Figure 3: Map Showing the Spatial Distribution <strong>of</strong> Mineral Resources in Nigeria
Source: After http://www.triumphnewspaper.com/can812009.htm#, MSMD, 2007, Nwajide, C.S. (1982).

The History, Evolution and Geography... 17
1.7 Historical Evolution <strong>of</strong> the Mining Industry in Nigeria
In discussing the historical evolution <strong>of</strong> the Nigerian solid minerals sector, focus is on exploration
and production, administration and legal framework, as well as processing and utilisation.
1.8 Exploration for Solid Minerals in Nigeria
Exploration and exploitation <strong>of</strong> mineral resources in the country started in December, 1903
when the Colonial government inaugurated the Minerals Survey Committee. The geological
survey <strong>of</strong> the Southern Protectorate was sanctioned in 1903 while the Northern Protectorate
was sanctioned in 1904 by the Secretary <strong>of</strong> State for the Colonies. The surveys that commenced
in the two protectorates were to make reconnaissance <strong>of</strong> the mineral resources in the two
protectorates. The results <strong>of</strong> the surveys were published between 1906 and 1914 (FRN, 1987).
The survey commenced in 1903 in the Southern Protectorate around the present-day Cross
River and later extended to West <strong>of</strong> the Niger River. In the course <strong>of</strong> the survey, Lignite deposits
were discovered in Asaba and occurrences <strong>of</strong> galena (the ore <strong>of</strong> lead) in many localities, tinstone
and columbite in streams in the Uwet district, monazite (an ore <strong>of</strong> thorium and rare earths)
and limestones suitable for building purposes. In 1905-1906 the bitumen deposits in the swampy
areas in the Eastern part <strong>of</strong> Lagos received attention while in the 1907 attention was on the lead
and zinc ores <strong>of</strong> Abakaliki and lignites and clays in Asaba. In 1908, coal was discovered at Udi
then in 1910, massive seams <strong>of</strong> coal was discovered at Enugu. Due to the importance <strong>of</strong> coal for
electricity generation, it was intensively explored for the next three years.
In the Northern Protectorate, minerals survey began in October 1904 from Lokoja up the
Bendel valley to Wase, then to Jos Plateau and back to Lokoja. The survey team observed the
brine springs <strong>of</strong> Arufu and Awe and the galena works at Arufu. Tin deposits in Jos and Plateau
were located by the Royal Niger Company. Further survey in 1905-1907 periods focused on
parts <strong>of</strong> Niger and Kwara States where thick marble deposits were discovered at Jakura, West
<strong>of</strong> Lokoja. In 1909, iron ores were further discovered in Patti near Lokoja while tin was also
discovered in parts <strong>of</strong> Kwara, Kaduna and Bauchi States.
The Nigerian Bitumen Company, a German Company, first commenced exploration for
bitumen in 1908 along the coastal region stretching from Okitipupa in Ondo State to Lagos.
The first discovery <strong>of</strong> hydrocarbon in 1909 was on the tar sand belt in the swamps <strong>of</strong> the
Western part <strong>of</strong> the country. Exploration and development activities by this firm were
abandoned, following the discovery <strong>of</strong> crude oil in commercial quantity at Oloibiri in the present
Bayelsa State in 1956 by Shell BP, a company formed in 1946 by Shell D’Arcy (Onoh 1983,
NNPC, 1990, Adegoke and Ibe, 1982).
Following the relative success realised in the discovery <strong>of</strong> minerals, the government in 1919,
established the Geological Survey <strong>of</strong> Nigeria (GSN) under the leadership <strong>of</strong> J. D Falconer. Its
head <strong>of</strong>fice was constructed in 1930 at Kaduna junction, a step that reduced foreign travels by
the British Surveyors. The early major pre-occupation <strong>of</strong> GSN was the mapping <strong>of</strong> the Plateau
Tin field and a belt along the Western railway from Lagos to near <strong>of</strong>fa. Later work on the
tinfields was extended to cover Bauchi, Nassarawa, Ilorin and Calabar. Other exploratory
activities are discussed in RMRDC (2001) and FRN (1987). A summary <strong>of</strong> major historical

18 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
developments in the evolution <strong>of</strong> the mining industry is presented in Appendix 13. Subsequently,
GSN observed gold-bearing rocks over wide areas <strong>of</strong> Sokoto, Kaduna and Niger States.
Following the outbreak <strong>of</strong> world war II in 1939, activities <strong>of</strong> GSN declined because <strong>of</strong> the
departure <strong>of</strong> some staff. The focus <strong>of</strong> survey changed to one <strong>of</strong> securing supplies <strong>of</strong> minerals
required for prosecuting the on-going war. Minerals targeted were wolfram (the ore <strong>of</strong> tungsten),
an important element for producing special steels, and tantalite.
Other exploratory activities are discussed in RMRDC (2001) and FRN (1987). A summary
<strong>of</strong> major historical developments in the evolution <strong>of</strong> the mining industry is presented in Appendix
13.
Tin Ore mining began before 1939 but mining operations escalated with World War II such
that most <strong>of</strong> the rich deposits and the ore reserves had been depleted by the end <strong>of</strong> the war.
With a view to re-mapping the Jos Plateau for tin ores, and to provide day-to-day assistance to
the mining firms, a branch <strong>of</strong>fice <strong>of</strong> GSN was established in Jos in 1946. Following the end <strong>of</strong>
world war II, GSN again beamed its searchlight on the coal and lignite deposits in order to
provide energy sources for industrial development in the country. Towards this end, the colonial
government in 1947 contracted Powell Duffryn Technical Services Ltd to carry out an assessment
<strong>of</strong> Nigeria’s fuel resources. Re-mapping <strong>of</strong> the coals along the Enugu escarpment including the
Collieries at Enugu started at about the same time and was concluded in 1955 (FRN, 1987).
Mapping <strong>of</strong> the gold deposits in Ilesha area in Osun State where gold had been discovered
during WWII began in 1946, the conclusion was that the gold occurrences were too small for
larger scale operations. Beginning from 1968, deposits <strong>of</strong> coal, lignite, columbite and gold and
other economic rocks and minerals were examined. Large deposits <strong>of</strong> ironstone were proved
by mapping and drilling at Enugu and Agbaja near Lokoja. Iron-Ore deposits were also
discovered and investigated at Itakpe Hill in Kogi State and Muro Hills in Plateau State. Several
occurrences <strong>of</strong> limestone have been discovered and investigated and subsequent establishment
<strong>of</strong> cement factories at Nkalagu, Calabar, Ukpila (Edo State), Ewekoro (Ogun State), Yandas
(Benue).
Tantalite was first discovered in 1802 by Elkberg while recovery <strong>of</strong> the mineral from
columbite-tantalite began in the early 1930s in the Jos Plateau. There are other deposits straddling
a broad 400 kilometre long Northeast-Southwest belt from Wamba-Keffi Nasarawa area
through Isanlu-Egbe in Kogi State to the Ijero-Aramoko, Ilesha axis <strong>of</strong> South-west and a few
occurrences in the Obudu and Oban massifs in Cross River state (FRN, 1987).
The total staff <strong>of</strong> GSN in 1944 was only 8, increasing to 32 in 1956. After independence in
1960, the GSN continued with its goal <strong>of</strong> exploration while the government issued Special
Exclusive Prospecting Licenses to some firms to search for minerals especially Lead-Zinc,
cassiterite, gold and columbite. The staff strength <strong>of</strong> GSN grew from 32 to 44 in 1965 and 131
in 1971. New government agencies were also created in furtherance <strong>of</strong> the objectives <strong>of</strong> aggressive
exploration and exploitation <strong>of</strong> minerals as a means <strong>of</strong> economic diversification.

The History, Evolution and Geography... 19
1.9 Production <strong>of</strong> Solid Minerals
Production <strong>of</strong> solid minerals has always involved the government and private sector either
singly or jointly. Tin mining for instance, was a joint venture between the Amalgamated Tin
Mines Ltd (9.6%), Nigerian Mining Company (58%) and Malaysia Mining Company (31.5%).
Also, tin smelting was carried out by Makeri Smelting Company Ltd (55.8%), Amalgamated
Metal Company (21%) and Nigerian Mining Company (23.2%) (Freund, 1983). Although the
production pattern <strong>of</strong> cassiterite is erratic, it is quite discernible that there is a downward trend
between 1970 and 2007. Rising from 60, 912 metric tonnes in 1970, coal production peaked in
1972 at 314, 217 metric tonnes and has since then been on the decline. The decline has been
attributed largely to the diesilisation undertaken by the Nigerian Railway Corporation switch
to natural gas and oil by several power stations run by the Nigerian Electric Power Authority
and the Nigerian Civil War (Oyeyinka, 1995).
Production <strong>of</strong> columbite has been erratic, while the data for limestone and marble indicate
more active production. Indeed limestone production has been rising with 15.3 million metric
tons in 2006. The same pattern is exhibited by clay, shale, red alluvium and stones. The temporal
variations in the production <strong>of</strong> five and seven key minerals are shown in Table 2 and 3 as well
as Figures 5 through 12. The actual data and trend for some minerals especially marble, laterite
and granite among others shown in Table 2 appears erratic. In addition, clay and kaolin belong
to the same group hence creating some confusion about actual production levels. The two most
plausible reasons for this is the preponderance <strong>of</strong> informal small-scale artisanal operators who
avoid reporting due to their illegal activities as well as poor data gathering and management
framework in the country.
Table 2: Principal Solid Mineral Production (in Metric Tonnes)
Year Cassit Coal Colum Lime Marble
erite bite stone
1970 10,754.00 60,912.00 1,616.00 688,399.00 1,830.00
1971 9,900.00 192,990.00 1,381.00 813,425.00 4,675.00
1972 9,102.00 341,217.00 1,360.00 1,406,036.00 3,555.00
1973 7,827.00 327,131.00 1,244.00 1,733,031.00 -
1974 7,373.00 304,035.00 1,312.00 1,810,870.00 5,936.00
1975 6,288.00 248,791.00 991.00 1,650,264.00 5,680.00
1976 5,009.00 298,765.00 673.00 1,553,427.00 1,433.00
1977 4,400.00 267,075.00 816.00 1,436,968.00 8,087.00
1978 4,080.00 18,860.00 567.00 1,184,191.00 8,726.00
1979 3,824.00 172,144.00 568.00 2,064,067.00 1,031.00

20 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Year Cassit Coal Colum Lime Marble
erite bite stone
1980 3,570.00 175,977.00 554.00 2,518,205.00 640.00
1981 3,178.00 104,225.00 377.00 1,508,899.00 3,735.00
1982 2,428.00 56,110.00 167.00 1,510,472.00 2,736.00
1983 2,102.00 53,573.00 79.00 1,510,472.00 981.00
1984 1,776.00 76,077.00 81.00 1,541,236.00 1,104.00
1985 1,100.00 139,743.00 100.00 1,891,457.00 2,137.00
1986 193.00 144,411.00 13.00 1,847,376.00 14,820.00
1987 213.00 114,598.00 48.50 2,627,409.00 72,691.00
1988 234.00 82,487.00 51.00 1,712,073.00 5,445.00
1989 350.30 80,882.00 45.80 1,314,843.00 1,377.10
1990 333.60 77,520.00 44.40 1,135,692.00 32,268.10
1991 246.10 137,657.50 35.80 1,435,405.60 29,224.60
1992 107.50 100,073.00 38.20 3,034,767.00 21,191.30
1993 175.00 28,281.50 16.50 3,204,253.00 16,044.00
1994 208.30 25,000.00 17.00 3,239,030.00 17,035.10
1995 203.60 20,000.00 37.00 3,656,598.10 22,460.00
1996 3,584.10 27,116.40 565.60 2,095,219.60 28,608.20
1997 5,965.20 10,829.80 495.70 2,430,719.70 22,249.70
1998 5,162.20 18,473.10 620.50 1,919,952.40 87,841.30
1999 4,184.40 16,213.10 623.10 1,997,510.00 62,021.50
Source: Central Bank <strong>of</strong> Nigeria (2007); Source: National Bureau <strong>of</strong> Statistics (2007) Note: na =
not available

Table 3: Solid Mineral Production (2000-2006) (in 000' Metric Tonnes)
Mineral 2000 2001 2002 2003 2004 2005 2006 2007
Barites 229,592.00 245,663.44 57,839.00 63,622.90 69,000.00 Na 30,011 18,046.58
Cassiterite 3,501.75 3,676.84 1,004.14 1,134.00 1,748.00 0.01 1,818229.00
Clay 50,412.00 60,474.40 136,486.80 150,135.48 149,362.00 2,000 155,336 233,932.46
Columbite 469.33 610.13 156 171.6 371.65 45 387 180.00
Dolomite Na Na 6,108.00 67,800.00 58,714.29 8,571.00 na na
Feldspar 1,449.00 1,811.00 468 514.8 982 269 1,021.30 na
Gemstone 41.5 0.1 15.76 1.71 1.21 Na 1.25 na
Granite Na 2,419,399.91 1,551,329.06 Na Na 2,285,493.30 1,635,555.60 na
Gypsum 530,261.55 609,800.76 138,463.00 152,309.30 162,856.00 Na 169370.24 579,000.00
Iron Ore 24,857.71 25,479.15 7,850.00 8,635.00 8,478.91 8,478.91 8,818.00 57,900.00
Kaolin 165,764.61 32,090.00 52,352.00 57,587.20 92,875.00 60 96,590.00 na
Laterite Na Na 161,541.65 254,386.24 941,488.46 391,793.29 979,148.00 1,642,170.63
Lead/Zinc 164.61 246.91 159,698.00 120 0 Na 2,687.00 581,509.00
Limestone 3,325,853.83 3,392,370.91 11,414,926.81 12,556,419.49 14,693,090.90 1,160,615.80 15,280,814.54 3,323,331.64
The History, Evolution and Geography... 21
Marble 117,086.62 128,795.28 34,053.70 1,208,532.00 1,140,117.00 2,659.00 1,185,721.68 904,120.00
RedAlluvium 109,297.80 120,227.58 12,057.00 132,627.00 217,260.50 Na na na
Sand Na Na 246,448.87 364,291.54 904,977.32 114,284.91 941,176.45 1,722,737.04
Shale 12,168.75 163,494.00 1,071,883.39 1,179,071.73 1,203,687.00 67,229.04 1,263,834.48 83,378.00
Silica Sand Na Na 10,135.00 11,148.00 27,814.43 19,601.32 na na
Stones 50,412.00 Na Na 2,497,683.00 2,205,814.00 401,322.29 na 2,923,642.00
Tantalite Na Na 3,886.00 25,598.00 23,801.00 Na 24,735.40 na
Tin 2,760.00 2,870.40 728 800.8 1,231.88 0.9 na
Source: National Bureau <strong>of</strong> Statistics (2007)
Note: na = not available

22 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
1.20 Processing and Utilisation <strong>of</strong> Solid Minerals
In order to enhance metal processing and utilisation, processing and manufacturing plants
and mills were established by both private and public sectors. The first Steel Plant was established
in 1962 at Emene near Enugu in the then Eastern Nigeria. Two similar plants were established
in Lagos in 1968 and 1970 through private initiative (FGN, 2008). The Delta Steel Plant was
also commissioned in 1982. Similarly, the three Inland Steel Rolling Companies located in
Katsina, Oshogbo and Jos, were commissioned between 1982 and 1983. In 1992, the Exploration
and Mining Division <strong>of</strong> the Authority transformed into the National Steel Raw Materials
Exploration Agency (NSRMEA) and became a corporate body through the enactment <strong>of</strong> decree
49 <strong>of</strong> 1992. The objective <strong>of</strong> setting up the body was to explore for steel raw materials to meet
with the needs <strong>of</strong> the iron and steel industry.
Similarly the National Metallurgical Development Centre was established through Decree
No. 50 <strong>of</strong> 1992 with the mandate to undertake, among others, mineralogical appraisal and
evaluation <strong>of</strong> mineral ore samples, and development <strong>of</strong> substitutes for strategic ferrous and
non-ferrous alloys by increasing the adaptation and use <strong>of</strong> locally produced minerals as alloying
elements.
The National Iron Ore Mining Company (NOMCO) was also established to undertake
mining and processing <strong>of</strong> iron ore to produce concentrates and super-concentrates for Ajaokuta
and Delta Steel Companies, respectively. The Metallurgical Development Centre, Jos, National
Institute for Mining and Geosciences, Jos, Metallurgical Training Institute, Onitsha; and the
Council for Mining Engineers and Geoscientists <strong>of</strong> Nigeria were also created with a view to
further catalyse the sector’s development (FRN, 1987, MSMD, 2008a, 2007).
The macro-economic policy reforms embarked upon by the Obasanjo administration
between 2004 and 2007 witnessed the transformation <strong>of</strong> the nature <strong>of</strong> government participation
in the sector from owner-operator to administrator-regulator. In line with this philosophy, the
three inland Steel Rolling Companies located in Katsina, Oshogbo and Jos were privatised in
2004. The Aluminium Smelter Company was also privatised in 2006. Also, the Nigerian Coal
Corporation and Ajaokuta Steel Company have been privatised. These steps were taken in
order to ensure better performance and meet the demand <strong>of</strong> local industries as typified by
those in Table 4. However, the privatisation <strong>of</strong> the latter has generated public discontent due to
the alleged non-transparent nature <strong>of</strong> the transaction as well as underpricing <strong>of</strong> the assets.
1.21 Legal and Institutional Framework
The first mining regulation was produced in 1949 although it was based on the 1946 Minerals
Law. The pioneer Metals Policy was formulated in 1964 but was later found to be inadequate
to address the basic and fundamental needs <strong>of</strong> the sector. Therefore, the National Policy on
Solid Minerals Development was introduced in 1988. With a view to strengthen the sector, the
Ministry <strong>of</strong> Solid Minerals Development was created in 1995 to coordinate mineral development
activities in the country with a view to ensuring optimal utilisation <strong>of</strong> the resources for sustainable
industrial development <strong>of</strong> the nation. The ministry formulated a mineral development policy

The History, Evolution and Geography... 23
in the latter part <strong>of</strong> 1995. 2 In 1999, the Minerals and Mining Act was promulgated. The 1999
Minerals and Mining Act was repealed in 2007 and replaced with the Minerals and Mining Act
<strong>of</strong> 2007 (FGN, 2007). The repeal <strong>of</strong> the 1999 Act was premised on its shortcomings which
included giving broad discretionary powers to the Minister for Solid Minerals Development on
matters relating to mineral title, lack <strong>of</strong> security <strong>of</strong> interest on mining titles, and vesting in
government’s right <strong>of</strong> pre-emption on all extracted minerals. To enhance transparency in the
industry, the Nigerian <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative was launched in February,
2004. In 2007, the Minerals and Mining Act was passed. The government in 2008 produced the
National Minerals and Metals Policy.
In 2004, the Federal government declared seven out <strong>of</strong> the over thirty-four assorted solid
minerals in the country as strategic (MSMD, 2008a). The minerals are coal, bitumen, barite,
gold, iron ore, limestone and lead/zinc. These minerals are regarded as economically viable
and claimed to have the potential <strong>of</strong> contributing 80 per cent <strong>of</strong> the sector’s revenue to national
gross domestic product. Furthermore, the choice <strong>of</strong> these seven minerals according to the
government is because they are world class and, strategically important to Nigeria’s economy
in addition to their availability in quantities that are sufficient to sustain mining operations for
several years (The Independent, 2008).
1.22 Potentials <strong>of</strong> the Solid Minerals Industry
As indicated in Appendices 2 through 12, the country is endowed with vast deposits and proven
reserves <strong>of</strong> several mineral resources. Available anecdotal data indicates that because <strong>of</strong> the
underdeveloped nature <strong>of</strong> most <strong>of</strong> the country’s solid mineral resources, the revenue losses each
year (opportunity costs) to the federation account are quite substantial as indicated in Table 5.
Furthermore, according to the federal government, establishment <strong>of</strong> the Mining Cadastre is
expected that, solid minerals’ annual gross production value from small-scale and artisanal
mining could reach about US$ 75-125 million by 2010. In addition, given an adequate investment
climate, foreign direct investment in large-scale mining could boost solid mineral production
to US$ 500-700 million by 2015. Also, an increase in mineral production and potential impacts
on poverty alleviation and local economic development in rural areas, the impact <strong>of</strong> the projected
sector development on fiscal revenues as a result <strong>of</strong> the new sector policy, has been estimated to
range between US$ 10 and US $20 million per year (World Bank, 2004). The realism <strong>of</strong> this
statement is given some credence by the estimated high unmet local industrial demand for
solid minerals as raw materials (RMRDC, 2007).

24 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Mineral Products Group Enterprise Location
Non-Metallic Ashaka Cement Ashaka
Cement Company <strong>of</strong>
Northern Nigeria Sokoto
Larfarge WAPCO Shagamu
Beta Glass Sapele
and Ewekoro
Nigerite Asbestos
ro<strong>of</strong>ing materials
Emenite Same, Sapele
Jakura Marble Jakura, Kogi
Ladi Kwali Ceramics Suleja
Ikorodu Clay Products Ikorodu
Clay Products Jos
Iron and Steel Ajaokuta Steel Company Ajaokuta
Delta Steel Company Aladja,
Delta state
Universal Steel Company Lagos
General Metal Products Kaduna
Nigerian Foundries Lagos
Orisakwue Technical Foundry Asaba
KAL Engineering, Kaduna
Onitsha Aluminium
Manufacturing co. Onitsha
Mazi Madu and Bros Onitsha
Chain Chord industry Nnewi
Almetal Products ltd Kano
Borno <strong>Industries</strong> Ltd Maiduguri

The History, Evolution and Geography... 25
Table 5: Annual Losses in Revenue Due to Underdevelopment <strong>of</strong> Solid Mineral
Resources
Mineral Resource Revenue Loss (US $million) Remarks
Kaolin 250 Inadequate production
Barytes 750 As above
Bentonite 500 As above
Gypsum 3,000 Untapped deposits
Salt 265 Under exploitation
Coal 1,000 As above
Feldspar/Talc 1,000 As above
Tantalum 30
Source: Uka Nwangwu (undated)
Table 6: Estimated Local Annual Demand for Selected Industrial Minerals 3
Raw Mineral Annual Demand (in Metric Tones)
Lime 500,000
Gypsum 300,000
Granulated Limestone 300,000
Phosphate 200,000
Kaolin 150,000
Feldspar 100,000
Barytes 100,000
Bentonite 60,000
Talc 50,000
Soda Ash 50,000
Source: Raw Materials Research and Development Council, Cited in Aliyu, Abdullahi (1996:4) 4
3. These are the currently-available estimates. However, the decline in manufacturing – the end-users
in the last 6-8 years - makes it difficult to make any reliable demand projection.

26 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Solid minerals are regularly exported as shown in Table 7. The value <strong>of</strong> minerals products
exported rose from #1, 543,390.4 million in 1999 to #3, 044,175.6 million in 2003 and 2006
respectively. Royalties and rents are still paid by mining firms, while processors pay excise
duties and related charges to government. Also, legal exporters pay duties to the government.
However, most <strong>of</strong> the minerals products are exported without much value added thereby
reducing both the level <strong>of</strong> potential employment opportunities and accruable revenue. Overall,
the sector’s contribution to the national gross domestic product (GDP) has declined overtime.
In 1981, the sector contributed #882.5 million out <strong>of</strong> the total GDP <strong>of</strong> #70, 395.90 million at
1984 constant factor cost representing 1.25%. However, by 1999, the sector’s contribution fell
to #370 million before rising to #480 million out <strong>of</strong> total GDP <strong>of</strong> #116,140 million and #129,
820 million at 1984 constant factor cost in 2002. In subsequent years, the sector further lost
ground to the petroleum sector.
Official records indicate that following the decline in coal and tin mining and smelting,
there has been a drastic decline in employment in the mining sector. Both minerals were labour
intensive, the tin mines for example employed a monthly average <strong>of</strong> 39, 333 <strong>of</strong>ficially-approved
labourers in 1928. During World War II, this figure rose to a peak <strong>of</strong> 74,768 in 1943. These
figures were the highest for a single territorial mining industry in Africa north <strong>of</strong> Witwatersrand
in South Africa (Freund, 1983; Hodder, 1959). Although there is no reliable panel data on
employment in the solid minerals industry, it is suffice to state that the contribution has been
quite below the industry’s potential. Table 7 indicates the structure <strong>of</strong> employment in the mining
and quarrying sector between 1999 and 2007. In 1999, the share <strong>of</strong> mining and quarrying in
total employment was 65,040 representing a mere 0.17 % <strong>of</strong> the 37,828,009. The number <strong>of</strong>
persons employed rose marginally during the reporting period to 67, 001 and 72,962 in 2005
and 2007 respectively but proportion declined overtime to about 0.14%. It is further observed
that in the Index <strong>of</strong> Employment by Economic Activity published by the National Bureau <strong>of</strong>
Statistics in 2006, mining and quarrying grew the least with the index standing at 33.38 in
2000, rising to 56.9 and 63.89 in 2003 and 2005 respectively. Both the contribution <strong>of</strong> the solid
minerals industry to the GDP and employment are low due to the high level <strong>of</strong> illegal mining
and exportation activities which are not captured in <strong>of</strong>ficial statistics. Illegal mining is reported
to cost the country about US$ 30 million every year in lost income to Nigeria (House <strong>of</strong>
Representatives Committee on Solid Minerals, 2001).
The Federal Government <strong>of</strong> Nigeria in 2005 commenced the Sustainable Management
<strong>of</strong> Mineral Resources Project (SMMRP) as part <strong>of</strong> efforts at developing non-oil sources <strong>of</strong> revenue
with a credit <strong>of</strong> US$ 120 million from the World Bank/IDA (World Bank, 2004). The objectives
<strong>of</strong> this landmark project are to increase government’s long-term institutional and technical
capacity to manage Nigeria’s mineral resources in a sustainable way and to establish a basis
for poverty reduction and rural economic renewal in selected areas <strong>of</strong> the country via the
development <strong>of</strong> non-farm income generating opportunities through small-scale and artisanal
mining and to diversify away from oil sources <strong>of</strong> income. Through the project, the government
has succeeded in producing the new policy and legislation as well as establishment <strong>of</strong> the

Table 7: Total Employment by Economic Activity in Nigeria: 1999 - 2007
Description 1999 2000 2001 2002 2003 2004 2005 2006 2007
The History, Evolution and Geography... 27
Total Employment 37,828,009 38,962,024 43,600,000 44,800,000 46,800,000 48,124,440 49,486,362 50,886,826 52,326,923
Agricultural
Hunting Forestry
&Fishing 20,120,000 21,218,810 23,870,000 26,840,000 27,840,000 28,516,208 29,016,653 29,837,824 30,682,234
Mining &Quarrying 65,040 67,500 68,055 67,710 66,150 67,325 69,001 70,954 72,962
Manufacturing
<strong>Industries</strong> 770,200 790,000 775,000 680,000 820,000 838,517 907,877 933,570 959,990
Prod.& Dist. Of
Electricity &Water 300,050 326,193 356,000 320,000 410,000 422,960 426,642 438,716 451,723
Building
& Construction 280,100 290,000 289,000 252,000 260,000 267,879 273,049 280,777 288,723
Comm.& Repairs
<strong>of</strong> Auto & Domestic
Art. 117,900 120,000 120,242 91,740 93,060 97,037 103,847 106,786 109,808
Hotels &
Restaurants 73,050 74,010 90,758 83,260 86,940 89,488 96,370 99,097 101,901
Transport,
Storage &
Communication 340,256 346,684 388,000 390,000 400,000 412,202 415,988 427,761 439,866
Finance
Intermediation
(include insurance) 300,000 320,000 360,000 244,000 270,000 275,854 280,948 288,899 297,074
Real Estate
Renting &
Business Activities 59,862 62,000 69,163 56,110 58,590 59,983 60,182 61,885 63,636
Public Admin.
& Defence,
Compulsory
Soc. Sec. 4,620,000 4,800,000 5,429,000 4,800,000 4,900,000 5,052,427 5,067,423 5,210,831 5,358,298
Education 8,123,000 8,345,779 8,800,000 8,317,000 8,430,000 8,783,530 9,473,306 9,741,400 10,017,082
Health &
Social Work 270,854 182,632 276,000 183,000 280,000 291,431 296,375 304,762 313,387
Others 2,387,697 2,018,416 2,708,782 2,475,180 2,885,260 2,949,598 2,998,702 3,083,565 3,170,830
Source: National Bureau <strong>of</strong> Statistics,
Quick National Employment Generation Survey (QNEGS,2006)
Note: The data for Mining and Quarrying includes those employed in the oil and gas industry

28 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Mining Cadastre Office and on-going capacity building for effective grant and administration
<strong>of</strong> mining titles.
Under SMMRP capacity building activities for ASMs, including formation <strong>of</strong> cooperatives
and training are on-going at the time <strong>of</strong> preparing this chapter. There is provision in the project
for the disbursement <strong>of</strong> US $10 million to ASMs and mining communities in the country.
Indeed in July, 2009 ten miners’ cooperatives were given a grant <strong>of</strong> #53,063,465 by the MMSD
from the US$10 million World Bank credit while several miners’ cooperatives are expected to
receive their grants. The purpose <strong>of</strong> the grant is to empower beneficiaries acquire physical
assets, training, and the provision <strong>of</strong> social infrastructure (Daily Trust, Thursday, July 2009 pp.
9).
One <strong>of</strong> the very critical issues in global discuss is that <strong>of</strong> the mining and environment
sustainability. Towards this end, the Ministry has carried out an inventory <strong>of</strong> abandoned mines
and quarry sites in the country. Some 1,218 abandoned mine and quarry sites have been
identified to date. A Memorandum <strong>of</strong> Understanding (MOU) between the Ministry and Federal
Ministry <strong>of</strong> Environment, Housing and Urban Development on Environmental Impact
Assessment in Mining has already been signed. Guidelines on the procedure for Environmental
Impact Assessment in the mining sector have been prepared for adoption by all operators.
Also, the federal government has given approval for the reclamation <strong>of</strong> abandoned mines.
Five abandoned mine sites in Ebonyi (Eyimgba H, II, IV) and Edo (site l&2) states have been
reclaimed. The World Bank has agreed to assist through the Sustainable Management <strong>of</strong> Mineral
Resources Project for reclamation <strong>of</strong> four sites namely-Dorowa-Bukuru and GTC Kwata both
in Jos South, Plateau state as well as Dala Sites 1 and 2 in Kano State.
1.23 Challenges <strong>of</strong> the Solid Minerals Industry
The solid minerals industry faces a lot <strong>of</strong> challenges militating against the realisation <strong>of</strong> its full
potentials. From the perspective <strong>of</strong> transparency, accountability and environmental
sustainability, perhaps the overarching challenge is the utilisation <strong>of</strong> the wealth created as an
engine <strong>of</strong> growth and development and sustains this, even long after the minerals have been
depleted. There are numerous dimensions to this challenge but this chapter focuses on those
considered critical in the Nigerian context in order to avoid the petroleum industry debacle.
1.24 The Challenge <strong>of</strong> Irreversibility
Since solid minerals are non-renewable, the country faces the challenge <strong>of</strong> irreversibility <strong>of</strong>
losses. Consequently, there is concern for better management and conservation if the life span
<strong>of</strong> these resources could be prolonged through better property rights and their enforcement
and preference for inter-generational equity.
1.25 The Challenge <strong>of</strong> Governance and Macro-economic Management:As earlier stated
in section 2, the stunted growth <strong>of</strong> the industry is partly due to bad governance and macroeconomic
management. The solid minerals industry is governed by the MSMD. Currently, the

The History, Evolution and Geography... 29
ministry has <strong>of</strong>fices in the thirty-six states <strong>of</strong> the federation, and is structured into five
departments; four units; and three parastatals. Legal framework is characterised by discretionary
powers <strong>of</strong> <strong>of</strong>ficials while mining licenses and permits held mostly by speculators. The adopted
style <strong>of</strong> governance is “top-to-bottom” with little participation by community groups and the
civil society. Until recently, state governments were not in any way involved in the governance
<strong>of</strong> the industry. The challenge therefore is to ensure robust system <strong>of</strong> governance and stable
macro-economic policy regime that strictly abhors and penalises rent-seeking behaviour and
corruption.
1.26 The Challenge <strong>of</strong> Benefit Distribution
Given that most <strong>of</strong> the communities from where theses resources are mined are poor and tend
to be enclaves two related challenges are what to do in order to equitably distribute the benefits
accruing from pr<strong>of</strong>its and royalties as well as making the mining industry more pro-poor. This
also requires proper balancing and managing conflicting sub-national and national concerns
and interests and then deciding how best to allocate the wealth and empower the mining
communities.
1.27 The Challenge <strong>of</strong> Wealth Creation and Pro-Poor Development
This challenge is viewed from the perspective <strong>of</strong> potential revenue and loss arising from the
neglect <strong>of</strong> the industry. The industry has traditionally failed to meet the industrial raw materials
demand thus leading to the importation <strong>of</strong> substitutes and loss <strong>of</strong> foreign exchange. Whereas
there are several deposits <strong>of</strong> more than thirty-four assorted solid mineral resources some <strong>of</strong>
which are being worked by informal operators, there are no <strong>of</strong>ficially-acknowledged statistics
on the revenue potential <strong>of</strong> the solid minerals industry, but there are speculations that the
potential is quite huge. The challenge is realising improvement in mining operations and
organisation <strong>of</strong> the informal miners, such that more wealth is created for them and lifted out <strong>of</strong>
poverty.
1.28 Emerging Issues
Several pertinent issues requiring the attention <strong>of</strong> the Nigerian government and other key
stakeholders have emerged from the foregoing discussions in particular and in the context <strong>of</strong>
the petroleum industry.
1.29 The Issue <strong>of</strong> Value Chain Development
As observed above, most <strong>of</strong> the minerals are produced by ASMs with little integration and in
the absence <strong>of</strong> any discernable national value chain development system. There is also low
productivity and inefficient use <strong>of</strong> minerals due to inefficient mining. Therefore, the government
should be concerned with how to create a viable, integrated and diversified mining industry
throughout the value chain.

30 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Table 3: Solid Mineral Production (2000-2006) (in 000' Metric Tonnes)
Mineral 2000 2001 2002 2003 2004 2005 2006 2007
Barites 229,592.00 245,663.44 57,839.00 63,622.90 69,000.00 Na 30,011 18,046.58
Cassiterite 3,501.75 3,676.84 1,004.14 1,134.00 1,748.00 0.01 1,818 229.00
Clay 50,412.00 60,474.40 136,486.80 150,135.48 149,362.00 2,000 155,336 233,932.46
Columbite 469.33 610.13 156 171.6 371.65 45 387 180.00
Dolomite Na Na 6,108.00 67,800.00 58,714.29 8,571.00 na na
Feldspar 1,449.00 1,811.00 468 514.8 982 269 1,021.30 na
Gemstone 41.5 0.1 15.76 1.71 1.21 Na 1.25 na
Granite Na 2,419,399.91 1,551,329.06 Na Na 2,285,493.30 1,635,555.60 na
Gypsum 530,261.55 609,800.76 138,463.00 152,309.30 162,856.00 Na 169370.24 579,000.00
Iron Ore 24,857.71 25,479.15 7,850.00 8,635.00 8,478.91 8,478.91 8,818.00 57,900.00
Kaolin 165,764.61 32,090.00 52,352.00 57,587.20 92,875.00 60 96,590.00 na
Laterite Na Na 161,541.65 254,386.24 941,488.46 391,793.29 979,148.00 1,642,170.63
Lead/Zinc 164.61 246.91 159,698.00 120 0 Na 2,687.00 581,509.00
Limestone 3,325,853.83 3,392,370.91 11,414,926.81 12,556,419.49 14,693,090.90 1,160,615.80 15,280,814.54 3,323,331.64
Marble 117,086.62 128,795.28 34,053.70 1,208,532.00 1,140,117.00 2,659.00 1,185,721.68 904,120.00
Red Alluvium 109,297.80 120,227.58 12,057.00 132,627.00 217,260.50 Na na na
Sand Na Na 246,448.87 364,291.54 904,977.32 114,284.91 941,176.45 1,722,737.04
Shale 12,168.75 163,494.00 1,071,883.39 1,179,071.73 1,203,687.00 67,229.04 1,263,834.48 83,378.00
Silica Sand Na Na 10,135.00 11,148.00 27,814.43 19,601.32 na na
Stones 50,412.00 Na Na 2,497,683.00 2,205,814.00 401,322.29 na 2,923,642.00
Tantalite Na Na 3,886.00 25,598.00 23,801.00 Na 24,735.40 na
Tin 2,760.00 2,870.40 728 800.8 1,231.88 0.9 na
Source: National Bureau <strong>of</strong> Statistics (2007)
Note: na = not available

The History, Evolution and Geography... 31
1.30 The Issue <strong>of</strong> Illegal Mining
According to NEEDS-1, the federal government claimed that as many as 500,000 households
(potentially 2-4 million people) depend directly or indirectly on informal mining for their
sustenance. The influx <strong>of</strong> migrants from neighbouring countries, such as Benin, Burkina Faso,
Cameroon, Chad, Niger, and Togo has further complexed the population <strong>of</strong> informal miners
and traders. Many <strong>of</strong> the informal miners and illegal exporters engage in ASM on the seasonal
basis, some are also migrant workers, changing their location on a regular basis. The illegal
miners are noted to have poor health and safety conditions. Illegal mining and exports cost the
country the loss <strong>of</strong> revenue estimated at about US $30 million annually from tantalum (House
Committee on Solid Minerals, 2001).
1.31 The Issue <strong>of</strong> Environmental Degradation
Globally, the mining industry is regarded as a “dirty industry” with wide spread ecological
footprint in addition to being very capital intensive (Olokesusi and Ogbu, 1995). Because <strong>of</strong>
the latter and low level <strong>of</strong> foreign direct investment in Nigeria’s mining industry, majority <strong>of</strong>
the ASMs in the course <strong>of</strong> mining operations, adhere minimally or not at all to safety and
environmental standards. Their operations are carried out in an ad hoc manner with little or no
supporting infrastructure (physical or institutional). These miners use tools such as shovels,
diggers, axes and cutlasses. Their practices involve deforestation, excavation and creation <strong>of</strong>
burrow pits especially on farmlands in the various mining communities without any form <strong>of</strong>
environmental restitution. Apart from contributing to the global warming phenomenon, these
practices lead to farmland destruction, physical hazards and degradation <strong>of</strong> the environment.
Diverse chemicals such as mercury are also used to process raw minerals with little consideration
<strong>of</strong> the environmental consequences. Another related issue is that artisanal mining <strong>of</strong>ten results
in conflict, loss <strong>of</strong> lives and properties in host communities. Because <strong>of</strong> the numerous burrow
pits, their activities constitute physical barriers to any future mechanised mining which maybe
initiated in these sites.
1.32 Community Issues
The diminutive growth <strong>of</strong> the sector is also traceable to the presence <strong>of</strong> powerful and corrupt
vested interests in the ministries and parastatals <strong>of</strong> government charged with governance <strong>of</strong>
the industry and their lackeys in the private sector. Weak institutions, and competition by
these interests to appropriate the revenues has led to social strife in some mining communities
such as Ofiki and Olode in Oyo state and Ijero in Ekiti state. Furthermore, most <strong>of</strong> these
communities are neglected as the wealth created is not ploughed back into community
development projects including physical infrastructure such as roads, electricity and water
supply. Child labour, prostitution, unprotected sex and robbery have also been noted as
externalities associated with the industry.
1.33 The Issue <strong>of</strong> Ownership
One <strong>of</strong> the most explosive issues ravaging the petroleum industry is that <strong>of</strong> ownership especially

32 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
as some <strong>of</strong> the operating laws have deprived oil-producing areas ownership <strong>of</strong> the land and
mineral resources. While the new legislation for the solid minerals industry seems to be a shade
better that its oil counterpart, it is pertinent to point out that this is a critical issue that must be
addressed so as to reduce conflicts and promote pro-poor growth, rule <strong>of</strong> law and transparency
in line with the NEITI.
1.34 Recommendations
The mining industry is very critical to the nation’s economy going by the role <strong>of</strong> the industry as
a potential major revenue base. In this regard, the issue <strong>of</strong> governance, especially with respect
to collection and effective utilisation <strong>of</strong> revenue accruing from the sector and participation <strong>of</strong> all
the stakeholders in all the activities in the industry are very essential to repositioning the industry.
Towards this end the following recommendations become pertinent.
1.35 Public Sector
Federal Government
* One <strong>of</strong> the most critical issues is the neglect <strong>of</strong> mining communities which is reminiscent
<strong>of</strong> the situation in the oil producing areas, therefore the federal government should
establish the National Solid Mineral Areas Producing Commission fashioned after the
Niger-Delta Development Commission should be created.
* The government should ensure that new contractual arrangements and legal instruments
are developed in order to facilitate equity participation by local communities and other
stakeholders.
* Good governance should be promoted by the government especially by enforcing
policies, laws and strengthen the capacity <strong>of</strong> all MDAs relevant to the sustainable
development <strong>of</strong> the industry.
* A key governance issue identified by this study is how to integrate the SMAs into the
formal economy, the government on-going programme <strong>of</strong> encouraging SMAs to form
cooperative societies and provision <strong>of</strong> concessionary loans should be sustained as this
would reduce illegal mining activities and other malfeasances.
* Using public-private partnership arrangement, government should provide risk funds
for mineral E & P as well as beneficiation.
* The on-going environmental restitution programmes should be extended to all degraded
and abandoned mines in all parts <strong>of</strong> the country while the provision for pre-project
environmental impact assessment should be adhered to irrespective <strong>of</strong> size <strong>of</strong> mining

The History, Evolution and Geography... 33
project. The environmental impact assessment capabilities <strong>of</strong> the Federal Ministry <strong>of</strong>
Steel and Minerals Development should be strengthened.
* Mineral deposits generally occur in remote areas with poor infrastructural facilities which
<strong>of</strong>ten inhibit their optimum development. Government should therefore place emphasis
on provision <strong>of</strong> infrastructure especially roads, electricity and water as well as safety
and security measures in the mining communities.
* With a view to ensuring inert-generational equity, the government should create a
National Solid Minerals Future Fund or National Solid Minerals Trust Fund into which
at least 20 per cent <strong>of</strong> the royalties are kept in an interest yielding account with the
Central Bank <strong>of</strong> Nigeria. This type <strong>of</strong> fund exists in Norway, Kuwait, Botswana,
Mauritania and Alaska in the United States from where experiences could be obtained.
* Access to credit is a major problem being experienced by the small-scale and artisanal
miners and investors in minerals processing. To ameliorate this critical problem, the
government could mobilise financial resources using the public-private partnership
approach towards the establishment <strong>of</strong> a Solid Minerals Development Bank.
* Unlike the petroleum industry, there is an acute dearth <strong>of</strong> statistics on revenue accruing
to the federation account from the Solid Minerals Industry, thus making it difficult to
conclude unambiguously the extent <strong>of</strong> opacity in the latter. It is therefore imperative
that a very efficient and effective revenue collection and expenditure framework be
established by government. This action would facilitate implementation <strong>of</strong> the 13%
derivative in the distribution <strong>of</strong> resources from the industry as currently being done for
the oil-producing states.
* With a view to ensuring improvement in property rights, government should provide
the framework for data collection in respect <strong>of</strong> the data base on solid minerals including
location across the country. Also, the Cadastral Mapping Project under the register <strong>of</strong>
all mining rights licenses and leases should be further pursued and strengthened in line
with on-going reforms <strong>of</strong> the Federal Ministry <strong>of</strong> Steel and Minerals Development.
* Government should ensure the creation <strong>of</strong> a viable, integrated and diversified industry
through robust value chain creation as well as its sustenance. This implies that operators
in the industry are to be encouraged by providing incentives to the private sector to
provide the facilities for beneficiating mineral ores and also establish quality standards
for best practices in exploration, production and beneficiation.

34 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
* Government should ensure that future geological surveys focus on the acquisition,
management, storage, interpretation and communication <strong>of</strong> geoscience information to
promote their country’s resource potential and thus encourage investment in detailed
mineral exploration by the private sector.
* Sensitise host communities and the general public on the need for peace and cooperation
during E & P activities.
* E & P activities are complex and highly technical operations. The government should
build the capacity building <strong>of</strong> personnel and institutions for enhanced performance.
* In conjunction with host communities, put in place, a framework to determine actual
quantity and quality <strong>of</strong> minerals produced.
* Provide detailed information on revenue accruing to the federation account and
expenditure pattern.
State Governments
* State governments should collaborate to support efforts <strong>of</strong> the federal government by
providing safety and security measures and physical infrastructure in the mining
communities. The government could provide the infrastructure through public-private
initiatives.
* State governments should proactively engage the private sector to invest in the industry
by providing an enabling environment including reasonable incentives.
* Ensure that the State Sustainable Solid Minerals Management Committees are duly
constituted with people <strong>of</strong> integrity with a view to realising the objectives for which they
were established.
* Develop a State Solid Minerals Information Management System (SSMIMS) covering
the identities <strong>of</strong> licensed miners, employment, acreages approved for operation, royalties
paid, involvement in corporate social responsibility and royalties paid among others.
* Monitor the local governments to ensure that they contribute their quota to the
development <strong>of</strong> the industry.
* Sensitise host communities and the general public on the need for peace and cooperation
for E & Ping activities and also ensure that the Comprehensive Host Community
Agreement between the miners and mineral-bearing communities are signed and duly
implemented.
* Ensure that the conditions <strong>of</strong> project approval and environmental management plans
under the Environmental Impact Assessment process are adhered to and put in place a
robust environmental monitoring framework for this purpose.
* Provide detailed information on any revenue accruing to the state c<strong>of</strong>fers and expenditure
pattern.

The History, Evolution and Geography... 35
Local Governments
Ö Sensitise host communities and the general public on the need for peace and cooperation
for E & Ping activities and also ensure that the Comprehensive Host Community
Agreement between the miners and mineral-bearing communities are realistic and
equitable and duly implemented.
Ö Ensure that the conditions <strong>of</strong> project approval and environmental management plans
under the Environmental Impact Assessment process are adhered to and partnered
with the state government on environmental protection and monitoring.
Ö Provide physical infrastructure in the minerals-bearing communities and maintain same
on a regular basis.
Ö Support the other tiers <strong>of</strong> government on safety and security matters.
Ö Sensitise host communities and the general public on the need for peace and cooperation
for E & Ping activities and also ensure that the conditions <strong>of</strong> project approval and
environmental management plans under the Environmental Impact Assessment process
are adhered to and partnered with the state government on environmental protection
and monitoring.
Ö Provide physical infrastructure in the minerals-bearing communities and maintain same
on a regular basis.
Private Sector
Ö As the drivers <strong>of</strong> the industry the private sector should strive more to mobilise financial
resources from domestic sources such as banks, insurance firms and the capital market.
Also they should attract foreign investors with requisite technologies and funds.
Ö Nigeria’s goal <strong>of</strong> transparency in the extractive industries will be given a fillip if private
sector stakeholders operate transparently by obtaining relevant permits, desist from
corrupt practices and other clandestine activities such as illegal mining.
Ö In addition to making investment in E & P using best practices, the private sector should
invest in machinery and equipment for minerals beneficiation so as to add value to
mineral ores before they are consumed locally and exported.
Ö Licensed mining firms should sign the Comprehensive Host Community Agreement
reached with the host communities and implement accordingly.
Ö In addition to exploration and production, miners should invest in mineral processing
in order to add value and earn more income.
8.3 Civil Society
Ö Sustained and significant improvements in transparency and accountability are more
likely with a well-informed public and active support from citizens. Therefore, the civil
society should collaborate with host communities, NEITI and development partners
involved in the extractive industries to enhance development impacts. Such network <strong>of</strong>
organisations should promote transparency and equity awareness and educate the public
to build constituencies for positive change.

36 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Host Communities
· Host communities should negotiate a realistic and equitable agreement with the mining
firms and monitor the implementation <strong>of</strong> the agreement to ensure compliance.
· Establish a reliable framework for monitoring the quantities <strong>of</strong> minerals produced at all
times and ensure that illegal miners are arrested and prosecuted.
· Host communities as part owners in the mining enterprise should ensure that they
receive dividends that are realistic and equitable at the end <strong>of</strong> each financial year from
the management <strong>of</strong> the firm. With a view to properly manage the dividends, it is
proposed that a Community Trust Fund be established and managed by a committee
<strong>of</strong> reliable persons in the community.
· To cooperate fully with the miners by supporting the government in the areas <strong>of</strong> safety,
security, physical infrastructure among others.
· To collaborate with civil societies in order to bring to the public domain challenges and
concerns through advocacy using the mass media and lobbying <strong>of</strong> the executive and
legislative arms <strong>of</strong> government.
Conclusion
The solid minerals industry is very strategic for economic growth and sustainable development
in addition to constituting a veritable means <strong>of</strong> generating revenue for the country. It is an
industry endowed with great multiplier effect as it relates especially to the manufacturing
sector <strong>of</strong> the economy. Besides, with the dwindling revenue from petroleum, the neglect <strong>of</strong> the
extractive industries is not affordable, it is suicidal. It is in this regard that efforts have been
made here to examine the nature <strong>of</strong> the industry, its historical evolution and more importantly,
the associated challenges. The outcome <strong>of</strong> these efforts is that a lot has to be done to realise the
full potentials <strong>of</strong> the industry. It is in this regard that measures have been pr<strong>of</strong>fered to rejuvenate
the industry and enhance its contribution to the diversification and growth <strong>of</strong> the national
economy and poverty eradication. In order to avoid the mistakes and leakages experienced in
the petroleum industry, government should ensure that the revenues are invested for lasting
wealth purposes and distribute the benefits equitably, balancing and managing conflicting
local and national-level concerns and interests while at the same time, promoting transparency
without compromising environmental sustainability.

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Abuja.
_________ (2004) Technical Brief on Minerals in Nigeria-Lead/Zinc. No 16, RMRDC, Abuja.
_________ (2004) Technical Brief on Minerals in Nigeria, Tantalite. No 15, September, 2004,
RMRDC, Abuja.
_________ (2003a), Multidisciplinary Committee Report <strong>of</strong> the Techno-Economic Survey on Non-
Metallic Minerals Sector (4 th Update), December 2003, RMRDC, Abuja.
_________ (2003b) Multi-Disciplinary Committee Report <strong>of</strong> the Techno-Economic Survey on
Base Metal, Iron and Steel and Engineering Services Sector, 4 th Update, RMRDC, Abuja.
_________ (2001) Technical Brief on Minerals in Nigeria, Gold, No 10. RMRDC, Abuja..
_________ (2001), Technical Brief on Minerals in Nigeria, Limestone/Marble, No 12, November,
2001.
The Guardian (2009) “Ajaokuta Steel project has failed, Minister Declares”, The Guardian, 23
March, 2009 pp.19.
United Nations Conference on Trade and Development (UNCTAD) (1984) Processing <strong>of</strong> Tin:
Areas <strong>of</strong> International Cooperation, UNCTAD, Geneva.
World Bank (2004) “Project Appraisal Document on A Proposed Credit In The Amount Of Sdr
80.1 million (US $120 Million Equivalent) to the Federal Republic <strong>of</strong> Nigeria for a
Sustainable Management <strong>of</strong> Mineral Resources Project”, Report No: 30697-NG,
World Bank, Washington, D.C.

40 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 1: Mineral Resources Deposits in Nigeria by States
1. Abia Glass Sand, Limestone, Salt, Shale, Ball Clay, Granite, Galena, Marble,
Laterite, Bentonite, Phosphate, Kaolin, Pyrite, Feldspar, Petroleum, Lignite,
Gypsum, Sphalerite, Clay.
2. Adamawa Granite, Clay, Gypsum, Limestone, Uranium, Kaolin, Coal, Trona, Barite
Salt, Marble, Magnetite, Laterite.
3. Akwa Ibom Clay, Glass Sand, Salt, Silica Sand, Granite, Coal, Petroleum, Natural Gas,
Kaolin, Limestone, Lignite.
4. Anambra Clay, Iron Stone, Natural Gas, Petroleum, Sand Stone, Kaolin, Pyrite,
Lignite.
5. Bauchi Kaolin, Trona, Gypsum, Cassiterite, Mica, Clay, Tantalite, Galena, Iron
Ore, Gemstone, Sphalerite, Silica Sand, Barite, Columbite, Zinc, Lead,
Muscovite, Quartz, Tin, Glass Sand, Monazite, Feldspar, Graphite,
Wolfram, Coal, Agate, Tentalum, Rutile, Tungsten, Copper, Talc, Limenite,
Ziron.
6. Bayelsa Salt, Petroleum, Natural Gas, Silica Sand, Bentonite, Crude, Limestone,
Glass Sand.
7. Benue Gemstone, Barites, Feldspar, Marble, Mica, Silica Sand, Quartz, Galena,
Lead, Zinc Ore, Silica Sand, Clay, Crushed And Dimension Stone,
Fluorspar, Wolframite, Bauxite, Shale, Magnetite, Limenite, Brenite
8. Borno Silica Sand, Natural Salt, Sapphire, Topaz, Mica, Quartz, Gypsum,
Uranium, Iron Ore, Megnesite, Fedspar, Granite Aquamarine, Nepheline,
Limestone, Kaolin, Bentonite, Laterite, Refractory Clay, Trona, Gold, Tin,
Potash.
9. Cross River Salt Limestone, Coal, Manganese, Mica, Limenite, Gold, Quartz, Glass
Sand, Tourmaline, Petroleum, Natural Gas, Kaolin, Tin Ore, Sharp Sand,
Spring Water, Salt Deposit, Talc, Granite, Galena, Lead, Zinc, Muscovite,
Barite.
10. Delta Kaolin, Lateritic Clay, Gravel, Silica Sand, Natural Gas, Petroleum, Ball
Clay, Bauxite, Granite, River Sand, Clay, Spring Water.
11. Ebonyi Lead, Zinc Ore, Salt, Limestone, Ball Clay, Refractory Clay, Gypsum, and
Granite.

The History, Evolution and Geography... 41
12. Edo Chamockite, Copper, Gold, Marble, Granite, Gypsum, Petroleum, Dorite,
Lignite, Limestone, Ceramic Clay.
13. Ekiti Clay, Chamokite, Quartz, Lignite, Limestone, Granite, Gemstone, Bauxite,
Cassiterite, Columbite, Tantalite, Feldspar, Kaolin.
14. Enugu Laterite Clay, Crude Oil, Kaolinitic Clay, Iron Ore, Glass Sand, Petroleum,
Gypsum, Coal, Silica Sand, Ceramics.
15. Gombe Graphite, Kaolin, Limestone, Silica Sand, Uranium, Coal, Halites, Clay,
Gypsum, Diatomite, Granite.
16. Imo Crude Oil, Shale, Natural Gas, Kaolin, Laterite Sand, Limestone, Salt, Marble
17. Jigawa Glass Sand, Granite, Laterite Clay, Silica, Kaolin, Iron Ore, Quartz, Potash,
Talc, Limenite, Gemstone, Columbite.
18. Kaduna Muscovite, Granite, Gold, Manganese, Clay, Graphite, Sand, Zircon, Kyanite,
Tin Ore, Limenite, Gemstone, Columbite
19. Kano Clay, Laterite, Cassiterite, Columbite, Llmenitegalena, Phyrochlorite, Kaoline,
Gemstone, Silica, Tin Ore, Monazite, Wolframite, Thorium, Granite, Hyalite,
Kaolin, Beryl, Amethyst, Gold.
20. Katsina Gold ,Manganese, Lateritic Clay, Feldspar, Black Tourmaline, Amethyst,
Quartz, Kaolin, Mica, Gypsum, Silimanite, Clay, Granite, Sand, Uranium
Asbestos, Tourmaline, Serpentine (Chresolite Asbestos),Chromites, Limenite,
Diamond, Graphite, Iron Ore, Potash, Silica Sand
21. Kebbi Salt, Iron Ore, Gold, Feldspar, Limestone, Quartz, Bauxitic Clay, Manganese,
Kaolin, Mica.
22. Kogi Clay, Iron Ore, Gemstone, Marble, Limestone, Feldspar, Dolomite,
Phosphate, Mica, Cassiterite, Granite, Ornamental Stone, Coal, Kaolin.
23. Kwara Clay, Kaolin, Silica Sand, Quartz, Dolomite, Marble, Feldspar, Gold, Tantalite,
Cassiterite, Granite, Limestone
24. Lagos Silica Sand, Bitumen, Sharp Sand, Gravel, Petroleum, Laterite.
25. Nassarawa Cassiterite, Gemstone, Amethyst, Beryl, Cherysolite, Emerald, Gamet,
Sapphire, Topaz, Barites, Galena, Monazite, Zircon, Glass Sand, Coal
26. Niger Bell Clay, Kaolin, Limestone, Granite, Glass Sand, Iron Ore, Red Clay,
Feldspar, Silica Sand, Quartz, Asbestos, Marble, Talc, Gemstone.
27. Ogun Kaolin, Feldspar, Silica Sand, Mica, Granite, Clay, Phosphate, Gypsum,
Limestone, Quartz, Tar Sand.

42 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
28. Ondo Marble, Gold, Gemstone, Diorite, Lignite, Laterite, Iron Ore, Bitumen,
Granite
29. Osun Clay, Granite, Talc, Dolomite, Feldspar, Quartz, Limestone, Mica, Gold,
Laterite
30. Oyo Clay, Feldspar, Granite, Limonite, Iron Ore, Kaolin, Quartz, Talc, Marble,
Dolomite, Tourmaline, Aquamarine, Amethyst,
31. Plateau Monazite, Columbite, Feldspar, Clay, Cassiterite, Gemstone, Kaolin,
Dolomite, Mica, Zircon, Marble, Limonite, Barite, Quartz, Talc, Galena.
32. Rivers Petroleum, Natural Gas, Silica Sand, Glass Sand, Clay
33. Sokoto Silica Sand, Clay, Salt, Limestone, Phosphate, Gypsum, Kaolin, Laterite,
Potash, Granite, Gold
34. Taraba Fluorspar, Gamete, Tourmaline, Sapphire, Zicron, Tantalite, Columbite,
Cassiterite, Barite, Gelena, Limestone, Laterite, Calcite, Bentonitic Clay
35. Yobe Salt, Trona, Diatomite, Clay, Gypsum, Kaolin Silica Sand, Limestone,
Epsomite, Iron Ore, Shale, Uranium, Granite, Bentonic Clay.
36. Zamfara Gold, Alluvial Gold, Granite, Chromites, Chamorckite, Clay, Feldspar, Spring
Water.
37. Abuja, Limestone, Kaolin, Granite, Marble, Feldspar,
FCT Mica, Dolomite, Clay, Sand, Talc.
Source: www.nigerianmuse.com/articles?=12 (Accessed on 21 February, 2009).http://
www.triumphnewspaper.com/can812009.htm#, MSMD, 2007.

Appendix 2: Coal Deposits in Nigeria
S/N Mine Location State Type <strong>of</strong> Coal Estimated res. Mining Method
(mil. Ton)
1. Okpara Mine Enugu Sub-Bituminous 100 Underground
2. Onyeama Mine Enugu Sub-Bituminous 150 Underground
3. Ihioma Imo Lignite 40 Open-cast
4. Ogboyoga Kogi Sub-bituminous 427 Open-cast/Underground
5. Ogwashi Azagba/Obomkpa Delta Lignite 250 “
6. Ezimo Enugu Sub-bituminous 156 “
7. Inyi Enugu Sub-bituminous 50 “
8. Lafia/Obi Nassarawa Bitumionous (cokable) 156 Underground
9 Oba/Nnewi Anambra Lignite 30 Underground
10. Afikpo/Okigwe Ebonyi/Imo Sub-bituminous 50 Underground
11. Amasiodo Enugu Bituminous (cokable) 1000 Underground
The History, Evolution and Geography... 43
12. Okaba Kogi Sub-bituminous 250 Open-cast/Underground
13. Owukpa Benue Sub-bituminous 75 Open-cast
14. Ogugu/Agwu Enugu Sub-bituminous n.a Underground
15. Afuji Edo Sub-bituminous n.a Underground
16. Ute Ondo Sub-bituminous n.a. Underground
Total 2734
Source:Ministry <strong>of</strong> Mine and Steel Development, Nigerian Minerals and Mining Act, 2007, Nigeria, MMSD.

44 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 3: Limestone Deposits in Nigeria
Location
Abia
-Ohafia
Estimated Resources (tones) Proved Resources tonnes
-Arochukwu
-Ozuabam
228,750,000
Benue
-Yandev
-Igumale 70 million
-Ogbologuta 92 million
-Akwana Arufu 7 million
Cross - River
-Mfamosing
-Odukpani 1,250 million 30 million
-Obubra 62 million
-Ukep Not available
Not available
Ebonyi
-Ngbo
-Nkalagu 1.5 million
-Abakaliki 413,125,000
-Afikpo Not explored in details
-Ohaozara yet
Edo
-Igarra
-Ukpilla Marble 10 million
-Akoko Edo 10,161,000
-Owan Not fully investigated
Enugu
-Nkanu
-Ogugu 50 million
-Idogo 50 million
-Odomoke Not fully investigated
Gombe 80 million
-Ashaka
-Zambuk 10 million
Imo
-Umu Ogbon
-Okigwe 90 million
Kogi
-Jakura
-Obajana 165 million
-Itobe 133 million
-Ekinrin Adde
-Aiyegunle Not fully investigated””

Kwara
-Elebu
-Isale Osin 2 million
-Osi
-Oreke 1.2 Million
4.0 million
7.0 million
Kwara
-Elebu
-Isale Osin 2 million
-Osi
-Oreke 1.3 Million
4.0 million
7.0 million
Nassarawa
-Toto
-Umarisha No exploration yet”
The History, Evolution and Geography... 45
Niger
- Kwakuti 1.2 million
Ogun
-Ewekoro
-Shagamu 77.24 million 36 million
-Ibese 30 million
242 million
Oyo
-Igbeti
60 million
Sokoto
- Kalambaina 101 million
Yobe
-Bularafa
-Gujba 147.75 million
30 million
FCT
-Burum
-Taka Lafia
-Takusara 20 million No detailed work yet”’..,
Total 2.23 trillion 568 million
Source:Ministry <strong>of</strong> Mine and Steel Development, Nigerian Minerals and Mining Act, 2007, Nigeria, MMSD

46 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 4: Deposits <strong>of</strong> Non-Metallic Minerals
S/No Mineral Location Estimated Exploitation
Reserve
1. Trona Gassua and Nguru
(Yobe State) Zumo Not yet
(Adamawa State) studied
2 Kaolin Kankara (Katsina),
Major Porter
(Plateau) Ibeshe 6 plants exists with
(Ogun) Darazo, a total annual capacity
Alkaleri, (Bauchi) <strong>of</strong> 150,000 tonnes
Efon, Ijero, (Ekiti),
Akure (Ondo) etc mt 190,000
3 Talc Kagara (Niger), 40,000 2 known plants exist
Ilesha (Oshun), with a 3,000 tonnes
Kwara, Kogi, per annum in Kagara.
Kaduna and FCT Requires detailed study
4 Phosphate Sokoto (Sokoto Not yet 2 beneficiation plants
State), Ilaro, Ifo known <strong>of</strong> 3,000 tonnes per
(Ogun State),Edo, annum capacity each
Ondo and Abia in Sokoto
State
5 Asbestos Kaduna Not yet Preliminary exploration
known <strong>of</strong> occurrences;
detailed
studies required
6 Bauxite Gongola, Cross Not yet Urgent detailed explora-
River and Ekiti known tion/evaluation States
required.
7 Ball clay Imo, Bendel, (Edo/Delta)
Akwa Ibom,
Ogun States 50 million Small scale exploitation
Rivers and Ondo deposit meet demands <strong>of</strong>
existing ceramic industries
8 Fire clay Anambra, Katsina,
Ogun and Sokoto 20 million Detailed beneficiation pilot
project needed

The History, Evolution and Geography... 47
9 Limestone Mfamosing 1.2 million 7 cement manufacturers
(Cross River), are currently producing
Ewekoro, Sagamu about 2 million tons per
(Ogun State), annum
Okpela
(Edo State),
Yandev
(Benue State),
Bauchi (Bauchi
State), Sokoto
(Sokoto State),
Gombe, Yobe
and Adamawa
States
10. Gypsum Potiskum, Fika, 200,000 Cement manufacturers
Fune (Yobe State), consume about 1 million
Damboa (Borno tones
State), Wurno
(Sokoto State),
Shelleng, Guyuk
(Adamawa State),
Bauchi (Bauchi
State), Ifo,
Papalanto and
Ilaro (Ogun State),
Plateau, Imo,
Edo and Benue
States
11 Feldspar Taraba, Adamawa, 1.2 million Partial exploration and
Boro (Niger State), evaluation needs
Oshogbo (Oshun processing outfits
State), Okene
(Kogi State),
Plateau, Borno,
Bauchi, Ogun
and Kwara States
12 Bentonite Gashua (Yobe 1.2 million 3 companies produce
State), Ishiagu drilling mud with a
(Abia State) capacity <strong>of</strong> 40,000
Adamawa, tonnes per annum
Anambra and
States, Ngala,
(Borno State)

48 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
13 Barytes Azara, Awe 2 million 3 companies are exploiting
(Plateau State), (Detailed some <strong>of</strong> the deposits.
Wukari (Taraba and eval- Total output about
State), Abakaliki uation 30,000 tonnes
(Enugu State), exploration per annum
Cross river still required)
State, Benue
State.
14 Flourspar FCT Not yet
known
15 Salt Salt spring at Awe Partial Salt deposits not being
(Plateau), Abakaliki investig- exploited-detailed
(Enugu State) and ation investigation needed
Uburu (Imo state)
Rocksalt in Benue
State
16 Gem Plateau, Bauchi, Yet to be Very few cutting and
stones Borno, Ogun, determined polishing companies
Imo, Kaduna, established
Oyo, Yobe, ,
Kano, Ondo
and Osun
17 Coal Enugu, Benue, 500 million Annual production
Kogi, Taraba, as low as 25,000 tonnes
Abia, Anambra,
and Plateau,
Gombe,
Edo States
18 Marble/
Dolomit Kogi, Oyo, 2000 Further refractory
Edo, Benue, million studies required
and Plateau States
19 Granite Plateau, Ondo, 3000 The 3 granite cutting
Bauchi, Borno, million and polishing Plants in
Adamawa, Kogi, the country utilises
Oyo, Ogun, about 80,000 tonnes
Cross River, . per annum
and Imo States
20 Sand Glass sand in 150 The 5 glass plants in the
Ondo, Plateau, million country currently utilise
Anambra, Rivers 120,000 tonnes per annum
and Delta States,
Lagos, Enugu,
Foundry in Ondo
and Kogi States.

The History, Evolution and Geography... 49
21 Kyanite Birnin Gwari 20 Level <strong>of</strong> exploration
(Kaduna State), million very low. About 10,000
Masuku and Kuta tonnes being produced
(Niger State) annually
22 Diatomite Bulafaba, Gujba, 10 Small scale exploitation
Abakire, Kwani, million extensive exploration
Ududo, etc. and evaluation required.
Source: Raw Materials Research and Development Council (Federal Ministry <strong>of</strong> Science and Technology), Multidisciplinary
Committee Report <strong>of</strong> the Techno-Economic Survey on Non-Metallic Minerals Sector (4 th Update), December 2003.
Appendix 5: Marble and Dolomite Deposits in Nigeria
S/No State Location Estimated Remarks
Reserve (tones)
1. Ebonyi Afikpo, 20 million About 10 private
Abakaliki, companies engaged
Ohaozara, in quarrying at Ezza
Ezza North North and South
and South
2. Abia Ohafia N/A Need for more
investigation
3. Imo Okigwe N/A Need for more
investigation
4. Nassarawa Toto, N/A To be fully
investigated
5. Kogi Osara, Itobe,
Ekinrin-Adde,
Jakura N/A Being Exploited
6. Niger Kwakuti 2.5 million Commercial
7. FCT Takusara, tons exploitation
Burum,
Takalafia Not Available Already investigated
and is being exploited
8. Oyo Igbeti Large Commercial
exploitation
9. Kwara Elebu 5 million Not quantified
Bugum, 2.6 million
Oreke
10 Edo Akoko-Edo,
Etsako, N/A Dolomite and Marble
Okpela
Source: Raw Materials Research and Development Council (November, 2001), Technical Brief on Minerals in Nigeria,
Limestone/Marble, No 12.

50 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 6: Tantalite Occurrences in Nigeria
S/No State LGA Quantity Mining Site
(Reserves)
1 Niger MuyaShiroro Not Sarkin, Pawa,
Magama quantified Zazaga, Sharzanye na
Kotangora Zazzaga, Zumba
Manina Alama, Ibeto,
Kontagora, Shadadi
2. Ogun Odeda Trace Odeda, Ikereku village
3. Oyo Saki West Not Saki, Ileso,
Atisbo quantified Ojiki, Isheri,
Kajola Iw<strong>of</strong>un, Iwo, Ibadan,
Saki-East Ori Okuta, Iwo road
Ibadan
4. Plateau Barkin-Ladi Not
Rankee quantified Warrian valley,
Vom, Hes, N’geu
5. Zamfara AnkaGusau
Maru Trace Mai inchi
Magama Dansadau
6. Ekiti Ijero Trace Ijero-ekiti, Ikoro
Ekiti-Odo owa
7. FCT Kuje
Kobi village
near Asokoro Trace Kwali, Mangoro,
Gaube, Gaibe,
Dide, Fadama,
Kuseki, Burum,
Takuchara, Kobi,
and Durumi
8. Kaduna IkaraJama’a Not
Birnin gwari quantified Mara Ikara,
GwadaGwado,
Birnin Gwari,
Randago
9. Kogi Yagba-East Not
Yagba-West quantified Id<strong>of</strong>in, Takete,
Isao, Igbauku,
Odo-ere, Egbe,
Okeri, Ejuku,
Kabba
10. Kwara Irepodun Not
OyunIsin quantified Ijomu-Oro,
Iddo-Oro,
Isin Sie-Oro,
Ikotun, Oke-
Onigbin Foko

The History, Evolution and Geography... 51
11 Nassarawa Toto Not
Akwanga quantified
wamba
ObiKokona Udegi (Ogopa
Oto) Sabongida,
Gidan Kwano
Akwanga, Aru
(Mama Chiefdan)
Wamba, Denge,
Ribi, Kokona
Source: Raw Materials Research and development Council (September 2004) Technical Brief on Minerals in Nigeria,
Tantalite. No 15.
Appendix 7: Gold Deposits in Nigeria
State Local Government Location Remarks
Area
Niger Minna Rivers Gora,
Sauke and Tisha
Kotangora Loji Rivers Kasai
and Marga
Paiko Beni and Kwakuti
Magama River Malando
Shiroro and Rafi Madata, Erena,
Rivers Getimuya,
Koriga, Guleake
and tributaries
Katsina Batsari Na Reserves to be
Bakori Na quantified and
Safana Muniya village deposit to be
Faskari village exploited
Ynakara Sabuwa Damari village
Dandume Na
Cross
River State Obudu Okorotong Traces; Detailed
investigation
required
Osun Ife central, Iperindo, igun Deposit in
Atakumosa, commercial
Ilesa, Oriade, quantity, being
Obokun exploited

52 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Kogi Isanlu-Makutu Yagba East
and West Investigation
commenced
Kebbi Maka, Malindo,
Makrin (Yauri
zone) Na
Kano Sumaila Na
Edo Etsako east
and central,
Akoko-edo Na Not yet exploited
and reserve yet
the found out
Kogi Yagba east Okolom
– dogondaji Yet to be fully
exploited and evaluated
Kwara Edu Lafiagi Illegal mining still going
on
Source:Raw Materials Research and Development Council (2001) Technical Brief on Minerals in Nigeria, Gold, No 10
Abuja
Appendix 8: Baryte Deposits in Nigeria
S/No State Area Reserve Estimate
1 Plateau Wuse, Langtang 500,000 tonnes
(NMC)
2 Nassarawa Azara, Akiri,
Tongu, Awekeana,
Chiata, Aloshi 730,000 tonnes
3 Cross-River Gbande Lefin,
Ntak, Obubra Not yet
4 Benue Lessel, Pil-andev,
Makurdi, Gbanjiba,
Ute, Torkitala “
5 Taraba Dungel, Ibi,
Wukari, Donkin-Hill,
Mubi “
6 Bauchi - “
7 Anambra - “

8 Gombe,
Mayo-Belwa “
9 Edo Afuze, Igara, Afugo “
10 Rivers Port Harcourt “
11 Yobe Budin Kwajali “
The History, Evolution and Geography... 53
Source: Raw Materials Research and Development Council, Abuja (2005) Technical Brief on Minerals in Nigeria, Baryte,
Revised Edition, Abuja.
Appendix 9: Base Metal Deposits in Nigeria
S/No Base metal State Reserve(mt) Remarks
1 Aluminium Ekiti N/A Exploration
2 Tin Plateau, 300,000 Mining in Progress
Kaduna,
Bauchi
3 Lead Ebonyi, Legal/Illegal mining
and Zinc Plateau, 20,000 in progress
Taraba
4 Gold Osun, N/A Organised gold
Kebbi, mining going on
Sokoto,
Zamfara
5 Copper Ebonyi, N/A -
Niger,
Plateau
6 Silver Ebonyi, N/A Associated with
Gombe, gold, lead and zinc
Osun
7 Manfanese Kaduna 100,000 Illegal Mining in Progress
8 Titanium Plateau, N/A Associated with tin
Kaduna ore, presently waste in
tin extraction.
Source: Raw Materials Research Development Council (Federal Ministry <strong>of</strong> Science and Technology) (2003) Multi-Disciplinary
Committee Report <strong>of</strong> the Techno-Economic Survey on Base Metal, Iron and Steel and Engineering Services Sector, 4 th Update

54 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 10: Iron Ore
State Location Reserves (mt) Remarks
Kogi Agbaja, 1,159 Under Investigation
Itakpe 200-300 Mining in Progress (MIP)
Bassa Nge 4000 MIP
Agabado-Okuda 60 “
Ajbanoko 60 “
Chokochoko 20 “
Fatti 37 “
Koton-Karfe 803 “
Plateau Muro Hills N/A Under Investigation (UI)
Bauchi Rishi N/A Geological Confirmation
Gamawa UI
Anambra Nsude Hills 65 UI
Source: Raw Materials Research Development Council (Federal Ministry <strong>of</strong> Science and Technology) (2003) Multi-Disciplinary
Committee Report <strong>of</strong> the Techno-Economic Survey on Base Metal, Iron and Steel and Engineering Services Sector, 4 th Update
Appendix 11: Location and Quality <strong>of</strong> Gemstones in Nigeria
S/No Gem Location Quality
1 Sapphire Antah and Gidan Quality-pencil-
Waya in Kaduna State shaped, rich blue
(Quality-tabular, rich
to dark blue, crystals)
Gunda in Yobe State
(Quality-pencil-shaped,
rich blue); Bokkos in
Plateau State
2 Emerald Locations: Gwantu, Colour-dark
Kaduna State; to pale
Nasarawa Egon,
Nasarawa State.
Histroy: Mining
started in the mid
80s by artisans.
3 Aquamarine Locations: Akwanga/ Colour- excellent,
Nasarawa, Nassarawa good clarity,
State; Ibadan, Oyo
State; Ijebu Igbo and
Igbo Ora, Ogun State;
Okene and Isanlu,
Kogi State: reasonable sizes

4 Heliodor, Oyo, Kogi, Kwara: Yellow, pink
Morganite and colourless;
and Goshenite low value; lack
<strong>of</strong> intensive mining.
5 Tourmaline Kefffi and Garaku,
Nassarawa State; Komu,
Budo Are, Idiko and Itasa,
Oyo State, Ijero, Ekiti State,
Sarkin-Pawa, Niger State;
Kagarko, Kaduna State;
Lemo Ndeji and Ora,
Kwara State: Colourgreen,
pink, red,
bi-colour, tri-colour,
water melon varieties;
blue paraiba variety
mined in Oro and Ora,
Kwara State.
6 Garnet
(Various types) Rhodolite located
around Jos-Bauchi
axis (in the 80s)
Sperssatite located
in Komu are; Very good gems,
deep red to
orange-brown
and orange
clolours
Topaz Location – mostly
alluvial and associated
with cassiterite on the
Jos Plateau; Koi in the
Nok area and Bauchi
( a major source <strong>of</strong>
topaz since the early 80s)
Amethyst Bauchi, Kaduna, Kano,
Oyo States: Very high quality
Zircon and
Kunzite Jos Plateau, Komu, Colourless,
Oyo State: brown,
red and clean.
Source: Ministry <strong>of</strong> Solid Minerals Development (undated) Amazing Gems in Nigeria.
The History, Evolution and Geography... 55

56 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Appendix 12: Lead/Zinc Deposits in Nigeria
S/No State Location LGA Total
1. Ebonyi Ishiagu Ivo 1,040,000
Abakaliki Abakaliki
Ameri
Ameka
2. Enugu Enyigba Umulopa 450.000
Nyeba
3. Plateau Wase Wase Na
Zurak
4. Nassarawa Akwanga Akwanga Na
Arufu zone
5. Cross River Adua Akamkpa 150,000
Oban
6. Bauchi Gwona Alkaleri Na
7. Adamawa Numan Numan Na
Source: Raw Materials research and Development Council (December 2004) Technical Brief on Minerals in Nigeria-Lead/
Zinc. No 16.
Appendix 13: Historical Evolution <strong>of</strong> Developments in Nigeria’s Solid Minerals
Industry
Year Key Events and Activities
1903 Colonial government inaugurated the Minerals Survey Committee.
1903 The geological survey <strong>of</strong> the Southern Protectorate started around Cross River
State.
1904 The geological survey <strong>of</strong> the Northern Protectorate started around Lokoja.
1905-1909 Discovery <strong>of</strong> marble deposits at Jakura (Kogi State), Iron ore deposits near Lokoja,
Tin ores discovered in parts <strong>of</strong> Kwara, Kaduna and Bauchi State.
1907 Lead and zinc ores were discovered in Ababkaliki, and lignites and clays in
Asaba.
1908 The Nigerian Bitumen Company (<strong>of</strong> German origin) started exploration for
bitumen around Okitipupa.
1910 Discovery <strong>of</strong> massive <strong>of</strong> coal deposits at Enugu.
1913 Gold production started.
1916 Coal mining commenced in Enugu.
1919 The Colonial Government established the Geological Survey <strong>of</strong> Nigeria (GSN).

The History, Evolution and Geography... 57
1930s Discovery and recovery <strong>of</strong> tantalite from columbite/tantalite in the in the Jos
Plateau.Tin mining began in the Jos Plateau.
1949 First Mining Act produced.
1954 The Colonial government established the Nigerian Cement Company at Nkalagu,
state with a Danishfirm F. L. Smith as technical partners.
1956 Nigerian Bitumen Company abandoned its exploration and development
activities in Okitipupa area due to the discovery <strong>of</strong> crude oil.
1959 West African Portland Cement Company (WAPCO) established in Ewekoro,
Ogun State.
1962 Establishment <strong>of</strong> first Steel Plant at Emene near Enugu.
1964 Pioneer Metals Policy was produced.
1967/68 Large deposits <strong>of</strong> iron ore discovered in Itakpe hills, Kogi state and Muro hills in
Plateau State.
1971 Establishment <strong>of</strong> new branches <strong>of</strong> GSN in Benin, Ilorin, Kano, Sokoko and Yola;
Nigerian Steel Development Authority (NSDA) established.
1973 NSDA commissioned Tiajpromexport (TPE) <strong>of</strong> the Soviet Union to prepare a
preliminary report on the proposed Ajaokuta Steel plant.
1976 Federal Government contracted the Polish Overseas Mining company to
comprehensively modernise the technology <strong>of</strong> the Nigerian Coal
Corporation.
1977 Contract signed between Nigeria and a consortium <strong>of</strong> ten German and Austrian
firms to construct a plant in Aladja, Delta state to produce liquid steel using
direct reduction technology.
1979 Federal government signed the Ajaokuta Steel Company project with TPE;
Contracts signed for three steel rolling mills to be built at Jos, Katsina and Osogbo.
1980
1981 Headquarters <strong>of</strong> GSN was relocated from Kaduna to Lagos.
1986 Federal Government changed Geological Survey <strong>of</strong> Nigeria to Geological Survey
Department.
1987 Establishment <strong>of</strong> Raw Materials Research and Development Council
(RMRDC) through Degree 39 <strong>of</strong> 1987.
1989 Establishment <strong>of</strong> Industrial Development Coordination Committee (IDDC)
through the IDDC Decree No 36 <strong>of</strong> 1989; Nigerian Enterprises
Promotion Decree <strong>of</strong> 1989 was promulgated.
1992 NSRMA became a corporate body through the enactment <strong>of</strong> Decree 49 <strong>of</strong>
1992. National Metallurgical Development Centre was
established with Decree 50 <strong>of</strong> 1992. National Policy on Solid Minerals
Developments was introduced.

58 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
1995 Establishment <strong>of</strong> Ministry <strong>of</strong> Solid Minerals Development. Establishment <strong>of</strong>
Nigerian Investment Promotion Commission (NIPC).
1999 Minerals and Mining Act was produced.
2000 Establishment <strong>of</strong> Bitumen Project Implementation Committee by Federal
Government. Seven Year Strategic\Action Plan for Solid Minerals Development
prepared.
2002 Bitumen Project Implementation Committee established drilled several coreholes
in the bitumen belt.
2003 Government issued licenses to some firms to develop the bitumen deposits.
2004 The Nigerian <strong>Extractive</strong> Industry Transparency Initiative launched.
2005 The Sustainable Management <strong>of</strong> Mineral Resources Project commenced in 2005.
2007 Federal Government declared 2007 The Year <strong>of</strong> Minerals and Mines.The 1999
Minerals and Mining Act was replaced with the Minerals and Mining Act <strong>of</strong>
year. Seven out <strong>of</strong> about 34 assorted minerals declared strategic minerals and
these are Gold, Barites, Bitumen, Limestone, Lead/Zinc, Iron ore and Coal. The
Mining Cadastre Office established in the MSMD. Geological Agency <strong>of</strong> Nigeria
Established by Act <strong>of</strong> Parliament.
2008 The National Minerals and Metals Policy produced.
Source: MSMD, (2008a, 2007), RMRDC, (2001), Abdulahi (1996), Oyeyinka (1995), Esubiyi (1995), FRN, (1987),
Falconer, (1959), Hodder, (1959).

The History, Evolution and Geography... 59

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The History, Evolution and Geography... 61

62 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...

The History, Evolution and Geography... 63

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The History, Evolution and Geography... 65

66 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...

2
Ownership Structure and Level <strong>of</strong> Participation in the
Nigerian <strong>Extractive</strong> <strong>Industries</strong>: Solid Minerals
Dung Pam Sha
67

Abstract
In the past, the solid minerals industry in Nigeria produced and supplied
raw materials to the world market, but it has significantly declined partly
due to the attention given to the mining <strong>of</strong> oil and gas in the country.
Despite this situation, minimal production <strong>of</strong> several solid minerals is
taking place in several parts <strong>of</strong> the country. In both situations, issues <strong>of</strong>
ownership, control and participation in the solid mineral mining has
remained contentious. Who owns and control what? What is the level <strong>of</strong>
participation <strong>of</strong> the state, capital and the communities? What should be
the appropriate model <strong>of</strong> ownership, control and participation in the solid
mineral sector in the country? The contention <strong>of</strong> the paper is that legal
ownership <strong>of</strong> landed property by the state does not translate to control <strong>of</strong>
the property and the surpluses generated from that property. The solid
mineral sector in Nigeria, over the years, has witnessed legal ownership
<strong>of</strong> the land by the colonial State, but the multinational corporations
operating in the sector generated and appropriated surpluses. Their control
<strong>of</strong> capital and technology and the lack <strong>of</strong> transparent and unaccountable
operations fastened their control <strong>of</strong> the mining industry. On the Plateau,
the decline in the tin industry has thrown up new dynamics: alternative
mining activities, new actors, new forms <strong>of</strong> ownership and participation
and pattern <strong>of</strong> resistance by the mineral bearing communities. The revival
<strong>of</strong> the solid mineral sector on the basis <strong>of</strong> old methodologies <strong>of</strong> control <strong>of</strong> the
industry by transnational corporations as is the case in the oil industry
may inaugurate old patterns <strong>of</strong> ownership and participation controversies.
It is concluded that the debate and struggles around issues <strong>of</strong> ownership
and participation in the extractive sector in Nigeria will make more
meaning only when the people either establish a people-led state who will
protect the collective property in the interest <strong>of</strong> the people or when the
people control the surpluses generated from their lands.
68

I. Key Terms
Ownership Structure and Level <strong>of</strong> Participation ... 69
Nigerian <strong>Extractive</strong> <strong>Industries</strong>: The extractive industry is concerned with the physical extraction
<strong>of</strong> metals, minerals and aggregates from the earth. It is made up <strong>of</strong> the mining, quarrying,
dredging, oil and gas extraction industries.
Artisanal mining: This is the mining <strong>of</strong> solid mineral deposits by individuals and/or groups
using simple equipment and manual methods, with little capital raised from personal income
or family saving or borrowing from friends or other businessmen.
Solid Minerals: In Plateau State, it include Monazite, tin, Columbite, Feldspar, Clay, Cassiterite,
Gemstone, Kaolin, Dolomite, Mica, Zicron, Marble, Ilmenite, Barite, Quartz, Talc, Galena, etc.
Plateau State: It is located approximately at the centre <strong>of</strong> the country, with an area <strong>of</strong> about
26,899 sq. km and shares common boundaries with Benue, Nassarawa, Kaduna, Taraba, Bauchi,
and Gombe States <strong>of</strong> Nigeria.
Ownership Structure: This is used to describe the traditional and legal pattern <strong>of</strong> possession <strong>of</strong>
land and solid minerals in the solid mineral sector. Communities and individuals have traditional
ownership rights and these rights are forfeited to the state when solid minerals are discovered.
The state becomes the legal owner. However, communities free the state does not defend their
interest and therefore they would rather own and control their property.
Level <strong>of</strong> Participation: This describes the individuals, groups <strong>of</strong> citizens and corporate
organisations, national and international in the mining <strong>of</strong> solid minerals.
II. Introduction
Organised and active mining activities started in the 1900s when the Colonial State in Nigeria
established an environment for the process to flourish. By the 1940s, Nigeria was a major
producer <strong>of</strong> tin, columbite, and coal. Coal was first discovered in Enugu State in 1909, and the
Ogbete Mine had opened and begun regularly extracting coal by 1916. Gold production began
in 1913 and peaked in the 1930s. Bitumen was first discovered in 1900, with focused exploration
beginning in 1905 (http://en.wikipedia.org/wiki/mining). Nigeria has other mineral deposits
as shown in the appendix.
Statement <strong>of</strong> the study problem
The availability <strong>of</strong> these resources has not reflected positively in the lives <strong>of</strong> the citizens and
particularly in the lives <strong>of</strong> those in the mineral-bearing communities. It is our preoccupation to
find out the role <strong>of</strong> ownership and participation structure <strong>of</strong> the solid mineral industry in
explaining this situation. We intend to answer the following questions:

70 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
What has been the nature <strong>of</strong> ownership and participation in the solid mineral
industry?
What has been the level <strong>of</strong> conflicts in the solid mineral bearing areas?
What policies and institutional mechanism should be put in place to make these
minerals a blessing to citizens?
Objectives <strong>of</strong> the Study
The objective <strong>of</strong> the study is to:
(1) investigate the ownership structure <strong>of</strong> the solid mineral industry in Nigeria with the
aim <strong>of</strong> determining how ownership influences the distribution <strong>of</strong> surpluses generated
from the industry;
(2) to find out the actors in the solid mineral industry, their level <strong>of</strong> participation in the
operations and the share surpluses they appropriate;
(3) to investigate the character <strong>of</strong> power, interest and ownership <strong>of</strong> resources in the sector;
(4) to investigate the levels <strong>of</strong> contestations (if any) in the locations where these minerals are
produced and the consequences <strong>of</strong> these contestations on the ownership and participation
issues; and
(5) to make recommendations that will improve on ownership, participation and
appropriation <strong>of</strong> surpluses generated from the process <strong>of</strong> production in the solid mineral
producing states.
Hypotheses
It is argued in this chapter that:
(a) there exist traditional ownership <strong>of</strong> land by communities in the solid-mineral producing
areas, but the state only has the legal ownership <strong>of</strong> these lands and minerals therein.;
(b) the real ownership <strong>of</strong> the extractive industry confers the actual ownership <strong>of</strong> proceeds
i.e. the control <strong>of</strong> surpluses. The appropriation <strong>of</strong> the surpluses defines the level <strong>of</strong> control
that has been established in the sector. The actual ownership and control <strong>of</strong> the surpluses
is in the hands <strong>of</strong> capital and in this case, foreign capital; and
(c) the participation <strong>of</strong> the communities in the solid mineral operations is minimal and this
explains the low level resistance <strong>of</strong> communities to mining operations.
III. Literature Review
This section conceptually defines ownership and participation and then reviews perspectives in
the discourse <strong>of</strong> ownership, and participation.
Ownership is the exclusive rights and control over property, which maybe an object, land/
real/estate or intellectual property. An ownership right is also the title. Ownership <strong>of</strong> property
is central in the development <strong>of</strong> capitalism. One can transfer or lose ownership <strong>of</strong> property by
selling it for money, exchanging it for other property, giving it as a gift, being robbed <strong>of</strong> it,
misplacing it, or having it stripped from one’s ownership through legal means such as eviction,

Ownership Structure and Level <strong>of</strong> Participation ... 71
foreclosure and seizure. Ownership is self-propagating in that the owner <strong>of</strong> any property will
also own the economic benefits <strong>of</strong> that property. Public or state ownership refers to government
ownership <strong>of</strong> any asset, industry, or corporation at any level, national, regional or local
(municipal); or, it may refer to common or community or non-state ownership. Public ownership
right is a right recognised by law and which confers on public <strong>of</strong>ficials the ownership,
management and use <strong>of</strong> objects <strong>of</strong> public ownership rights in the interest <strong>of</strong> citizen. http://
en.wikipedia.org/wiki/ownership
Participation is the creation <strong>of</strong> opportunities for the involvement <strong>of</strong> people in the political,
economic and social life <strong>of</strong> a nation. It is the direct involvement <strong>of</strong> communities in local affairs.
The United Nations (1981: 5) defined community participation as the creation <strong>of</strong> opportunities
to enable all members <strong>of</strong> a community to actively contribute to and influence the development
process and to share equitably in the fruits <strong>of</strong> development. This definition indicates an active
role for the community, leading to significant control over decisions. Participation is a means
for the public to directly participate in political, economic, management or other social decisions.
Participatory decision making refers to a level <strong>of</strong> proportionate decision making power and
can take place along any realm <strong>of</strong> human social activity. The problem with these definitions is
the fact that under capitalism, the participation may not translate into the control <strong>of</strong> those
decisions because the nature <strong>of</strong> powerful interest representation. (Sherry Arnstein; 1969 in
http://en.wikipedia.org/wiki/participation
In the extractive industries, communities are marginalised in mining. They are
dispossessed. Participation in the industry will entail the redistribution <strong>of</strong> power that enables
the have not citizens, presently excluded from the political and economic processes, to be
deliberately included in the future.
State-Centred Perspective on ownership and participation
There is fairly coherent body <strong>of</strong> thought on this perspective. The state is comfortable with her
position as the legal owner <strong>of</strong> the resources <strong>of</strong> the nation and that is why state-centred discourse
is conducted on the basis that the resources belong to the state and that if left to communities
who don’t possess the technical and managerial capacity to extract resources therein, national
growth and development will be hampered. This has been an inherited view from the colonial
era and has been internalised and extended by state elites since then. Second, this view has
given rise to the theoretical and policy enunciation that the Nigerian indigenous ruling class,
the Nigerian state, and the communities in Nigeria cannot transform Nigeria; but foreign
capital can. (Odah, 2008: 5)
Third, the role <strong>of</strong> the Nigerian indigenous ruling class and the Nigerian State should be
that <strong>of</strong> providing ‘an enabling environment’ (i.e. pr<strong>of</strong>itable investment climates, investment
friendly legislations and <strong>of</strong> course the use <strong>of</strong> repression) for the development <strong>of</strong> resources by
foreign capital and agencies <strong>of</strong> the advanced countries. Fourth, agitations for resource control
and particularly the demand for a change in the derivation formula by communities in resourcebearing
areas are viewed as an unwarranted challenge <strong>of</strong> the state and this is resisted with the

72 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
use <strong>of</strong> brute force. The ideology behind this is that nothing must be done to oppose the monopoly
control <strong>of</strong> the resources by transnational capital as this is seen as the only way <strong>of</strong> guaranteeing
their source <strong>of</strong> accumulation <strong>of</strong> wealth. (Odah, 2008: 6-7)
Community-Centred Perspectives on Ownership and Participation
There are variations in the body <strong>of</strong> thought depending on the group’s ideological or economic
disposition. One thing that binds them is the continued domination <strong>of</strong> the resource sector by
the state and transnational corporations. The first group sees the resource control struggle as a
way <strong>of</strong> demanding for the protection <strong>of</strong> private property at individual and family levels. In order
words, the group advocates for the private ownership and control <strong>of</strong> landed property as well as
the surpluses generated from it. For instance, Agiobenebo and Azibaolanari (2001: 428) insist
that:
...the protection <strong>of</strong> private property is essential for the preservation <strong>of</strong> individual and communal (ethnic) freedom.
So when dispossessive obnoxious laws deprive individuals and communities <strong>of</strong> property rights, dependency on
government for the essentials <strong>of</strong> life becomes inevitable.
In a situation where the state is weak or indifferent to the citizens, dependence on the state is
out <strong>of</strong> the question. Property rights argued: “provides the foundation for efficient use <strong>of</strong> resources,
rapid economic growth and sustainable development, since it provides sufficient incentives to
minimise the environmental impact <strong>of</strong> resource exploitation under price rules” Agiobenebo
and Azibaolanari (2001: 428). The problem with this perspective is the overemphasis on the
individual rights to own land which, under capitalism, is clear that the ownership and control
goes to the owners <strong>of</strong> wealth. So the resource control debate is a demand for landed property to
be distributed to individuals who have the resources to acquire them.
The second perspective sees resource control as a struggle against the Central State legal
ownership <strong>of</strong> resources in the interest <strong>of</strong> foreign capital. There are agitations for change in the
revenue allocation formula; an end to gas flaring and the regime <strong>of</strong> laws governing oil extraction;
for cleaning up the environment and for compensation for ecological damage and; for more
states or separate national identities and the demands for true federalism. The resistance and
demand has led to the shutting down <strong>of</strong> oil production activities; legal action against extractive
companies and the Nigerian state. (For a discussion adopted by proponents, see Iyayi; 2007).
In addition, proponents demand for resource control in order to protect community/traditional
property against aggressive land speculators, the state and foreign companies on behalf <strong>of</strong>
peasant households. The perspective advocates for the ownership, control and participation <strong>of</strong>
communities i.e. farmers, women, traditional institutions, youth, etc.
Theoretical Framework
How should we understand the issues <strong>of</strong> ownership and participation in the extractive sector in
Nigeria? We propose that these issues must be understood within the context and framework
<strong>of</strong> the political and economic organisation <strong>of</strong> the country and the power that drives this

Ownership Structure and Level <strong>of</strong> Participation ... 73
framework. Our understanding <strong>of</strong> this will enable us know, despite the legal ownership <strong>of</strong>
resources, whether Nigerians really own the resources and whether participation can be achieved
within the dominant framework. We argue that under capitalism, society is organised on the
basis <strong>of</strong> exploitation and the state becomes the agency that protects and sustains this system.
The sustenance <strong>of</strong> the system also necessitates the provision and protection <strong>of</strong> property for the
class that exploits and appropriates resources. It is this class that inaugurates and spreads the
processes <strong>of</strong> underdevelopment: a situation where surplus extraction from one location is used
for the development <strong>of</strong> another location, living the host location ‘dry’ and ‘with no life’.
The class that appropriates the largest share <strong>of</strong> the surpluses generated from production
is that class that controls the economy, not the state or community that have traditional land
rights or the legal/statutory ownership <strong>of</strong> the property. In this case, transnational companies in
the extractive sector are the real controllers <strong>of</strong> the extractive sector. The monopolisation <strong>of</strong> the
extractive sector by foreign capital prevents the participation by communities and, to some
extent, domestic entrepreneurial groups in the sector.
Although there is the state legislation conferring ownership <strong>of</strong> land and mineral resources
to the Nigerian State, the current developments on the Plateau show low-level mining activities
and the communities are involved in mining in some significant way. The overall impact <strong>of</strong> this
to general society is yet to be seen. This form <strong>of</strong> involvement has helped to reduce tension
around ownership and participation. We hypothesised that once state and capital involvement
commences in full scale, current forms and level <strong>of</strong> ASM participation will be eliminated and
contentious issues <strong>of</strong> ownership and participation will be back on the agenda.
The Nigerian people will address the issues <strong>of</strong> ownership, control <strong>of</strong> and participation in
the extractive sector only when the state structure is restructured to work in the interest <strong>of</strong> the
people. It is only then that the framework that recommends state ownership in trust for the
people that will make meaning.
IV. The Methods Used in Generating Data
Data Collection: The methods that have been used in the collection <strong>of</strong> data include:
(a) interviews (Officials <strong>of</strong> the Ministry <strong>of</strong> Solid Minerals Plateau State; Traditional Ruler
<strong>of</strong> Kuru Districts; Chief Executive Officers <strong>of</strong> indigenous Mining concerns; 3 overseers
(middlemen); 6 women labours and men engaged in manual extraction <strong>of</strong> mineral
deposits.
(b) Secondary data in the form <strong>of</strong> government gazettes, publications <strong>of</strong> the Federal Ministry
<strong>of</strong> Solid Minerals Abuja and Plateau State, books on solid minerals on the Plateau and
journal articles on the subject matter. The websites <strong>of</strong> the Federal Ministry <strong>of</strong> Solid
Minerals and related Internet site have also been useful in generating the data employed
in this study.

74 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
(c) The above instruments were deployed to generate qualitative data on the solid mineral
industry on the Plateau with particular focus on: (i) ownership structure <strong>of</strong> the solid
mineral industry (ii) participation in the solid mineral industry (iii) levels <strong>of</strong>
contestations (if any) in the solid mineral producing area and (iv) how to promote the
idea <strong>of</strong> people’s ownership and participation in solid mineral mining.
(d) The community that has been chosen for this study is the Kuru District in Jos South
Local Government <strong>of</strong> Plateau State. It shares boundary with Jos North Local Areas in
the North, with Barkin Ladi LGA in the south, Riyom LGA in the West and Jos East
LGA in the East. The area hosted colonial tin mining and is therefore littered with
abandoned mining ponds. It currently has a large portion <strong>of</strong> the ASM mining with
about 150 fresh mining wells (Interview with Mr. Bitrus Mang, April 30, 2009) that
have been dug by the mine workers at numerous locations in the District.
Method <strong>of</strong> Data Analysis: The data generated are narrations and figures. This will be analysed
qualitatively through the use <strong>of</strong> descriptions and interpretation.
V. Presentation <strong>of</strong> the Data
a. Sol id M i neral M ining i n N i geria: As noted earlier, Nigeria is endowed with numerous
solid minerals which are located in several areas in the country. The following minerals are
found in Nigeria:
(i) Metallic Minerals – gold, silver, iron ore, copper, lead, tin, zinc, columbite etc.
(ii) Industrial minerals or non-metallic such as salt, phosphate, betumite, kaolin, limestone,
barite, mica etc.; mineral fuel such as coal, bitumen etc.
(iii) Gemstones such as ruby, sapphires, aqua marines, topaz, diamond, garnet etc.
These mineral are located in several parts <strong>of</strong> the country as can be seen from the appendix.
The Nigerian State has put in place the following policy framework to re-ignite the solid
mineral sector:
(i) The national policy on solid mineral development 1988; the enactment <strong>of</strong> the Mineral
and Mining Act 1999.
(ii The development <strong>of</strong> the Seven year strategic action plan for solid minerals development
in Nigeria, 2002-2009.
(iii) The establishment <strong>of</strong> Nigerian Geological Survey Agency.
(iv) The establishment <strong>of</strong> the sustainable management <strong>of</strong> mineral resources project.
(v) The enactment <strong>of</strong> the Mineral Act 2007.
Other measures include the setting up <strong>of</strong> primary smelting plants for metallic ores and attracting
private investment through government package <strong>of</strong> incentives.

Ownership Structure and Level <strong>of</strong> Participation ... 75
Some <strong>of</strong> the mining companies that have directly mined solid minerals in different parts <strong>of</strong>
the country include Nigerian Coal Corp., the Nigerian Mining Corp. and its subsidiaries,
including Nigerian Barytes Mining and Processing Co. Ltd. and Gold Mining Co. Ltd; the
Nigerian Steel Development Authority; and a number <strong>of</strong> companies in which the Nigerian
Mining Corp. has equity interest, including Consolidated Tin Mines Ltd. Others are Cross
River Limestone Co. Ltd., Jakura Marble Industry Ltd., Makeri Smelting Co. Ltd., Nigeria
Uranium Mining Co. Ltd., Nigerian Smelting Co. Ltd., Nigerian Diatomite Co. Ltd. and
Nigerian Marble Mining Co. Ltd.
Artisanal and Small Scale Mining (ASM) in Nigeria: The ASM constitutes the largest
percentage <strong>of</strong> mining in various parts <strong>of</strong> the country. There is a policy on ASM and this policy
has led to the creation <strong>of</strong> the Artisanal and Small-Scale Mining Department with the responsibility
<strong>of</strong> organising, supporting and assisting small scale mining operations; providing extension
services to ASM operators on exploration, exploitation, mineral processing, entrepreneurial
training, environmental management, health and safety issues, etc; improving sustainable
livelihood in ASM communities; facilitating healthy relationship between ASM operators and
mineral buying centres and preparing and rendering <strong>of</strong> records, reports and returns on ASM
as required by the Minister or as prescribed by the mining regulations. (Ministry <strong>of</strong> Mines and
Steel Development, 2008:15)
b. Solid Minerals Mining in Plateau State: Before colonial penetration, the common form
<strong>of</strong> ownership <strong>of</strong> resources in Plateau area was community ownership and control. Communities
participated in tin production and smelting and they met the needs <strong>of</strong> known markets, although
there are attempts to show that if colonialism hadn’t penetrated Africa, mineral mining would
not have been possible. Surprisingly, colonial literature has shown the banality <strong>of</strong> this perception
(See Bower, 1947 and Freund, 1981). With the capitalist take-over <strong>of</strong> the tin mining industry on
the Plateau, the forms <strong>of</strong> ownership and participation radically changed to the colonial state.
This was possible as noted above through colonial state legislations which were designed to
establish monopoly control <strong>of</strong> the tin mines. Bower reports that these legislations systematically
eliminated all communities and individuals from participating in tin mining in the Plateau
area (Bower, 1947: 8). The eviction <strong>of</strong> the farmers from their lands where in practiced not
followed with payment <strong>of</strong> compensation and there were no legal provisions for allocating
alternative pieces <strong>of</strong> land to the evicted farmers.
After the collapse <strong>of</strong> the tin mining industry which saw the departure <strong>of</strong> the multinational
companies and the abandonment <strong>of</strong> the tin mines, several developments, ranging from the
shift <strong>of</strong> attention to other mineral resources and to new forms <strong>of</strong> participation, have taken
place. In the process, issues <strong>of</strong> ownership and participation in current mining activities have
also changed. As noted earlier, ASM is currently taking place. The following mineral resources
are being mined: monazite, tin, columbite, feldspar, clay, cassiterite, gemstone, kaolin, dolomite,
mica, zicron, marble, Ilmenite, barite, quartz, talc, and galena.

76 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
In Plateau State, the communities where these minerals are mined include: Jos South Local
Government Area - Kuru, Zawan, Gyel, Vwang; Jos North Local Government Area – Dong
village, Dogo Nahawa village; Barkin Ladi Local Government Area – Doruwa settlement, Gindin
Akwati settlement; and Bokkos Local Government Area: Kubba settlement.
B. State Ownership and Control Structure <strong>of</strong> the Solid Mineral Sector
The colonial State designed tin mining legislations that arrogated to it the legal powers over all
lands and minerals on these lands; it made legislations that conferred monopoly control <strong>of</strong> the
tin mines to multinational corporations; it provided state protection to these monopolies, and it
received royalties from these companies. The post-colonial state demonstrated the same attitude
in the mining sector. (Bill Freund, 1981: 202).
The point to note is that, despite legal ownership <strong>of</strong> land by the colonial state, the control <strong>of</strong>
the processes <strong>of</strong> declaring pr<strong>of</strong>its is entirely that <strong>of</strong> the mining companies. In the extractive
industries as well as other areas, the multinational companies have <strong>of</strong>ten been less transparent
in the operations lead to the declaration <strong>of</strong> pr<strong>of</strong>its. Issues like transfer pricing on purchases <strong>of</strong>
equipment, raw materials and the payment <strong>of</strong> taxes becomes the avenues for the companies to
payless royalties into government treasury (Muller, 1978). It is important to mention that even
after independence, the Nigerian state increased its shareholding in the mining companies
with the hope <strong>of</strong> increasing its control over the extractive sector <strong>of</strong> the economy.
The current policy disposition favours privatisation <strong>of</strong> the mining industry. This change is
reflected in the Nigerian Minerals and Mining Act, 2007. This legislation vests the legal ownership
and control <strong>of</strong> minerals resource in the State, while state’s shares are sold to the private sector.
Section 1 (1) states that:
the entire property in and control <strong>of</strong> all Mineral Resources in, under or upon any land in
Nigeria, its contiguous continental shelf and all rivers, streams and water course throughout
Nigeria, any area covered by its territorial waters or constituency and the Exclusive Economic
Zone is and shall be vested in the Government <strong>of</strong> the Federation for and on behalf <strong>of</strong> the people
<strong>of</strong> Nigeria.
The Mineral Act 2007 section 1, subsection 2 states:
that all lands in which minerals have been found in commercial quantities shall, from the
commencement <strong>of</strong> this Act be acquired by the government <strong>of</strong> the federation in accordance with
the provisions <strong>of</strong> the Land Use Act.
Sub-section 2 states:
that no person shall search for or exploit mineral resources in Nigeria or divert or impound
water for the purpose <strong>of</strong> Mining except as provided in the Act
Section 22 gives priority to the use <strong>of</strong> land for mining than other purposes. It states that the use
<strong>of</strong> land for mining operations shall have a priority over other uses <strong>of</strong> land and can be considered

Ownership Structure and Level <strong>of</strong> Participation ... 77
for the purpose <strong>of</strong> access, use and occupation <strong>of</strong> land for mining operations as constituting an
overriding public interest within the meaning <strong>of</strong> the Land Use Act. Sub-section 2 also gives the
Governor <strong>of</strong> a particular state the right to revoke the certificate <strong>of</strong> occupancy to any owners
whose land is used by the State. It states that:
in the event that a mining lease, a small scale mining lease or a quarry lease is granted over land
subject to an existing and valid statutory or customary right <strong>of</strong> occupancy, the Governor <strong>of</strong> the
state within which such rights are granted shall within sixty days <strong>of</strong> such grant or declaration
revoke such right <strong>of</strong> occupancy in accordance with the provisions <strong>of</strong> section 28 <strong>of</strong> the Land Use
Act.
As at July, 2009, the government has granted licenses to over 33 indigenous miners for the
mining <strong>of</strong> different minerals as can be seen on table 1. The information available shows that the
State is involved in the mining industry through the presence <strong>of</strong> the Nigerian Mining
Corporation, which have shares in some <strong>of</strong> the mining concerns in the country but does not
have direct interest in the artisanal and small scale mining sector in Plateau State. However,
the State receives royalties from the licenses she has given out.
C. Ownership and Control Structure <strong>of</strong> Solid Minerals Industry by Mining
Companies
As at July 2009, foreign participation in the solid mineral mining in Plateau State was absent.
The Director <strong>of</strong> Kuru Kaolin Factory and a one-time Permanent Secretary in the Ministry <strong>of</strong>
Solid Mineral and Environment in Plateau State explained why no foreign participation is
found in the mineral mining in the State in the following narration:
Since the discovery <strong>of</strong> oil and gas in Nigeria, the tin mining industry on the Plateau collapsed.
Foreign companies considered the cost <strong>of</strong> production to be too high considering the machinery
and cost <strong>of</strong> labour. Since then there hasn’t been any foreign company on the Plateau tin mining
area. We are hoping that the change <strong>of</strong> policy towards solid minerals will once again attract
them and inaugurate a larger process <strong>of</strong> production. With the new policy, we hope that both
the foreign companies and small scale private miners will collaborate to turn around the
sector. (Interview with Markus Pwajok, April 9 2009)
It is crucial to note that in the post-colonial period, the indigenisation exercise has provided an
opportunity for local companies to participate in prospecting and smelting, but this was at the
time solid-mineral mining was on the decline. This is being supported by the current policy
environment and state disposition which is reflected in Section 23 <strong>of</strong> the Mineral Act 2007
which states that:
the person eligible for the fiscal regime set out in this Part <strong>of</strong> this Act shall include companies or
enterprises engaged in mining operations.
This is in contrast with earlier policy <strong>of</strong> granting monopoly participation to transnational
companies in prospecting and smelting <strong>of</strong> solid minerals. Once the colonial companies started

78 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
establishing their monopoly control <strong>of</strong> the tin mines, local participation diminished (Bower,
1947: 4).
The legislation favouring domestic private sector participation in solid mineral mining
is contained in the Mineral Act 2007 section 49 which states that:
a qualified applicant for a Small Scale Mining Lease is:
(a) a citizen <strong>of</strong> Nigeria with legal capacity and who has not been convicted <strong>of</strong> a criminal
<strong>of</strong>fence; or
(b) a Mining Cooperative; or
(c ) a body corporate duly incorporated under the Companies and Allied Matters Act; or
(d) the holder <strong>of</strong> an Exploration License granted in respect <strong>of</strong> the area subject to the
application, provided that the applicant has fulfilled all the conditions attached to the
Exploration License.
Small-Scale Miners
Currently, there are few indigenous companies that are participating in mineral mining
operations in the Plateau area. The table below shows that as at April 2009, only 33 companies
are in operation and who are participating in the prospecting <strong>of</strong> Cassiterite, Columbite,
Wolframite, Tantalite, Gelana, Sphalerite and Tantalium.
Table 1: Indigenous Companies in the Solid Mineral Sector in Plateau State as at April 2009
S/no Minerals Processed Number <strong>of</strong> indigenous companies
1 Cassiterite and
Columbite 19
2 Cassiterite,
Columbite, Wolframite 3
3 Cassiterite,
Columbite, Tantalite 2
4 Cassiterite, Columbite,
Tantalite, Wolframite 2
5 Cassiterite, Columbite,
Gelana, Sphalerite 2
6 Cassiterite, Columbite,
Tantalite, Gelana,
Sphalerite 3
7 Cassiterite, Columbite,
Tantalium 1
8 Cassiterite, Tantalite 1
Total 33
Source: Ministry <strong>of</strong> Mineral Resources, Jos, April 2009

Ownership Structure and Level <strong>of</strong> Participation ... 79
Mining operations in the mining field can be described as follows: the small-scale miners
depend on the artisanal miners for the digging and washing <strong>of</strong> tin, cassiterite, and columbite.
The artisanal miners who are usually from the local communities are given incentives in the
form <strong>of</strong> cash in order for them to extract and wash the raw deposits, which they pay back in
kind. The small miners who are also smelters, (but not all smelters are small scale miners) pay
royalty to the State because <strong>of</strong> the licenses granted to them.
There are 2 forms <strong>of</strong> ownership:
(a) the ownership <strong>of</strong> land and mining sites where the small scale miner is granted license to
prospect.
(b) The ownership <strong>of</strong> family/community land which artisans work mine and royalty in
both cash and kind is given the owner.
The communities see this form as participatory although in theory, the state regards it as ‘illegal’
because these artisanal miners are not granted licenses.
D. Participation in the Solid Mineral Industry by Communities
As at July 2009, community participation in the solid mineral mining is defined in terms <strong>of</strong>
community development which the state and the miners must engage in and this is reflected in
section 117 <strong>of</strong> the Act, which states that:
the Community Development Agreement shall specify appropriate consultative and monitoring framework
between the Mineral title Holder and the host community, and the means by which the community may
participate in the planning, implementation, management and monitoring <strong>of</strong> activities carried out under the
agreement.
The point to note here is the vagueness in the operational definition <strong>of</strong> “planning,
implementation, management and monitoring <strong>of</strong> activities carried out under the agreement”
and this is seen in the contradictory provision on “illegal mining”.
The community is barred from participation in the mineral extraction sector by the section
on illegal mining which states that: a person who:
(a) conducts exploration or mines minerals or carries out quarrying operations otherwise
than in accordance with the provision <strong>of</strong> the Act;
(b) in making application for mineral title, knowingly makes a statement which is false or
misleading in any material particular;
(c) in any report, return or affidavit submitted in pursuance <strong>of</strong> the provisions <strong>of</strong> this Act,
knowingly gives an information which is false or misleading or fails to declare in any
material particular;

80 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
(d) removes, possesses or disposes <strong>of</strong> any mineral contrary to the provisions <strong>of</strong> this Act,
commits an <strong>of</strong>fence.
This provision resembles the practice <strong>of</strong> prohibiting community participation in the mining
sector during the colonial period; a period when communities did not own or control the property
and the surpluses generated from landed property which belonged to them. However, as noted
earlier, the current mining operations are dominated by small scale and artisanal miners.
Who are the major actors in artisanal mining? The artisanal mining consists <strong>of</strong>:
(i) Farm owners: In Kuru, there are seven artisanal-mining sites (very different from licenses
sites) made up <strong>of</strong> 9 farm owners who receive royalties from artisans. 1 The owners <strong>of</strong> family
farmlands give out portions <strong>of</strong> land in return for royalties from artisans, which is usually in
cash. As at 2009, the amount that was given to the land owner ranged from N5, 000 to N10,
000. If after digging the well, the artisan is successful in getting the deposits, then the land
owner is entitled to a percentage <strong>of</strong> the total deposits in kind each time the artisan washes the
raw deposit. A family member is always around to monitor production on the basis <strong>of</strong> this
production, royalty is charged.
(ii) Artisans: These are young men, between the ages <strong>of</strong> 25 to 45 years who are engaged in
mineral extraction using manual methods. In Kuru, they number about 60 in the dry season,
and 32 in the rainy season. Amongst them are primary school leavers, secondary school dropouts
and part-time farmers. The artisan sometimes collects loans from the overseer or the smallscale
processors mainly for feeding, fuelling <strong>of</strong> water and electricity generators and transportation
<strong>of</strong> deposits. Such loans are paid in kind, with the deposits.
(iii) Overseers: They are middlemen and women <strong>of</strong> all ages who buy deposits from the artisans
by advancing loans to them. It is estimated that they number up to 25 in number; 15 are
women. This group is made up <strong>of</strong> tertiary school graduates - 3; house wives -15; retired civil
servants – 7. They take risks and responsibility <strong>of</strong> processing the deposits. The risk is possible
when a wrong quality <strong>of</strong> deposits is sold to them by the artisans or the women washers. (Interview
with Mr. Bitrus Mang, May 22, 2009)
(iv) Women labourers: they are involved in the mining sector by washing and extracting
remnants <strong>of</strong> the mineral concentrates found in sand. The product is usually the lower grades <strong>of</strong>
the columbite deposits. They see their participation as part time employment; as they either
return to the classrooms in the senior primary schools, or to the farms or to petty trading. At the
time <strong>of</strong> the study, they were estimated to be 37 in number. The number will be higher in the
rainy season. (Interview with Mr. Bitrus Mang, May 22, 2009)

Ownership Structure and Level <strong>of</strong> Participation ... 81
(v) Traditional rulers: this group is made up <strong>of</strong> the district head, his ward heads and few
elders working with him. Being the head <strong>of</strong> the community and charged with the responsibility
<strong>of</strong> protecting the property <strong>of</strong> all citizens resident in his area <strong>of</strong> jurisdiction, he is entitled to
royalties (usually in kind) from the land owners and the artisans. The elders and the ward
heads who supervise the production are also part <strong>of</strong> the production sharing agreements.
Why is ‘Illegal mining’ is allowed to continue?
The laws on ‘illegal mining’ have not been imposed in Plateau State for three main reasons:
1. the small-scale miners do not have the capacity to engage in mechanised mining because
<strong>of</strong> the high cost <strong>of</strong> obtaining machinery and payment <strong>of</strong> labour, and so they depend on artisanal
mining for deposits which they process and export. The current methods <strong>of</strong> mining include:
(a) manual digging <strong>of</strong> deep wells by young men using diggers and shovels;
(b) the bringing out <strong>of</strong> raw deposits from the deep wells using ropes tied to buckets;
(c) manual washing <strong>of</strong> the extracted deposits by young men or appointed women with
basins, and shovels to remove sand;
(d) manual drying <strong>of</strong> the deposits by young men and women; and
(e) rewashing <strong>of</strong> the discarded sand for other forms and grades <strong>of</strong> deposits.
2. The artisanal mining is seen by the state as a form <strong>of</strong> employment for the youths and for
all those that participate and therefore unable to prevent it. This is buttressed by the participants
in mining. In an interview, the Chief <strong>of</strong> Kuru District reveals that:
Though government policy is against illegal mining, government still allows my people to
engage in mining because it is this activity that provides employment for some on a permanent
basis and for some during the dry season. Both men and women use the income for a variety <strong>of</strong>
purposes including the payment <strong>of</strong> community taxes. (Da Patrick Mandung, May 23, 2009)
From the above quotation, the reasons for artisanal mining can be deduced:
(i) Some engage in this activity as a way <strong>of</strong> diversifying rural livelihood. This implies that
farmers, students, young and middle-aged women, and the unemployed are involved
in artisanal mining as alternative or additional means <strong>of</strong> livelihood. It is estimated that
about 546 people from the Kuru Community are engage in artisanal mining (interview
with Miss Magdalene Juma, April 20, 2009).
(ii) Some engage in mining as the principal household activity. In an interview, Mr. Bitrus
Mang May, 23 2009, reveals that fewer members <strong>of</strong> the population in Kuru are engaged
in the mining as a principal activity and they make their living from it particularly the
middlemen called overseers and the small-scale processors and exporters. It is estimated
that about 8% <strong>of</strong> the population is engaged in mining as a principal household activity.

82 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
The reason for this small percentage is because <strong>of</strong> the difficulties and the dangers involved
in the process <strong>of</strong> mining. During the rainy season, there is the risk <strong>of</strong> mining wells
collapsing <strong>of</strong> workers underground.
(iii) Some have gone into ASM as a long term strategy for coping with income or subsistence
loss due to economic factors such as lost <strong>of</strong> or retirement from formal employment and
economic down turn. In an interview, Mr. Markus Pwajok, a retired Permanent Secretary
as well as a Commissioner in the Solid Mineral Ministry in Plateau State Government
in 2003-2007 said that he established a Kaolin factory to keep him in business after
retirement from active government service, and for him, it is a way <strong>of</strong> surviving using
additional source <strong>of</strong> income, particularly when government pension is not paid on time.
(May 22, 2009)
3. Artisanal mining is seen by the state as an economic activity that has the capacity <strong>of</strong> alleviating
poverty. This reason has merit particularly for the reasons given above. But the percentage <strong>of</strong>
the population engaged in artisan and small-scale mining in relation to other occupations such
as farming, trading, state employment, etc. is very small. It is estimated that only 15% <strong>of</strong> the
population is engage in ASM during the dry season in the district.
What are the economic benefits <strong>of</strong> ASM?
The income generated from either sales <strong>of</strong> raw deposits or processed deposits or from exports
by ASM is used for:
(i) investment in the artisanal business or other diversified form <strong>of</strong> business;
(ii) the payment <strong>of</strong> school fees by self-sponsored mine workers in secondary schools/tertiary
institutions or by parents who pay students fees in the universities;
(iii) the purchase <strong>of</strong> fertilizer for agricultural cultivation purposes;
(iv) provision <strong>of</strong> residential accommodation;
(v) purchase <strong>of</strong> motorcycle or used cars for other economic activities such as intra-city
transportation; and
(vi) other household upkeep e.g. feeding and medical expenses <strong>of</strong> the elderly and children.
E. Ownership, Participation and Conflicts Patterns
The issues <strong>of</strong> ownership and control <strong>of</strong> landed property and the surpluses generated from it has
become so controversial in Nigerian political economy because <strong>of</strong> the growing consciousness
<strong>of</strong> the people to issues <strong>of</strong> transparency and accountability on the part <strong>of</strong> the State and the solid
mineral companies; as well as the deployment <strong>of</strong> these surpluses to meet the needs <strong>of</strong> citizens in
those solid mineral-bearing states. It is this non-accountable method that has given rise to the
growing contestations associated with the extractive industry.

Ownership Structure and Level <strong>of</strong> Participation ... 83
Previous contestation and conflicts in Plateau State
Other contestations between companies and the people ended either with the intervention
<strong>of</strong> the state police or with the colonial courts. Some <strong>of</strong> the issues include:
� Stealing <strong>of</strong> tin concentrates as a response to the accumulation <strong>of</strong> capital and poor wages
as well as poor ‘give-back’ programmes <strong>of</strong> the companies.
� State and companies’ prevention <strong>of</strong> ’illegal miners’ who are poor artisans from the villagers
in the community from crude underground mining
� Communities’ forceful takeover <strong>of</strong> lands formerly used by the tin mining conglomerates
without due clearance from the state. They see their actions as taking back what correctly
belongs to them.
� Protest by civil society over lack <strong>of</strong> clearing up the minefields <strong>of</strong> dilapidated equipment.
� The agitation by communities in the solid mineral bearing areas for the creation <strong>of</strong> a
solid mineral development commission: Solid Mineral Producing Areas Development
Commission (SOMPADEC); a replica <strong>of</strong> the Niger-Delta Development Commission to
address issues <strong>of</strong> socio-economic development <strong>of</strong> the areas.
� Protest by civil society over lack <strong>of</strong> land reclamation efforts despite the huge amounts <strong>of</strong>
money release as Ecological Funds by the Federal Government <strong>of</strong> Nigeria. There are
few civil society Organisations in the Plateau area that have taken the responsibility <strong>of</strong>
conscientising the public towards understanding issues in the extractive industries. From
the study, only the League for Human Rights (LHR) and the Plateau Environmental
Coalition (PEC) have directed their concerns to issues in the solid mineral sector. Their
major preoccupation has been to address the devastation <strong>of</strong> the tin mining areas and
issues <strong>of</strong> transparency in the use <strong>of</strong> ecological funds by state elites. The issues <strong>of</strong> ownership,
control and participation have not featured very much as in the case <strong>of</strong> South-South
Nigeria because <strong>of</strong> the present low level <strong>of</strong> economic activity in the sector.
From the above, we can see that the agitations during the colonial and early post-colonial
days did not assume the character <strong>of</strong> those in the oil-bearing region <strong>of</strong> the country partly
because during the period <strong>of</strong> active production and exploitation, the level <strong>of</strong> class and political
consciousness and also <strong>of</strong> the dangers <strong>of</strong> mining to the environment and the communities was
still very low. Second, which follows from the first, is the fact that the organisational strength <strong>of</strong>
social forces in the communities was still weak.
A current mining development in Plateau State presents a slightly different scenario in the
level <strong>of</strong> contestations over ownership and participation. There hasn’t been any violent conflict
essentially because <strong>of</strong> the community-based method <strong>of</strong> mining operations. Land owners are
satisfied with the form <strong>of</strong> ownership and the economic benefits they derive from the property.
Community members are satisfied with the benefits derived from mining operation, which
have gone a long way in solving some <strong>of</strong> the household problems. The traditional rulers are
also satisfied since they are recongnised by the community as custodians <strong>of</strong> property within
their jurisdiction and the benefit they derive from mining. As noted earlier, the state theoretically

84 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
sees artisanal mining as a poverty reduction strategy and this explains why it has not banned
it.
In the future, some factors that may generate conflict between companies and communities
in the mineral bearing areas will be:
(a) the prevention <strong>of</strong> artisanal mining in favour <strong>of</strong> mechanised small scale mining which
will exclude poor artisans from the sector. This will mean the exclusion <strong>of</strong> the communities
from mining operations; and
(b) the non-commitment on the part <strong>of</strong> the companies to fulfill their community development
obligations or the corporate social responsibility. When the above social responsibilities
are not met, communities tend to interfere with the operations <strong>of</strong> the companies working
in the area.
VI. Findings <strong>of</strong> the study
The study reveals that:
(1) The ownership <strong>of</strong> land and the minerals therein still remains legally with the state although
the Plateau State case study shows that communities are still exercising some level <strong>of</strong>
control over land and the proceeds from such land. This form <strong>of</strong> ownership and control
has significantly influenced the distribution <strong>of</strong> surpluses generated.
(2) The actors in the solid mineral industry in Plateau include Mineral title holders, mineral
processors, overseers, artisan mine labourers, women labourers, their level <strong>of</strong> participation
in the operations is voluntary and the benefits they derive resolved some <strong>of</strong> their
immediate household and business need.
(3) The character <strong>of</strong> power, interest and ownership <strong>of</strong> resources in the sector determine the
level <strong>of</strong> conflicts in communities endowed with resources. The community-base ownership
and participatory methods in economic activity indeed has influenced the low-levels
conflicts witnessed in Plateau State due to mining activities.
We have argued and as well have shown that there exist traditional ownership <strong>of</strong> landed property
by communities in the solid mineral producing areas, but the state has overriding rights to
these resources by virtue <strong>of</strong> the legal ownership it has on these lands and minerals therein. In
addition, the legal ownership <strong>of</strong> the extractive industries is different from its control. This implies
that this form <strong>of</strong> ownership does not confer the rights <strong>of</strong> actual ownership <strong>of</strong> proceeds from
such land. Therefore the control <strong>of</strong> surpluses generated from the lands is more important than
the legal ownership <strong>of</strong> land.

Ownership Structure and Level <strong>of</strong> Participation ... 85
VII. Recommendations and Conclusions
A. To address the issue <strong>of</strong> ownership, we recommend that there should be:
(i) The restructuring <strong>of</strong> the state at local, state and federal government levels to reorganised
the solid mineral sector in the interest <strong>of</strong> the people. This demands that the current
policy framework <strong>of</strong> handing over or deregulating the sector should be reviewed to
make provision for the controlled mining activities.
(ii) The launching <strong>of</strong> a programme on ’solid mineral resources for development’ to include
the provision <strong>of</strong> welfare needs in order to propel citizens out <strong>of</strong> poverty and dependency.
This will resemble its counterpart in the oil sector: ’oil for development’ programme.
This can be done through budgeting to take care <strong>of</strong> the citizens’ basic needs in the
mineral-bearing areas.
B. To address the issue <strong>of</strong> power, interest and ownership which is related to the resource
control debate, a solid mineral commission should be created to supervise
resources meant for the citizens welfare.
(iii) Payment <strong>of</strong> compensation to communities in addition to allowing the communities to
acquire specific interests or shares in the prospecting company that has been granted
license to mine the land.
C. To address the question <strong>of</strong> participation, we recommend that:
(i) Cooperative societies made up <strong>of</strong> youth and women currently participating in the mining
operations should be empowered to fully participate in organised ways in prospecting
and exploitation in the mineral sector. This is to avoid throwing them out <strong>of</strong> the
employment market and generating the feelings <strong>of</strong> exclusion.
(ii) Government needs to make its stated policy on formalisation <strong>of</strong> ASM a reality. This will
secure their existence.
D. To address the attitude <strong>of</strong> small-scale operators and large scale-miners (when they finally
appear) to community, we recommend that:
(i) Both companies and the relevant state institutions should adhere to the principles <strong>of</strong>
transparency in the declaration <strong>of</strong> output produced, production-sharing agreements
and pr<strong>of</strong>it declaration and how communities can benefit from these.
(ii) In the spirit <strong>of</strong> promoting transparency and accountability in the solid mineral sector,
there is need for a legislation in the Mineral and Metal Policy as well as in the Mineral
Act the Government should sanction any earring miner who violates the mining law in
cases <strong>of</strong> disclosure or provision <strong>of</strong> false information.

86 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
(iii) There should be an aggressive implementation <strong>of</strong> corporate social responsibility by the
tin companies. The legislation should be designed to protect the mineral-bearing
communities from the exploitation <strong>of</strong> the transnational corporations.
E. To address the concerns <strong>of</strong> civil society,
(i) There should be the em powerment <strong>of</strong> civil society to monitor the operations <strong>of</strong> the
industry. This is in line w ith N igerian <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiatives
(N EITI) principle <strong>of</strong> tracking developments in the sector. The media component <strong>of</strong> civil
society w ill be valuable only w hen the Freedom <strong>of</strong> Information legislation comes into
being.
F. To address future concerns in the sold mineral sector, the following should be considered:
(i) The design <strong>of</strong> public policy to address issues <strong>of</strong> community ownership and participation
in the sector. Communities should be part <strong>of</strong> the public policymaking and not preserve
<strong>of</strong> government and transnational corporations.
(ii) The issuance <strong>of</strong> licenses to companies that use labour-intensive method <strong>of</strong> production to
boost employment.
(iii) The translation <strong>of</strong> policy to practice in the area <strong>of</strong> forging a strong relationship betw een
sm all scale miners and large transnational corporations.
(iv) The impact <strong>of</strong> mining on the environment and health <strong>of</strong> the community and the w orkers.
(v) The practice <strong>of</strong> corporate social responsibility to the community in the area <strong>of</strong>
infrastructures, education and health provisioning.
(vi) The processes leading to the closure <strong>of</strong> mining operations must be stated clearly in the
mining legislations and the mining contract agreements so that the obligations <strong>of</strong> the
miners regarding the disposal and clearing <strong>of</strong> mining equipment, land recovery and
the reversion <strong>of</strong> land to the communities are clearly outlined.

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Agenda for a New Direction, Abuja: Ministry <strong>of</strong> Solid Minerals Development.
Davidson, Jeffrey, (2004). “Artisanal and Small Scale Mining: Implications for Poverty
Reduction in Nigeria”, Federal Republic <strong>of</strong> Nigeria, National Mining Policy Dialogue
Agenda for a New Direction, Abuja: Ministry <strong>of</strong> Solid Minerals Development.
Federal Republic <strong>of</strong> Nigeria (2004). National Mining Policy Dialogue Agenda for a New
Direction, Abuja: Ministry <strong>of</strong> Solid Minerals Development.
Federal Republic <strong>of</strong> Nigeria (2008). National Minerals and Metals Policy, Abuja: Ministry <strong>of</strong>
Mines and Steel Development.
Freund, Bill (1981). Capital and Labour in the Nigerian Tin Mines, London: Longman.
Iyayi, F. (2007) The Niger Delta: Issues <strong>of</strong> Justice and Development Agenda, Abuja: Centre for
Democracy and Development.
Mining in Nigeria, http://en.wikipedia.org/wiki/mining
Muller, Ronald (1979). “The Multinational Corporation and the Underdevelopment <strong>of</strong> the
Third World”, Wilber, Charles K, (eds), The Political Economy <strong>of</strong> Development and
Underdevelopment, New York: Random House.
Odah, E. John (2008). “Making Oil a Blessing in Nigeria: The Need for Participation and
Distribution” (paper presented at an ITUC meeting in Nairobi).
Odah, E. John (2008). “Niger Delta Crisis: Essence, Consequences and Solutions”, Paper
presentation at the Norway Conference on the Crisis in the Niger Delta
Participation (decision making), http://en.wikipedia.org/wiki/
Participation_(decision_making) retrieved 20 th June 2009.
Sarkissian, Wendy (2002)). What is community participation?: Theorists are talking about
equity and representativeness, adapted from Chapter 1 <strong>of</strong> New Directions, a Community
Participation in Practice publication http://www.sarkissian.com retrieved 20 th June 2009.
Uga, O. Edu (2001). “State Creation, Oil Revenue Allocation and the Political Economy <strong>of</strong>
Resource Control”, Ibadan: Nigerian Economic Society.
Yaron, Gil, (2004). “Community Issues with Large and Small Scale Mining in Africa” Federal
Republic <strong>of</strong> Nigeria, National Mining Policy Dialogue Agenda for a New Direction, Abuja:
Ministry <strong>of</strong> Solid Minerals Development..

88 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
End Notes
1. The farms include:
a. Rot la Kwong (land belonging to the family <strong>of</strong> La Kwong)
b. Rot la Chara
c. Rot la Bi
d. Rot la Baryom
e. Rot la Jama
f. Rot la Pyal
g. Rot lo Chong
h. Rot Ga’a
i. Rot Bazaza
j. Rot la Kanikon
Interviews
1. Gwom Rwei Kuru, Da Patrick Mandung, 70 yrs, Chief <strong>of</strong> Kuru District (interviewed on
several dates).
2. Mr. Markus Pwajok, retired Permanent Secretary/Commissioner Ministry for Mineral
Resources, Plateau State 2003-2007.
3. Mr. Bitrus Mang, student/overseer, 35 years (interviewed on several dates)
4. Mrs. Yop Bot, 42 yrs, B.sc, Business (interviewed on may 30 th 2009).
5. Official <strong>of</strong> the Ministry <strong>of</strong> Solid Minerals, Plateau State Jos (interviewed on several dates).
6. Da King Sammy, D. B. Zang PLC (Administrative Manager), Gyel District, (interviewed
on several times).
FGDs (16 th May 2009, Dungus Kuru)
1. Miss Magdalene Juma, 25 years, single, secondary school student/mines labourer, Kuru.
2. Miss Kachollom Pam, 20 years, single, secondary school drop-out/mines labourer, Kuru.
3. Miss Rita Chuwak 17 years, single, secondary school student /tailor/mines labourer,
Kuru.
4. Ngwo Chundung (De Dani) - Overseer.
5. Ngwo Mary (De Monday).

State Resources
Mineral Deposits In Nigeria
Ownership Structure and Level <strong>of</strong> Participation ... 89
1. Abia Glass Sand, Limestone, Salt, Shale, Ball Clay, Granite, Galena, Marble, Laterite,
Bentonite, Phosphate, Kaolin, Pyrite, Feldspar, Petroleum, Lignite, Gypsum,
Sphalerite, Clay
2. Adamawa Granite, Clay, Gypsum, Limestone, Uranium, Kaolin, Coal, Trona, Barite, Salt, Mable,
Magnesite, Laterite.
3. Akwa Ibom Clay, Glass Sand, Salt, Silica Sand, Granite, Coal, Petroleum, Natural Gas, Kaolin,
Limestone, Lignite.
4. Anambra Clay, Iron Stone, Natural Gas, Petroleum, Sand Stone, Kaolin, Pyrite, Lignite.
5. Bauchi Kaolin, Trona, Gypsum, Cassiterite, Mica, Clay, Tantalite, Galena, Iron Ore,
Gemstone, Sphalerite, Silica Sand, Barite, Columbite, Zinc, Lead, Muscovite, Quartz,
Tin, Glass Sand, Monazite, Feldspar, Graphite, Wolfram, Coal, Agate, Tentalum,
Rutile, Tungsten, Copper, Talc, Ilmenite, Ziron.
6. Bayelsa Salt, Petroleum, Natural Gas, Silica Sand, Bentonite, Crude Salt, Petroleum,
Limestone, Glass Sand.
7. Benue Gemstone, Barites, Feldspar, Marble, Mica, Silica Sand, Quartz, Galena, Lead, Zinc
Ore, Silica Sand, Clay, Crushed and Dimesion Stone, Fluorspaer, Wolframite, Bauxite,
Shale, Magnetie, Ilmentie, Brenite.
8. Borno Silica Sand, Natural Salt, Sapphire, Topaz, Mica, Quartz, Gypsum, Uranium, Iron
Ore, Megnesite, Feldspar, Granite, Aquamarine, Nepheline, Limestone, Kaolin,
Bentonite, Laterite Clay, Refractory Clay, Trona, Gold, Tin, Potash.
9. Cross River Salt, Limestone, Coal, Maganese, Mica, Ilmenite, Gold, Quartz, Glass Sand, Tourmaline,
Petroleum, Natural Gas, Kaolin, Tin Ore, Sharp Sand, Spring Water, Salt Deposits,
Talc, Granite, Galena, Lead, Zinc, Tin Ore, Muscovite, Uranium, Barite.
10. Delta Kaolin, Lateritic Clay, Gravel, Silica Sand, Natural Gas, Petroleum, Ball, Clay, Bauxite,
Granite, River Sand, Clay, Spring Water.
11. Ebonyi Lead, Zinc Ore, Salt, Limestone, Ball Clay, Refractory Clay, Gypsum, Granite.
12. Edo Chamockite, Copper, Gold, Marble, Granite, Gypsium, Petroleum, Dorite, Lignite,
Limestone, Ceramic Clay.
13. Ekiti Clay, Chamockite, Quartz, Lignite, Limestone, Granite, Gemstone, Bauxite, Cassiterite
Clumbite, Tantalite, Feldspar, Kaolin.

90 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
14. Imo Crude Oil, Shale, Natural Gas, Kaolin, Laterite Sand, Limestone, Salt, Marble.
15. Jigawa Glass Sand, Granite, Laterite Clay, Silica, Kaolin, Iron Ore, Qurtz, Potash, Talc,
Limestone.
16. Kaduna Muscovite, Granite, Gold, Manganese, Clay, Graphite, Sand, Zircon, Kyanite, Tin Ore,
Ilmenite, Gemstone, Columbite.
17. Kano Clay, Laterite, Cassiterite, Columbite, Ilmenite Galena, Phyrochlorite, Kaolin, Gemstone,
Silica, Tin Ore, Monazite, Wolframite, Thorium, Granite, Hyalite, Kaolin, Beryl, Amethyst,
Gold.
18. Katsina Gold, Manganese, Lateritic Clay, Feldspar, Back Tourmaline, Amethyst, Quartz, Kaolin,
Mica, Gypsum, Silimanite, Clay, Granite, Sand, Uranium, Asbestos, Tourmalin, Serpentine
(Chresolite Asbestos), Chromites, Ilmenite, Diamond, Graphite, Iron Ore, Potash, Silica
Sand.
19. Kebbi Salt, Iron Ore, Gold, Feldspar, Limestone, Qurtz, Bauxitic Clay, Manganese, Kaolin,
Mica.
20. Kogi Clay, Iron Ore, Gemstone, Marble, Limestone, Feldspar, Dolomite, Phosphate, Mica,
Cassiterite, Granite, Ornamental Stone, Coal, Kaolin.
21. Kwara Clay, Kaolin, Silica Sand, Quartz, Dolomite, Marble, Feldspar, Gold, Tantalite, Cassiterite,
Granite, Limestone.
22. Lagos Silica Sand, Bitumen, Sharp Sand, Gravel, Petroleum, Laterite.
23. Nassarawa Cassiterite, Gemstone, Aethyst, Beryl, Cherysolite, Emerald, Gamet, Sapphire, Topaz,
Barites, Galena, Monazite, Zicron, Glass Sand, Coal.
24. Niger Bell Clay, Kaolin, Limestone, Granite, Glass Sand, Iron Ore, Red Clay, Feldspar, Silica
Sand, Quartz, Asbestos, Marble, Talc, Gemstone.
25. Ogun Kaolin, Feldspar, Silica Sand, Mica, Granite, Clay, Phosphate, Gypsum, Limestone,
Quartz, Tar Sand.
26. Ondo Marble, Gold, Gemstone, Clay, Diorite, Lignite.
27. Osun Clay, Granite, Talc, Dolomite, Ilmenite, Feldspar, Quartz, Limestone, Mica, Clay.
28. Oyo Clay, Feldspar, Granite, Ilmenite, Iron Ore, Kaolin, Quartz, Talc, Marble, Dolomite,
Tourmaline, Aquamarine, Amethyst.
29. Plateau Monazite, Columbite, Feldspar, Clay, Cassiterite, Gemstone, Kaolin, Dolomite, Mica,
Zicron, Marble, Ilmenite, Barite, Quartz, Talc, Galena.
30. Rivers Petroleum, Natural Gas, Silica Sand, Glass Sand, Clay.
31. Sokoto Silica Sand, Clay, Salt, Limestone, Phosphate, Gypsum, Kaolin, Laterite, Potash, Granite.

Ownership Structure and Level <strong>of</strong> Participation ... 91
32. Enugu Laterite, Clay, Crude Oil, Kaolinitic Clay, Iron Ore, Glass Sand, Petroleum,
Gypsum, Coal, Silica Sand Ceramic Clay.
33. Gombe Graphite, Kaolin, Limestone, Silica Sand, Uranium, Coal, Halites, Clay, Gypsum,
Diatomite, Granite.
34. Taraba Flurspar, Gamet, Tourmaline, Sapphire, Zircon, Tantalite, Columbite, Cassiterite,
Barite, Galena, Limestone, Laterite, Calcite, Bauxite, Magnetite, Pyrite, Lead,
Zinc Ore.
35. Yobe Salt, Trona, Diatomite, Clay, Gypsum, Kaolin, Silica Sand, Limestone, Epsomite,
Iron Ore, Trona, Shale, Uranium, Granite, Bentonitic Clay.
36. Zamfara Gold, Alluvial Gold, Granite, Chromites, Chamorckite, Clay, Feldspar, Spring Water.
37. Federal Capital Kaolin, Limestone, Granite, Marble, Feldspar,
Territory Mica, Dolomite,Clay, Sand, Talc.
Source: Raw Materials and Development Council, Nigeria.

3
Labour and Gender Issues in Solid Minerals Mining:
The Case Study <strong>of</strong> Tin and Gold 1
Fatima L. Adamu
1 The Author wishes to acknowledge the contribution <strong>of</strong> Princess Jummai Idonije <strong>of</strong> the National Centre for Women
Development, Ishaku Tetok <strong>of</strong> the University <strong>of</strong> Jos, Nura Umar and Aliyu Musa in the collection <strong>of</strong> data.
92

Abstract
There is an increasing call for transparency and accountability in the
extractive industries as the relevance <strong>of</strong> the industries to the overall
development <strong>of</strong> the country is recognised and communities hosting the
minerals demand for greater say in the revenue generated and the
management <strong>of</strong> the industries. For citizens to be effective actors in
demanding for transparency and accountability, they need accessible
information as a resource and tool for action. The finding <strong>of</strong> the study is
meant to address the needs <strong>of</strong> citizens for information to enable them take
action and hold government and companies accountable for their action
and inaction. The study was conducted in Jos, Plateau state and Yauri
in Kebbi state with reference to Tin and Gold minerals respectively. The
objective <strong>of</strong> the study was to explore and analyse labour issues as well as
gender issues in the NEI. To do that, the policy and formal documents <strong>of</strong>
the industries were reviewed and interviews conducted with the miners,
host communities and companies. The findings were clear that there is
limited attention to labour and gender issues in the documents. In fact,
the mineral laws appear to be in contradiction to the current reality <strong>of</strong> the
solid minerals mining activities that are dominated by unauthorised
artisanal miners. Substantial part <strong>of</strong> the law appears to be addressing
the needs <strong>of</strong> foreign firms that constituted less than 10%. Similarly, both
the mineral policy and law appears to be gender blind to the peculiarities
<strong>of</strong> gender relations and in particular, the constraints women face in the
sector. Such constraints included low remuneration for the labour <strong>of</strong> women,
gender ideology that restricted women to certain jobs within the industries
and women’s lack <strong>of</strong> access to land. The findings also suggest that
government has lost control over the mining activities with unauthorised
foreign companies mining the mineral resources without any government
action. This could be associated with the ineffectiveness <strong>of</strong> the national
government to perform its oversight function over minerals that are located
in the nooks and crannies <strong>of</strong> the country.
93

94 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Key Terms
1 Solid mineral: means any naturally occurring substances derived from the earth’s crust
and upper mantle which are <strong>of</strong> value to man, but that exclude crude oil, gas and water
(Committee on National Policy on Solid Minerals (CNPSM), 1995: 4).
2 Mineral exploitation: refers to operations related to the technical and economic utilisation
<strong>of</strong> mineral resources including mine development, extraction, treatment, processing and
beneficiation <strong>of</strong> mineral resources as well as activities necessary or related to the marketing
<strong>of</strong> such mineral resources (2007 Act: 59)
3 Mining operation: means the work carried out in the course <strong>of</strong> mineral exploitation
including the search for and exploration for minerals, beneficiation, processing and contract
mining.
4 Informal mining: This is a form <strong>of</strong> mining that uses the simplest technology and procedure
and is usually not <strong>of</strong>ficially recognised and because <strong>of</strong> these characteristics there are no
barriers at the moment <strong>of</strong> entry and therefore anybody can participate.
5 Artisanal mining: is the most subsistence type <strong>of</strong> mining characterised by individual or
group exploiting mineral deposits like tin and gold usually without permission to do so
and with the simplest technology such as manual or portable equipment. For this research
we are adapting Nigerian government definition <strong>of</strong> artisanal mining as mining operation
limited to the utilisation <strong>of</strong> non-mechanised method <strong>of</strong> reconnaissance, exploration,
extraction and processing <strong>of</strong> mineral resources within a small scale lease area.
6 Small scale mining: is the exploitation <strong>of</strong> mineral deposits which, due to their mode <strong>of</strong>
occurrence and their size, can be mined economically by simple means and techniques. It
could be individual or collective extractive effort using simple and traditional tools, manual
devices or simple portable machinery. Small scale mining is normally characterised by
low productivity, scarce safety conditions and negative impact on the environment.
However, in this report we are adopting Nigerian government definition <strong>of</strong> small scale
mining in the Nigerian Minerals and Mining Act, 2007 as Artisanal, Alluvial and other
forms <strong>of</strong> mining operations involving the use <strong>of</strong> low level technology or application <strong>of</strong>
methods not requiring substantial expenditure for the conduct <strong>of</strong> mining operation within
a small scale (Nigerian Minerals and Mining Act, 2007: 60)
7 Mining permit or license: means given <strong>of</strong>ficial recognition or permission to mine a mineral
deposit. It gives a miner the legal right to extract a mineral. It is used in this report to mean
permission granted for the exploitation <strong>of</strong> mineral resources under the Nigerian Minerals
and Mining Act <strong>of</strong> 2007
8 Mineral laws: refers to Nigerian Minerals and Mining Act 2007
9 Mineral policy: refer to the National Minerals and Metals Policy <strong>of</strong> 2008.

Labour and Gender Issues ... 95
10 Gender blindness, is a term used to describe activities undertaken and services provided
without regard to the gender <strong>of</strong> those involved. It can also means a failure to identify and
acknowledge differences on the basis <strong>of</strong> gender.

96 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
3.0 Background
Demand for transparency and accountability in the extractive industries from the government
and companies by the civil society organisations, host communities, other Nigerian citizens
and the international communities has increased over the years. This demand stems from
Nigerians experience where the government connived with private companies under the disguise
<strong>of</strong> technicalities to operate in secrecy and with impunity which happened at very high cost to
the environment, host communities and the Nigerians.
Under this condition, the extractive industries in Nigeria have earned the reputation for lack <strong>of</strong>
transparency and accountability in terms <strong>of</strong> their operations and the revenue generated. As
corruption and waste in the industries deepens, the call for transparency and accountability
grew louder. For Nigerians to transform this concern into power <strong>of</strong> action, they need information
that is easily accessible and understood. This research is meant to fill-in-the-gap <strong>of</strong> providing
non-technical information that can be readily available to civil society groups and other interest
groups to assess and take action against corruption and discrimination on the basis <strong>of</strong> informed
decision. It is only when Nigerians have required information that they can hold government
and the companies accountable for their actions or inactions.
This is particularly so for the solid mineral sector <strong>of</strong> the extractive industry that is continuously
riddled with two governance problems <strong>of</strong>:
(a) inability to integrate the sector into the Nigerian formal economy; and
(b) the failure to distribute the benefits across all relevant stakeholders (NEITI Handbook).
The significance <strong>of</strong> the above two problems is better appreciated if we consider the fact that the
industry is dominated by ordinary Nigerians struggling to irk a living from the sector.
Accordingly, the NEITI Handbook (2007:20) contends that the exploration <strong>of</strong> mineral resources
is mostly undertaken by small-scale formal and informal 2 mining companies. Consequently,
“as many as 500,000 households (potentially 2-4 million people) depend directly or indirectly
on informal mining for their sustenance.” In addition, the document noted that for the vast
majority <strong>of</strong> the miners, mining “represents the only cash-generating activity in these rural
areas and as such represents the most immediate means <strong>of</strong> poverty alleviation for the rural
communities involved.”
It is in recognition <strong>of</strong> this that the Department for International Development (DFID), the
World Bank (WB) and the Government <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria launched a Sustainable
Management <strong>of</strong> Mineral Resources Project (SMMRP) that has the objectives, among other
things, to establish a basis for poverty reduction and rural economic renewal through the
development <strong>of</strong> non-farm income generating opportunities through small-scale and artisanal
mining and to diversify away from oil sources <strong>of</strong> income. Similarly, as the search for alternative

3 By informal, we mean those vast majorities <strong>of</strong> miners and operators operating without valid license.
Labour and Gender Issues ... 97
source <strong>of</strong> income intensified, the state governments have redirect their thinking on taping the
mineral resources located in their respective state. 3
This is particularly so in Northern states where in its 2008 economic summit, the Northern
Nigerian Government Forum decided to develop the solid mineral resources in the north as a
means to fighting poverty and promoting industries in the states. This move <strong>of</strong> the Northern
state governments and the Northern Nigerian private sector was initiated under the auspices
<strong>of</strong> Northern states Chamber <strong>of</strong> Commerce and <strong>Industries</strong>.
This is particularly so as there is an increasing political commitment by many state
governments and the national government to develop the solid mineral resources in order to
fight poverty, promote industries in the states and to provide an alternative source <strong>of</strong> revenue to
the states. In addition, the mining sector is seen as a solution to the unemployment problem in
the economy since mineral deposits abound in virtually every State <strong>of</strong> the federation.
While these initiatives were being conceived, the involvement <strong>of</strong> women in the sector to
benefit from the employment opportunities presented by these initiatives remained unexplored.
This is particularly important because solid mineral resources are areas that are perceived to be
gender neutral and therefore, no attention is given to the effect <strong>of</strong> gender issues in the sector.
However, as it has been documented, gender neutrality generally is a reflection <strong>of</strong> gender
blindness which always culminated into gender discrimination. The focus <strong>of</strong> this research
therefore was tw<strong>of</strong>old: The first fold was to address labour issues in relation to this gender
blindness in the sub-sector by studying the participation <strong>of</strong> men and women in the solid mineral
industries with particular reference to employment and ownership. What roles are men and
women playing in the minerals mining industries either as workers or as owners? What sort <strong>of</strong>
position do they occupy? What constraints do they face? Related to this is the analysis <strong>of</strong> labour
component <strong>of</strong> the study in terms <strong>of</strong> analysis <strong>of</strong> labour covering such issues as legislation on
labour, compensation, health and safety, sourcing <strong>of</strong> labour, labour relations and child labour.
The second part <strong>of</strong> this study was to provide information that is easily accessible (in terms <strong>of</strong>
understanding, availability and utilisation) to Nigerian citizens including civil society
organisations to engage the government and companies to address labour and gender issues in
the sector. Specifically, the research was aimed at finding out the nature <strong>of</strong> extractive activities
and the nature <strong>of</strong> interactions between actors in the solid mineral resources <strong>of</strong> tin in Jos, Plateau
state and gold in Yauri, Kebbi state. To answer these questions, the report was divided into four
sections. The first section presents introduction to the study and is followed by brief literature
review <strong>of</strong> key labour issues and gender issues in the minerals-mining sector. The methodology
section was covered in third section <strong>of</strong> the report. The analysis <strong>of</strong> the findings covering labour
and gender issues was presented as the fourth section <strong>of</strong> the report. The findings covered the
review <strong>of</strong> minerals policy and laws as well primary data from the field.

98 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
3.0.1 Objectives
The specific objectives <strong>of</strong> the study are:
� To review the policy and formal documents on solid mineral resources in relation to labour
and gender issues.
� To undertake an analysis <strong>of</strong> labour, covering such issues as legislation on labour,
compensation, health and safety, sourcing <strong>of</strong> labour, labour relations and child labour.
� To investigate the issue <strong>of</strong> gender in the extractive activities and industries in terms <strong>of</strong>:
o the extent and nature <strong>of</strong> women and men’s employment and income
o Women’s and men’s access, control and ownership <strong>of</strong> mineral title rights
3.1 Relevant Literature on Labour and Gender Issues in the Solid Minerals Sector
Labour Issues
Central to any analysis <strong>of</strong> labour in the solid minerals sector <strong>of</strong> the Nigerian extractive industries
is its artisanal and small-scale nature. According to the NEITI Handbook (2007:20):
currently, there are no medium- or large-scale mining operations in Nigeria. Most active mining
in the country today is being undertaken by small entrepreneurs and artisans, working deposits
<strong>of</strong> precious, semi-precious, construction and industrial minerals that are not licensed or are
operating outside <strong>of</strong> the parameters <strong>of</strong> the license they hold.
In writing about the Artisanal mining, Lawal (2002) argues that it is impossible to consider
mining in Nigeria without putting informal mining in perspective. According to her, over 95%
<strong>of</strong> mining activities in Nigeria are artisanal and another 95% <strong>of</strong> these are informal. In a
government report, (FGN-MSMD, 2005) the situation in the Artisanal and Small-Scale mining
is described as “utterly chaotic with a virtual breakdown in law and order in the mining areas.”
Lawal (2002) concludes that miners over the years have preferred to deal informally and get
higher pr<strong>of</strong>it as opposed to merging as small-scale miner groups in order to achieve economies
<strong>of</strong> scale.
These basic characteristics <strong>of</strong> the solid mineral sector have serious implications on the
nature and dynamics <strong>of</strong> labour relations. Consequently, the health and safety risks to which
artisanal and small-scale miners are exposed to are generally greater than that <strong>of</strong> the largescale
mining. According to the FGN-MSMD report (2005:48), the informal and unregulated
nature <strong>of</strong> Artisanal and Small-Scale Mining in Nigeria means that it usually:
3 This is particularly so in Northern states where in its 2008 economic summit, the Northern Nigerian Government Forum decided to
develop the solid mineral resources in the north as a means to fighting poverty and promoting industries in the states. This move
<strong>of</strong> the Northern state governments and the Northern Nigerian private sector was initiated under the auspices <strong>of</strong> Northern states
Chamber <strong>of</strong> Commerce and <strong>Industries</strong>.

Labour and Gender Issues ... 99
operates beyond the scope <strong>of</strong> legislation or enforcement on health and security guidelines even
if they existed. ASM miners are particularly vulnerable to mine collapses, rock falls, exposure
to dust and other chemicals, the effects <strong>of</strong> noise and vibration, poor ventilation, over exertion,
inadequate work-space and inappropriate equipment use.
The report cites some African countries like South Africa and Zambia that have formulated
ASM specific Health and Safety guidelines. There also exists localised regulations like the
Merelani Tanzanite Mine in Tanzania which occurred as a result <strong>of</strong> the tragic flooding <strong>of</strong> the
mines in 1998 that killed 70 miners. After the accident, the Mines & Construction Workers
Union and Arusha Mines Association in collaboration with the government drafted regulations
that would minimise health and security risks. Related to this is the fact that most <strong>of</strong> the Artisanal
miners are poor with poor sanitation and with little access to clean water or basic health care.
These problems are worsen where miners converged around discovered mineral sites. Such
sites are unlikely to have public health facilities. In addition to harboring diseases related to
poor sanitation, they are also breeding grounds for crime, sex work, sexually-transmitted diseases
(STDs) and other forms <strong>of</strong> moral depravity.
Despite its small-scale nature and its attendant consequences, mining represents one <strong>of</strong> the
few cash-generating activities in the rural areas and therefore the most immediate means <strong>of</strong>
poverty alleviation for the rural communities involved in the mining activities. The cash-related
role <strong>of</strong> the solid mineral sector in the rural economy is linked to its seasonality. According to
NEI, the vast majority <strong>of</strong> mining is undertaken as part-time activity in parallel with subsistence
agriculture. Many <strong>of</strong> the miners operate in the dry season when there is less agricultural work
in order to supplement their meagre incomes. In addition, there is also the employment multiplier
effect where the amount <strong>of</strong> jobs created to service mining canbe equal to the number <strong>of</strong> miners
themselves. However, since the vast majority <strong>of</strong> the miners work casually and seasonally, it is
difficult to determine the actual number <strong>of</strong> people employed in the sector. This is because the
miners are <strong>of</strong>ten farmers and therefore more likely to report farming as their main economic
activity. Another possible reason is that, in collecting employment data, migrant miners living
in temporary camps outside established communities may not be interviewed.
Table 1: Estimates <strong>of</strong> Mining Employment 1998-2003
Total
1998 1999 2000 2001 2002 2003
employment NA 209,000 204,000 223,000 210,000 216,000
Total Salaried
employment 22,500 23,200 23,100 24,000 23,800 NA
Source: FGN-MSMD (2005:48)

100 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
3.1.0 Gender Issues
The mining <strong>of</strong> mineral resources represents an opportunity for many women to break out <strong>of</strong>
the cycle <strong>of</strong> poverty. According to ILO quoted in Jennifer J. Hinton, Marcello M. Veiga, Christian
Beinh<strong>of</strong>f (2003) women’s direct participation in artisanal mining varies throughout the world
and estimates that about 30% <strong>of</strong> the world’s artisanal miners are women representing according
to World Bank, about seven million people in some <strong>of</strong> the poorest countries <strong>of</strong> the world (World
Bank, 2007). While little data on solid minerals that is disaggregated by gender exists in Nigeria,
the figure for that <strong>of</strong> Africa is reported to be the highest with female artisanal miners constituting
between 40% and 50% (Jennifer J. Hinton, Marcello M. Veiga, Christian Beinh<strong>of</strong>f (2003).
3.1.2 Nature <strong>of</strong> participation
Women’s traditional role in the mining <strong>of</strong> minerals has been to support male miners by providing
meals, water and general assistance. Over time, women have moved into direct productive
roles and in many communities today, women are active in every step <strong>of</strong> mining, from
production to retail. Currently, the proportion <strong>of</strong> women among the workers in the small mines
and quarries varies from country to country. In actual mining, jobs <strong>of</strong> panning, processing,
transportation and related jobs on the fields, the percentage <strong>of</strong> women can vary from as low as
10% to as high as 50%. Despite this high percentage, gender differences exist on the nature and
character <strong>of</strong> men and women’s employment pattern in the industry. Women are reported in
Jennifer J. Hinton, Marcello M. Veiga, Christian Beinh<strong>of</strong>f (2003) to be typically labourers,
employed as panners, carriers and processors and as service providers <strong>of</strong> goods and services
(e.g. cooks, shopkeepers). In terms <strong>of</strong> mineral processing activities, women involvement may
range from crushing, grinding to sieving, washing and panning. Hardly are women lease
owners, titleholders, mine operators or dealers, buying agents and equipment owners. Reviewing
statistics across African countries, Jennifer J. Hinton, Marcello M. Veiga, Christian Beinh<strong>of</strong>f
(2003) document that 6% <strong>of</strong> Ghanaian women were licensed buyers in gold mining, 10% as
titleholders with 15% in the formal small scale metal mining labour force and over 50% were
engaged in the informal side.
Similarly, it was also found that although women participate in all aspects <strong>of</strong> mining,
processing and marketing, they predominate in the sieving, sorting, transportation <strong>of</strong> water
and washing. Another feature <strong>of</strong> women’s involvement in the mining sector was that women
are less likely to take part in direct underground mining because <strong>of</strong> the risk involved, but are
rather involved as bookkeepers. For instance, at informal Cocoase Camp in Ghana, women
pound rocks, and carry ore and water for wages that are 60% lower than those <strong>of</strong> men involved
in ore digging. Higher proportion <strong>of</strong> women were engaged in minerals mining in Burkina
Faso with approximately 90% <strong>of</strong> mineral processing activities conducted by women and as
many as 45% <strong>of</strong> all artisanal miners are women. Similar picture applies to other African countries
<strong>of</strong> Mali, Tanzania and other southern African countries. In the Nigeria, village <strong>of</strong> Keana women
were said to dominate salt mining, this is the occupation women dominate across West African
societies (Onah, 2002).

Labour and Gender Issues ... 101
The activities <strong>of</strong> women in the mining sector go beyond direct mining activities. In many cases,
the roles <strong>of</strong> women in artisanal mining communities differ significantly from those <strong>of</strong> men, and
extend well beyond the mining sites. For example, most <strong>of</strong>ten, the processing activities <strong>of</strong> some
minerals are conducted in the home, which bring with it a different risk and opportunities not
only to women but also the children. Women were said to act as ’cooks’ not only in the area <strong>of</strong>
food preparation, but also in relation to managing food stocks and related financial resources
and other administrative support to the mine owners. Women also act as goods and service
providers, including owner-operators <strong>of</strong> bars and equipment owners and sex work. Women
engaged in mining also tend to take on other jobs to supplement their incomes. The involvement
<strong>of</strong> women in artisanal mining is believed to be on the increase due to increase in rural poverty
(World Bank, 2007).
3.1.3 Constraints
A major constraint <strong>of</strong> women miners is that they do not participate in large-scale formal mining
and therefore do not acquire necessary skills needed to gain employment at large scale mines.
In addition, women are tied to their households through familial obligations and therefore
work part-time in the mining sector far more frequently than men.
Despite the active involvement <strong>of</strong> women in the solid minerals mining, women were generally
reported to derive little benefit compared to their male counterparts and are more vulnerable to
the risk associated to its negative impact on the environment, health, and social relations and
dynamics (World Bank, 2007). The World Bank project identified three key areas that women
are more vulnerable than men.
� Women generally earn less income from mining than men and are more likely to bear
the burden <strong>of</strong> stresses on the traditional social structure as a result <strong>of</strong> the introduction <strong>of</strong>
small-scale mining activities in a community. However, for the men who are owners
and in control <strong>of</strong> land tend to enjoy high income accruing to the owners <strong>of</strong> the land and
equipment, and as the license holder.
� In addition, the limited power women have in the society is transferred into the mining
sector with women hardly being involved or occupying decision-making positions
regarding to production and social reproduction.
� Although women do not enjoy equal benefit <strong>of</strong> small-scale mining with men, nonetheless
they <strong>of</strong>ten share in the health and safety risks that arise from the mining processing and
production.
The gender differences in men’s and women’s access to the benefits <strong>of</strong> small-scale mining activities
and the vulnerability risks <strong>of</strong>ten have significant impacts far beyond the women, extending to
their families and communities.
Despite the apparent gender discrimination in the solid minerals mining, women have
been able to overcome some <strong>of</strong> such problems through affirmative action to become mine

102 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
owners, operators, entrepreneurs and to play significant role in the positive impacts that small
scale mining activities can bring to communities.
3.2 Methodology
The research is exploratory covering two solid-mineral sectors <strong>of</strong> tin in Jos, and gold in Kebbi
State. The rationale for the choice <strong>of</strong> these research sites is purposive and convenience. The sites
are convenient to the researcher. The areas were also selected to reflect the nature <strong>of</strong> solid mineral
resource exploration. The gold site represented informal and informal mining site. The tin mining
site in Jos represented the combined elements <strong>of</strong> being formal and informal. The research was
divided into two phases. The first phase involved the review <strong>of</strong> Nigerian policy and laws on
solid mineral resources in relation to labour and gender issues. The second phase involved
fieldwork in the mining sites <strong>of</strong> the two selected mineral resources.
The fieldwork involved two stages. The first stage was the mapping-out <strong>of</strong> communities
where the selected minerals are located and is followed in stage two by selection <strong>of</strong> one site <strong>of</strong>
each <strong>of</strong> the two minerals using simple random sampling for in-depth study <strong>of</strong> the relevant
labour and gender issues. In the case <strong>of</strong> the gold mineral, it was Laka and Kimou, while for the
tin it was in Jos
The techniques used to collect data included informal interviews with key actors in the
mining sites. Most <strong>of</strong> the interviews were conducted in Hausa which has to be translated into
English. The actors included leadership <strong>of</strong> communities hosting the extractive activities such as
the traditional, youth and company leaders and men and women engaged in the mining
business. Content <strong>of</strong> the transcribed interview was analysed and the data presented in tabular
form and quotations.
3.3 Presentation <strong>of</strong> Findings
The remaining sections <strong>of</strong> this paper present the findings <strong>of</strong> the study starting with an analysis
<strong>of</strong> the labour issues and later the gender issues. For the analysis <strong>of</strong> both the labour and gender
issues, the data is drawn from both the secondary and primary sources. The secondary source
is drawn primarily from the policy and formal documents <strong>of</strong> the solid minerals sector, while
the primary source is drawn from interview conducted with the miners and leadership <strong>of</strong> mining
communities and mining operators.
3.4 Labour Issues in the Solid Minerals
3.4.1 Analysis <strong>of</strong> Mining Policy and Laws in Relation to Labour Issues
As earlier indicated, one <strong>of</strong> the objectives <strong>of</strong> this study is to review policy and formal documents
on solid mineral resources in terms <strong>of</strong> labour issues covering such issues as legislation on labour,
compensation, health and safety, sourcing <strong>of</strong> labour, labour relations and child labour. This is
important in considering the opportunities the solid mineral resource provides in terms <strong>of</strong>

Labour and Gender Issues ... 103
employment opportunities to the host communities and beyond. In spite <strong>of</strong> this recognisable
role, the Nigerian mining policy and laws did not adequately address labour issues. As Mallo
(1999) noted the pre-1946 mining legislatures was meant to favour the colonialists. The 1946
Minerals Ordinance and Coal Ordinance <strong>of</strong> 1950 provided the formal basis for the development
<strong>of</strong> solid minerals in Nigeria which was dominated by the private sector, in particular the British
mining companies. 1971 witnessed drastic change in mineral policy with government playing
a leading role through the establishment <strong>of</strong> different mining corporations. It stated that:
In brief, the objective <strong>of</strong> government’s mining policy would be to secure the development,
conservation and utilisation <strong>of</strong> the mineral resources <strong>of</strong> Nigeria in the best possible manner so
as to bring about economic benefit for the largest possible period, and there is no reason to
suppose that the private investor is the best instrument with which to achieve this (Onah,
2002:12)
In terms <strong>of</strong> employment, following the indigenisation decree <strong>of</strong> 1972 which resulted in the exit
<strong>of</strong> multinational companies and their expatriate staff, operation <strong>of</strong> mining resources was
dominated by small-scale indigenous miners. Heavy public investment in the sector did not
give rise to any appreciable development <strong>of</strong> the sector. Rather the sector was characterised by
poor coordination, low productivity, and inefficiency. The government notes in its new policy
that:
The neglect <strong>of</strong> the minerals industry led to disorder in the minesfield with strong presence <strong>of</strong>
informal miners whose activities are characterised by inefficient mining, informal trading <strong>of</strong>
highly priced minerals, severe ecological degradation, spread <strong>of</strong> diseases and huge loss <strong>of</strong> revenue
to the government through smuggling. (National Mineral and Metals Policy, 2008:4)
The economic crisis and reform <strong>of</strong> the late 1980s and 1990s that necessitated the need to diversify
the Nigerian economic base rekindled government interest to develop the solid mineral resources
which culmilated in the creation <strong>of</strong> Ministry <strong>of</strong> Solid Minerals Development in 1995. In addition,
series <strong>of</strong> formal and institutional reforms were put in place through the review <strong>of</strong> the mining/
mineral policy and laws, the latest one being the 2007 Minerals and Mining Act and the 2008
Mineral policy. Some <strong>of</strong> the institutional reforms put in place by the government included the
establishment <strong>of</strong> such departments as: the Mining Cadastre Office to grant mining permits
and licenses; the Mines Environment Compliance Department to ensure best International
practice; and establishment <strong>of</strong> the Artisanal and Small-Scale Mining Department as a focused
department for small entrepreneurs and local content. Our analysis <strong>of</strong> the labour issues in
relation to gender would be restricted to these two latest documents.
According to the government, the new mining policy has the objective to:
� Establish a transparent licensing regime;
� Formalise artisanal and small scale mining operators;

104 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
� Poverty eradication through ASM operations;
� Employment generation;
� Wealth creation through value addition;
To achieve the above objectives, the government pledges to ensure among other things:
transparency in the granting <strong>of</strong> mining titles and permits and the interest <strong>of</strong> the host community,
promotion <strong>of</strong> small-scale mining activities and the formalisation <strong>of</strong> informal mining activities,
development <strong>of</strong> formal and regulatory framework consistent with international best practices,
development <strong>of</strong> human capital in the solid minerals sector, encouragement <strong>of</strong> the local production
<strong>of</strong> minerals, and stimulation <strong>of</strong> foreign investment. Similarly, the Nigerian Mineral and Mining
Act <strong>of</strong> 2007 provides for the incorporation <strong>of</strong> artisans in the mining sector into the mainstream
mining and the active involvement <strong>of</strong> communities in development <strong>of</strong> the mining sector. Under
the act, the government opens access to mineral titles to small and big companies, foreign and
local on equitable basis (Section 49 page 21 <strong>of</strong> the mining act), formal compensation provision
and provisions for sound community development agreements (Section 116, pages 40-41.),
and provision <strong>of</strong> skills, technology and extension services to small scale and Artisanal mining
(section 91, pages 34-35).
In addition, the government in its latest policy has pledged to address the well being <strong>of</strong>
people who are directly or indirectly linked to the mining activities. According to the policy, the
government intends to “address the issues relating to the socio-economic well being <strong>of</strong> the
people with both direct and indirect contact with the mining industry. The health and safety <strong>of</strong>
the miners and the mining communities should be <strong>of</strong> paramount consideration in the progressive
development <strong>of</strong> the sector. The social impact <strong>of</strong> migrant labour and industrial relations should
also be considered in tandem with the expansion <strong>of</strong> the mining industry” (National Mineral
and Metals Policy, 2008:11).
Consequently, in both the policy and formal documents, some departments such as the
Mines Inspectorate and Artisanal and Small-Scale Mining Departments were charged with the
responsibility <strong>of</strong> supervision and enforcement <strong>of</strong> compliance by mineral titleholders <strong>of</strong> the health
and safety regulations and procedures, as well as provision <strong>of</strong> extension services, funding and
training on health and safety issues.
How the government intends to achieve all these without any formal backing begs for
answer. In both the policy and formal documents <strong>of</strong> the mineral resources, little is mentioned
about labour-related issues or the rights and entitlement <strong>of</strong> miners. This is so despite government’s
claim that the reform <strong>of</strong> the mining sector is about provision <strong>of</strong> employment opportunities and
poverty reduction. Rather, the focus <strong>of</strong> the two documents has been on the rights and incentives
<strong>of</strong> mineral titleholders, and permits owners. Too much emphasis is placed on accessing mining
titles and permit. The rights <strong>of</strong> the mineral titleholders and landowners were clearly spelt out,
but not a single mention is made <strong>of</strong> the Nigerian labourers that would work in the mining sites.
While standards have been set for accessing the mineral rights and protecting the environment,
the same is not done for humans miners. No set standards <strong>of</strong> conditions within which employed
miners can operate either in terms <strong>of</strong> health and safety or security. In the sections 84-89, reference

Labour and Gender Issues ... 105
is made to the procedure <strong>of</strong> reporting accidents and injury and the request for the establishment
<strong>of</strong> panel <strong>of</strong> inquiry into the cause <strong>of</strong> any injury. However, the power to take action against any
negligence by a company lies with the Minister <strong>of</strong> the Ministry <strong>of</strong> Mines which begs for conflict
<strong>of</strong> interest.
In addition, although reference to Pension Act was made, other employment conditions
were not mentioned. This is more serious considering the occupational health and safety hazards
associated with the mining work. Miners are not protected against injuries and other
occupational risks by either the mining policy or laws. While series <strong>of</strong> provisions for
compensation to landowners, mining titleholders and economic trees were made in sections
107-113, no such consideration was extended to the miners who are at serious health hazards.
No mention is made about punishment for safety negligence on the part <strong>of</strong> mining operators
or the protection <strong>of</strong> the miners in relation to their health and safety, instead, the Inspectorate
Department is expected to produce such health and safety regulations which I could not access
and I doubt it exists. Consequently, miners injured at the mining sites are left at the mercy <strong>of</strong>
the Minister <strong>of</strong> Mines for justice.
The failure <strong>of</strong> both the mineral policy document and the mining laws to cater for the
fundamental labour rights <strong>of</strong> mining workers could be associated with the mining policy thrust
<strong>of</strong> the government which is focused more towards attracting international communities and
private companies for investment than the rights <strong>of</strong> Nigerians to a safe working environment.
This focus <strong>of</strong> the government is apparent if one considers the concession the foreign mining
firms enjoyed under the 2007 Mineral Act. As noted in the 2008 Mining Policy, the Act has a list
<strong>of</strong> fiscal incentives “that competes favourably with the best global standards”. These incentives
included:
� Exemption from customs and import duties in respect <strong>of</strong> plant, machinery equipment,
accessories imported exclusively for mining operations;
� Expatriate quota and resident permits in respect <strong>of</strong> approved expatriate personnel;
� Permission granted exporters <strong>of</strong> mineral products to retain part <strong>of</strong> their foreign exchange
earning in a domiciliary account for the purpose <strong>of</strong> acquiring spare parts and other
mining inputs;
� Free transferability <strong>of</strong> funds.
3.4.2 Labour Issues in the Solid Minerals Mining Operations
As indicated elsewhere, the central concern <strong>of</strong> this study is to investigate labour issues in the
solid minerals. The labour issue is pertinent considering the fact that the main purpose <strong>of</strong> the
renewed interest <strong>of</strong> the government in the sector is in the area <strong>of</strong> poverty reduction through the
employment opportunity and supplementary income that the sector provides. However, as
noted in the FGN-MSMD (2005) report, although Nigeria’s constitution provides the formal
framework for the protection <strong>of</strong> labour without discrimination on the basis <strong>of</strong> sex or religion, in

106 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
practice people <strong>of</strong>ten do not claim these rights because they lack the human, financial and
social capital necessary to do so.
The selection <strong>of</strong> the solid minerals to be studied was purposive to reflect the nature <strong>of</strong> solid
minerals mining activities in Nigeria with particular reference to Northern Nigeria. Although
the majority <strong>of</strong> mining activities are done informally (FGN-MSMD, 2005), one can still identify
three types <strong>of</strong> mining sites and activities:
Mining that was licensed and therefore done formally and sometimes formally; and one that is
unlicensed and therefore done informally and the third that has the combination <strong>of</strong> the two
elements <strong>of</strong> formality and informality.
Gold is selected to represent the mining activities that were unlicensed and therefore informally.
Gold is located across many communities in the Northern and Southern parts <strong>of</strong> the country.
In Kebbi state where this study was conducted, the mineral is located in such communities as
Laka, Kimo, Maga, Tungan Fari, Sakaba, Garin Hausawa, Rusau and Yarkuka. Within Yauri
emirate comprising <strong>of</strong> three LGAs <strong>of</strong> Yauri, Ngaski and Shanga, gold mining activities sites <strong>of</strong>
Waya, Kimo and Laka were identified and only Kimo and Laka sites were visited. Both sites
were located far away from any habitable communities and therefore dominated by migrant
miners from other LGAs in Kebbi state and other Northern state and neighboring country <strong>of</strong>
Niger republic.
Tin-mining sites located in different parts <strong>of</strong> Plateau were selected to represent mining
activities that are both formal and informal. For this study, two mining regions <strong>of</strong> Kuru mining
fields and Rayfield mining fields were selected. In each region, mechanised and non-mechanised
or artisan sites were sampled. In the Kuru mining field, Cool mining company was visited to
represent the mechanised and unlicensed mining site, while the Mining Technological Company
in Rayfield field was selected to represent mechanised and licensed site. In terms <strong>of</strong> nonmechanised
small-scale mining, Kokop, Baraza and KaninKong mining sites were visited in
Kuru Mining field to represent unlicensed small- scale mining. Latya mining site in Rayfield
was visited to represent small-scale licensed one.
A The Mining Operations: Type and Nature <strong>of</strong> Labour
This subsection basically addresses the minerals mining and production. Who are involved in
the mining operation and what is the nature <strong>of</strong> the miners and other actor’s participation?
Basically there are two types <strong>of</strong> gold processing; the one involving stone (rock) and the other
one involving excavation <strong>of</strong> sand (clay). The stone type is located in Kimou, while the clay type
is located in Laka. In Laka, the process involved excavation <strong>of</strong> clay from an abandoned gold
pit that was alleged to have been previously done by a group <strong>of</strong> ‘white people.’ An elderly
person in the village narrated that the white people came with their machines and dug and
excavated the gold. He claimed that during that time, they dug out lots <strong>of</strong> big chunks <strong>of</strong> gold.
When asked about the involvement <strong>of</strong> the community, he contended that communities was
not involved in any way. He claimed that:

Labour and Gender Issues ... 107
during that time they came, assembled their machines in the sites and passed through us (the
village) everyday to the gold sites. They worked for months before they finally vacated the
place. We have never seen them again. My son I will not lie to you. They have indeed benefitted
a lot and gotten big chunks <strong>of</strong> gold which they took away. It was years after they left that our
people decided to try their luck. This raises the pr<strong>of</strong>ile <strong>of</strong> the area with people from faraway
places coming to dig out gold. (interview with an elderly man in Kimou translated from Hausa to English)
Attempt was made from Yauri LGAs 4 to get details <strong>of</strong> the people or companies such as their
nationalities and if it was a company and under the arrangement or the license they operated
but was not successful. Nobody seems to have any documentation to that regards or is ready
to be interviewed to give details except the confirmation that it happened. This is not a surprise
considering a story that was carried in a national newspaper while in the course <strong>of</strong> this research
and presented in box 1 which indicated foreign firms conniving with others to exploit minerals
without due process. Since then, people have been coming to try their luck in the mining site.
The place is full to its capacity during the rainy season. However, the opposite operate in Kimo
where the peak mining season is in the dry season because during the rainy season as one
miner noted “this is my only source <strong>of</strong> income in the dry season. Once it is raining season, I go
back to my farm.”
Excavation and processing <strong>of</strong> the gold is tedious and involves a number <strong>of</strong> stages. The first
stage involves what they called weathering <strong>of</strong> rock, which enables the miners to confirm the
existence <strong>of</strong> gold. Red rock is favoured to have gold. Once the existence <strong>of</strong> gold is confirmed
within a vicinity, such type <strong>of</strong> rock would be excavated, collected and transported to the village
for processing as one <strong>of</strong> the miners in Kimou explained:
When we get to the field we make a burrow, pick a small portion <strong>of</strong> the rock beneath and
manually grind it with an iron pestle & mortar, this serves as a sample for us to determine if
there is gold beneath it or not. If it is truly available, we transport that same type <strong>of</strong> rock in
large quantity home, break it into smaller pieces, take it to the grinders to grind it with machine
into powder, bring it back to the river-side and wash it with water using the footmat found in
the car which sieves out the gold washing away the top sand powder. From there we take it to
the dealers who will then give us a chemical to apply to compact the gold and finally put it to
a computer that will weigh it for payment.
Similar process is involved in Laka where gold is located beneath the earth and wheel is
used to bring the clay to the ground. Once the soil is brought to the surface, the same process
<strong>of</strong> washing, rinsing and sieving follows to separate the sand from the gold. Then chemical is
used to compact the gold together.
There are two major actors involved in the gold mining business. The first one is the miner.
All the miners are male, there is no single female engaged in the mining processing. Majority
<strong>of</strong> the men are in their prime between the ages <strong>of</strong> 20-40 years. Interestingly, majority <strong>of</strong> the
respondents 6 out <strong>of</strong> the 10 interviewed have some level <strong>of</strong> Western education ranging from
4 Kimou was under Yauri LGA when the incident took place before the LGA was broken into two- Ngaski and Yauri.

108 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
drop out to diploma certificate holders. Additionally, majority <strong>of</strong> the miners are migrants drawn
from other states. Majority <strong>of</strong> them are versed with other gold mining sites and quite familiar
with how the gold mining operated in other sites. When asked about how they obtain access
permit to mine, a miner from Zamfara State notes that “sincerely, in some places, there are
laws while some do not have. Here, the business is still young, but in places like in the south,
the community could deny you access to the site unless you settle between the dealers and the
community or the owners <strong>of</strong> the land.”
The second actor is the dealer. Dealer is the master and lifeline <strong>of</strong> the business. He provides
the ready cash the miners need to sustain themselves until they strike on the gold such as
paying for their food and medical expenses. A miner narrates that the dealer is the one with
“sole responsibility <strong>of</strong> everything, even if one is sick, it is the dealer that will take care <strong>of</strong> him.”
In addition, the dealers provide the chemical needed to compact the gold. They also provide
weighting machines and they are the buyers <strong>of</strong> the gold. The dependency <strong>of</strong> the miners on the
dealers is so entrenched that as soon as a miner joins the site, the first person to call is a dealer.
Every miner is attached to a dealer. One miner explains “first, as newcomers, we meet the
dealer and introduce ourselves, the dealer provides us with some cash for feeding and other
things. The dealer will give us chemical for compaction, heat it and finally weigh it for payment”.
As expected, the dominance <strong>of</strong> the dealers did not go unchallenged. Some <strong>of</strong> the miners accused
the dealers <strong>of</strong> exploitation and considered them one <strong>of</strong> the challenges facing the miners. A
miner notes that one <strong>of</strong> their major problems is “lack <strong>of</strong> a leader or a dealer that does not cheat
on you, so that whatever you get you take to him and he takes, have his share and give you
yours.”
For the tin minerals mining in Jos, there are two types <strong>of</strong> processing- surface and well
mining. The surface mining involves using water to blast the crust earth to loosen the sand into
a mud. Thereafter, the mud is processed to remove the tin and columbine. A miner describes
the process as “the mineral is processed by crushing and washing it to bring out good quality
minerals. The first stage involves using the machines like Batutu to explore it deeply and gravel
pump to supply it to the Jig where the main factory is. The Jig will separate the sand, stones,
clay and other rubbish as waste while the main Tin will now drips in the box.”
In terms <strong>of</strong> well mining, the process involves digging well and making tin bracket where
wheels are used to draw sand out <strong>of</strong> the well. Once the sand that has the materials in it is lifted
out, the sands are packed to a reserve place for cleaning - to separate the sand from the tin and
columbite. Several actors are involved in the tin mining business. Foremost among them are
the miners, that is, those who engaged in the exploration and processing <strong>of</strong> the tin. The miners
are divided into self employed and those who operate under some kind <strong>of</strong> obligation with or
attachment to a mining company. There is also company employed miners and group mining.
Closely link to the miners are the overseers who sponsor the miners by supplying them with
mining tools such as water pump and diggers and the overseer would in turn negotiate the
price at which the miners would sell the mineral. The miners are under obligation to sell to their
overseers. Related to that are company operators who buys tin from the miners. Other important
actors are the landowners who lease out their farmland to the mining groups or company.

Labour and Gender Issues ... 109
B Labour Unionism, Health, Safety, and Security <strong>of</strong> the Miners
One important component <strong>of</strong> labour security is participation in labour organisation which
promotes workers welfare and provides protection in times <strong>of</strong> need. What is the nature <strong>of</strong>
miner’s engagement in labour organisation? Considering the seasonal nature <strong>of</strong> gold mining
in both Kimou and Laka, there was no any form <strong>of</strong> labour organisation. Every miner is on his
own and self employed. He only interacts with the dealer who buys the gold. There was no
sense <strong>of</strong> the miners organising themselves into group to give them the bargaining power to
negotiate for a better price from the dealer. However, the miners <strong>of</strong> tin minerals in Jos were
organised into labour associations. Both the unauthorised and authorised miners have their
unions except that for the unlicensed miners whose union is not registered with the government.
Both unions tackle issues <strong>of</strong> concerns to their members, such as compensation in case <strong>of</strong> injuries.
In the words <strong>of</strong> one <strong>of</strong> the presidents <strong>of</strong> the organised Labour Union, he said “injuries and debt
during mining activities are highly unavoidable and as a body, we ensure that the injured
person or his immediate family are compensated according to the laws <strong>of</strong> the association”. To
get that protection, the union members contribute to the union an amount ranging from N5,
000 to N10, 000 annually. The informal tin miners seem to contribute more to the tune <strong>of</strong> N10,
000 annually. The reason for higher dues because the risks are higher for unauthorised miners
than authorised ones. For example, apart from provision <strong>of</strong> welfare packages, they have to pay
compensation to the land owners and to take care <strong>of</strong> their members when government sends
them away. They also occasionally experience militant activities which need to be addressed.
On the roles played by the union leaders, the president said that “we are elected by our members
to ensure healthy-working relationship between us and our employers either as company or
overseers.” When asked how the executive members are compensated, a member said “at the
end <strong>of</strong> every week, a small percentage <strong>of</strong> tin is always allocated to the executive either per well,
or per group as the case maybe.”
Furthermore, mining, especially artisanal mining is associated with high security and health
risks. Artisanal mining is associated with five principle causes <strong>of</strong> accidents:
(a) rock falls and cavings
(b) lack <strong>of</strong> ventilation
(c) misuse <strong>of</strong> explosives
(d) lack <strong>of</strong> knowledge, lack <strong>of</strong> information and infringement <strong>of</strong> regulations
(e) use <strong>of</strong> old equipment and deficient maintenance.
Similarly, artisanal miners are exposed to such health risks as:
(a) exposure to dust (pneumoconiosis);
(b) exposure to mercury and other chemicals;
(c) effects <strong>of</strong> noise and vibration;
(d) effects <strong>of</strong> deficient ventilation; and
(e) effects <strong>of</strong> excessive effort, insufficient work space and inappropriate equipment.

110 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
These are risks miners <strong>of</strong> both gold and tin mentioned. An overseer said “we used to dig the
wells from 50 to 70 metres deep before reaching the lotto at which we can go to about 40 to 60
metres long. At this level, there will not be no much oxygen and we also use candles to see the
route <strong>of</strong> the tin. Therefore, most <strong>of</strong> our members suffer from suffocation and if the beds in the
lotto are not well constructed, the whole earth will collapse and bury our members.” At this
stage, the miner is taken to the nearest hospital for treatment, and in case <strong>of</strong> death, the immediate
family is compensated from the contributions <strong>of</strong> the miners. As for the authorised company,
the company does the compensation and the union assists where necessary. Furthermore, the
authorised mining companies have safety measures put in place for their members covering
such practices as:
a. wearing <strong>of</strong> helmet during operations.
b. wearing <strong>of</strong> hand gloves.
c. wearing <strong>of</strong> rain boots.
d. members are restricted to digging the loto and the machines blast the sand for operation.
The unauthorised companies do not have such safety measures and are also susceptible to
security hazards from the community members. According to the leadership <strong>of</strong> the union,
they occasionally encounter some disgruntled youths who may launch an attack and other
militant action to attract some money. However, the authorised companies are more secured
because the land owners have been compensated and the government has licensed them to
operate and therefore cannot be victimised. In terms <strong>of</strong> the type <strong>of</strong> miners, all the companies
interviewed indicated there is nothing like indigeneship or migrant labour disparity. According
to the Jig operator at the Mining Technological company, Rayfield said “what I know is our
company is not owned by an indigene, what he did was he registered with the government
and pay compensation to the land owners”. Similarly, at the informal mining sites, both
indigenes and non indigenes alike were found at the sites. In terms <strong>of</strong> involvement <strong>of</strong> children
in the mining activities, it was found that children ranging from the ages <strong>of</strong> 7 – 15 years were
also involved in Tin mining activities. The children gave reasons as to why they are involved in
the mining activities such as to raise money to pay their school fees, to assist their parents and
for their personal needs. Some <strong>of</strong> the children were attending schools, while some were not. In
addition, it was found that some <strong>of</strong> the children are registered into the association and unions
in case <strong>of</strong> any eventualities.
3.5 Gender Issues in the Solid Minerals
As mentioned elsewhere, one <strong>of</strong> the two concerns <strong>of</strong> this study was to explore gender issues in
the solid minerals, particularly the participation <strong>of</strong> women in the sector. That is, to what extent
do women participate in the sector and what is the nature <strong>of</strong> their participation? By participation,
we mean the exploration, exploitation, processing, utilisation and marketing <strong>of</strong> mineral resources.
Like the section on labour issues, we began with the gender issues in the policy and laws before

Labour and Gender Issues ... 111
presenting findings on the gender issues in the mining fields. The findings covered three basic
areas:
(1) nature and pattern <strong>of</strong> employment and income;
(2) access and ownership; and
(3) impact on livelihoods.
3.5.1 Analysis <strong>of</strong> Mining Policy and Laws in Relation to Gender
Although the mining policy and laws are silent on many labour issues, the situation is worst in
relation to gender. To what extent did the mineral and mining policy and laws promote and
protect the participation <strong>of</strong> women in the solid mineral business in terms <strong>of</strong> access, ownership
<strong>of</strong> mineral rights and benefit? There are four areas in the policy and laws that are relevant for
this analysis:
(1) The promotion <strong>of</strong> small-scale mining industries;
(2) Support and provision <strong>of</strong> extension services, equipment and enterpreneual skills;
(3) Establishment <strong>of</strong> a transparent licensing regime; and
(4) The involvement <strong>of</strong> host community in the reaping the benefit <strong>of</strong> minerals.
3.5.2 Issues <strong>of</strong> Gender and Access, Ownership and Benefit
One <strong>of</strong> the central aims <strong>of</strong> reforming the mining sector exemplified by the mining policy and
laws is increasing access <strong>of</strong> Nigerians to the minerals resources and wealth through providing
employment opportunities. For the solid mineral sector to provide the employment opportunities,
the government under its current mineral and mining policy and laws pledges to promote the
activities <strong>of</strong> small-scale miners and formalise their operations. This becomes necessary in view
<strong>of</strong> the fact that artisanal and small-scale account for over 90% <strong>of</strong> solid mineral production in
Nigeria with over 500,000 Nigerians directly involved in ASM activities. To achieve that, a
department <strong>of</strong> Artisanal and Small-Scale Mining was established to provide support and
protection to small mining entrepreneurs and local content in the industries. In addition, smallscale
mining cooperatives are entitled to be granted mining permits and licenses as contained
in the Nigerian Mineral and Mining Act <strong>of</strong> 2007. While this is a good policy, it is inadequate in
terms <strong>of</strong> its failure to separate the mining operators and from the mining workers who may not
have the resources to obtain the mining permit or pay for the mining sites and are therefore
forced to sell their labour at exploitative rate. Majority <strong>of</strong> women engaged in the mining activities
are more likely to be employed as labourers than as mining holdersor operators. Any support
put in place by the government to support small-scale miners is likely to bypass or exclude
women because <strong>of</strong> the nature <strong>of</strong> their involvement in the mining sector.
Related to this is the pledge by the government both in its policy and formal document to
provide extension services, equipment and skills to boost and modernise the small-scale mining
industries. The law was explicit on the provision <strong>of</strong> skills, technology and extension services to
small scale and Artisanal mining (section 91, pages 34-35) and since most <strong>of</strong> the women involved

112 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
in the mining work are likely to be illiterate and within the low cadre <strong>of</strong> the mining sector,
unless special attention is given to women’s and men’s constraints as a gender category, just like
other development interventions and reforms, women are likely to be excluded from the benefit
<strong>of</strong> the reforms. This is absolutely crucial because as one report noted:
women do not receive equal pay for equal work and <strong>of</strong>ten find it extremely difficult to acquire
commercial credit or to obtain tax deductions or rebates as heads <strong>of</strong> households” (FGN-MSMD,
2005).
Another relevant area <strong>of</strong> the government mineral reform is the involvement <strong>of</strong> host
community in the running and benefitting the mineral resources through the provision <strong>of</strong>
sound community development agreements (Section 116, pages 40-41.). Similarly, the mining
communities were claimed to be given priority in the new mineral and mining policy.
Accordingly, the government pledges to create “a favourable fiscal regime that will be beneficial
both to the holders <strong>of</strong> the mining leases, the government and the communities living on the
land where minerals are exploited” (24) as well improve sustainable livelihood in ASM
communities. Again, the policy pledges to address the wellbeing <strong>of</strong> people directly or indirectly
linked to the mining activities. According to the policy, the government intends to “address the
issues relating to the socio-economic well being <strong>of</strong> the people with both direct and indirect
contact with the mining industry. The health and safety <strong>of</strong> the miners and the mining
communities should be <strong>of</strong> paramount consideration in the progressive development <strong>of</strong> the
sector. The social impact <strong>of</strong> migrant labour and industrial relations should also be considered in
tandem with the expansion <strong>of</strong> the mining industry” (National Minerals and Metals Policy,
2008:11). In the policy document, several departments were given the responsibility <strong>of</strong>
establishing, monitoring and supervision <strong>of</strong> health and safety procedures. For example, the
Department <strong>of</strong> Mines Environmental Compliance Department (MEC) is “to ensure compliance
with social, health and safety standards in the development <strong>of</strong> mining activities” (19) and the
Mines Inspectorate Department’s (MID) responsibility is to “ensure compliance with health
and safety procedures.”
While no one can fault the policy for involving the host community in reaping the benefit
<strong>of</strong> mineral resources, the implied assumption that community is a homogenous group and
that the benefit would be shared equality is faulty. Because <strong>of</strong> gender differences between men
and women in terms <strong>of</strong> opportunities and constraints, women and men are not likely to benefit
equally from the benefit <strong>of</strong> mining activities or their voice and interest integrated in the
community development agreement unless and until attention to the issue <strong>of</strong> equity is addressed
in the mining and mineral laws and policy.
While the issues <strong>of</strong> who access and benefit from the mineral resources are important, more
important is the question <strong>of</strong> ownership and control <strong>of</strong> the minerals. Is the licensing regime that
gives the ownership and control <strong>of</strong> mineral rights transparent and free <strong>of</strong> favoritism and
nepotism? One <strong>of</strong> the reform measures <strong>of</strong> the government in the mineral sector was the
establishment <strong>of</strong> a transparent licensing regime by ensuring transparent, objective and non-

Labour and Gender Issues ... 113
discretionary access to mineral rights, and flexibility and mobility <strong>of</strong> minerals rights without
government interference. Under the act, the government opens up access to mineral title rights
to small and big companies, foreign and local on equitable basis (Section 49 page 21 <strong>of</strong> the
mining act). The fundamental philosophy behind this objective is faulty. It is assumed that
both men and women engaged in the mining sector are operating or working on equal footing.
There are certain categories <strong>of</strong> people such as women who are socially and economically
constrained to fully participate and therefore need special support to be able to make it. For
instance, it is a fact that although women are not barred by law to own land, in many Nigerian
customary land tenure systems only men are allowed to own land, and women can only gain
access to land through marriage. Under this condition, many women may not have the land to
lease out to mining operators. The need for transparency is not enough other important values
such as equity and equality are important and nowhere in the two documents were the issues
addressed. The earlier observation about lack <strong>of</strong> distinction between the mining operators and
the mining labourers is relevant here.
3.5.3 Gender Issues in the Mining Operations
As indicated elsewhere, the central concern <strong>of</strong> this study is to investigate labour and gender
issues in the solid minerals. The labour issue is pertinent considering the fact that the main
purpose <strong>of</strong> the renewed interest <strong>of</strong> the government in the sector is in the area <strong>of</strong> poverty reduction
through the employment opportunity and supplementary income that the sector provides.
However, as noted in the FGN-MSMD (2005) report, although Nigeria’s constitution provides
the formal framework for the protection <strong>of</strong> labour without discrimination on the basis <strong>of</strong> sex or
religion, in practice people <strong>of</strong>ten do not claim these rights because they lack the human, financial
and social capital necessary to do so. Thus, to what extent do women participate in the sector
and what is the nature <strong>of</strong> their participation? By participation we mean the exploration,
exploitation, processing, utilisation and marketing <strong>of</strong> mineral resources. Thus, the findings <strong>of</strong>
this study covered three basic areas:
(1) nature and pattern <strong>of</strong> employment and income;
(2) access and ownership and (3) impact on livelihoods. Presentation <strong>of</strong> the findings is
covers these three areas, but we would begin with the process <strong>of</strong> exploring and exploiting
the minerals to act as background information for the analysis <strong>of</strong> labour and gender
issues.
Box 2
Another one further confirms that “well, a woman has a limitation; her parents can
deny her from participating because she is not like a man. She is meant to be a house
wife, not to participate in a business”.

114 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
3.5.4 Gender and Employment Pattern
From the foregoing, what is the role <strong>of</strong> women in all these? Women were virtually absent in the
mining gold sites. While recognising that women can and do participate in the mining process,
many miners have provided reasons as to why women are not directly involved in direct mining.
Most <strong>of</strong> these reasons are linked to male biases and gender ideology about division <strong>of</strong> labour in
the area. A miner contends that “yes, female can do it if they are willing to, but not in this part
<strong>of</strong> the country. You can find such practice in Abuja, Gwagi, Gwagwalada, Hayi, Dafa, and
Goje.” Another one links the absence <strong>of</strong> women in direct mining to women’s position as wives.
He argues that “well, if you look at social, family and health issues on women, it is wrong for
them to be involved in such an exercise, because for instance, if a husband should return home
hungry and his wife didn’t cook because she is out exploring <strong>of</strong> gold, you can imagine what
would happen.” Few miners cited the need to protect the chastity <strong>of</strong> the women, since engaging
in direct mining will bring women in direct contact with the men, which is culturally and
“Islamically” inappropriate.
Even though the miners have dismissed the direct participation <strong>of</strong> women in the mining
processing, there are two miners who admitted using their wives to pound the rock. One says
“for us here, some take their wives to pound for them and sieve, some even use their children to
do it, that is, for those with grown-up children”. The low utilisation <strong>of</strong> the labour <strong>of</strong> wives by
miners could be associated to the fact that most <strong>of</strong> the miners are migrants and therefore
cannot access the labour <strong>of</strong> their wives. From the case <strong>of</strong> these two miners who are from the
village <strong>of</strong> Kimo, the mining sites, it is obvious that women would have been involved in the
processing even within the confines <strong>of</strong> their homes. 5 It would have been interesting to know
whether the wives are paid for their labour once the gold is sold as was documented that
husbands pay for their wives’ labour (Longhurst, 1982 and Callaway and Creevy, 1994 and
Adamu, 1992). References to women’s role as foodsellers were made by all the miners. Just like
dealers, women-food sellers are part <strong>of</strong> the mining chain and key players in the mining business
because they provide food to the miners on credit until the miners succeed in getting the gold.
Like identifying a dealer before settling down to mining, identifying a food seller is a priority.
One gold miner in Kimo notes that “if we arrive a place as guests or strangers, we will find a
food seller that is willing to sell with or without pay. When there is money, we pay her and if
there isn’t, she will take the risk till there is. So, every single girl, widow in the area would bring
different food items for the workers to buy.” The selling <strong>of</strong> food on credit by women sometimes
generates conflict between the women and miners as one miner observed that sometimes a
miner may not have money to pay for food or drink, and also starving, yet the food seller
would come demanding for payment. This situation generally generates conflict.
5 This is because <strong>of</strong> the limitation <strong>of</strong> seclusion <strong>of</strong> women that is widely practiced in the area and therefore would
restrict the nature <strong>of</strong> their participation. The rock would have to be transported to the home for women to
participate.

Labour and Gender Issues ... 115
Box 3
One miner reported that the “population <strong>of</strong> women operating the Rest system ranges
from 80 – 100 and their major role is to pack the sand dug out to the Race for washing.
Number <strong>of</strong> men involved in this Rest system is 200. They are divided into different
sub-groups <strong>of</strong> 5, 6, 7 and 10 each. Each group has 3 to 4 women. Some <strong>of</strong> the women
form their group who works under men’s group.”
Very unlike, the gold mining in Kebbi state that has limited participation <strong>of</strong> women because
<strong>of</strong> cultural restriction, tin mining do have direct participation <strong>of</strong> women. Despite the active
participation <strong>of</strong> women, the nature <strong>of</strong> such participation is linked to gender division <strong>of</strong> labour.
To appreciate the nature <strong>of</strong> women’s participation, we shall look at the two types <strong>of</strong> mining as
well as the difference between mechanised and non-mechanised mining. Majority <strong>of</strong> the miners
were self employed in a non-mechanised mining and small-scale farming. The mining activities
were either organise and done on individual basis or as a group and on a group basis. Reference
to the number <strong>of</strong> women employed varies from 12 to 200. As for the proportion <strong>of</strong> women to
men, the general picture is that women are half <strong>of</strong> the men’s population. Some mentioned 100
men and 50 women, 300 men 150 women or 400 men and 170 women. One respondent notes,
the number <strong>of</strong> women and men are many, what matters is the difference in areas <strong>of</strong> their
employment. Whether surface or well mining, women are always packers and conveyors <strong>of</strong>
excavated sand from the excavation site to washing site. Another stage in which women are
employed is in the washing <strong>of</strong> the minerals that escaped from secondary jig. The conveying
role <strong>of</strong> women in the mining chain gives different picture on the extent <strong>of</strong> their participation.
According to one miner, “the ratio <strong>of</strong> men to women is 100 to 200 and the reason why the
women are more than the men is because <strong>of</strong> its surface mining system where more women are
required to convey the sand to either the race or jig for processing.” Discussing the well mining
and the extent <strong>of</strong> women’s participation, a miner said that “each well employs more than 20
women to convey the sand to jig for final separation. Some wells have 7 men 20 women or 10
men, 30 women. The women are normally more than the men in this case because the men are
to enter the lotto to dig out the materials, while the women convey the materials for cleaning.
Women have no strength to enter inside the well. There is fear on the risk involved because the
wells sometime could reach 100-200m into the soil before the materials is reached.”
From the findings, it is apparent that women engaged in the mechanised mining are more
likely to be employed by the unlicensed than licensed mining company. For instance, out <strong>of</strong>
the 39 employed by Coal mining, a mechanised, but unlicensed company, 14 are women and
25 are men. This figure is much better compared to MTC that is licensed but employed only 2
women and 18 men. This supports the issue raised in the review <strong>of</strong> policy document. Just like
other development intervention, women tend to lose out with the introduction <strong>of</strong> meachanisation.
The excuse for the low participation <strong>of</strong> women in the mechanised mining was linked to lack <strong>of</strong>
women’s strength and their inability to operate machines. One <strong>of</strong> the company senior staff
notes that women “are not many in the company because the process is highly mechanised
and therefore need people with strength to operate the machine and women are generally

116 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
weak for that work.” Another area <strong>of</strong> participation <strong>of</strong> women in the mechanised mining is in
the reprocessing <strong>of</strong> the already-processed sand. According to a staff <strong>of</strong> MTC, women and youth
from the host community use the waste produce by the company to wash again and remove
the tin. The reprocessed tin is sold back to the company.
One characteristic <strong>of</strong> women’s participation is that women involved in the mining are more
likely to be members <strong>of</strong> the community than men. For example, out <strong>of</strong> the 14 women miners
working in one <strong>of</strong> the mechanised unlicensed-mining company, 12 are from the host community
compared to the 6 men out <strong>of</strong> the 25 men employed by the company. Similarly, one <strong>of</strong> company’s
operators reported that “most <strong>of</strong> the workers are brought from other places not within the
communities, but the women workers are mostly from the community. This could be connected
to the fact that the company claims that the MD is gender sensitive and has been using the
chief <strong>of</strong> the community to encourage women to join in the business. No matter the
encouragement, the findings have indicated that all the women miners operate as Aristides,
they do not occupy any decision-making position. None <strong>of</strong> the women were overseers. Apart
from direct involvement <strong>of</strong> women in the mining business, women were also reported to work
as cooks and food sellers in the mining sites.
3.5.5 Access, Ownership and Control
Another important labour issue is the question <strong>of</strong> having access or permission to mining site.
By implication, this means being a lease owner <strong>of</strong> a mining site and therefore a potential
employer <strong>of</strong> other miners. One <strong>of</strong> the key areas <strong>of</strong> reform in the solid minerals by the government
is making mining license easily accessible hence, the provision for right <strong>of</strong> small-scale mining
groups or companies to own license for mining activities. This remains a dream with over 90%
<strong>of</strong> mining activities done informally and operating without license. The reality on the ground is
that government is less involved and majority <strong>of</strong> the would-be miners have to negotiate privately
with the landowners. In the gold mining business, there was no government’s involvement
either at the LGA, state or federal level. One gold miner said that “government does not play
any role because government is not even aware <strong>of</strong> our existence”. Another one said “government
has no role to play, since it’s not a company. Even if you are sick, the dealer has the responsibility
<strong>of</strong> taking care <strong>of</strong> you.” So the gold mining sites is owned and controlled by no one. However, in
the case <strong>of</strong> tin mining, the general practice is for the group <strong>of</strong> miners or company to have a
contractual agreement with the landowner to mine in the farmland for specific period <strong>of</strong> year
and at a particular rate. One group <strong>of</strong> miners notes that “really, we don’t pay tax to the
government or community; rather we pay to the land owner.” This was confirmed by a youth
leader in one <strong>of</strong> the mineral hosting communities. He explains that “people search and discover
a field that has Tin, they notify the owner <strong>of</strong> the farm. There are two ways to explore the tin;
one is through making a big burrow, another method is by making something called race, the
type taken to the river for washing. Both types are carried out by making an agreement with
the land owners and stating the price per burrow. The race type is arranged based on percentage
<strong>of</strong> what is extracted. Another related agreement, especially with the well mining is when the
wells are dug and little mineral is found in the well, and then another opportunity will be given
to the group to explore other areas within the farmland.

Labour and Gender Issues ... 117
Despite the claim by the majority that they do not pay government or community any
compensation, a company staff claimed that the “local government sometimes collects tax
from us or from the company through the village head, for the state government, I think their
own benefit comes from the companies.” This assertion was implied in the words <strong>of</strong> the village
head <strong>of</strong> the mining community when he was explaining the mining process. He said “when
they discover a field that has Tin, normally they do it locally by consulting the owners <strong>of</strong> the
land, pay them certain amount and start exploration. When the Tin is explored in large quantity,
sometimes they give one cup to the chief and the community group also will have a cup.’”
Obviously majority, if not all <strong>of</strong> the landowners would be men and women. They hardly play
any role in this process because <strong>of</strong> cultural restriction or even prohibition against women
ownership <strong>of</strong> land. What is not clear was - can women as a group enter into such agreement to
access mining site with a landowner, if yes, how regular and easy it is for the women? How
many <strong>of</strong> such women groups exist? These are important gender questions that the data did not
capture.
It is obvious from the above that despite the attempt by the new mineral mining law to
bridge the gap in terms <strong>of</strong> land ownership <strong>of</strong> mining sites through categorical statement that
mining land is under the control and jurisdiction <strong>of</strong> federal government, the issue <strong>of</strong> mining
rights has remained a complex issue and as inefficient as before. This is partly associated to the
inability <strong>of</strong> the federal parastatal responsible to connect and liaise with state, LGA and
importantly, the hosting communities which either turn a blind eye to the informal mining or
even connive with the informal miners to maximise. One <strong>of</strong> the staff <strong>of</strong> a mining company
revealed the connivance between the communities and mining company where he said:
The information I will give to the women <strong>of</strong> this community is that we give both men and
women water pumps to work on their own or to mine informally. Here we encourage informal
mining. Before the company started here, we asked those people to come and work for the
company which they refused because they know what they get from the informal mining. Now
we give them water pumps to work in groups with a group consisting <strong>of</strong> 4-5 people. We have
men group, women group and mixed group. After they produce the mineral, they sell the
product to the company which the company procure and sell.
3.5.6 Income
Another labour issue <strong>of</strong> interest to this study was the earnings <strong>of</strong> the actors involved in the
mining business in relation to gender. That is, what are the earnings <strong>of</strong> men and women in the
business and in what ways and to what extent are the earnings influenced by our understanding
<strong>of</strong> gender relations and ideology? As regards to the gold mining, there was no data on the
earnings <strong>of</strong> women at the Laka gold site at the time <strong>of</strong> the fieldwork because it was not the
peak season for it. The 12 men found at the Laka site confirmed the role <strong>of</strong> women in food
marketing during the raining season and revealed that because they are not many, it is not
pr<strong>of</strong>itable for a food seller to be stationed at the site with just a handful <strong>of</strong> them to be serviced.
The lack <strong>of</strong> stationed food seller is a serious problem for the miners because they have to cook
for themselves. The story is different in Kimo. Because there was a huge crowd <strong>of</strong> men in Kimo,
there were many women cooking food for sell.

118 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
According to the women, the business is very risky and their earnings fluctuate according to
the earnings <strong>of</strong> the miners. According to a food seller, the miners are generally generous with
them when they strike gold. They pay their debt and even sometimes pay them extra to show
their appreciation. However, as one food seller reveals, no matter the quantity <strong>of</strong> food they
cook to they sell, the problem is always getting the money for the food. Because <strong>of</strong> the high risk
<strong>of</strong> the food processing business in the mining sites and the fact that the sites are located far
away from the village, the price <strong>of</strong> food is exorbitantly high. The quantity and amount <strong>of</strong> the
earnings made is very much link to the rate <strong>of</strong> how ‘lucky’ the miners are. A woman food seller
narrates that “when the business was booming, I used to cook five mudus (is a form <strong>of</strong> local
means <strong>of</strong> measuring grains and cereals) <strong>of</strong> rice per meal, but now I am reduced to just 2 mudus
because for quite some times now, my customers did not get any gold, but one <strong>of</strong> them said to
me yesterday that his group may soon smile. Once that happens, I will be happy and be able
to regain what I lost.”
It is obvious that gold mining in Kebbi state is a very uncertain and risky business, not only
for the food sellers but also for the miners. There is strong sense <strong>of</strong> comradeship in terms <strong>of</strong>
sharing <strong>of</strong> the goodies with fellow miners. Where they are unable to get the support from
fellow miners or to secure food on credit from the food seller, they rely on the dealer to give
them loan which he collects at the point <strong>of</strong> paying for the gold. One miner explains the
comradeship said that “for instance for more than a month I haven’t got a penny, other colleagues
have been assisting me. But I am hoping to get something out <strong>of</strong> these stones I am working on
now.”
Box 4
There was a case <strong>of</strong> a company that started with the intention <strong>of</strong> employing miners to
work in the company. However, miners declined and the company had to change its
strategy by given support to the self employed miners. The miners are given mining
tools such as water pump to work on their own. The miners process the mineral
independently and sell the tin to the company that has access to the international
market.
In the case <strong>of</strong> tin mining, the picture is clearer. The earning is more regular and higher than
the gold one. This could be connected to the size <strong>of</strong> the mining activities. While some level <strong>of</strong>
mechanisation and organisation exist in the tin mining, nothing or little exist in case <strong>of</strong>
mechanisation for the gold mining. The earning level <strong>of</strong> the tin miners is very much linked to
nature <strong>of</strong> employment. It appears that miners employed by the company earn less. For instance,
a jig operator earns between #4, 800 to 10,000 a month. The pay is low probably because the
work is pensionable and full time- with a secured monthly income. Another reason is related to
the educational qualification <strong>of</strong> the employees as most <strong>of</strong> them are secondary school certificate
holders and therefore, at the junior level cadre in the Nigerian service structure. This is indeed
low compared to those self-employed either as individuals or as a group. This may explain why
miners preferred to be self employed even if given the option <strong>of</strong> being pensionably employed

Labour and Gender Issues ... 119
as the above box shows. When asked how much self-employed miners earn, a respondent
answered that “well, it depends on the situation, sometimes #4, 000, #5, 000 or even #10, 000
weekly. Similarly, there is gender difference and discrimination in terms <strong>of</strong> level <strong>of</strong> earnings
between men and women. A female miner notes that “for men it is higher, earning up to 20,000
naira a week, but for the women it can be as low as #1000 a week and as high as #5000 naira.”
Similar discrimination exists in the group mining where the female miners are paid less,
sometimes up to half <strong>of</strong> that <strong>of</strong> men. For instance, a male miner reveals that “the main group
makes I bag a week, and in turn sells at 60,000 - 70,000 naira. The women make up to half a
bag per week, which can be sold at #20, 000 - #30,000. The miners operating the well system
mining make more money because it is <strong>of</strong> high grade. A bag costs between 70, 000 to 80, 000
naira. As explained in relation to well mining, it operates a group system with the men digging
the well and excavating the minerals, the women conveying the mineral to the washing sites.
At the end <strong>of</strong> each well, at least every woman would earn #150, 000 - #300, 000 per well and
a man would earn between #400,000 to #1 million per well.
3.5.7 Impact on livelihood and health
One <strong>of</strong> the objectives <strong>of</strong> this study was to explore the impact <strong>of</strong> the mining activities on the
livelihood <strong>of</strong> the miners. This is important considering the heightened expectation on the industry
to provide not only employment opportunity to the members <strong>of</strong> the hosting community, but
also other development interventions. This is to be made possible through the reform <strong>of</strong> the
mineral sector which provided formal backing for the host communities to benefit from the
minerals wealth. The key impact <strong>of</strong> the mining industry was the provision <strong>of</strong> employment and
therefore income to the miners. One gold miner argues that “to me, gold exploration is my
source <strong>of</strong> income and I use it to solve my various financial problems.” Another said “to us, there
is a big benefit, because it is our sole source <strong>of</strong> income, source <strong>of</strong> food, drink and cloth.” For the
women, a woman food seller said that “the money raised I use it for my children’s school fees
and other domestic upkeep e.g washing soap and soup ingredients.” Similar, but elaborate
statement was made in the tin mining. A male miner notes that “the women generally are so
happy because that is where they get money for feeding, school fees, hospital bills and so on.”
Another one said “the little (mineral) they (women) get and sell, make use <strong>of</strong> the money for
things like clothing, school fees. Sometimes the women work even better than us men”.
Comparing the standard <strong>of</strong> living <strong>of</strong> women in the mining business and those not, a male
miner said that “those involved have a better standard <strong>of</strong> living than those into other businesses.”
Similar conclusion was reached by another tin miner. He said:
As I told you earlier, there is a lot <strong>of</strong> economic improvement in their lives compare to the other
labour work they do. But also most <strong>of</strong> them use the money uselessly on drinking and not on the
family.
However, the impact is not all positive. Some respondents have highlighted the negative
impact <strong>of</strong> the mining business on the women and their families, particularly the social impact.

120 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
The direct involvement <strong>of</strong> women in the mining activities was opinioned to take women away
from their primary domestic responsibility. A male miner posited that “the effect is mainly on
their marital relations because they stay late and is not an easy work for a woman, most <strong>of</strong>
them do not observe their household routines and that brings a lot <strong>of</strong> confusions in the house.”
Another one charged that::
Well, well, well. I think this mining business affects women in one way or the other. Especially
in their families, once they step into this business, they will not take care <strong>of</strong> the family any
longer. They come early and close late. And it will be a conflict between husband and wife. And
it positively affects them since they get some money out <strong>of</strong> it and when you get to their places,
you will see them looking good.
Other negative impact mentioned were the health hazard associated with mining such as
backache and even death. Risk to life is mostly associated with well and pit mining as a miner
observes that this type <strong>of</strong> mining is risky because the lotto does collapse and kill the people
inside the well and a well can have up to 10 people and dug up to 150m vertical deep and 250-
300m horizontal long.
3.6 Recommendations
The findings so far have revealed the strength and weaknesses <strong>of</strong> the solid minerals laws and
policy in the areas <strong>of</strong> labour and gender issues. In order to improve the existing situation, we
concentrated on the weaknesses.
1 It is apparent that the Solid Minerals law is weak in the areas <strong>of</strong> labour and gender issues.
Except the section on the Artisanal and Small-Scale Mining, the law appears to be addressing
the concerns <strong>of</strong> medium and large scale mining, especially the foreign firms, yet the reality
on the ground is that over 90% <strong>of</strong> mining activities are small scale. In short, the 2007 Solid
Mineral Act needs to be amended to reflect the reality on the ground in terms <strong>of</strong> the fact
that:
– Almost all our mining operations are small scaled and therefore the policy and law
must address this fact in details. The focus needs to shift away from formulating
laws and policy based on the hope <strong>of</strong> attracting foreign firms, but based on the
reality on the ground that the sector is dominated by Artisanal miners. It is
recommended that the mining policy and laws be reviewed to provide labour
protection to small scale and artisanal miners as well as address their health and
safety needs.
– Nigeria operates federal system <strong>of</strong> government and that there is disconnect between
the government and the people. Under this circumstance, the people and the lower
level <strong>of</strong> government may not see benefit <strong>of</strong> protecting and monitoring the minerals
resource in their doorstep that is said to be owned by the federal government. The
Solid Minerals law and policy must address this issue so that the community and
the lower level government do not feel alienated but rather feel a sense <strong>of</strong> ownership

Labour and Gender Issues ... 121
and the readiness to protect and monitor the abuse <strong>of</strong> the minerals on their doorsteps.
Across all states there are reports <strong>of</strong> states, LGAs and the community turning a
blind eye to foreign firms mining minerals without license. The case cited in Kebbi
is one as well the one reported in the Daily Trust as reported in box 1.
– In addition, for the communities to feel included and responsible for the mineral
wealth in their midst, they must have a stake in it. It is recommended that certain
percentage <strong>of</strong> the mining royalties should go to the communities as compensation.
– Another fact on the ground is the fact that government does not have total control
over land and accessing land for mining is complex and goes beyond government
giving license to the mining operators. The point is that addressing the needs and
concern <strong>of</strong> Artisanal miners may require review <strong>of</strong> the land use policy <strong>of</strong> the
government.
– In order to protect the miners, they should be encouraged to form associations for
the protection <strong>of</strong> their basic labour rights.
2 To address gender issues in the extractive industries in general and the mining <strong>of</strong> solid
minerals in particular, it is recommended that:
– Extra and specific efforts need to be put in place to promote and protect women’s
participation in terms <strong>of</strong> special concession on licensing to women’s group <strong>of</strong> miners,
extension services, equipment support, etc.
– In order to address gender blindness in the mineral sector through policy and laws, all
data on mining operation and access should be disaggregated by gender.
– For women to be equal beneficiary in the reform <strong>of</strong> the mineral subsector, affirmative
action needs to be taken to reserve five (5) percent <strong>of</strong> the mining license for women in
the informal mineral operations.
– The health and safety conditions need to be improved to encourage women to
participate.
– CSOs need to show interest on solid minerals to ensure transparency and
accountability- to check the connivance between companies and the lower levels <strong>of</strong>
Nigerians and exploitation <strong>of</strong> mining workers.
3.7 Conclusion
The findings <strong>of</strong> this research reveals the extent and level <strong>of</strong> women’s participation in the solid
minerals mining as well as the restrictions and discrimination that prevents them from either
participating in terms <strong>of</strong> the gold mining or minimised the benefit as was the case with the tin
mining. The findings also reveals the inadequacy <strong>of</strong> the current and recent minerals mining
laws and policy both in terms <strong>of</strong> labour and employment issues as well as gender issues.

122 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
References
Callaway, B and Creevey, L, (1994), The Heritage <strong>of</strong> Islam, Women, Religion and Politics In
West Africa, Lynne Rienner Publishers, London.
FGN-MMSD (2008), National Mineral and Metals Policy, a publication <strong>of</strong> Ministry for Mines
and Steel Development.
FGN-MMSD (2007), Nigerian Mineral and Mining Act. 2007, a publication <strong>of</strong> Ministry for
Mines and Steel Development.
FGN-MSMD (2005), Sectoral Environmental & Social Assessment Report, Sustainable
Management <strong>of</strong> Mineral Resources Project, Wardell Armstrong
FGN (1995), The Committee on National Policy on Solid Minerals (1995), “Report <strong>of</strong> the
Committee on National Policy on Solid Minerals”.
Imam, A., (1993), If You Won’t Do These Things For Me , I Won’t Do Seclusion For You: Local
and Regional Constructions <strong>of</strong> Seclusion Ideologies and Practices in Kano, Northern Nigeria,
D.Phil. Thesis, Department <strong>of</strong> Anthropology, University <strong>of</strong> Sussex.
Jackson, C., (1981), Change and Rural Hausa Women: A Study in Kura and Rano Districts,
Northern Nigeria, University <strong>of</strong> London PhD Thesis.
Jennifer J. Hinton, Marcello M. Veiga, Christian Beinh<strong>of</strong>f (2003), “Women and Artisanal Mining:
Gender Roles and the Road Ahead.” The Socio-Economic Impacts <strong>of</strong> Artisanal and Small-
Scale Mining in Developing Countries, Ed. G. Hilson (Netherlands: A.A. Balkema, Swets
Publishers, 2003)
Lawal, Miriam Anike (2002), “Constraints To Small Scale Mining In Nigeria: Policies And
Strategies For Development,” details not available.
Longhurst, R, (1982), “Resource Allocation and the Sexual Division <strong>of</strong> Labour: Case study <strong>of</strong> a
Muslim Hausa Village”, in L. Beneria (ed.) Women and Development in Rural Societies,
Proeger, New York.
Mallo, J. S, (1999), Reclamation <strong>of</strong> Mined-Out Areas: A Case <strong>of</strong> the Jos Plateau, in Nigerian
Mining Journal, Vol. 3 (1)
Mobbs, P. M., (2001), U.S. Geological Survey Mineral Year Book, 2000
NEITI, (no date), Handbook on Transparency and Reform in Oil, Gas and Solid Mineral Sectors,
Prepared by Nigeria <strong>Extractive</strong>s <strong>Industries</strong> Transparency Initiative (NEITI) Secretariat,
Presidency, Abuja

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Onah, F. E, (2002), Promotion <strong>of</strong> Economic Activities through the Development <strong>of</strong> Solid Minerals
Potentials in the States, Website.
Schildkrout, E, (1983), “Dependency and autonomy: the economic activities <strong>of</strong> secluded Hausa
women in Kano” in C. Oppong (ed.), Female and Male in West Africa, George Allen and
Unwin, London, pp. 107-126.
Uche O., (2000), A formal guide to investing in Nigeria’s mining sector, Paper presented at
Mining 2000 Seminar, CEPMLP, University <strong>of</strong> Dundee, Scotland, June 2000.
World Bank (2007), A Fact Sheet: The ASM Sector and Women, a World Bank Publication.

4
The Legal and Regulatory Framework <strong>of</strong>
Solid Minerals and Mining in Nigeria
Lanre Aladeitan
124

Abstract
The Legal and Regulatory Framework ... 125
Despite its existence as one <strong>of</strong> the oldest economic activities in the country with
great potentials, the solid mineral sector has however not fully developed as would
be expected. The slow pace <strong>of</strong> the mining sector development may not be unconnected
with the discovery <strong>of</strong> oil in commercial quantity, the enormous revenue derived
from the oil and gas sector and the decline <strong>of</strong> solid mineral prices in the world
market.
The neglect <strong>of</strong> the minerals industry resulted into disorder in the mines fields and
attracted the presence <strong>of</strong> illegal miners, whose activities are characterised by
inefficient mining, illegal trading <strong>of</strong> highly priced minerals, severe ecological
degradation and high loss <strong>of</strong> revenue to government through smuggling among
others. The reality <strong>of</strong> oil as a wasting asset; its politicisation which now threatens
the very fabric <strong>of</strong> Nigeria’s continued existence as a corporate entity; the
fluctuations in oil prices with its attendant shock on the economy and the need for
alternative source <strong>of</strong> revenue among other factors, have created the need for
diversification <strong>of</strong> the nation’s economic base from oil to non-oil sector with emphasis
on the development <strong>of</strong> the solid mineral sector.
An appropriate and effective legal and regulatory framework is therefore an essential
tool towards creating a favourable and conducive environment for the development
and mitigation <strong>of</strong> the anomaly that has characterised the sector. This chapter
takes a look at the legal and regulatory framework <strong>of</strong> the solid mineral sector with
a view to identifying weaknesses and gaps, application <strong>of</strong> the law with emphasis
on processes and practices before arriving at a conclusion on the overall effectiveness
<strong>of</strong> the existing legal and regulatory regime as to its adequacy or otherwise for the
development <strong>of</strong> solid mineral sector in Nigeria.

126 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Key Terms
Alluvial includes any form <strong>of</strong> mineral deposit, other than carbonaceous deposit, which does
not fall within the definition <strong>of</strong> a “lode”.
Artisanal Mining means Mining Operations limited to the utilisation <strong>of</strong> non mechanised
methods <strong>of</strong> reconnaissance, exploration, extraction and processing <strong>of</strong> Mineral Resource within
a Small-Scale Mining Lease Area.
Beneficiation means crushing and separating <strong>of</strong> Mineral Ore into valuable substance or waste
by any <strong>of</strong> a variety <strong>of</strong> techniques.
Explore means the operations and works aimed at the discovery, the determination <strong>of</strong>
characteristics and evaluation <strong>of</strong> the economic value <strong>of</strong> Mineral Resources within an Exploration
Licence Area.
Exploration Licence Area means an area that is the subject <strong>of</strong> an Exploration Licence.
Exploration Licence means Exploration Licence granted under the provisions <strong>of</strong> the Act.
Exploration Operations means the operations and works carried out in the course <strong>of</strong>
exploration.
Holder <strong>of</strong> a Mineral Title means the person to whom such Mineral title was granted and,
where a Mineral title has been validly transferred, includes a person in whom such Mineral title
or a part <strong>of</strong> the rights thereunder has become vested by assignment but does not include a
mortgagee <strong>of</strong> charge or a holder <strong>of</strong> a security interest thereon.
Mine when used as a noun means any place, excavation or working in or on which any operation
connected with mining is carried on together with all buildings, premises, erections, infrastructure
water reservoirs, tailings, ponds, waste, overburden and other dumps and appliances belonging
or appertaining thereto above or below the ground for the purpose <strong>of</strong> mining, treating or
preparing Minerals, obtaining or extracting any Mineral or metal by any mode or method or
for the purpose <strong>of</strong> dressing mineral ore but does not include a smelter or a refinery.
Mine when used as a verb, means to intentionally mine minerals, and includes any operations
directly or indirectly necessary therefore or incidental thereto including such processing <strong>of</strong>
minerals as may be required to produce a first saleable product, and ‘mining’ shall be construed
accordingly.
Minerals or Mineral Resources means any substance whether in solid or liquid, or gaseous
form occurring in or on the earth, formed by or subjected to geological processes including
occurrences or deposits <strong>of</strong> rocks, coal, coal bed gases, bituminous shales, tar sands, any substances
that may be extracted from coal, shale or tar sands, mineral water, and mineral components in
tailings and waste piles, but with the exclusion <strong>of</strong> petroleum and waters without mineral content.

The Legal and Regulatory Framework ... 127
Mineral Exploitation means operations and works related to the technical and economic
utilisation <strong>of</strong> Mineral Resources, including Mine development, extraction, treatment, processing
and beneficiation <strong>of</strong> Mineral Resources as well as the activities necessary or related to the
marketing <strong>of</strong> such Mineral Resources.
Mineral Title means Reconnaissance Permit, Exploration Licence, Small Scale Mining Lease,
Mining Lease, Water Use permit, or Quarry Lease or any one <strong>of</strong> these titles, consistent with the
context in which the term ‘Mineral Title’ is used.
Mining Lease means the Mining Lease granted under the Act.
Mining operations means the operations and works carried out in the course <strong>of</strong> Mineral
exploitation, inclusive <strong>of</strong> the search for and exploration for Minerals, beneficiation, processing
and contract mining. In view <strong>of</strong> these definitions, it can be said that solid minerals cannot be
separated from Mining because Mining is the economic activity carried out to win these solid
minerals so as to gain the enormous wealth and potential entrapped in these substances for
socio-economic development.
Minister means the Minister responsible for Solid Minerals Development.
Reconnaissance means the operations and works to carry out the search for Minerals through
physical observation, rock sampling, geological surface analysis, geophysical surveys,
geochemical surveys, photo geological surveys by other non obstructive surveys or studies <strong>of</strong>
surface geology or by other remote sensing techniques, laboratory testing and assays.
Quarry means a surface working or uncovered excavation used for the purpose <strong>of</strong> extracting
Mineral Resources for Construction.
Security Minerals means a radioactive mineral which contains by weight at least one twentieth
<strong>of</strong> one percent 0.05%) <strong>of</strong> uranium, thorium, or any combination there<strong>of</strong> including but not
limited to monazite, sand and other ores containing thorium, caronite, pitch blend and other
ores containing uranium.
Small-Scale Mining means Artisanal, Alluvial and other forms <strong>of</strong> mining operations involving
the use <strong>of</strong> low level technology or application <strong>of</strong> methods not requiring substantial expenditure
for the conduct <strong>of</strong> mining operations within a small scale.
Small-Scale Mining Lease means the Small Scale Mining Lease granted for exploitation <strong>of</strong>
Mineral Resources under the Act.
State Government means the Government <strong>of</strong> a State within the Federal Republic <strong>of</strong> Nigeria
and shall also include the Federal Capital Territory.
User or Occupier <strong>of</strong> Land means any person occupying or using land in compliance with the
Land Use Act, Cap L5, Laws <strong>of</strong> the Federation <strong>of</strong> Nigeria 2004 or customary law and includes
the sub lessees or sub under lessee <strong>of</strong> such a User or Occupier.

128 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
4.1 Introduction
Nigeria’s solid mineral deposits are not only diverse but also extensive with substantial capability
<strong>of</strong> generating long term productive socio-economic activities. The discovery <strong>of</strong> some <strong>of</strong> these
mineral deposits dates back to the first half <strong>of</strong> the 20 th century. The facts on the deposit <strong>of</strong> solid
minerals in Nigeria show that the nation may have the highest concentration <strong>of</strong> varieties <strong>of</strong>
solid minerals in Africa. Indeed Nigeria’s solid mineral survey indicates the presence <strong>of</strong> over 33
strategic mineral deposits in commercial quantities which are spread over 400 localities in all
the States <strong>of</strong> the Federation including the Federal Capital Territory, Abuja.
Although mining is one <strong>of</strong> the oldest traditional economic activities in Nigeria, organised
mining began only between 1902 and 1923. It was within this period, precisely 1919, that the
Geological Survey <strong>of</strong> Nigeria was established as a department <strong>of</strong> government and subsequently
the Minerals Ordinance <strong>of</strong> 1946 and the Coal Ordinance <strong>of</strong> 1950 were enacted to provide the
legal framework for the development <strong>of</strong> solid minerals in the country (Ministry <strong>of</strong> Solid Minerals
Development 2004).
In 1972 by virtue <strong>of</strong> Decree 25 <strong>of</strong> 1972, the Nigerian Mining Corporation was established
with the mandate to acquire, prospect, procure and dispose <strong>of</strong> various kinds <strong>of</strong> minerals occurring
in Nigeria. The Mineral Ordinance <strong>of</strong> 1946, the Coal Ordinance <strong>of</strong> 1950, Decree 25 <strong>of</strong> 1972,the
Diamond Trading Act; [Cap. 98 LFN 1990], the Mineral Act [Cap. 226 LFN 1990], Gold Trading
Act [Cap 163 LFN 1990] the Quarries Act [Cap 385 LFN1990] the Tin (Miscellaneous Provision)
Act; [Cap.429 LFN 1990], the Tin Production and Development Revolving Loans Act [ Cap 430
LFN 1990] were the legal framework for the development <strong>of</strong> solid minerals in Nigeria prior to
the promulgation <strong>of</strong> the Minerals and Mining Decree No. 34 <strong>of</strong> 1999 which by virtue <strong>of</strong> Section
254 repealed all the aforementioned laws and held sway as the only legislation related to the
management <strong>of</strong> the solid mineral resources in the country before the enactment <strong>of</strong> the Nigerian
Minerals and Mining Act <strong>of</strong> 2007, which currently serves as the existing legal and regulatory
framework <strong>of</strong> the solid mineral sub-sector <strong>of</strong> the Nigerian <strong>Extractive</strong> <strong>Industries</strong>.
4.1.1 Objectives
The broad objective <strong>of</strong> this chapter is to examine the legal and regulatory framework <strong>of</strong> the
Solid Minerals sector in Nigeria. Specific objectives are:
i. to examine existing laws in the solid mineral Sector;
ii. to identify the weaknesses and gaps in the existing law;
iii. to determine how the laws are currently applied;
iv. to raise issues and challenges in the existing laws;
v. to suggest laws needed but not currently existing; and
vi. to make recommendations on improvement to the existing laws.
4.1.2 Questions Raised And Answered
i. What is the provision <strong>of</strong> the law on ownership and control <strong>of</strong> solid minerals in Nigeria?

The Legal and Regulatory Framework ... 129
ii. How can individuals and communities participate in the sector?
iii. What is the legal framework governing mining operation in Nigeria?
iv. How adequate are the provisions <strong>of</strong> the law regarding protection <strong>of</strong> the environment?
v. Does the law provide for transparency and accountability?
vi. Are the penalties for environmental <strong>of</strong>fences adequate?
vii. What are the weaknesses and loopholes in the existing law?
viii. How are the current laws applied?
ix. Are there laws needed that are not currently existing?
4.1.3 Methodology
The methods used in generating information for this chapter are both primary and secondary
sources. The primary sources are the Constitution <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria 1999, the
Nigerian Mineral and Mining Act 2007, the National Minerals and Metal Policy and other
Statutes while the secondary sources include publication by the Ministry <strong>of</strong> Mines and Steel
Development, journal articles and internet materials.
4.2 Overview <strong>of</strong> the Nigerian Minerals and Mining Act, 2007
With the repeal <strong>of</strong> the Minerals and Mining Act <strong>of</strong> 1999 by section 161(1) <strong>of</strong> the Nigerian
Minerals and Mining Act, 2007, the later became the principal legal and regulatory framework
governing the development and participation in the solid mineral sub-sector. As the legislative
framework upon which the National Minerals and Metals Policy is embedded, the Act is enacted
to ensure:
* an efficient and effective management <strong>of</strong> the nation’s mineral endowment in a manner
that will enhance private sector participation in ownership and management <strong>of</strong> mineral
resource;
* separate the distinctive role <strong>of</strong> the Federal Government as regulator/administrator from
that <strong>of</strong> the private sector as operator and manager; and
* provide access to mineral rights in a transparent and flexible manner free from undue
interference <strong>of</strong> government <strong>of</strong>ficials in addition to addressing issues relating to the socioeconomic
wellbeing <strong>of</strong> the people with both direct and indirect contact with the mining
industry.
The nature <strong>of</strong> minerals or mineral resources, mineral exploitation and mining operation to
which the Act applies can be ascertained from the meaning given to ‘Mineral’, ‘Mineral
Resources’, ‘Mineral Exploitation’ and ‘Mining Operations’, under the Act in section 164. Under
this section ‘Minerals’ or ‘Mineral Resources’ means any substance whether in solid or liquid, or
gaseous form occurring in or on the earth, formed by or subjected to geological processes
including occurrences or deposits <strong>of</strong> rocks, coal, coal bed gases, bituminous shale , tar sands,
any substances that maybe extracted from coal, shale or tar sands, mineral water, and mineral
components in tailings and waste piles, but with the exclusion <strong>of</strong> petroleum and waters without

130 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
mineral content. Section 164 is therefore instructive in the determination <strong>of</strong> the subject matter
<strong>of</strong> minerals or mineral resources that can be brought within the purview <strong>of</strong> the Nigerian Minerals
and Mining Act, 2007.
Section 164 further provides that ‘Mineral Exploitation’ means operations and works related
to the technical and economic utilisation <strong>of</strong> Mineral Resources, including Mine development,
extraction, treatment, processing and beneficiation <strong>of</strong> Mineral Resources as well as the activities
necessary or related to the marketing <strong>of</strong> such Mineral Resources, while ‘Mining operations’
means the operations and works carried out in the course <strong>of</strong> Mineral exploitation, inclusive <strong>of</strong>
the search for and exploration for Minerals, beneficiation, processing and contract mining.
Based on the following definitions, it can be said that solid minerals cannot be separated from
mining because mining is the economic activity carried out to win these solid minerals so as to
gain the enormous wealth and potential entrapped in these substances for socio-economic
development.
4.3 Ownership and Control <strong>of</strong> Solid Mineral
Beyond the vesting <strong>of</strong> the entire property in and control <strong>of</strong> all Mineral Resources in the
Government <strong>of</strong> the Federation for and on behalf <strong>of</strong> the people <strong>of</strong> Nigeria in section 1 (1) <strong>of</strong> the
Act, the exclusive power <strong>of</strong> the State to own, control and regulate the activities <strong>of</strong> minerals,
mineral oils, and it’s by product is firmly affirmed and vested by the Constitution <strong>of</strong> the Federal
Republic <strong>of</strong> Nigeria (CFRN), 1999 by the Second Schedule, Legislative Powers Part.
The exclusive powers <strong>of</strong> the Federal Government include “Mines and minerals including oil
fields, oil mining, geological surveys and natural gas. Section 44 (3) CFRN, 1999 states as
follows:
Notwithstanding the foregoing provisions <strong>of</strong> this section, the entire property in and control <strong>of</strong>
all minerals, mineral oils and natural gas in, under or upon any land in Nigeria or in, under or
upon the territorial waters and the exclusive economic zone <strong>of</strong> Nigeria shall vest in the
government <strong>of</strong> the federation and shall be managed in such manner as may be prescribed by
the National Assembly.
The combined effect <strong>of</strong> these laws operate to vest the property and ownership <strong>of</strong> mineral
resources in the government <strong>of</strong> Nigeria wherever found whether onshore, <strong>of</strong>f shore, territorial
waters exclusive economy zones or continental shelf. The vesting <strong>of</strong> ownership and control <strong>of</strong>
mineral resources in the government <strong>of</strong> Nigeria is further strengthened by section 1 <strong>of</strong> the
Land Use Act, 1978 which vests all lands in the territory <strong>of</strong> each state <strong>of</strong> the federation in the
Governor <strong>of</strong> the state to be held in trust and administered for the use and benefit <strong>of</strong> all Nigerians.
Section 2 <strong>of</strong> the Land Use Act however ousts the power <strong>of</strong> the Governor over lands that belong
to the Federal Government and its agencies. This includes lands that contain mineral deposit or
land used for related purposes; hence none <strong>of</strong> the states that are component unit <strong>of</strong> the Federation
have any direct control over the exploration and exploitation <strong>of</strong> minerals.

The Legal and Regulatory Framework ... 131
The implication <strong>of</strong> vesting ownership and control in the Federal Government is that the primary
responsibility for planning and development <strong>of</strong> both States and Local Government in ensuring
that the interests and traditional values <strong>of</strong> the communities are taken into consideration can
hardly be implemented. Section 1(2) <strong>of</strong> the Act provides further that all lands, in which minerals
have been found in commercial quantities, shall from the commencement <strong>of</strong> the Act be acquired
by the Government <strong>of</strong> the Federation in accordance with the provision <strong>of</strong> the Land Use Act.
In what seems to be an acknowledgment <strong>of</strong> private participation in mineral resources
activities, section 1 (3) provides that property in Mineral Resources shall pass from the
Government to the person by whom the Mineral Resources are lawfully won, upon their
recovery in accordance with the Act. Lawfully winning <strong>of</strong> mineral resources is therefore the
key to private involvement and participation in the development <strong>of</strong> solid minerals. The process
for lawfully winning mineral resources is obtained through acquisition <strong>of</strong> mineral titles which
will be considered in details when discussing rights grantable under the Act.
Still on ownership and control <strong>of</strong> mineral resources, whilst it is conceded that ownership
and control is vested in the state, it is imperative to remark that some lands are excluded from
minerals exploration and exploitation and as such, no mineral title can be granted in respect <strong>of</strong>
such land which include land set apart for military purposes except with prior approval <strong>of</strong> the
president; land within fifty metres <strong>of</strong> an oil pipeline licence area; land occupied by town, village,
market, burial ground or cemetery, ancestral , sacred or archaeological site or land appropriated
for a railway, public building, reservoir, dam or public road; and land that is subject to the
provisions <strong>of</strong> National Commission for Museum and Monument. Local communities are
therefore expected to note that they may reserve some rights with regards to the aforementioned
land in respect <strong>of</strong> which mineral title cannot be granted and that are explicitly excluded from
mineral exploration and exploitation (section 3).
From these legal provisions, it is quite clear that ownership and control <strong>of</strong> all solid minerals
in Nigeria is vested in the Federal Government which is the only authority that has power to
authorise any mining activity as it is the custodian <strong>of</strong> these minerals on behalf <strong>of</strong> all citizens <strong>of</strong>
the country. Section 2(1) <strong>of</strong> the Nigerian Minerals and Mining Act provides that no person
shall search for or exploit Mineral Resources in Nigeria or divert or impound water for the
purpose <strong>of</strong> mining except as provided in the Act. The government grants titles to allow suitable
entities to explore for, mine and market mineral resources.
It should be remarked that based on the importance attached to mining, Section 22 provides
that the use <strong>of</strong> land for mining operations shall have a priority over other uses <strong>of</strong> land and be
considered for the purposes <strong>of</strong> access, use and occupation <strong>of</strong> land for mining operations as
constituting an overriding public interest within the meaning <strong>of</strong> the Land Use Act.
4.4 Mineral Development Administration and Management
To effectively administer and ensure the orderly and systematic development <strong>of</strong> mineral
resources in the country, the Act provides for the functions and duties <strong>of</strong> the Minister responsible
for matters relating to mines and minerals as well as establishing the Mining Cadastre Office
and other departments (section 4).

132 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Functions <strong>of</strong> the Minister
The Minister charged with the responsibility <strong>of</strong> developing the solid mineral sector and
administering the Act is required to among other things and subject to the Act develop a well
planned and coherent programme <strong>of</strong> exploitation <strong>of</strong> mineral resources taking into account
economic development, ecological and environmental factors; monitor compliance with
Community Development Agreements by industry operators; encourage private sector
investment in mineral resources development; ensure that in the exploitation <strong>of</strong> the mineral
resources, an equitable balance is maintained between foreign and indigenous interest; prescribe
measures for the general welfare and safety <strong>of</strong> workers engaged in mineral resources operations
and introduce investment friendly local contents measure for mining project.
The Mining Cadastre Office (MCO)
The Mining Cadastre Office (MCO) was established in pursuant to the Act for the administration
<strong>of</strong> Mineral Titles and the maintenance <strong>of</strong> the cadastral registers (Section 5). It is a corporate
body with perpetual succession and is capable <strong>of</strong> suing and being sued in its corporate name.
The MCO is administered by a Director General who is to be assisted by such <strong>of</strong>ficers as are
required for the efficient functioning <strong>of</strong> the cadastre system. The Cadastre Office is therefore
established as a major vehicle to drive vital reforms in the mining sector in a manner that will
provide easy, efficient, and transparent access and management. Some <strong>of</strong> the functions <strong>of</strong> the
MCO include:
(a) to consider applications for Mineral Titles and Permits, issue, suspend and upon written
approval <strong>of</strong> the Minister, revoke any mineral title;
(b) to receive and dispose <strong>of</strong> applications for the transfer, renewal, modification and
relinquishment <strong>of</strong> mineral titles or extension <strong>of</strong> areas;
(c) to maintain a chronological record <strong>of</strong> all applications for Mineral Title in:
(i) a priority book which is to be specifically used to ascertain the priority and registration
<strong>of</strong> applications for exclusive rights on vacant areas;
(ii) a general registry book which is to be used for all other types <strong>of</strong> applications where
registration <strong>of</strong> the priority is not required.
(d) to undertake such other activities reasonably necessary for the purpose <strong>of</strong> carrying out
its duties and responsibilities under the provisions <strong>of</strong> the Act.
The maintenance <strong>of</strong> a chronological record <strong>of</strong> all applications for mineral title presupposes a
legal process/practice aimed at achieving transparency. The importance <strong>of</strong> chronological records
<strong>of</strong> applications can aid the determination <strong>of</strong> priority <strong>of</strong> overlapping areas from two or more
applicants such that the criteria <strong>of</strong> first come first served, as evidenced by registration in the

The Legal and Regulatory Framework ... 133
proper form with the issuing authority according to established procedure will be apparent
when dealing with competing applications over the same exclusive area (Section 8(2)).
For the purposes <strong>of</strong> accountability, the MCO is required by law to provide a receipt to an
applicant <strong>of</strong> Mineral Title evidencing all documents and fees received from the applicant in
respect <strong>of</strong> the application and the date and time <strong>of</strong> application (Section 8 (3)).
To further demonstrate transparency, the Act in Section 9 provides for competitive bidding
and states that the Minster shall by regulations determine areas wherein an exploration licence
and a mining lease shall be granted based on competitive bidding requirements. The MCO is
saddled with the responsibility <strong>of</strong> considering competing bids through an open and transparent
method and is also expected to select the bid which will promote the expeditious and beneficial
development <strong>of</strong> the Mineral Resources <strong>of</strong> the area having regard to the following:
(a) the programme <strong>of</strong> Exploration and Mining Operations which the applicant proposes to
carry out and the commitments as regards expenditure which the applicant is prepared
to make;
(b) the financial and technical resources <strong>of</strong> the applicant; and
(c) the previous experience <strong>of</strong> the applicant in the conduct <strong>of</strong> Reconnaissance and Mining
Operations.
It is worthy <strong>of</strong> note that while there exist a relationship between the Minister and the MCO in
the execution <strong>of</strong> his function, the Minster is required, at all times, to ensure the independence <strong>of</strong>
the MCO in regard to the discharge <strong>of</strong> its functions and operations under the Act. This provision
which is contained in Section 15 can be said to intend a situation whereby the MCO will have
to perform and discharge its responsibility objectively without undue influence from the Minister
or succumbing to unnecessary patronage <strong>of</strong> the Minster.
From the foregoing, it can be concluded that the MCO is to be governed by the basic
principles <strong>of</strong> priority (i.e. first come, first served); objectivity (i.e. based on legally defined sets <strong>of</strong>
regulations and procedures); non-discretionary (i.e. same rules for all) and transparency (i.e.
openness to the public) which is a marked difference from what is obtained in the past.
Monitoring and Control Departments
The Act establishes the Mines Inspectorate Department and Mines Environmental Compliance
Department as control departments in the Ministry to ensure compliance with its provisions.
The Mines Inspectorate Department by virtue <strong>of</strong> Section 17 is to be responsible among
others for the inspection and supervision <strong>of</strong> all Mining Operations; health and safety regulation
and enforcement and investigations and inspections necessary to ensure that all conditions
relating to mineral titles and the requirements <strong>of</strong> the Act are complied with. The Environmental
Compliance Department on the other hand is responsible for monitoring operator’s
performance and environmental Compliance; establishment <strong>of</strong> environmental rules and
procedure; ensuring adequate mine rehabilitation and undertaking environmental audits
applicable to the mining sector (Section 18).

134 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Establishing the Mines Inspectorate Department and the Environmental Compliance
Department as statutory departments is a clear indication that the Act is expecting some standard
to be observed in the relationship between mining operators with regards to the environment.
Artisanal and Small-scale Mining Department
The Artisanal and Small-scale Mining (ASSM) Department is charged with the responsibility
<strong>of</strong> organising, supporting and assisting artisanal and small-scale mining operations. In carrying
out its responsibility the department is to regulate, control and generally supervise ASSM
operations. The peculiar nature <strong>of</strong> ASSM made provisions for extension services to mining cooperatives
with regard to exploration, mineral processing, entrepreneurial training, and health
and safety issues as a key component <strong>of</strong> the department under the Act. The department is also
to administer mining co-operatives and mineral buying centres.
Mineral Resources and Environmental Management Committee
In what appears to be a move towards States participation in issues affecting returns <strong>of</strong> necessary
reports affecting grants <strong>of</strong> mining titles; compensation; pollution and degradation <strong>of</strong> any land
on which mineral is being extracted; the implementation <strong>of</strong> social and environmental protection
measures and advising local government areas and communities on the implementation <strong>of</strong>
programmes for environmental protection and sustainable management <strong>of</strong> Mineral Resources,
States Mineral Resources and Environmental Management Committee is established in pursuant
to Section 19 <strong>of</strong> the Act.
Membership <strong>of</strong> the Committee with the exception <strong>of</strong> its Chairman who is a representative
<strong>of</strong> the Mines Environmental Compliance Department comprises <strong>of</strong> representatives <strong>of</strong> relevant
Ministries and Agencies in the State. The relevant Ministries include the Ministry responsible
for land matters or Mineral related matters in the state; the Mines Officer responsible for the
State; a representative <strong>of</strong> the Ministry <strong>of</strong> agriculture or forestry <strong>of</strong> the State; a representative <strong>of</strong>
the Surveyor General <strong>of</strong> the State, amongst others (Section 19).
Other functions <strong>of</strong> the Committee include providing necessary assistance required by holders
<strong>of</strong> Mineral titles in their interaction with state governments, local government councils,
communities, civil institutions and other stakeholders and also advising the Minister in resolving
conflicts between stakeholders (Section 19 (3) (g) & (h)). It can therefore be said that a platform
has been created for community relations and multiple stakeholder involvement in mining
activities.
4.5 Rights Grantable Under The Act
By virtue <strong>of</strong> Section 46 <strong>of</strong> the Act, the right to search for and mine solid minerals in Nigeria is
obtained through one <strong>of</strong> the following mineral titles:
* Reconnaissance Permit
* Exploration License

* Small-Scale Mining lease
* Mining lease
* Quarry lease; and
* Water use permit.
Below is an explanation on the various types <strong>of</strong> mineral titles
The Legal and Regulatory Framework ... 135
Reconnaissance Permit
The reconnaissance permit enables the holder to carry out reconnaissance survey, on a nonexclusive
basis, over a chosen area, in search <strong>of</strong> minerals other than ‘security minerals’. The
holder <strong>of</strong> a reconnaissance permit is not expected to drill, excavate or employ other subsurface
techniques (Section 56). Reconnaissance activities must be conducted in an environmentally
and socially responsible manner and where there is damage to land and property, users <strong>of</strong> such
land shall be compensated while the prescribed fees shall be paid. A reconnaissance permit
holder is required to submit information and periodic report to authorised <strong>of</strong>ficers <strong>of</strong> the MCO.
The permit is issued for one year, renewable annually and not transferable.
Procedures for obtaining reconnaissance permit
In applying for a Reconnaissance Permit, an applicant or his authorised representative shall
submit, for processing, a duly completed application form together with the following
information:
* Identification <strong>of</strong> the applicant
* The geographical description <strong>of</strong> the area where the works will be developed.
* Certified copy <strong>of</strong> the certificate <strong>of</strong> incorporation (body corporate).
* Attestation <strong>of</strong> no conviction <strong>of</strong> felony or <strong>of</strong>fence under the Act.
* If an individual, certificate <strong>of</strong> none conviction <strong>of</strong> a criminal <strong>of</strong>fence.
* The receipt <strong>of</strong> payment <strong>of</strong> fee for processing <strong>of</strong> applications.
Application Certificate
After accepting the application, the mining Cadastre shall assign an identifying code to the
application dossier and shall register its date, hour and minute <strong>of</strong> submission in the General
Registry Book, which shall be jointly signed by a Cadastre Officer and the applicant or his
representative. The code, date, hour and minute <strong>of</strong> application shall then be transferred on to
the application forms, which shall also be jointly signed by the two parties. A signed copy <strong>of</strong> the
application forms shall be given to the applicant as an application certificate.
On the receipt <strong>of</strong> an application that has met all the requirements, the MCO is mandated to
grant and issue a reconnaissance permit to an applicant within 30 days (Section 55).
Grant and issue <strong>of</strong> permit
Where an application is successful, notice <strong>of</strong> the grant <strong>of</strong> permit shall be conveyed to the applicant
along with the following information:

136 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
* Collection <strong>of</strong> the permit within five days from the date <strong>of</strong> notification.
* The place and time for collecting the permit
* The amount to be paid at the time <strong>of</strong> collection and method <strong>of</strong> payment.
The permit shall contain the following information:
* The name and address <strong>of</strong> holder
* The date <strong>of</strong> grant <strong>of</strong> the permit
* The period for which the permit is granted.
The applicant or authorised representative shall only collect the permit, after showing pro<strong>of</strong> <strong>of</strong>
payment <strong>of</strong> annual surface fees and shall then sign a receipt that conveys validity to the permit.
Exploration license
Exploration Licence(s) are not to be granted over any land that is subject to an existing
Exploration Licence, Mining Lease, Small Scale Mining Lease or Quarry Lease. In other words,
the holder <strong>of</strong> an Exploration Licence has exclusive right to the licence area. The land area in
respect <strong>of</strong> which an exploration licence can be granted shall not exceed an area <strong>of</strong> 200 Square
kilometres (Section 59 (3)). and its duration is for three years which maybe renewed for a
further period <strong>of</strong> two years each, provided the title holder has complied and met his minimum
work obligation commitments; all other requirements and regulations <strong>of</strong> the Act (Section 62 (a)
& (b)).
As a result <strong>of</strong> his exclusive right over the licence area, the holder <strong>of</strong> an Exploration Licence
has certain rights accruing to him. Those rights as contained in section 60 <strong>of</strong> the Act include the
right to:
(a) enter upon such land with his agent and workmen;
(b) employ on the land any number <strong>of</strong> persons for the purpose <strong>of</strong> such exploration;
(c) erect and maintain thereon any machinery and plant and construct such ways as may
be necessary for or in connection with his exploration operations.
(d) explore on an exclusive basis for all Mineral resources and carry out the operations
necessary for the achievement <strong>of</strong> this objective;
(e) take, remove and export specimens and samples not exceeding such limit as prescribed
in the Regulations to be reasonably required for purposes <strong>of</strong> analysis;
(f) conduct bulk sampling and trial processing <strong>of</strong> Mineral Resources not exceeding such
limit as is reasonably required for determining mineral potential
(g) sell specimens and samples obtained from exploration activities or from bulk sampling
and trial processing; and
(h) while engaged in exploration, take timber other than protected trees and use water
from any lake or watercourse not subject <strong>of</strong> a water use permit for domestic purposes,
in accordance with Regulations; and sink or drill shafts or wells and dig holes and trenches.

The Legal and Regulatory Framework ... 137
The holder <strong>of</strong> an Exploration Licence also has the exclusive right to apply for and to be
granted one or more Small-Scale Mining Leases, Mining Leases or Quarry Leases in respect <strong>of</strong>
any part or parts <strong>of</strong> the exploration area if he has complied with the obligations laid out under
the Act.
The obligations that the holder <strong>of</strong> an exploration licence must fulfil as laid out in Section
61(1) include that he must conduct exploration activities in a safe, friendly, skilful, efficient and
workmanlike manner in accordance with the regulations. He must also conduct his activities
in an environmentally and socially responsible manner and if he intends to explore on land
that is subject to a right <strong>of</strong> occupancy, he must give prior notice to the Chairman <strong>of</strong> the Local
Government area concerned and also to the holder <strong>of</strong> the right <strong>of</strong> occupancy or the user or
occupier <strong>of</strong> the land. Such a holder also has the duty to pay all applicable fees, annual rent and
water usage charges and must submit information and such periodical reports as may be
prescribed in the Regulations. Furthermore, he must ensure that he maintains and restores the
licence area to a safe state from any disturbance resulting from exploration activities.
The grant and issuance <strong>of</strong> an exploration licence by the MCO is on receipt <strong>of</strong> a valid
application and by virtue <strong>of</strong> the Act, the MCO is under obligation to grant and issue the license
within 30 days (Section 59 (1)).
Procedures for obtaining an exploration license
An applicant or his authorised representative is required to submit to the Mining Cadastre, a
duly completed application form together with the following information:
* Identification <strong>of</strong> the applicant;
* The cadastral co-ordinates delineating the area being applied for;
* The statement <strong>of</strong> the minerals to be searched for;
* The description <strong>of</strong> the minimum work programme which the applicant is prepared to
undertake;
* Certified copy <strong>of</strong> the certificate <strong>of</strong> incorporation (body corporate);
* Attestation <strong>of</strong> no conviction <strong>of</strong> felony or <strong>of</strong>fence under the Act;
* The receipt <strong>of</strong> payment <strong>of</strong> fee for processing <strong>of</strong> application.
Any application that does not contain all the above-listed items, shall automatically be rejected
and not registered.
Grant and issue <strong>of</strong> license
The procedure is the same as in the case <strong>of</strong> reconnaissance permit above. The license shall
contain the following information:
* The name and address <strong>of</strong> holder
* The date <strong>of</strong> grant <strong>of</strong> the license
* The period for which the license is granted

138 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
* The deadline for submission <strong>of</strong> applications for renewal
* The mineral for which license is granted
* The cadastral co-ordinates for the licensed area
* The annual surface fees payable annually, as well as the deadlines for making such
payments.
The applicant or authorised representative shall only collect the license after showing pro<strong>of</strong>
<strong>of</strong> payment <strong>of</strong> annual surface fee. A receipt that confers validity to the license shall then be
signed.
The exploration license is expected to be collected within fifteen days <strong>of</strong> notice, in conformity
with the Ministry’s stipulated regulation, failing which the license shall be cancelled automatically
and the applicant shall be forbidden from applying for the same area or a portion <strong>of</strong> it during
the next three months.
Small-Scale Mining Lease
The MCO on receipt <strong>of</strong> the valid application is obliged by law to grant and issue a Small-scale
Mining Lease (SML) within 45 days. The duration <strong>of</strong> an SML is five years in the case <strong>of</strong> alluvial
and artisanal forms <strong>of</strong> Small-scale mining which is renewable for a further period <strong>of</strong> five years
and ten years in the case <strong>of</strong> other types <strong>of</strong> small-scale mining, renewable for further periods <strong>of</strong>
ten years each, provided that the minimum works obligation have been met. The area <strong>of</strong> land
for an SML shall not exceed 3km 2 (Section 90(1)). By virtue <strong>of</strong> the Act, when the level <strong>of</strong> operations
<strong>of</strong> small-scale mining exceeds any criteria established in the definition <strong>of</strong> small scale mining as
contained in Section 164, the holder is required to convert such a lease to a mining lease by
submitting a written application to the MCO.
Mining Lease:
The Act provides that the grant and issue <strong>of</strong> mining lease shall be within 45 days <strong>of</strong> a valid
application (Section 65 (1)). The duration is 25 years, renewable every 20 years (Section 66).
The areas shall not exceed 50km 2 (Section 67).
Quarry Lease
By virtue <strong>of</strong> the Act, all operations for extracting construction materials require a quarry lease.
The grant <strong>of</strong> a quarry lease shall be within 45 days <strong>of</strong> a valid application. The duration <strong>of</strong> a
quarry lease shall not exceed five years and may be renewed as <strong>of</strong>ten as required (Section 77
(b)), provided the renewal application is made within three months before the expiry <strong>of</strong> the
lease. The area shall not exceed 5km 2 (Section 77(a)).
Procedures for obtaining a Small-Scale Mining lease, a Mining lease and a Quarry lease.
An applicant or his authorised representative shall submit to the mining cadastre, duly
completed application form together with the following information:

The Legal and Regulatory Framework ... 139
Ñ Identification <strong>of</strong> the applicant;
Ñ For the application emerging from exploration license, the identifying code <strong>of</strong> the original
license;
Ñ The cadastral co-ordinates delineating the area being applied for;
Ñ The statement <strong>of</strong> the minerals or the construction materials to be mined;
Ñ Certified copy <strong>of</strong> the certificate <strong>of</strong> incorporation (body corporate);
Ñ Attestation <strong>of</strong> no conviction <strong>of</strong> felony or <strong>of</strong>fence under the Act;
Ñ If individual, certificate <strong>of</strong> non-conviction <strong>of</strong> a criminal <strong>of</strong>fence;
Ñ The receipt <strong>of</strong> payment for the fee for processing <strong>of</strong> applications.
The procedures for acceptance and registration as in the case <strong>of</strong> the Reconnaissance Permit
applies, the only exception is that the registration shall be made in:
(i) The Priority Registry Book if application is not emerging from a previous exploration
licence; or
(ii) The General Registry Book if application is emerging from a previous exploration licence.
Immediately after registration, the mining cadastre is required to issue a public notice in at
least two print media <strong>of</strong> national coverage for a period <strong>of</strong> not more than seven (7) days or by
written notice directly to any interested parties. The notice is to announce the submission <strong>of</strong> the
application giving details <strong>of</strong> the area and advising that any party, which may be prejudiced by
the grant <strong>of</strong> the application, must register protest within a period <strong>of</strong> 7 days from the date <strong>of</strong> the
notice.
The procedure for the grant and issue <strong>of</strong> lease applies as in the case <strong>of</strong> an exploration license.
Water Use Permit
There is provision for water use permit under the Act. The area <strong>of</strong> land in which any water use
permit is granted shall not exceed the area reasonably required for the purposes <strong>of</strong> the permit
as defined in the regulations. A Water Use Permit will remain in force as long as the mining
lease, small scale mining lease and quarry lease for which use it was granted remains valid.
The provisions <strong>of</strong> the Act with respect to the grant <strong>of</strong> rights to mineral title as observed from the
foregoing processes and procedure indicates clarity on the issue <strong>of</strong> security <strong>of</strong> tenure and
transparency in the administration <strong>of</strong> the application and grant <strong>of</strong> mineral title.
Mining Incentives
As an encouragement for investors to participate in the Nigerian Solid Mineral sector so as to
ensure the efficient development <strong>of</strong> the country’s mineral resources, the Act in Sections 25, 26,
27 and 28 provides for exemption from payments <strong>of</strong> customs duties to all operators in the

140 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
mining industry; permission to retain and use earned foreign exchange; free transferability <strong>of</strong>
funds and a tax relief period <strong>of</strong> three years in the first instance which can be extended for one
further period <strong>of</strong> two years. The fiscal regime applicable to the mining sector tabulated below
is simple, clear and can be described as transparent.
Fiscal regime for mining
Tax method and Industry standard Royalty/Tax system
level <strong>of</strong> Tax levies - promotes revenue stability
Level <strong>of</strong> royalty 1 – 3% Compared with industry
std. Of 0 – 5%, the royalty
is relatively low and attractive.
Availability <strong>of</strong> Tax
holidays No Loss carried forward
Accelerated
depreciation Yes 100% on capital investment
in year incurred
Deduction <strong>of</strong>
exploration/other
cost Yes 100% cost recovery
allowed in year incurred
Remittance <strong>of</strong> pr<strong>of</strong>its
and dividends Yes 100% allowed
Corporate taxÑ Low at 20 – 30% <strong>of</strong> Industry std. is 15 – 35%
net pr<strong>of</strong>it <strong>of</strong> taxable income
Currency conversion Yes On total pr<strong>of</strong>it
Exemption from
custom duties Yes On agreed list <strong>of</strong> mining
equipment
Capital gains tax Yes, at 10% Industry std. is 5 – 15%
Source: Mining Journal special publication, London, February 2006

4.6 Transfer <strong>of</strong> Mineral Title
The Legal and Regulatory Framework ... 141
Mineral titles are transferable subject to approval by the Minister and registration <strong>of</strong> the transfer
with the Mining Cadastre Office (Section 147 (1)). The Rights arising from a mineral title or
permit that are transferable under the Act can be wholly or partially assigned, subleased, pledged,
mortgaged, charged, hypothecated or subject to any security interest (Section147(2)).
Procedure for transfer
The holder wishing to transfer shall make an application to the Mining Cadastre Office. The
application must contain details <strong>of</strong> the assignment or transfer together with any other
information that may be required (Section 147(4)). The Mining Cadastre Office shall approve
the transfer if the transferee is a qualified applicant. The application for transfer shall be deemed
to be automatically approved if not acted upon by the MCO within 30 days from the date it
was <strong>of</strong>ficially received (Section 147 (5)).
Section 147 (8) <strong>of</strong> the Act however provides that the transferor <strong>of</strong> a Mineral Title remains
liable for the performance <strong>of</strong> any obligations arising out <strong>of</strong> the contracts made in respect <strong>of</strong> the
title area, including environmental obligations incurred prior to the date <strong>of</strong> the transfer as well
as for any claims for damages or injuries by bona fide third parties. Nevertheless, where the
transfer is in the nature <strong>of</strong> a security interest, the holder <strong>of</strong> the mineral title shall remain liable
for all obligations in respect <strong>of</strong> the title until the time <strong>of</strong> redemption <strong>of</strong> the security or the
expiration <strong>of</strong> the Mineral Title, while in the event <strong>of</strong> death <strong>of</strong> a Mineral Title Holder, the laws <strong>of</strong>
succession in Nigeria will apply.
4.7 Suspension <strong>of</strong> A Mineral Title
By virtue <strong>of</strong> section 149(1) <strong>of</strong> the Act, a mineral title maybe suspended by the Mining Cadastre
Office with the written approval <strong>of</strong> the Minister for a period not exceeding 60 days if the Holder
fails to make any payments by or under the Act on the due date; or has breached any condition
<strong>of</strong> the Mineral Title; or has contravened any provisions <strong>of</strong> the Act; or has failed to comply with
any lawful order given in connection with his operations; or makes any statement to the Mining
Cadastre Office which he knows or ought to have known to be false; or for any reason becomes
ineligible to apply for a Mineral Title under the provisions <strong>of</strong> the Act.
4.8 Surrender Of Mineral Title
The Holder <strong>of</strong> a Mineral Title may, upon application in the prescribed form and manner and
upon meeting prescribed conditions, surrender his Mineral Title. The Mining Cadastre Office
shall approve an application if he is satisfied that the Holder has submitted the request for
surrender in the prescribed manner and all rents and dues have been paid by the Holder and
the Holder has surrendered the original title document. The surrender will not affect any liability
incurred by the Mineral Title Holder before the surrender <strong>of</strong> the mineral title, including
environmental obligations (Section 150).

142 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
4.9 Revocation Of Mineral Title
Grounds for revocation
Section 151 provides that without prejudice to the power <strong>of</strong> the Minister to determine a Mineral
Title in any other manner, the Minister may revoke any Mineral Title for the following grounds:
a. if the Holder is convicted by any court <strong>of</strong> competent jurisdiction for an <strong>of</strong>fence under
the Act or its regulations and the time for appealing against the conviction if any, has
lapsed or the appeal has been dismissed or withdrawn or struck out for want <strong>of</strong>
prosecution;
b. the Holder breaches any provision <strong>of</strong> the Act or Regulations made or <strong>of</strong> any terms or
conditions <strong>of</strong> his Mineral Title whether express or implied;
c. the Holder breaches any order or notice issued under the Act or fails to show cause why
his title should not be revoked within the time required by the Minister;
d. the Mineral title holder surrenders the title before the expiration <strong>of</strong> the term <strong>of</strong> licence in
the manner prescribed;
e. the Holder is declared by a court <strong>of</strong> competent jurisdiction to be insolvent or bankrupt
or goes into insolvent liquidation, except as part <strong>of</strong> a scheme <strong>of</strong> re-organisation,
amalgamation or an arrangement with the creditors;
f. where no progress is made in the organisation <strong>of</strong> the Mining operations in the case <strong>of</strong> all
mineral title other than a reconnaissance permit, by the end <strong>of</strong> the period provided in
the mineral title; or in the case <strong>of</strong> a small scale mining lease or mining lease, the holder
wholly discontinues operations under the lease for a continuous period <strong>of</strong> six (6) months;
and
g. Under section 11 <strong>of</strong> the Act, if the holder has failed to pay the prescribed fees.
Process <strong>of</strong> revocation
A Mineral Title is to be revoked upon the written advice <strong>of</strong> the Minister after 30 days notice <strong>of</strong>
the intention to revoke the Mineral title has been given to the Holder. The notice shall detail the
grounds for revocation. Before revocation is carried out, the Holder <strong>of</strong> the title must have failed
to remedy the breach or remove the grounds for revocation within the required period (Section
151 (2)).
Process <strong>of</strong> revocation due to failure to pay fees
In the case <strong>of</strong> default <strong>of</strong> payment <strong>of</strong> the annual service fee due to the Mining Cadastre Office
(Section 11), the Mining Cadastre Office shall give a 30 day written default notice to the defaulting
party and, if payment is not effected during that period, the Mining Cadastre Office shall
record the default and revoke the Mineral title.
The grounds and process for revocation under the Act are clearly laid out thus ruling out
discretionary revocation subject to the whims and caprices <strong>of</strong> the Minister. Any title purported
to be revoked outside the grounds listed in the Act can be challenged by a holder <strong>of</strong> such title.
The fact that revocation is not subject to discretion is an indication <strong>of</strong> transparency.

4.10 Rights <strong>of</strong> Host Communities
The Legal and Regulatory Framework ... 143
Rights <strong>of</strong> host communities and their custom is preserved under the Act by the provision <strong>of</strong>
section 97 which states that nothing in the Act shall be construed as preventing any citizen <strong>of</strong>
Nigeria from wining salt, soda, potash and galena from any land other than land within the
area <strong>of</strong> mining lease or land designated by the Minister as security land pursuant to section
1(2) <strong>of</strong> the Act and such conditions as maybe prescribed by the Minister. However, in instances
where before the commencement <strong>of</strong> the Act, it was the custom <strong>of</strong> members <strong>of</strong> any community
to win any <strong>of</strong> the minerals from any land over which a mining lease is granted, the lessee shall
during the continuance <strong>of</strong> the lease pay to the members <strong>of</strong> that community as means to
determine lest a government levied value. The italicised is the exact phrase used in the Act. The
phrase lacks clarity and is devoid <strong>of</strong> any logical meaning. It seems however that the intent <strong>of</strong>
the phrase is to the effect that compensation will be paid to host communities over land which
they customarily win minerals before the grant <strong>of</strong> a mining lease over the same land and that
what is to be paid is to be determined by some government levied value.
Perhaps as a mark <strong>of</strong> respect for the host communities and their custom, the Act prohibits
exploration and the carrying out <strong>of</strong> mining operations in or under any area held to be sacred.
It also does not permit injury or destruction <strong>of</strong> any tree or other things which are the object <strong>of</strong>
veneration. In the event <strong>of</strong> a licencee or lessee causing injury or damages to any tree or thing
which is the object <strong>of</strong> veneration, the Act requires such a licencee or lessee to pay a fair and
adequate compensation to persons or communities affected by the injury or damage. In the
same vein, the Act recognises the right <strong>of</strong> local inhabitants <strong>of</strong> an area to extract sand, clay,
laterite and stone for personal use in accordance with the local custom <strong>of</strong> the community <strong>of</strong>
that area provided no explosives shall be used for the extraction. This provision certainly upholds
such traditional practices <strong>of</strong> laterite/granite stone breaking.
Still on the right <strong>of</strong> host communities, the Act in section 102 provides for surface rent to be
paid by the lessee <strong>of</strong> a mining lease and that the Minister shall, before granting a mining lease
on any private or state land will, cause the owner or occupier to be informed <strong>of</strong> the Minister’s
intention to grant the lease and also require the owner and occupier to state the rate <strong>of</strong> the rent
which the owner or occupier desires to be paid to him by the lessee for the land occupied or
used by it for or in connection with its mining operations. Payment <strong>of</strong> the desired rent <strong>of</strong> the
owner/occupier is subject to the satisfaction <strong>of</strong> the Minister that it is fair and reasonable.
Notwithstanding, the ownership and control <strong>of</strong> mineral resources by the government, the
provision <strong>of</strong> section 102 tend to be inclusive as owners/occupiers <strong>of</strong> lands over which mineral
resources are found are involved in the determination <strong>of</strong> fair and adequate surface rent to be
paid by the lessee.
In line with the policy <strong>of</strong> achieving sustainable development through mining operations
and for holders <strong>of</strong> mineral titles to be socially responsible, the Act provides for the holder <strong>of</strong> a
mineral title and the host community where the operations are to be conducted to conclude a
Community Development Agreement (CDA) or other such agreement that will ensure the
transfer <strong>of</strong> social and economic benefits to the community prior to the commencement <strong>of</strong> any
development activity within the lease area (Section 116).

144 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
For the avoidance <strong>of</strong> doubt and as a useful guide, the Act gives indication <strong>of</strong> developmental
issues to be addressed whenever they become relevant to the host community. Some <strong>of</strong> the
issues include:
a. educational scholarship, apprenticeship, technical training and employment
opportunities for indigenes <strong>of</strong> the communities;
b. financial or other forms <strong>of</strong> contributory support for infrastructural development; and
c. assistance with the creation, development and support <strong>of</strong> small scale and micro-enterprise.
The CDA is required to specify appropriate consultative and monitoring framework between
the Mineral title holder and the host community, and the means by which the community may
participate in the planning, implementation, management and monitoring <strong>of</strong> activities to be
carried out under the CDA. By this provision, the Act not only guarantee the rights <strong>of</strong> host
communities but also provides for their participation and involvement as a means <strong>of</strong> benefitting
from mineral deposits found within their area (Section 117).
4.11 Environmental Consideration
The holder <strong>of</strong> a mineral title in the exercise <strong>of</strong> his rights under the Mineral title is required to
have regard to the effect <strong>of</strong> the mining operations on the environment and take such steps as
maybe necessary to prevent pollution <strong>of</strong> the environment resulting from mining operation and
also to restore any area in respect <strong>of</strong> which mining operation has been carried out. It is therefore
the environmental obligation <strong>of</strong> the mineral title holder to minimise, manage and mitigate any
environmental impact resulting from mining operations and activities carried out under the
Act.
As part <strong>of</strong> the concern for environmental protection, section 119 mandates every holder <strong>of</strong>
an exploration licence, small-scale mining lease, mining lease, quarry lease and water use permit
to submit to the Mines Environmental Compliance Department, an environmental impact
assessment approved by the Federal Ministry <strong>of</strong> the Environment in respect <strong>of</strong> the Exploration
or Mining Operations to be conducted within the mineral title area and an Environmental
Protection and Rehabilitation programme containing such details as maybe provided for in
the environmental regulation issued pursuant to the Act prior to the commencement <strong>of</strong> mining
operations, application for extension <strong>of</strong> the lease or conversion <strong>of</strong> a mineral title.
The Act further provides for the establishment <strong>of</strong> an Environmental Protection and
Rehabilitation Fund for the purpose <strong>of</strong> guaranteeing the environmental obligations <strong>of</strong> holders
<strong>of</strong> mineral titles. The fund is to be managed by a reputable institution customarily engaged in
business as trustees <strong>of</strong> fund managers to administer the fund (Section 121).
4.12 Compensation Regime
For sundry issues, the Act provides for compensation. Some <strong>of</strong> the issues in respect <strong>of</strong> which the
Act provides for compensation are discussed below.

The Legal and Regulatory Framework ... 145
Compensation on Certificate <strong>of</strong> Occupancy
Section 104 <strong>of</strong> the Act provides that where, by reason <strong>of</strong> the grant or existence <strong>of</strong> a mining
lease, the President, in the case <strong>of</strong> Federal land, the Governor <strong>of</strong> a State, in any other case,
revokes a right <strong>of</strong> occupancy over land, the subject <strong>of</strong> a certificate <strong>of</strong> occupancy or resumes
possession <strong>of</strong> any land occupied under state lease, the mining lessee, shall pay to the Government
the amount <strong>of</strong> the compensation paid by the Governor to the holder <strong>of</strong> the certificate <strong>of</strong> occupancy
or the State lessee by reason <strong>of</strong> the revocation or resumption <strong>of</strong> possession as the case maybe.
The import <strong>of</strong> this section is that holders <strong>of</strong> certificate <strong>of</strong> occupancy over land that has been
revoked for the purpose <strong>of</strong> mining are entitled to be paid compensation by the authority revoking
and such compensation would eventually be paid back to the authority by the grantee <strong>of</strong> the
mining lease. The question may be asked that why not allow the mining lessee and the holder
<strong>of</strong> the certificate <strong>of</strong> occupancy negotiate the compensation in order for the holder to have a fair
and adequate compensation. It must be borne in mind that ownership and control is vested in
the government and they also possess the right to revoke in accordance with the Land Use Act
hence it maybe appropriate to deal with the issue <strong>of</strong> compensation as it concerns the revocation
<strong>of</strong> the right <strong>of</strong> occupancy over land.
Other compensation
A holder <strong>of</strong> Mineral title may, in addition to any other amount payable under the Act and
subject to valuation report by a government licensed valuer, pay to the occupier <strong>of</strong> land held
under a State lease or subject <strong>of</strong> a right <strong>of</strong> occupancy a reasonable compensation for any
disturbance <strong>of</strong> the surface rights <strong>of</strong> the owner or occupier and any damage done to the surface
<strong>of</strong> the land on which the exploration or mining is being or has being carried and in addition
pay to the owner <strong>of</strong> any crop, economic tree, building or work damaged, removed or destroyed
by the holder <strong>of</strong> the mining title or by any <strong>of</strong> its agents, servants, compensation for the damage,
removal or destruction <strong>of</strong> the crop, economic tree, building or work (S. 107). The assessment <strong>of</strong>
compensation is however to be determined by the Mining Cadastre Office in consultation with
the State Minerals Resources and Environmental Management Committee and a Government
licensed Valuer (S.108). While the parties involved in the determination <strong>of</strong> compensation to be
paid maybe considered relevant, it seems the key stakeholder that is the occupier <strong>of</strong> the land
has been left out.
Non payment <strong>of</strong> compensation
The Minister may suspend the Mineral title for default in payment <strong>of</strong> compensation by the
holder <strong>of</strong> a Mineral title six months after the grant <strong>of</strong> the title until the amount is paid and the
holder deposit such further sum as security or any further payment as the Minister may demand.
If however the holder does not make the payment and deposit within 30 days after the suspension
<strong>of</strong> the Mineral title, then the Minister may revoke the Mineral title (S.109).
Compensation to lessee
Compensation to lessee is also provided for in S. 112 <strong>of</strong> the Act to the effect that the holder <strong>of</strong> a

146 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Mineral title who surrenders any land as provided for under the Act shall be paid compensation
for any interference with any way, work, building or plant or for the expenses incurred in the
exploration <strong>of</strong> the area required for public purpose and, in the case <strong>of</strong> a mining lease, for the
loss or reasonable expectation <strong>of</strong> pr<strong>of</strong>its from proved minerals on the land required for public
purpose. Any question arising as to what are proved minerals, shall be determined by the
Minister, after obtaining the report <strong>of</strong> a special committee set up by the Minister for that purpose.
Any disagreement with respect to compensation under this section is to be determined by the
court.
Compensation for crops, economic trees, etc
Compensation for crops, economic trees etc. is more specifically provided for under S.113 and
subject in appropriate case, to the determination <strong>of</strong> the Minister after due consideration has
been giving to the report <strong>of</strong> any committee set up for the consideration <strong>of</strong> any compensation to
be paid by the Federal Government to the owner or occupier <strong>of</strong> land for which the lease or
licence is or maybe granted.
It should be noted that a person who suffers any damage, loss or disturbance <strong>of</strong> his right by
reason <strong>of</strong> the operation <strong>of</strong> any <strong>of</strong> the provisions <strong>of</strong> the Environmental Consideration and Rights
<strong>of</strong> Host Communities chapter <strong>of</strong> the Act shall be entitled to be paid adequate compensation in
respect <strong>of</strong> damage, loss or disturbance and refer any question as <strong>of</strong> his interest in the subject
matter <strong>of</strong> the damage, loss or disturbance and as to the amount <strong>of</strong> compensation payable for
determination to the Federal High Court having jurisdiction in the area in which the subject
matter is situate.
4.13 Illegal Mining
The conduct <strong>of</strong> exploration or mining <strong>of</strong> minerals or quarrying operations other than in
accordance with the provisions <strong>of</strong> the Act is regarded as illegal mining and amounts to an
<strong>of</strong>fence (Section 131). Some other <strong>of</strong>fences under the Act that need to be highlighted are false
and misleading statements or non declaration <strong>of</strong> material particulars. A holder <strong>of</strong> mineral licence
who commits the later <strong>of</strong>fences is liable to have his licence revoked and on conviction at the first
instance, to a fine not less than N20, 000,000; and imprisonment <strong>of</strong> not less than 5 years. If the
<strong>of</strong>fence is a continuing one, whether or not it is a first <strong>of</strong>fence, the person convicted shall, in
addition, be liable to a fine <strong>of</strong> N20, 000 in respect <strong>of</strong> each day during which the <strong>of</strong>fence continues
(Section 133). The punishment that the <strong>of</strong>fence under the Act attracts appears sufficient to
deter any operator in the sector from acting in a manner that is not transparent or accountable
and will also discourage illegal mining.
4.14 Dispute Resolution
By the provisions <strong>of</strong> section 141 <strong>of</strong> the Act, any dispute arising between the Holder <strong>of</strong> a Mineral
Title and the Government in respect <strong>of</strong> the interpretation and application <strong>of</strong> the Act, its regulations

The Legal and Regulatory Framework ... 147
and the terms and conditions <strong>of</strong> Mineral Titles shall be resolved, in the first instance, on an
amicable basis. However, where the dispute is in the nature <strong>of</strong> a bonafide investment dispute
and such a dispute is not amicably settled as provided under section 141, it shall be resolved in
accordance with the provisions <strong>of</strong> the Nigerian Investment Promotions Commission (NIPC)
Act, Cap. N117, Laws <strong>of</strong> the Federation <strong>of</strong> Nigeria, 2004. Any other dispute between the Holder
<strong>of</strong> a Mineral Title and the Government shall be resolved in the Federal High Court, if not settled
on an amicable basis. The provision on dispute resolution under the Act is innovative and is set
out to embrace alternative dispute resolution by first encouraging settlement on amicable basis.
The reference to the NIPC Act with regards to mining investment disputes relates to section
26 <strong>of</strong> the NIPC Act 2004 which provides that where a dispute arises between an investor and
any Government <strong>of</strong> the Federation in respect <strong>of</strong> an enterprise, all efforts shall be made through
mutual discussion to reach an amicable settlement and that any dispute between an investor
and any Government <strong>of</strong> the Federation in respect <strong>of</strong> an enterprise to which this Act applies
which is not amicably settled through mutual discussions, maybe submitted at the option <strong>of</strong>
the aggrieved party to arbitration as follows:
a. in the case <strong>of</strong> a Nigerian investor, in accordance with the rules <strong>of</strong> procedure for arbitration
as specified in the Arbitration and Conciliation Act; or
b. in the case <strong>of</strong> a foreign investor, within the framework <strong>of</strong> any bilateral or multilateral
agreement on investment protection to which the Federal Government and the country
<strong>of</strong> which the investor is a national are parties; or
c. in accordance with any other national, or international machinery for the settlement <strong>of</strong>
investment disputes agreed on by the parties.
The NIPC Act provides further that, in respect <strong>of</strong> any dispute where there is an agreement
between the investor and the Federal Government as to the method <strong>of</strong> dispute settlement to be
adopted, the rules <strong>of</strong> the International Centre for Settlement <strong>of</strong> Investment Dispute shall apply.
4.2 Other Related Laws
4.2.1 Nigerian Geological Survey Agency (Establishment) Act 2006
The Nigerian Geological Survey Agency Act is another legislation that regulates the solid mineral
sub-sector by promoting among other things, the research for exploration and exploitation <strong>of</strong>
specialised geo-scientific services to both public and private sectors. The agency is established
as a body corporate with perpetual succession and common seal. It may sue and be sued in its
corporate name (Section 1(2)). Membership <strong>of</strong> the Agency Board are drawn from other Ministries
and Agencies <strong>of</strong> government whose activities are related to the solid mineral sub-sector such as
the Ministry <strong>of</strong> Petroleum Resources; Ministry <strong>of</strong> Science and Technology; Ministry <strong>of</strong>
Environment; Ministry <strong>of</strong> Water Resources; the Nigeria Mining and Geo-Sciences Society and
the Surveyor-General <strong>of</strong> the Federation (Section 3).

148 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Section 8 <strong>of</strong> the NGSA Act provides for the functions <strong>of</strong> the Agency which includes carrying
out detailed geological investigations, geo-statistics and other mineral calculations as estimations
and valuation; produce geological, geophysical and geo-chemical maps <strong>of</strong> Nigeria on various
scale; promote the search for and exploitation <strong>of</strong> minerals resources in Nigeria; promote
investment in Nigeria’s solid mineral and cooperate with both local and foreign investors and
organisations; maintenance and updating <strong>of</strong> solid minerals statistics and data bank for
investment promotion and to produce periodic and annual reports <strong>of</strong> mineral statistics.
The NGSA Act has provisions relating to land to the effect that subject to the Land Use Act,
the Agency may acquire any land and deal with such land for the purpose <strong>of</strong> discharging its
functions. Some <strong>of</strong> the purposes in respect <strong>of</strong> which the Agency may acquire or deal with land
include surveying the land in connection with any geological or mineral exploration and carrying
on drilling and excavation activities.
In entering into any land or acquiring such land in pursuant <strong>of</strong> its function, the Agency is
required to serve a written notice to the occupier <strong>of</strong> the land describing the nature <strong>of</strong> work
intended to be carried out on the land. Pursuant to the discharge <strong>of</strong> its functions and powers,
the agency is required by section 36 <strong>of</strong> the Act to restore the environment and pay compensation
for damages done to any building, crops and economic trees.
4.2.2 Federal Environmental Protection Act 1988 as amended
This decree established the Federal EnvironmentalProtection Agency (FEPA) and specifies its
functions and financial provisions amongst others. The Agency is charged with the responsibility
<strong>of</strong> encouraging States and Local Government Councils to set up their own environmental
protection bodies. FEPA has however been superseded by the Federal Ministry <strong>of</strong> Environment
(FME) in 1999.
Further to the provision <strong>of</strong> the establishment <strong>of</strong> FEPA, a number <strong>of</strong> regulations have been
formulated to protect the environment. Some <strong>of</strong> the regulations are:
* National Environmental Protection (Pollution Abatement in <strong>Industries</strong> and
Facilities Generating Waste) Regulations (S.I.8)
These regulations were formulated in 1991 and specify parameters for effluent limitation by
industry. The regulation contains a section that deals with the mining and metallurgy industry
and also a limited number <strong>of</strong> parameters for waste and gaseous emissions.
* National Environment Protection (Effluent Limitation) Regulations (S.I.9)
These regulations were formulated to control the release <strong>of</strong> hazardous or toxic substances into
the environment. The regulation requires any industry that releases an effluent into the
environment with constituents beyond permissible limits to apply for a waste discharge/disposal
permit. It also states that FEPA shall demand an environment audit from existingindustries
and environmental impact assessment from new industries.

The Legal and Regulatory Framework ... 149
* National Environmental Protection (Management <strong>of</strong> solid and hazardous waste)
Regulations (S.I. 15)
These regulations were formulated for the identification, recording, monitoring and disposal
<strong>of</strong> solid and hazardous waste. The regulations have an attached schedule which list all the
chemicals that are classified as hazardous and a number <strong>of</strong> specified waste sources. The list is
extremely extensive and includes a number <strong>of</strong> heavy metal and cyanide. Although the
regulations do not specifically refer to the mining industry but it include surface impoundments
and waste piles which could be construed as tailings storage facilities and waste dumps and as
such becomes relevant to the mining industry.
* National Guidelines on Environmental Management Systems
These guidelines were formulated to establish the requirement for an Environmental
Management Service (EMS) in ‘all organisations/facilities in Nigeria.’ They also state that the
EMS should be audited annually or as deemed necessary by the FEPA. The guidelines specify
the core elements for an EMS and the requirements <strong>of</strong> the audit.
* National Guidelines for Environmental Audit
These guidelines were formulated to serve as a reference for compliance with the Environmental
Audit Requirement <strong>of</strong> FEPA. The regulations state that it is mandatory for a company to carry
out an audit every 3 years or at the discretion <strong>of</strong> the Director General <strong>of</strong> FEPA. The regulations
list the types <strong>of</strong> audit. These are Regulatory Compliance Audit; Process Safety Audit;
Occupational Health Audit; Product Quality Audit; Liability Audit; and Management Audit
with their respective scopes. It is however noted that the 3 years requirement here is obviously
at odds with the annual audit required under the EMS Guidelines.
* National Guidelines on Waste Disposal through Underground Injection
These guidelines were formulated to control the disposal <strong>of</strong> oilfield and industrial waste
underground. Industrial waste is classified as hazardous and non-hazardous according to
regulations S.I. 8, 9 & 15 above. The standards are intended mainly for the hydrocarbon industry
but, by including industrial waste, could also refer to practices in the mining industry.
* National Guidelines and Standards for Water Quality
These guidelines were formulated with reference to regulations S.I. 8 and 9 above and contained
an exhaustive list <strong>of</strong> water quality parameters designed to protect public health and welfare
and enhance the quality <strong>of</strong> water. Due to lack <strong>of</strong> background data in the country, the regulations
are based on water quality standards and guidelines from a range <strong>of</strong> other developed and
developing countries. The regulations addresses the major uses <strong>of</strong> water such as drinking;
recreation; freshwater aquatic life; agricultural (irrigation and livestock watering); and industrial
use. Although the industry specific standards do not include the mining industry but due to
the provision <strong>of</strong> the Nigerian Minerals and Mining Act on Water Use Permit, these guidelines
are considered relevant to the mining industry.

150 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
4.2.3 Environmental Impact Assessment Act
This legislation outlines the goals and objectives <strong>of</strong> an Environmental Impact Assessment (EIA),
the minimum content <strong>of</strong> an EIA and a list <strong>of</strong> activities that are not permitted to go ahead until
the Federal Environmental Protection Agency has been consulted and given its approval. The
list <strong>of</strong> activities is contained in a schedule and includes:
* Mining <strong>of</strong> materials in new areas where the mining lease covers a total area in excess <strong>of</strong>
250 hectares;
* Ore processing, including concentrated for aluminium, copper, gold or tantalum; and
* Sand dredging involving an area <strong>of</strong> 50 hectares or more.
The Regulations also include the processing for screening projects and reviewing and approving
an EIA.
* Environmental Impact Assessment Procedure Guidelines
These guidelines were formulated under the Environmental Impact Assessment Act to assist
the proponent to conform to the requirements <strong>of</strong> the Act. The guideline specifies the process to
follow in steps and include a flow chart <strong>of</strong> the EIA review procedure.
* Environmental Impact Assessment Sectoral Guidelines - Mining <strong>of</strong> Solid Minerals,
Beneficiation and Metallurgical Processes
These guidelines were formulated and designed specifically for the mining industry, to assist
the proponent in conforming to the requirements <strong>of</strong> the Act. They are designed to ensure best
practices, environmental management and provide an overview <strong>of</strong> the key environmental,
socio-economic and cultural issues, both direct and indirect, and potential significant
environmental impacts that should be addressed in the EIA.
National Environmental Standards and Regulations Enforcement Agency
(Establishment) Act
The National Environmental Standards and Regulation Enforcement Agency Act (NESREA)
was established in 2007 and charged with the responsibility as the enforcement Agency for
environmental standards, rules, laws, policies and guidelines towards the protection and
development <strong>of</strong> the environment in Nigeria and for other related matters. The Agency is a
body corporate with perpetual succession and common seal which is able to sue and be sued in
its corporate name (Section 1(2)).
The Agency’s scope <strong>of</strong> responsibility covers such areas as biodiversity conservation and
sustainable development <strong>of</strong> Nigeria’s natural resources in general and environmental technology
(Section 2). Membership representatives on the board are drawn from related Ministries and

The Legal and Regulatory Framework ... 151
Agencies such as Solid Minerals; Agriculture and Natural Resources, Water Resources; Science
and Technology etc (Section 3).
Some <strong>of</strong> the functions <strong>of</strong> the Agency include enforcing compliance with laws, guidelines,
policies and standards on environmental matters; international agreements, protocols,
conventions and treatise on the environment including climatic change, biodiversity,
conservation, desertification, forestry, oil and gas, chemicals, hazardous wastes, ozone depletion,
marine and wild life, pollution, sanitation and such other environmental agreements as may
from time to time come into force; enforce environmental control measures through registration,
licencing and permitting systems other than in oil and gas sector (Section 7). By the exclusion
<strong>of</strong> the oil and gas sector and none mention <strong>of</strong> solid minerals, the implication therefore is that
NESREA control measure, registration, licencing applies to the solid mineral sector.
Creating public awareness and providing environmental education on sustainable
environmental management and promoting private sector compliance with environmental
regulations are also functions required to be performed by NESREA.
4.2.4 Nigerian <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative (NEITI) Act
This Act was enacted to ensure due process and transparency in the payments made by extractive
industry companies to the Federal government; ensure accountability in the revenue receipts
<strong>of</strong> the Federal government from companies in the extractive industry and eliminate all forms
<strong>of</strong> corrupt practices in determination, payments, receipts and posting <strong>of</strong> revenue accruing to
the Federal government.
To fulfil its purpose, the NEITI is required to perform the following functions:
* Develop a framework for transparency in the reporting and disclosure by companies in
the extractive sector.
* Evaluate the practices <strong>of</strong> extractive industries to ensure due process in respect <strong>of</strong>
acquisition <strong>of</strong> acreage, budgeting, contracting, procurement, and production cost pr<strong>of</strong>ile.
* Ensure transparency in the management <strong>of</strong> federal government investments in the
extractive industry.
* To request from any company in the extractive industry amount <strong>of</strong> money paid and
received by the company as revenue on behalf <strong>of</strong> the federal government.
* To ensure that payments due to the federal government from companies in the extractive
industry are duly paid.
* To identify weakness and undertake measure to enhance the activities <strong>of</strong> organs <strong>of</strong> the
Federal government having the responsibility to govern revenue payment.
4.2.5 The Public Procurement Act
The Public Procurement Act established the Bureau <strong>of</strong> Public Procurement (BPP) with the
objective <strong>of</strong> harmonising existing government policies and practices on procurement and
ensuring probity, accounting and transparency in the procurement process; the establishment

152 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
<strong>of</strong> pricing standards and benchmarks; ensuring the application <strong>of</strong> fair, competitive transparent,
value for money standards and practices for the procurement and disposal <strong>of</strong> public assets and
services and the establishment transparency, competitive, cost effectiveness and pr<strong>of</strong>essionalism
in the public sector procurement system.
4.3 Emerging Issues And Challenges
4.3.1 Institutional role and responsibility
The establishment <strong>of</strong> the Environmental Compliance Department in the Ministry <strong>of</strong> Mines and
Steel Development with overlapping responsibilities with the Federal Ministry <strong>of</strong> Environment
and the National Environmental Standards and Regulations Enforcement Agency is an issue
that could lead to confusion if not properly coordinated in a cooperative manner that will
ensure environmental protection from the negative impact <strong>of</strong> mining operation.
4.3.2 Restoration <strong>of</strong> mines land
Although the Nigerian Minerals and Mining Act in S. 114 provides that the Minister shall by
order require the grantee <strong>of</strong> a mining lease to restore any area in respect <strong>of</strong> which mining
operation has been, is being or is to be carried out, on or after the date on which the Act comes
into operation. This provision appears not to have adequately dealt with the issue <strong>of</strong> restoration
or reversibility <strong>of</strong> mines land even though the provision can be construed as a mandatory
provision on the Minister, it is likely that in practical terms, the Minister may not make such an
order and in the event that such an order is not made, the grantee cannot be said to have
violated any provision <strong>of</strong> the law.
4.3.3 Illegal mining
Illegal mining is a serious challenge confronting the Solid Mineral Sector most especially in
terms <strong>of</strong> revenue loss to the government, the incessant conflict arising from the illegal activities
because <strong>of</strong> the involvement <strong>of</strong> criminals within the ranks <strong>of</strong> the illegal miners. Furthermore, the
uncoordinated and unregulated activities <strong>of</strong> illegal miners have been reported to have resulted
into loss <strong>of</strong> lives and properties in host communities due the numerous burrow pits left behind
from their activities. Illegal mining has also been found to constitute physical barriers to any
future mechanised mining which maybe initiated in the sites where this illegal activities have
been carried out ((House Committee on Solid Minerals, 2001). In addition illegal mining are
usually accompanied by associated environmental and social effect on the host communities.
4.3.4 Community participation and involvement
Whilst it maybe correct to state that the Act made provision for the acquisition <strong>of</strong> mining rights
even for small scale and artisanal mining, host communities and in fact the states wherein they
are located are clamouring for greater participation, control and ownership <strong>of</strong> the mineral
resources thus making community participation and involvement a key issue and challenge

The Legal and Regulatory Framework ... 153
for the sector. As a matter <strong>of</strong> fact, the various solid minerals communities are warming up to
become restive like the Niger-Delta oil producing communities.
4.3.5 Labour-related issues
The Act seems to be silent on labour-related issues especially as it concerns health, safety and
compensation, and there appears to be no reference to any existing mining regulation that
deals with the subject matter.
4.3.6 Manpower development
Unlike the oil and gas sector that recognises the need for manpower development and made
provisions for same through the Petroleum Technology Development Fund, the Nigerian
Minerals and Mining Act makes no provision for manpower development. It must however be
remarked that due to the complex and highly technical nature <strong>of</strong> the solid mineral sector,
capacity building and manpower development is a key challenge that needs to be addressed.
4.4 Recommendations
i. There should be a clear cut demarcation <strong>of</strong> the responsibilities <strong>of</strong> the governmental
Ministry, Departments and Agencies charged with environmental protection resulting
from mining operations. The activities <strong>of</strong> the various MDA should be centrally
coordinated to ensure effectiveness;
ii. In order to achieve restoration <strong>of</strong> mines land, it is suggested that a mining restoration
regulation be made pursuant to the mandate <strong>of</strong> the Minister to make an order for
restoration. Furthermore, a restoration programme or scheme should be made a
condition precedent to the grant <strong>of</strong> mining rights;
iii. To curb the activities <strong>of</strong> illegal miners, appropriate monitoring and enforcement
strategies should be put in place by the Mines Inspectorate Department and other
relevant agencies. The strategy should also consider ways <strong>of</strong> assisting to formalise genuine
cases <strong>of</strong> informal miners in accordance with the provisions <strong>of</strong> the Act;
iv. The provision on ownership and control <strong>of</strong> mineral resources should be reviewed to
encourage community participation and involvement in a more beneficial ownership
and control regime. A suggestion in this regard is either the adoption <strong>of</strong> community
ownership or the legal recognition <strong>of</strong> the beneficiary status <strong>of</strong> host communities;
v. The safety and health <strong>of</strong> the miners or employees in mining fields is very important, to
this effect, a minerals and mining (safety) regulation in the same fashion after that <strong>of</strong>
the oil and gas industry is not only necessary but very important;

154 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
vi. There is a need to either review the Act or for the Minister to make regulation that will
encourage an integrated value chain development with emphasis on beneficiation and
value addition to mineral resources in their raw state in order to for the country to
benefit more from her vast mineral resources in terms <strong>of</strong> wealth and job creation;
vii. Due to the complex nature <strong>of</strong> mining operation and the significance <strong>of</strong> conducting
mining operations in an environmentally friendly manner, it is imperative to build the
capacity <strong>of</strong> operators and employees in the sector. Furthermore, in order to achieve a
meaningful development <strong>of</strong> the mineral sector, the Act should be reviewed to provide
for the pr<strong>of</strong>essionalisation <strong>of</strong> the headship (either the Minister or Permanent Secretary)
<strong>of</strong> the Ministry <strong>of</strong> Mines and Steel Development. It is expected that if the headship <strong>of</strong>
the Ministry is pr<strong>of</strong>essionalise, it will fast track the growth and development <strong>of</strong> the
sector;
viii. The provision the Act that “...the lessee shall during the continuance <strong>of</strong> the lease pay to
the members <strong>of</strong> that community as means to determine lest a government levied value.”
should be expunged. The phrase lacks clarity and is devoid <strong>of</strong> any logical meaning. If
however the intent <strong>of</strong> the phrase is to ensure that compensation be paid to host
communities over land which they customarily win minerals, such compensation should
be assessed with resort to the community and not just by the government and this
should be clearly stated; and
ix. The Act should be reviewed to provide for the inclusion <strong>of</strong> the occupier <strong>of</strong> land in the
consultation process for the determination and assessment <strong>of</strong> a fair and adequate
compensation to be paid to the owner or occupier for the disturbance <strong>of</strong> the surface
rights and damage or removal or destruction <strong>of</strong> any crop, economic tree, building or
work.
x. Generally, there are quite a number <strong>of</strong> commendable provisions such as the basic
principles <strong>of</strong> priority (i.e. first come, first served; objectivity i.e. based on legally defined
sets <strong>of</strong> regulations and procedures; non-discretionary i.e. same rules for all and
transparency i.e. openness to the public should be enforced to the letter. In this wise the
civil society and other stakeholders should provide the necessary support and logistics.
4.5 Conclusion
Until the discovery <strong>of</strong> oil in commercial quantity in the country, solid minerals and agriculture
held sway as the mainstay <strong>of</strong> the economy. Despite the potentials <strong>of</strong> the solid mineral sector,
very little economic contributions were made by this viable sector to the nation’s economy.
Presently, the economic survival <strong>of</strong> the country is delicately tied to the volatile prices <strong>of</strong> crude
oil which are dictated and manipulated by the interplay <strong>of</strong> forces <strong>of</strong> the international market
and policies, while exploration and in particular, exploitation activities in the solid minerals
sector appears to have been abandoned and conceded to illegal miners.

The Legal and Regulatory Framework ... 155
To reposition and transform the sector, the Nigerian Minerals and Mining Act <strong>of</strong> 2007 which
is currently in force have improved on the previous legal regime that did not address the security
<strong>of</strong> tenure, the unduly wide discretionary powers <strong>of</strong> the Minister in charge <strong>of</strong> the solid mineral
sector, the pre-emptive right <strong>of</strong> government on all minerals extracted and inadequate
environmental provisions, all <strong>of</strong> which resulted in the inability <strong>of</strong> the sector to attract desired
investment.
Provisions <strong>of</strong> the new Act show that it is capable <strong>of</strong> aiding the wholesome development <strong>of</strong>
the Minerals and Mining sector. The Act clearly separate the role <strong>of</strong> government from that <strong>of</strong>
‘owner-operator’ to ‘administrator-regulator’. This allows the private sector to take a pivotal
role in the growth <strong>of</strong> the mining sector and also provide the possibility for efficient and effective
utilisation, exploration and exploitation <strong>of</strong> solid minerals in the country. The provisions <strong>of</strong> the
new Act even though not perfect appears to be simpler, more transparent, less ambiguous and
implementable as they relate to prospecting, mining, processing and marketing, health, safety
and environment when compared to the former Minerals and Mining Act <strong>of</strong> 1999.
The current legal and regulatory framework <strong>of</strong> the solid mineral sector can therefore be
said to seek to create an enabling environment for private sector participation through
transparent, objective and non-discretionary access to mineral rights, and flexibility and mobility
<strong>of</strong> minerals rights without government interference.
To this effect, access to mineral title is open to all (big and small, foreign and local) on a level
and equitable playing field and on ‘first come first served’ basis. Time lines were also introduced
to curtail the exercise <strong>of</strong> administrative discretion and government pre-emptive rights were
removed while provisions were made to expedite the process for obtaining approval <strong>of</strong> mineral
title and transfer where need be.
The Act also provides for sound environmental control and Community Development
Agreements and the involvement <strong>of</strong> other stakeholders through the creation <strong>of</strong> States’ Mineral
Resources and Environmental Management Committees to facilitate access to land. The new
Act can therefore be described as an investor friendly legislation and be seen as a commitment
by government to create a competitive business environment and a unique role for the private
sector as operator and owner <strong>of</strong> Nigeria’s mineral resources. Commendable as the Act may be,
there are a number <strong>of</strong> issues and challenges such as community participation, labour safety
and health issues in respect <strong>of</strong> which recommendation have been made that need to be addressed
for the meaningful development <strong>of</strong> the sector. The impressive nature <strong>of</strong> the Act with provisions
for transparency, accountability and environmental concern have led to the question on why a
different legal and regulatory framework exists for solid minerals and oil and gas since both
are minerals and were previously regulated by a common minerals ordinance in the past. It is
the view <strong>of</strong> this writer that the different nature, characteristics and stages <strong>of</strong> growth and
development <strong>of</strong> solid minerals and oil and gas may be responsible. Finally, it must be remarked
that the impressive provisions <strong>of</strong> the Nigerian Minerals and Mining Act unlike the deluge <strong>of</strong>
legislation governing the oil and gas sector may not be unconnected with the fact that it was
enacted at a time when transparency initiatives gained prominence in the country.

156 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
References
Constitution <strong>of</strong> the Federal Republic <strong>of</strong> Nigeria, 1999
Environmental Impact Assessment Act, 1992
Federal Environmental Protection Agency Act, 1988, as amended
H ouse Committee on Solid M inerals (2001) Report <strong>of</strong> the First Nigerian Solid Minerals Summit
published by the House Committee on Solid Minerals Development, National Assembly,
Abuja held on 17-18 Sept, 2001.
Mining Cadastre Office, Guidelines for Applicants and Holders <strong>of</strong> Mineral Titles.
Mining Journal special publication, London, February 2006.
National Environmental Standards and Regulations Enforcement Agency (Establishment) Act,
2007.
Nigerian Minerals and Mining Act 2007.
Nigerian Geological Survey Agency (Establishment) Act, 2006.
National Minerals and Metals Policy , January 2008 published by the Ministry <strong>of</strong> Mines and
Steel Development.
N.J Coppin, Sectoral Environmental and Social Assessment for the Sustainable Management <strong>of</strong>
Mineral Resources Project, Wardell Armstrong November 2005.

5
Transparency and Accountability In Nigerian’s <strong>Extractive</strong>
<strong>Industries</strong>: The Solid Mineral Sub-Sector
Ogoh Alubo
157

Abstract
This study probes the operation and management <strong>of</strong> the extractive
industries in Nigeria with special emphasis on the solid mineral subsector.
The critical motivation is to establish the place <strong>of</strong> transparency
and accountability as twin ethical principles in the operation <strong>of</strong> the solid
mineral industry. The study utilises both primary and secondary data to
achieve the objectives. The study also targets at capturing critical opinions
<strong>of</strong> stakeholders in respect to the openness and answerability <strong>of</strong> actors within
the extractive industry sub-sector <strong>of</strong> the Nigerian economy. A painstaking
review <strong>of</strong> extant literature is undertaken to establish with some certainty,
the extent to which the industry submits itself to public scrutiny. The
findings <strong>of</strong> the study include: limited openness and responsibility in the
operation and management <strong>of</strong> the extractive industries; lack <strong>of</strong> accurate
records keeping by the extractive companies surveyed; limited sense <strong>of</strong>
corporate responsibility; absence <strong>of</strong> civil society organisations as watchdog
<strong>of</strong> the industry; dominance <strong>of</strong> illegal miners within the industry as a
result <strong>of</strong> weak monitoring and supervision, among others. Accordingly,
the study recommends the active involvement <strong>of</strong> civil society organisations
in scrutinising the activities <strong>of</strong> extractive industry actors to ensure strict
compliance with prescribed operational rules aimed at promoting
transparency and accountability; the coalitions <strong>of</strong> civil society
organisations should be supported by government to raise the consciousness
<strong>of</strong> Nigerians about activities <strong>of</strong> the extractive industry sub-sector; broad
access should be created to allow community members to monitor
development within the industry; the Nigerian <strong>Extractive</strong> <strong>Industries</strong>
Transparency Initiative should be adequately supported to ensure full
disclosures <strong>of</strong> revenues by extractive companies and close monitoring <strong>of</strong>
the revenues paid to government to ensure that they are not privatised (or
personalised) by certain corrupt public <strong>of</strong>ficials.
158

Key Terms
The study uses terms which require definitions to make them mutually comprehensible. In
other words, these terms used frequently need to be carefully deconstructed so that readers can
make sense out <strong>of</strong> them in a way the researchers intended them to be comprehended. Terms
commonly used in the study are: transparency, accountability, corruption and governance.
These terms are briefly defined as follows:
i) Transparency
This concept is used here to refer to openness in public life affairs in a way that citizens can
easily see through operations and activities without any hindrance. It is the openness <strong>of</strong> state
and other businesses and conduct to the scrutiny <strong>of</strong> other state actors and <strong>of</strong> the public (Diamond,
2004). Any business can be described as transparent when every interested person can see
through and make sense out <strong>of</strong> it.
ii) Accountability
This concept refers to the tradition <strong>of</strong> public <strong>of</strong>ficials or governing agencies being answerable
or responsible for their actions and inactions. Accountability is one <strong>of</strong> the mechanisms for
promoting ethical practices in the business <strong>of</strong> government. Governing <strong>of</strong>ficials are expected to
answer for their conduct as may become necessary. They are to be answerable and responsible
to the public and other organs <strong>of</strong> government to ensure that appropriate ethical practices are
complied with in the business <strong>of</strong> government. Government is likely to be effective and responsive
when those entrusted with fiduciary political power cultivate good sense <strong>of</strong> probity and
accountability.
iii) Corruption
Broadly defined, corruption is the conscious use <strong>of</strong> fiduciary power by public <strong>of</strong>ficials for private
gains. It is the brazen abuse <strong>of</strong> one’s position or <strong>of</strong>fice for private pecuniary/material gain.
Corruption has created a huge disconnect between the stupendous wealth <strong>of</strong> Nigeria and the
level <strong>of</strong> socio-economic well being <strong>of</strong> Nigerians. Inequitable distribution and wasteful
employment <strong>of</strong> resources, disempowerment <strong>of</strong> key sectors <strong>of</strong> the society, exclusion <strong>of</strong> the majority
from development opportunities are few consequences <strong>of</strong> corruption that conspire to produce
the abject poverty that, like corruption itself, has become a national character (Ayodele, 2003).
The widespread and endemic nature <strong>of</strong> corruption in Nigeria is but an expression <strong>of</strong> pr<strong>of</strong>ound
crisis <strong>of</strong> governance.
159

160 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
iv) Governance
This is the astute and prudent management <strong>of</strong> power towards achieving collectively articulated
and compacted goals <strong>of</strong> the society. It is the way and manner power is exercised in the
management <strong>of</strong> a country’s economic and social resources to foster equitable development in
the society. Governance provides a broad framework through which citizens seek to pursue
their legitimate developmental aspirations. Governance is said to be good when it is predicated
on the principles <strong>of</strong> accountability, transparency, rule <strong>of</strong> law, due process, constitutionalism,
consultation, trust, probity and similar values. Political power has not been prudently utilised
to meet the legitimate socio-economic needs <strong>of</strong> the people especially the vulnerable and
marginalised groups such as women, children and the hard-to-reach in the Nigerian society.

Transparency and Accountability ... 161
5.1 Introduction
The extraction <strong>of</strong> natural resources within a territorially defined space is one <strong>of</strong> the most critical
functions <strong>of</strong> modern states. This is because it is pretty difficult for a state to promote the
developmental aspirations <strong>of</strong> its citizenry without considerable capacity to optimally extract
natural resources embedded within its territorially determined sphere <strong>of</strong> jurisdiction. One <strong>of</strong>
such providential natural resources a country maybe endowed with is solid mineral deposits. A
couple <strong>of</strong> countries such as Sierra Leone, Democratic Republic <strong>of</strong> Congo, United States <strong>of</strong>
America and a host <strong>of</strong> others are blessed with mineral resources <strong>of</strong> different kinds. While some
have painstakingly explored and exploited some <strong>of</strong> these mineral resources to enhance their
developmental pr<strong>of</strong>ile, others have not optimised the benefits <strong>of</strong> solid mineral deposits within
their territorial confines. In a sense, they have not optimally extract these huge deposits <strong>of</strong> solid
minerals to enable them earn considerable revenue to aid in expanding the frontiers <strong>of</strong> national
development. Consequently, these countries have not recorded significant development strides.
Nigeria is one <strong>of</strong> the countries which have vast solid mineral deposits. Indeed, there is hardly
any state in Nigeria that does not possess one or two mineral deposits in commercial quantity
and which are yet to be effectively explored and exploited to enhance the revenue pr<strong>of</strong>ile <strong>of</strong> the
country. The reluctance to mine these mineral deposits could partly be adduced to the thriving
oil industry located in the Niger Delta <strong>of</strong> the Nigerian federation and which has converted the
economy into an oil-dependent one. Nigeria has huge reserves <strong>of</strong> natural gas; this too is yet to
be fully exploited. Yet instead <strong>of</strong> turning Nigeria into one <strong>of</strong> the most prosperous states on the
African continent, these natural resources have enriched a small minority while the vast majority
has become increasingly impoverished with a per capita income <strong>of</strong> only U.S. $260 a year. Even
with vast revenues from oil, Nigerians are among the poorest people in the world (Human
Rights Watch, 1999: 6). Preceding the discovery <strong>of</strong> oil in commercial quantity in the Niger
Delta region, tin ore, columbite and coal played very significant role in the socio-economic
development <strong>of</strong> Nigeria. However, as the oil sector assumed prominence in the country’s political
economy, the solid minerals sub-sector receded into the background. In effect, the solid minerals
sub-sector was left in the hands <strong>of</strong> informal miners who are driven by personal gains rather
than the collective developmental aspirations <strong>of</strong> Nigerians.
More <strong>of</strong>ten than not, informal miners do not have formal license to engage in mining activities
as the case <strong>of</strong> tin mining on the Plateau would show. This kind <strong>of</strong> whimsical arrangement does
not only deprive government <strong>of</strong> revenue but, more fundamentally, fuels corruption because
government <strong>of</strong>ficials aid and abet this unwholesome practice in the industry. There is widespread
abuse <strong>of</strong> due process in issuing mining license. Frequently, only cronies or close relations <strong>of</strong>
government <strong>of</strong>ficials responsible for the issuance <strong>of</strong> licenses is granted favour. Individuals who
are remotely connected to licensing <strong>of</strong>ficials are either out rightly denied the license or where
they are granted consideration at all; the terms and conditions are far different from those
granted to cronies and intimate relations. The widespread and brazen abuse <strong>of</strong> due process
became very pronounced during the protracted authoritarian military rule. Successive military
governments exhibited brazen lack <strong>of</strong> transparency and accountability in the conduct <strong>of</strong> business

162 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
<strong>of</strong> government. Transparency and accountability promote openness in the conduct <strong>of</strong>
government business to the scrutiny <strong>of</strong> the public. Public <strong>of</strong>ficials are likely to be more
responsible and responsive in their conduct if they are conscious <strong>of</strong> the watchful eyes <strong>of</strong> the
public into governmental affairs.
When the military held sway, the twin principles <strong>of</strong> transparency and accountability were
abused with impunity. In a sense, the military promoted what Joseph (2003: 13) has aptly
referred to as ‘catastrophic governance’ in Nigeria. By catastrophic governance, Joseph is
referring to the “endemic practices that steadily undermine a country’s capacity to increase the
supply <strong>of</strong> public goods.” The solid mineral sub-sector <strong>of</strong> the Nigerian economy was heavily
permeated by these endemic practices some <strong>of</strong> which have been alluded to in the foregoing.
The absence <strong>of</strong> democratically constituted legislative arm <strong>of</strong> government which would have
served as a watchdog during military rule worsened the abuse <strong>of</strong> principles <strong>of</strong> due process,
transparency and accountability. There was no established institution to perform oversight
functions which could have checked the excesses <strong>of</strong> the authoritarian military rulers. There was
scarcely any attempt to cultivate in Nigerians, a good sense <strong>of</strong> ownership <strong>of</strong> solid minerals
because <strong>of</strong> the narrowly constructed access to the proceeds <strong>of</strong> solid minerals.
The political system constructed in the image <strong>of</strong> military institution was clothed with opaque
material and therefore not visible to any critical eye. When good governance is practiced, it
makes it possible to generate massive revenues from the providential resources to promote
meaningful economic growth and effectively combat poverty in the society. However, when
governance is catastrophic as described by Joseph, the resources may merely breed corruption,
crippling poverty and generating widespread conflicts and thereby producing what is aptly
referred to in the literature as “resource curse” as manifest in the unspeakable scale <strong>of</strong> violence
in the Niger Delta region.
It is against this bleak background that progressive forces in Nigeria after May 29, 1999,
when democratic governance was restored, initiated the process <strong>of</strong> opening up the solid minerals
industry to the scrutiny <strong>of</strong> the Nigerian public. The intense drive <strong>of</strong> civil society organisations
and other stakeholders towards democratising access to the solid mineral sub-sector has yielded
positive result as expressed by the establishment <strong>of</strong> the Nigerian <strong>Extractive</strong> <strong>Industries</strong>
Transparency Initiative (NEITI) in 2003 as the extractive industry’s watchdog. The well
articulated objectives are to among others:
� ensure due process and transparency in the payments made by extractive industry
companies to the Federal Government and its agencies
� ensure accountability in the revenue receipts <strong>of</strong> the Federal Government from extractive
industry companies
� and eliminate all forms <strong>of</strong> corrupt practices in the determination <strong>of</strong> payments, receipts
and posting <strong>of</strong> revenue accruing to the Federal Government from extractive industry
companies (CISLAC, 2006).
The study seeks to interrogate the management and operation <strong>of</strong> the solid minerals sub-sector
<strong>of</strong> the Nigerian economy in the context <strong>of</strong> its structure, stakeholders, and role <strong>of</strong> oversight

Transparency and Accountability ... 163
agencies in promoting transparency and accountability in the sector, role <strong>of</strong> civil society
organisations in tracking the inflow and outflow <strong>of</strong> revenue within the sector, regulatory
framework, etc. The following research questions constitute the focus <strong>of</strong> the study.
5.1.2 The Questions Raised and Answered in the Chapter
a. What is the level <strong>of</strong> openness and responsibility in the solid minerals sub-sector?
b. To what extent are the stakeholders in the industry accountable to Nigerians on whose
behalf these minerals are mined?
c. How does the absence <strong>of</strong> transparency and accountability fuel corruption in the industry?
d. What is the volume <strong>of</strong> contribution <strong>of</strong> the solid mineral sub-sector to national
development in Nigeria?
e. What are the preferences <strong>of</strong> Nigerians with respect to the management and operation
<strong>of</strong> this sector?
f. How can Nigerians be empowered to track the flow <strong>of</strong> revenues within the sector?
g. What roles can civil society organisations play in ensuring zero level corruption within
the solid minerals sector?
5.1.3 Objectives <strong>of</strong> the Chapter
The broad objective <strong>of</strong> the study is to establish the extent to which the principles <strong>of</strong>
transparency and accountability have been applied in the management and operation <strong>of</strong> the
Solid Mineral Industry sub-sector in Nigeria.
Other specific objectives are to:
i) Determine the level <strong>of</strong> openness in the management <strong>of</strong> the solid mineral sector. To achieve
this objective, we looked out for records <strong>of</strong> production and whether these are well
documented weekly, monthly or annually; records <strong>of</strong> distribution and quantity sent to
distributors and records <strong>of</strong> sales. Obtaining these records should help establish the degree
<strong>of</strong> openness in the extractive industry. More <strong>of</strong>ten than not, records are not well kept and
monitors find it difficult to track down the operation <strong>of</strong> the industry. Yet, the nature <strong>of</strong>
records in respect <strong>of</strong> volume <strong>of</strong> production, distribution and sales provide a veritable ground
to draw conclusion about whether or not the industry operates transparently.
ii) Assess the extent to which stakeholders are accountable to the ordinary Nigerians on
whose behalf the solid minerals are mined. All solid minerals embedded beneath the earth
are common heritage <strong>of</strong> mankind and where these are located, determined efforts should
be invested in unlocking these providential resources for the benefits <strong>of</strong> all. Solid minerals
can only contribute to human development and productive investments for the long term
sustainable development <strong>of</strong> Nigeria when there is accountability in the operation <strong>of</strong> the
industry. In determining whether or not there is good sense <strong>of</strong> accountability as earlier

164 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
explained in defining the key terms we are interested in annual reports, annual general
meetings and corporate social responsibility projects <strong>of</strong> actors within the industry.
iii) Ascertain how lack <strong>of</strong> transparency and accountability in the operation <strong>of</strong> the solid mineral
industry fuels corruption within the sector. Here we are interested in establishing the nexus
between the absence <strong>of</strong> transparency and accountability and how this fuels corruption
within the extractive industry. Key variables to help establish this are: nature <strong>of</strong> appointment
<strong>of</strong> suppliers, nature <strong>of</strong> bids and tender, nature <strong>of</strong> records kept, information <strong>of</strong> under the
table deals, scheduled inspections carried out and a host <strong>of</strong> others.
iv) Determine the volume <strong>of</strong> contribution <strong>of</strong> the solid mineral sub-sector to national growth
and development. The concern here is to ascertain the volume <strong>of</strong> contribution <strong>of</strong> the extractive
industry to the enterprise <strong>of</strong> national growth and development. In a sense, we are interested
in statistics relating to employment both direct and indirect, employees and distribution
chains, regular payment <strong>of</strong> taxes, linkage to other businesses such as transportation,
electricity, security outfits, staff schools, clinics, water points and other critical
infrastructures.
v) Capture the preferences <strong>of</strong> Nigerians with respect to how best the solid mineral sub-sector
<strong>of</strong> the Nigerian economy should be managed and operated for enhanced national
development. Nigerians have preferences in terms <strong>of</strong> how they would want the extractive
industry to be structured to optimise collective gains. For instance, local communities
where mining activities are carried out expect that the industry will provide gainful
employment opportunities, essential infrastructural facilities, and other tangible benefits
that can counter the risks and deleterious impacts they experience and which will certainly
leave better <strong>of</strong>f than when they commenced extractive business The field work component
<strong>of</strong> this study is expected to capture as much as possible, such preferences <strong>of</strong> Nigerians who
are the rightful owners <strong>of</strong> solid minerals wherever they are found.
vi) Provide adequate information on the operation and management <strong>of</strong> the solid minerals
sector to enable Nigerians track the flow <strong>of</strong> revenues within the industry. The common
belief held by Nigerians is that the extractive industry is an enclave where corruption
reigns supreme. Apart from the preponderance <strong>of</strong> illegal miners who deprive government
<strong>of</strong> the much needed revenue to foster national development, even the licensed miners have
the tendency <strong>of</strong> evading payment <strong>of</strong> statutory royalties and taxes to government.
5.1.4 Scope <strong>of</strong> the Study
The study is limited to the solid minerals sub-sector <strong>of</strong> the Nigerian economy. The study is
designed to open up this important sector <strong>of</strong> the economy to public scrutiny with a view to
promoting the ethical principles <strong>of</strong> transparency and accountability in the management and
operation <strong>of</strong> the sub- sector. Accordingly, the study focuses on several parts <strong>of</strong> Nigeria with

Transparency and Accountability ... 165
solid minerals actively mined. It focuses on key issues such as legal framework within which
the sector operates, role <strong>of</strong> oversight agencies in tracking the flow <strong>of</strong> revenues in the sub-sector
and their management, roles <strong>of</strong> various interest groups in the sector, corporate governance and
social responsibility, challenges <strong>of</strong> transparency and accountability in the sector, corruption
and a host <strong>of</strong> others. In a sense, the study covers a wide range <strong>of</strong> issues in the operation and
management <strong>of</strong> the extractive solid minerals sub-sector <strong>of</strong> the Nigerian economy. Accordingly,
some states such as Plateau, Benue and Enugu are selected as case studies. The critical motivation
behind the choice <strong>of</strong> these three states is their endowment with various solid minerals which are
actively mined.
5.2 Review <strong>of</strong> Relevant Body <strong>of</strong> Existing Literature
Nigeria’s tragic experience <strong>of</strong> protracted authoritarian military rule has entrenched the culture
<strong>of</strong> lack <strong>of</strong> transparency and accountability in the conduct <strong>of</strong> government business. In a
fundamental sense, it has led to the institutionalisation <strong>of</strong> unethical practices in public affairs in
Nigeria where government <strong>of</strong>ficials scarcely feel obliged to explain their actions or inactions to
the people on whose behalf they govern. The culture <strong>of</strong> impunity became deeply entrenched
because <strong>of</strong> outright disregard for the ethical principles <strong>of</strong> transparency, probity and
accountability in the management <strong>of</strong> public space as long as the military held sway. The
extractive industry sub-sector <strong>of</strong> the economy became the hardest hit by this culture <strong>of</strong> impunity.
Corruption is one <strong>of</strong> the most potent and degrading social maladies confronting Nigeria today.
The foundation <strong>of</strong> good governance is undermined by this chronic social disease. Both the solid
minerals and oil and gas sub-sectors are common heritage <strong>of</strong> Nigerians which should be carefully
explored and exploited to promote their developmental aspirations. Regrettably, Nigerians have
not even marginally harvested the dividends <strong>of</strong> the mining <strong>of</strong> these resources due to widespread
corrupt behaviour amongst public <strong>of</strong>ficials. Lack <strong>of</strong> transparency and accountability in
governance breeds corruption and makes it thrive luxuriantly like a colony <strong>of</strong> trees along river
bank. Corruption is fast destroying the fabric <strong>of</strong> Nigeria and yet no government has mustered
the desired political will to halt or curb it. As Kwanashie (2003: 87) has contended “corruption
has seriously undermined development over the years in Nigeria. It has denied people the
benefits from the huge amount <strong>of</strong> resources available for development. It has retarded economic
growth, distorted economic and political programmes and undermined every effort to create a
just and free society.” Corruption is indeed the most potent social problem that has not been
decisively addressed since Nigeria’s flag independence in 1960.
This is largely because Nigerians are not actively involved in the operation and management
<strong>of</strong> the solid minerals industry. Even local communities where mining activities take place are
hardly mobilised for inputs into the articulation <strong>of</strong> broad policy framework for the exploration
and exploitation <strong>of</strong> solid mineral deposits. It seems that no useful lessons have been learnt from
the harrowing experience <strong>of</strong> the oil and gas sub-sector <strong>of</strong> the Nigerian economy. It is precisely
the exclusion <strong>of</strong> the local people in the articulation <strong>of</strong> terms <strong>of</strong> engagement with foreign capital

166 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
that has plunged the oil and gas industry into the current chaotic situation. One critical question
that must be asked is whether the curse <strong>of</strong> the oil sector is avoidable in the solid minerals sector.
If the answer to this is in the affirmative, what then must Nigeria do to insulate the solid minerals
sub-sector from the contagious curse <strong>of</strong> the oil and gas sector? It does appear that the strategic
importance <strong>of</strong> the solid minerals sub-sector <strong>of</strong> the Nigerian economy is scarcely appreciated.
The solid mineral is one critical sector that can complement the oil and gas sector if painstakingly
explored and exploited, as noted by Okigbo (cited in CISLAC, 2006: xvi):
given the necessary support, solid minerals may soon outstrip the petroleum fuel not only in
foreign exchange earnings, but also most certainly in the generation <strong>of</strong> employment and
entrepreneurship and diffusion <strong>of</strong> technology.
This is a fundamental truth in the sense that there is hardly any state in Nigeria that is not
endowed with one mineral resources or the other. In fact, there is considerable sense in which
one can contend that the solid minerals have strategic unifying role in Nigeria’s quest for a
united and indivisible corporate entity. Since every state is richly endowed with different mineral
resources, the uncanny idea <strong>of</strong> resource control will fade when no state is seen to be resourcefully
barren. This will promote genuine sense <strong>of</strong> mutual interdependence amongst the 36 states <strong>of</strong>
the Nigerian federation.
It is not enough to commence active mining <strong>of</strong> these mineral resources such as coal, uranium,
thorium, lignite, tin, lead, iron and zinc, columbite, bitumen, glass sand, etc. without putting
the necessary infrastructure in place to ensure optimum exploration and exploitation. Ozo-
Eson (2006: 5) succinctly underscores this by noting “that increasing scope and intensity <strong>of</strong>
resource extraction by itself is not sufficient to guarantee national development. The revenues
accruing to the national economy need to be maximised through an institutionalised process <strong>of</strong>
ensuring transparent and accountable monitoring <strong>of</strong> the revenue due to the government.” A
thriving extractive sector therefore does not automatically translate to national development.
Ozo-Eson cited the case <strong>of</strong> the United States <strong>of</strong> America where the extractive sector has
contributed tremendously to national growth and development. This was made possible by
large-scale investment in exploration and mining, the liberalised titles to minerals deposits and
most importantly education (Ozo-Eson, 2006:5). Nigeria’s experience is a far cry from meeting
these critical conditions to operate a robust and vibrant solid minerals sub-sector that can
contribute significantly to the enterprise <strong>of</strong> national development.
At the moment, there is lack <strong>of</strong> a well cultivated culture <strong>of</strong> transparency and accountability
in the Nigerian society generally. The implication <strong>of</strong> this is that the sub-sector benefits just a
privileged few while majority <strong>of</strong> Nigerians are not adequately touched by the sector. The most
important challenge is how to mobilise and sensitise Nigerians to engage the state towards the
direction <strong>of</strong> promoting transparency and accountability in the operation and management <strong>of</strong>
the industry. Transparency in government is likely to be more effective when there is free flow
<strong>of</strong> information and such information is easily accessed by the public. Levels <strong>of</strong> transparency
would be less when governmental institutions hoard critical information thereby denying the
public access to same. The role <strong>of</strong> transparency in promoting public consciousness is crucial

Transparency and Accountability ... 167
because information is necessary to keep the public informed about governmental affairs. At
the moment, the civil society organisations are engaged in pressuring the National Assembly
to pass the Freedom <strong>of</strong> Information Bill (FOI) into law as a critical measure <strong>of</strong> deepening the
principle <strong>of</strong> transparency in government. The monstrous phenomenon <strong>of</strong> corruption is so deepseated
in Nigeria because <strong>of</strong> the brazen poverty <strong>of</strong> transparency and accountability in both the
public and the private sectors. To test an average Nigerian’s sense <strong>of</strong> transparency and
accountability, give any person a sum <strong>of</strong> #100 to buy toilet paper from a local shop. At least
everyone knows that a good one costs between 40 and 50 naira. However, on delivery <strong>of</strong> the
tissue paper, the person would expect you to say thank you; thank him/her but would hardly
volunteer the price <strong>of</strong> the commodity. Indeed asking how much she or he bought it might elicit
some hostility and bewildering rage. The person would not even hand over the change but
would instead expect you to even provide some additional tip. This is how feeble the sense <strong>of</strong>
accountability and transparency <strong>of</strong> an average Nigerian is. Promoting technical education to
speed up the dominance <strong>of</strong> Nigerians in the extractive industry sector as prescribed by Okolo
(1987) is not the most critical concern if Nigerians are to equitably benefit from the providential
wealth. The issue cannot be simply the taking over <strong>of</strong> the extractive industry by Nigerians
whose sense <strong>of</strong> patriotism may not even be better than the owners <strong>of</strong> foreign capital. At the core
<strong>of</strong> the concern <strong>of</strong> the Nigerian state is how much sense <strong>of</strong> transparency and accountability has
been cultivated and how patriotic Nigerians are when it comes to making remittances and
critical disclosures.
This situation is particularly worsened in the current dispensation where large-scale mining
is carried out in the solid mineral sub-sector in Nigeria. The mines have been taken over by
artisan and small-scale mining with no accurate records <strong>of</strong> their activities and production (Dalyop
and Dung-Gwom, 2008). Small scale miners operate in an opaque manner characterised by
non-disclosure <strong>of</strong> volume <strong>of</strong> production, sales and records <strong>of</strong> payment <strong>of</strong> royalties and taxes. In
a sense, given the historically weak monitoring <strong>of</strong> the extractive industry in Nigeria, operators
are reluctant to fulfill their basic obligations to the state through regular payment <strong>of</strong> accurate
entitlements to appropriate establishments. The implication <strong>of</strong> this for the enterprise <strong>of</strong> national
development is that legitimate sources <strong>of</strong> revenue cannot be effectively and adequately tapped
to ensure effective services delivery to the vast majority <strong>of</strong> Nigerians who should be the ultimate
beneficiaries <strong>of</strong> solid minerals as non-renewable natural resources the country is hugely endowed.
If Nigerians feel inadequately touched by the solid mineral resources, it is simply because <strong>of</strong>
the absence <strong>of</strong> principle <strong>of</strong> accountability which has led to the steady privatisation <strong>of</strong> these
resources. To check against this ugly trend, Diamond (2004: 227) has identified three forms <strong>of</strong>
accountability that must be enforced to secure collective resources. The first one is horizontal
accountability which means different agencies <strong>of</strong> government hold other governmental actors
answerable to the law and the public. Oversight functions <strong>of</strong> the legislature are a good example
<strong>of</strong> this form <strong>of</strong> accountability. The second form <strong>of</strong> accountability is the vertical accountability
which simply means citizens from below hold their government <strong>of</strong>ficials answerable for their
conduct. The most effective instrument <strong>of</strong> vertical accountability as argued by Diamond (2004)
is democracy where citizens will demand for the score cards <strong>of</strong> their elected representatives. A
vigorous and pluralistic civil society consisting <strong>of</strong> independent associations, think tanks and
mass media is critical to enforcing vertical accountability in a democratic environment. The

168 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
third form <strong>of</strong> accountability is the external accountability which refers to the influence <strong>of</strong>
international actors to make states actors answerable for quality <strong>of</strong> governance.
5.3 Methodology
The study which was primarily a field based one which utilised some survey instruments such
as key informant interviews and focus group discussion to generate robust data to aid our
analysis and comprehension <strong>of</strong> the issues under consideration. In addition, intense literature
search was undertaken to generate secondary data to complement primary field data. A
combination <strong>of</strong> these two helped us in establishing the validity and reliability <strong>of</strong> data so garnered.
The weakness <strong>of</strong> any <strong>of</strong> these two would be overcome by the strength <strong>of</strong> the other.
To generate primary data in the field, we utilised the interview instrument to capture the
views and feelings <strong>of</strong> relevant stakeholders such as Nigerian Mining Corporation, Nigerian
<strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative, Solid Mineral Committees <strong>of</strong> both the Senate
and House <strong>of</strong> Representatives, Civil Society Organisations, informal actors in the industry,
Federal Ministry <strong>of</strong> Mines and Power, Federal Ministry <strong>of</strong> Finance, Federal Inland Revenue
Service, Community Leaders <strong>of</strong> relevant communities, local and foreign capital owners and a
host <strong>of</strong> others on the operation <strong>of</strong> the solid minerals sub-sector. Focus group discussions were
organised where discussions on critical issues in the study were revealed. Four research assistants
were carefully recruited and trained in the nature and objectives <strong>of</strong> the study. Guidelines were
articulated and given to all the four research assistants for the fieldwork. This was painstakingly
prepared to keep the research assistants focused while collecting data in the field. Two research
assistants were deployed to Benue State to cover the Benue Cement Company. One was deployed
to Enugu to cover the Coal Corporation. One was assigned to Jos to cover the tin ore and
columbite. Research assistants were instructed to use the guide to conduct in-depth interview
for company production Manager, sale Manager and Corporate Affairs Manager.
Research assistants returned from the field with Focus Group transcripts, In-depth Interview
transcripts, information on the company and relevant information on corporate social
responsibility projects. Some <strong>of</strong> the research assistants were able to obtain some <strong>of</strong> these critical
data while some could not because <strong>of</strong> poor culture <strong>of</strong> accurate records storage and retrieval.
Repeated efforts were made to obtain basic data from some companies but to no avail. As
frustrating as this experience was, researchers did not give up easily on this until it became
practically impossible to get the needed data.
5.3.1 Method Used In Analysing Data
We employed qualitative method <strong>of</strong> data analysis which involved using simple descriptive
statistics where necessary, to draw inferences and conclusions. The study is largely a qualitative
one and as such, the adoption <strong>of</strong> qualitative method <strong>of</strong> data analysis was quite appropriate. All
the in-depth interview and focus group discussion transcripts were painstakingly collated and
analysed to give us insight into the operation and management <strong>of</strong> the extractive industry with

Transparency and Accountability ... 169
emphasis on the solid mineral sub-sector in Nigeria. Diverse opinions expressed by stakeholders
were aggregated and analysed to distil some findings from the study.
5.3.2 Presentation <strong>of</strong> Data
This section <strong>of</strong> the study dwells on the presentation and analysis <strong>of</strong> the data generated from the
field. The data gathered from the field through some survey instruments such as focus group
discussion and in-depth interviews were largely qualitative and would the adoption <strong>of</strong> qualitative
method <strong>of</strong> analysing them as earlier explained under methodology sub-section <strong>of</strong> the study.
The presentation <strong>of</strong> data and the analysis <strong>of</strong> same are done on the basis <strong>of</strong> the surveyed states
in the North-Central geo-political zone <strong>of</strong> Nigeria. The critical motivation was to appreciate the
extent <strong>of</strong> harmony or disharmony with respect to the style <strong>of</strong> operation and management <strong>of</strong>
these solid minerals mining locations. We were interested in knowing the extent <strong>of</strong> compliance
by each <strong>of</strong> the mining sites in the sample with the ethical principles <strong>of</strong> transparency and
accountability. Research assistants who were deployed to the fields had series <strong>of</strong> focus group
discussions with stakeholders in addition to in-depth interviews with community leaders to
capture their feelings and preferences with respect to the operation <strong>of</strong> actors doing business in
their communities. The data generated from the field are presented below:
Table 1.1: Showing Mineral Returns For The Month Of October, 2008 in Respect <strong>of</strong>
Mines Inspectorate, Jos
1. P. W. (Nigeris) Vom Qus
7203 Laterite 133mt Royalty 31
2. Minor Metals
& Minerals Ltd. Jos South - Columbite 0.81mt Royalty 21
3. Minerals & Allied
Chemical B/Ladi - Kaolin 20mt Royalty 33
4. Dogun & Ni Jos North Tin 0.27mt Royalty -
5. Dogun &
Nikoron Ltd. Joa North Kaolin 17mt Royalty 32
6. Material Rayfield Tin Columbite 25mt
Spectrum 25mt
Exp. Permit
Columbite 0.84mt
7. Jos North Granite 779mt Royalty
8. Minor Gyrategare-stone
Jos North Registration Royalty 21
9. Crushing - Columbite 0.26mt
10. Da Doro Sele
Quarries Jos North - Tin Columbite 1.5mt
33

170 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
11. Ezewulu (Nig)
Ltd. Don Chyke
(Nig.) Ltd. Jos North Purchase <strong>of</strong>
0.422mt Royalty 33-
12. Jos South TopazTin 25mt
1.85mt Explosive 1
13. Magler Materials
Co.J-Moore B/C B/C Royalty 33
14. Jos South Limestone 100mt 1
15. Choji Feflix
Dalyop(Gyrategere
stone crushing) Jos South - Bentonite 60mt Royalty 22
16. Mr. Okwu Diseh Jos South - Kaolin 35mt Royalty 33
17. Central Chemical - Limestone 25mt Royalty 33
18. Alhaji Bala B/Ladi Purchase <strong>of</strong>
Explosives Royalty 33
19. Associated
Minerals Ltd. - Blasting Certificate - 1
20. Edil Belmonte - Blasting Certificate - 1
21. Ameh Dan Hassan - 1
J. Dongs M. Dawang
Source: Field work, 2009
The preceding table shows clearly the records <strong>of</strong> mineral types, tonnage and revenue accruing
from the active exploration and exploitation <strong>of</strong> these minerals in the state. Although the figures
given here may not be accurate because <strong>of</strong> problems <strong>of</strong> under reporting, it circulates the data
to enable Nigerians confirm the veracity <strong>of</strong> claims <strong>of</strong> the investors.
5.3.3 Openness in Management
All the three mining sites (tin mining in Jos-North and Jos-South in Plateau state, limestone in
Gboko in Benue state, and coal in Okpara and Onyeama in Enugu state) in the survey were
visited by research assistants. With respect to the defining indicators <strong>of</strong> openness such as
records <strong>of</strong> production, distribution or quantity sent to distributors, and records <strong>of</strong> sales, only
Ezewulu Nig. Limited, a tin mining company based in Jos North Local Government Area <strong>of</strong>
Plateau state, presented evidence <strong>of</strong> openness in its management and operation. No records in
respect <strong>of</strong> production, distribution and sales could be obtained from the other two on the excuse
that ‘clearance’ was necessary before data could be given out. It was difficult to see through the
records <strong>of</strong> these companies to determine extent <strong>of</strong> openness in the extractive industry sector.
On the strength <strong>of</strong> lack <strong>of</strong> accurate records kept by the other two mining companies, it will be
safe to conclude that there is a fundamentally weak sense <strong>of</strong> openness or transparency in their
management and operations. The first study question which is, what is the level <strong>of</strong> openness

Transparency and Accountability ... 171
and responsibility in the solid minerals sector can be answered in the negative against the
backdrop <strong>of</strong> the fact that records were either not kept and maintained or made available by the
two other sampled mining companies.
5.3.4 Accountability to Ordinary Nigerians
To determine the accountability <strong>of</strong> the mining companies to ordinary Nigerians on whose
behalf the solid minerals are mined, research assistants demanded for annual reports published
or unpublished, evidence <strong>of</strong> annual general meetings or other fora for interaction with the
general public and corporate social responsibility projects executed by the mining companies,
only corporate social responsibility projects could be sighted. No evidence could be obtained in
respect <strong>of</strong> other defining indicators <strong>of</strong> accountability by all the mining companies. However, in
the sphere <strong>of</strong> corporate social responsibility, all <strong>of</strong> them demonstrated good sense <strong>of</strong> corporate
social responsibility by executing some developmental projects to aid the transformation <strong>of</strong>
their host communities such as boreholes, clinics, electricity, school classrooms, roads and a
host <strong>of</strong> others. This good sense <strong>of</strong> corporate social responsibility demonstrated by these companies
could simply be to cultivate the goodwill <strong>of</strong> their host communities to enable them sustain
smooth operation. However, corporate social responsibility alone is not sufficient evidence <strong>of</strong>
accountability in the extractive industry sector. It is expected that mining companies would
maintain some platforms through which the public will be well informed about their operation
and management. Lamentably, no evidence could be obtained in support <strong>of</strong> provision <strong>of</strong> any
platform to enable the public engage actors within the extractive industry sector. When structures
that promote accountability are not in place, all forms <strong>of</strong> sharp practices can thrive. It may
therefore be reasonably concluded that there is limited sense <strong>of</strong> accountability to ordinary
Nigerians on whose behalf solid minerals are mined.
5.3.5 How the Absence <strong>of</strong> Transparency and Accountability Fuels Corruption
in the industry
In seeking to establish how the absence <strong>of</strong> transparency and accountability fuels corruption in
the extractive industry and especially with reference to the sample, emphasis is on how suppliers
are appointed, the nature <strong>of</strong> bids and tender, nature <strong>of</strong> records kept, information <strong>of</strong> under the
table deals, whether scheduled inspections carried out by the Inspectorate unit <strong>of</strong> Mines,
frequency <strong>of</strong> oversight agencies’ visits and records to this effect. None <strong>of</strong> the three mining
companies surveyed could provide any documented evidence to show that the principles <strong>of</strong>
accountability and transparency are firmly established in their operation and management.
As we have earlier underscored, when critical structures <strong>of</strong> accountability and transparency
are not put in place, their absence breeds corrupt behaviour. Operations tend to be shady in a
manner which compromises ethical standards and public morality. Non disclosures by mining
companies in the extractive industry are inimical to the health <strong>of</strong> the economy because public
entitlements could easily be privatised by some individuals.

172 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
5.3.6 Contribution to National Growth and Development
All the three mining companies in the sample have made significant contributions to the
enterprise <strong>of</strong> national growth and development. All <strong>of</strong> them have generated employment
opportunities, especially for the host community members and created distribution chains
which serve as alternative employment. In addition, taxes paid even though they all scored low
on this because <strong>of</strong> non disclosures is some contribution; there is also linkage to other businesses
such as transportation, electricity, security outfits and corporate social responsibility projects
executed by the mining companies. The aggregate <strong>of</strong> these factors would expand the frontiers
<strong>of</strong> national growth and development. However, a disturbing factor about the contribution <strong>of</strong>
these mining companies to national growth and development is the non disclosure <strong>of</strong> revenues
and how much payments are made to government in the form <strong>of</strong> taxes and royalties. Our
expectation is that the revenue pr<strong>of</strong>ile books should be kept open at all times so that interested
members <strong>of</strong> the public may scrutinise them without let. In addition, it is expected that annual
reports would also carry such information. However, when the books are, more <strong>of</strong>ten than not,
kept closed and not within the reach <strong>of</strong> the public and other interest groups, it creates a fertile
ground for speculations and rumours to thrive.
5.3.7 How Solid Minerals Can Best be Managed
Stakeholders, especially community leaders and youth interviewed expressed their feelings
about how the solid minerals sub-sector <strong>of</strong> the economy should best be managed to promote
the developmental aspirations <strong>of</strong> Nigerians. Many <strong>of</strong> the respondents interviewed expressed
the view that mining companies should maintain effective channel <strong>of</strong> communication to enable
stakeholders get information about their management and operation. They maintained that
“the federal government should set standard in respect <strong>of</strong> environmental protection to ensure
the integrity <strong>of</strong> the environment where mining activities take place.” They also advocated for
greater openness in the management <strong>of</strong> the solid minerals sub-sector in Nigeria. At the moment,
the extractive industry appears clothed in opaque materials such that only insiders can see the
exact nature <strong>of</strong> its operation. Mining companies are enjoined by stakeholders to step up effort
in the area <strong>of</strong> records keeping for the scrutiny <strong>of</strong> the conscious segment <strong>of</strong> the public.
5.3.8 Empowering Nigerians to Track Down Revenue Flows Within the Industry
Stakeholders in the extractive industry believe that Nigerians should be empowered to closely
monitor the flow <strong>of</strong> revenues to ensure that there is no diversion. Accordingly, they advise that
adequate structure to guarantee steady information flow about the operation <strong>of</strong> the industry
should be put in place. Unless there is a dependable means <strong>of</strong> feeding the public with good
information about the industry, no entry point can be secured to enable the public scrutinise
the books <strong>of</strong> the mining companies. The dominance <strong>of</strong> foreigners in the industry should be
curbed by replacing them with Nigerians. This sounds patriotic enough but in the current
policy thrust <strong>of</strong> government which emphasises privatisation, it maybe fairly difficult to impose
Nigerians on private firms whose operation is guided strictly by pr<strong>of</strong>it logic. The Freedom <strong>of</strong>

Transparency and Accountability ... 173
Information Bill was repeatedly mentioned as another possible way <strong>of</strong> empowering Nigerians
to track down the flow <strong>of</strong> revenues within the extractive industry sub-sector <strong>of</strong> the economy.
5.3.9 Role <strong>of</strong> Civil Society Organisations in Curbing Corrupt Practices in the Industry
Civil society organisations can play critical role in ensuring zero tolerance <strong>of</strong> corruption within
the extractive industry sector. Respondents in the field expressed the view that civil society
organisations can articulate agenda on the industry which can be used to mobilise and sensitise
Nigerians about the activities <strong>of</strong> the industry with a view to raising their critical consciousness.
Many believed that raising awareness about the activities <strong>of</strong> the industry will make Nigerians
to be critical <strong>of</strong> the industry. Respondents in the field averred that:
civil society organisations should as frequently as possible, engage both the mining companies
and the host communities with a view to aggregating their views on the way and manner
extractive industry should be operated for optimum mutual benefits <strong>of</strong> stakeholders.
The majority opinion among focus group discussants that the involvement <strong>of</strong> civil society
organisations in fast tracking the process <strong>of</strong> creating mutual understanding among stakeholders
in the industry is critical to the evolution <strong>of</strong> a robust and progressive solid minerals sub-sector
<strong>of</strong> the Nigerian economy.
1.3.10 Specifics on the Three Sites
Benue State
Benue State is one <strong>of</strong> the major component units <strong>of</strong> the North-Central geo-political zone. It is
richly endowed with solid minerals <strong>of</strong> different types such as barite, sodium chloride, etc. One
<strong>of</strong> the solid minerals that is actively mined in the state is limestone located essentially in Gboko
town <strong>of</strong> Benue State. Presently, it is only limestone that is exploited and this accounts for the
location <strong>of</strong> Benue Cement Company in Gboko close to the sources <strong>of</strong> raw materials. The host
community where the Benue Cement Company operates and whose ownership has been
transferred to Dangote Group <strong>of</strong> Companies is not satisfied with the way and manner it has
been operating, especially with the exploitation <strong>of</strong> the limestone. Community members
complained bitterly about the heavy presence <strong>of</strong> Indians at the commanding heights <strong>of</strong> the
company (Community Leader, 2009). From the perspective <strong>of</strong> the youth <strong>of</strong> the community
where limestone is mined, it could not have been better than this because the company is
pretty much responsive to their aspirations. Many <strong>of</strong> them are engaged as labourers by the
company and this guarantees them sustainable means <strong>of</strong> livelihood (Youth Leader, 2009).
The host community members complained about the health hazard associated with the
production and exploration <strong>of</strong> limestone. The dust raised by the production activities makes
them vulnerable to heart-related diseases in the area. In addition, they feel bad that the Indians,
imported to operate the industry, do not have a modicum <strong>of</strong> respect and courtesy to them. This
always pitches them against the industry’s <strong>of</strong>ficials. In spite <strong>of</strong> the alleged disdainful attitude <strong>of</strong>

174 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
the Indians towards community members, the community members are appreciative <strong>of</strong> the
company’s corporate social responsibility pr<strong>of</strong>ile in the community. Community members
mentioned the construction <strong>of</strong> a 60-bed hospital in addition to primary and secondary schools
buildings donated by the company as corporate social responsibility projects. Community
members copiously acknowledged the tremendous contributions <strong>of</strong> the company to the
enterprise <strong>of</strong> national development through the generation <strong>of</strong> employment opportunities,
sustainable mining <strong>of</strong> limestone which has guaranteed steady production <strong>of</strong> cement for various
construction works across the length and breadth <strong>of</strong> Nigeria. There is hardly any part <strong>of</strong> Nigeria
that has not been permeated by the products <strong>of</strong> the company.
There is widespread cry over poor remuneration <strong>of</strong> labourers in the company. Even though
there was no disclosure with respect to how much labourers are paid daily or monthly, workers
felt they are sharply shortchanged by the management <strong>of</strong> the company. While the top <strong>of</strong> the
company’s staff structure is dominated by expatriate staff, the lower wrung <strong>of</strong> the ladder is a
huge concentration <strong>of</strong> local community members who are barely literate and are poorly paid.
Information flow in the company is not only irregular but grossly inadequate as community
members are scarcely informed about the day to day happenings in the company. This could
possibly account for the non-disclosure <strong>of</strong> how much workers are paid by the company.
Enugu State
Enugu is one <strong>of</strong> the South-Eastern States in Nigeria which is widely known as the coal city.
Coal exploration in Enugu started as far back as 1916 (Nigerian Coal Corporation, n.d.). Until
the discovery <strong>of</strong> oil in commercial quantity in the late 1950s, coal served as the main source <strong>of</strong>
energy in Nigeria. The then Electricity Corporation <strong>of</strong> Nigeria (ECN), now Power Holding
Company <strong>of</strong> Nigeria (PHCN) and the Nigercem were the earliest beneficiaries <strong>of</strong> coal
exploration and production in Enugu. There is therefore, a sense in which it can be argued that
coal had contributed significantly to national development in the past. Regrettably, for reasons
only comprehensible to government, mining <strong>of</strong> coal was discontinued in 2005 when workers
were disengaged from the services <strong>of</strong> the Coal Corporation. This was preparatory to the
privatisation <strong>of</strong> the company in line with Federal Government’s policy <strong>of</strong> freeing the public
sector from the burden <strong>of</strong> managing unviable public enterprises and to grow the private sector.
In other words, the policy <strong>of</strong> privatisation is targeted at enabling the private sector to drive the
economy forward while the Federal Government takes the back seat.
Community members where the coal corporation is established have complained severally
about the massive disengagement <strong>of</strong> their sons and daughters from the service. Consequent <strong>of</strong>
this development is the sharp rise in the level <strong>of</strong> unemployment in the state with corresponding
increase in the wave <strong>of</strong> crimes. Community members are not vehemently opposed to the
privatisation <strong>of</strong> the coal corporation because <strong>of</strong> the belief that such a move will redeem the
company from becoming extinct. However, what they are against is the downsizing exercise
which accompanies the privatisation exercise. Considering the growing problem <strong>of</strong>
unemployment in Nigeria generally, the downsizing exercise currently going on in the Enugu
Coal Corporation is generating discontent among community members.

Transparency and Accountability ... 175
The few workers sighted at the premises <strong>of</strong> the Enugu Coal Corporation were looking visibly
worried about their fate in the company. They are gripped with the fear <strong>of</strong> possible sack when
a core investor emerges. Their fear is predicated on the logic <strong>of</strong> capitalism which is essentially
pr<strong>of</strong>it-oriented. A core investor would inevitably tinker with the staff strength and structure
with a view to injecting fresh and more skilful personnel toward optimising pr<strong>of</strong>it. What the
ailing corporation pays workers is hardly enough to take them home. Research assistants made
strenuous efforts to get precise figures from some <strong>of</strong> the staff without success. Neither
management nor the staff could make disclosure in respect <strong>of</strong> their salaries. All they could utter
is the fact that they are paid far less than their counterparts in the Ministry. Workers are at risk
in their workplace because there is no safety equipment for them. Considering the hazardous
nature <strong>of</strong> mining solid minerals, it is irresponsible <strong>of</strong> any management to ignore the safety
needs <strong>of</strong> its workforce. The composition <strong>of</strong> the workforce does not reflect gender equity as the
male workforce dominates. This is possibly so because <strong>of</strong> the nature <strong>of</strong> the work which is
physically demanding and may not be quite appealing to the womenfolk. The ailing company
has, at the time <strong>of</strong> research, a staff strength <strong>of</strong> 18, the majority <strong>of</strong> who are men.
The company in the late 1970s and early 1980s had a good pr<strong>of</strong>ile <strong>of</strong> corporate social
responsibility as it awarded scholarship to students within the host community. Close relatives
<strong>of</strong> deceased staff were employed as a way <strong>of</strong> assuaging the pains <strong>of</strong> the deceased’s survivors. A
cottage hospital was also constructed by the company and is still adequately responsive to the
health needs <strong>of</strong> staff and their relatives. According to some community members, the cottage
hospital serves the entire community and not just the members <strong>of</strong> staff <strong>of</strong> the company. This is
the basis <strong>of</strong> harmony between the coal corporation and the host community. Community
members recollected with good sense <strong>of</strong> nostalgia how the Enugu Coal Corporation used to
support them in executing community projects.
There is inadequate flow <strong>of</strong> information with respect to volume <strong>of</strong> daily production. The
culture <strong>of</strong> record keeping in the company is generally poor as confirmed by the research assistants
who visited the company. Records about daily sales, production, distribution and volume <strong>of</strong>
earnings were not readily available. Annual financial statements <strong>of</strong> the company when it was
active could not be accessed. If critical information about the company cannot be accessed, it
would be exceedingly difficult to undertake a painstaking evaluation <strong>of</strong> its viability. The
implication <strong>of</strong> lack <strong>of</strong> accurate records keeping is that transparent management simply does
not exist. There is weak sense <strong>of</strong> transparency and accountability in the operation and
management <strong>of</strong> the affairs <strong>of</strong> the company. When an organisation operates in an opaque
manner, it will be difficult to monitor its activities and to predict with clinical precision what
would befall it. As it is now, civil society organisations, the press and other stakeholders are
fenced out <strong>of</strong> the operational framework <strong>of</strong> the coal corporation. The coal corporation is does
not have records in terms <strong>of</strong> volume <strong>of</strong> production, distribution, sales, annual reports and a
host <strong>of</strong> others. The absence <strong>of</strong> all these critical indicators <strong>of</strong> transparency and accountability
fuels corruption within the sub-sector.

176 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Plateau State
Plateau State is one <strong>of</strong> the constituent states <strong>of</strong> the North-Central geo-political zone <strong>of</strong> Nigeria.
It is a state widely reputed for its huge tin and iron ore deposits. The exploration and exploitation
<strong>of</strong> the tin and iron ore in commercial quantity had contributed significantly to national
development in Nigeria. There is hardly any foreign capital that is visibly active in the tin
mining venture. Local Government areas such as Jos South, Barkin-Ladi and Bokkos are heavily
endowed with tin deposits. The mining <strong>of</strong> this solid mineral by the colonialists in the past led
the scary phenomenon <strong>of</strong> environmental degradation characterised by over 4, 000 mining
ponds spread across the Local Government areas with this natural resource. At the moment,
two indigenous companies are actively involved in tin mining on the Jos Plateau. These are the
Ezewulu Nigeria Limited and Don and Chyke Nigeria Limited both in Bukuru in Jos South
Local Government area.
Both companies have well-documented records <strong>of</strong> monthly production, records <strong>of</strong> monthly
distribution and records <strong>of</strong> monthly sales. The implication <strong>of</strong> this is that there is openness in the
management and operation <strong>of</strong> the companies. However, research assistants deployed to the
field observed lack <strong>of</strong> annual records, lack <strong>of</strong> annual general meetings, and no established
forum for engaging the public. The two companies have very modest sense <strong>of</strong> corporate social
responsibility to their host communities. For instance, Ezewulu Nigeria Limited has provided
a borehole to alleviate the perennial water problem <strong>of</strong> the community within which it operates.
In addition, most <strong>of</strong> the staff are drawn from the host community. However, the operation <strong>of</strong>
the company might fuel corruption in the sense that suppliers are not appointed, the nature <strong>of</strong>
bids and tender are based on negotiation, there are no clear records <strong>of</strong> bidding, and nonavailability
<strong>of</strong> scheduled inspections records. In the case <strong>of</strong> Don and Chyke Nigeria Limited,
corporate social responsibility is expressed by financial assistance to aid community in the
execution <strong>of</strong> community projects and provision <strong>of</strong> employment opportunities to community
members. Like its counterpart, the way and manner it operates fuels corruption in the sense
that anybody can supply, bids and tenders are based on negotiation, there is lack <strong>of</strong> records <strong>of</strong>
bidding and no scheduled inspection records.
In terms <strong>of</strong> their contributions to the enterprise <strong>of</strong> national development, both companies
have done a lot in this respect. For instance, Ezewulu Nigeria Limited has employed 10 members
<strong>of</strong> its host community and it pays royalties; there are no records <strong>of</strong> taxes. The company however
has no record <strong>of</strong> significant contribution to the social sector. In the case <strong>of</strong> Don and Chyke
Nigeria limited, it employed over 27 persons, it pays royalties to the Mines Inspectorate
Department even though no disclosure was made and there is no social sector contribution in
terms <strong>of</strong> schools, clinics, water point, etc. In the aspect <strong>of</strong> information flow, community members
expressed strong dissatisfaction with the volume <strong>of</strong> information flow. They believed that as a
one man business, everything is done on the basis <strong>of</strong> the whims and caprices <strong>of</strong> the owner <strong>of</strong>
the enterprise. Workers who are largely women are not only poorly paid but severely overworked.
There is hardly and equipment given to them to ensure their safety in the field. Both companies
are guilty <strong>of</strong> this charge. They operate essentially within the logic <strong>of</strong> capitalism with undue

Transparency and Accountability ... 177
emphasis on pr<strong>of</strong>it maximisation and scanty sensitivity to the welfare <strong>of</strong> the workers. It is not
surprising that workers <strong>of</strong> both companies complained bitterly <strong>of</strong> inadequate consideration for
welfare <strong>of</strong> staff.
The two companies that are into tin mining in Plateau are not large-scale miners. Frequently,
purchases are made from the informal actors, mostly Berom women (informal miners) who
dominate the tin mining industry in the state. The companies serve as market outlays for the
small scale miners who are largely interested in disposing <strong>of</strong>f the products for immediate gain.
It is therefore difficult to keep records <strong>of</strong> daily production by these petty miners who are in any
case, doing illicit business. Illegal mining <strong>of</strong> tin deprives government <strong>of</strong> considerable amount <strong>of</strong>
money because those who are engaged in it hardly pay royalties and tax. Huge amounts <strong>of</strong>
revenue are therefore lost to illegal actors in the tin mining industry.
5.4 Conclusion
Nigeria’s tragic experience <strong>of</strong> corruption and the culture <strong>of</strong> impunity has entrenched the culture
<strong>of</strong> non-transparency in the conduct <strong>of</strong> government business. In a fundamental sense, it has led
to the institutionalisation <strong>of</strong> unethical practices in public and private life affairs in Nigeria
where individual in positions <strong>of</strong> authority scarcely feel obliged to explain their actions or inactions
to the people on whose behalf they govern. These vices became deeply entrenched because <strong>of</strong>
outright disregard for the ethical principles <strong>of</strong> transparency, probity and accountability in the
management <strong>of</strong> public space as long as the military held sway. The extractive industry subsector
<strong>of</strong> the economy became the hardest hit by the culture <strong>of</strong> impunity. Both solid minerals
and the oil and gas sectors are common heritage <strong>of</strong> Nigerians and therefore should be carefully
explored and exploited to promote the developmental aspirations <strong>of</strong> the people. Regrettably,
Nigerians have not even marginally harvested the dividends <strong>of</strong> the mining <strong>of</strong> these providential
resources.
5.5 Recommendations
From the presentation and analysis <strong>of</strong> data in the preceding section, the following
recommendations are made:
(i) The solid mineral industry in Nigeria is characterised by inadequate flow <strong>of</strong> information.
There is not much information in circulation about actors in the solid mineral subsector.
The principle <strong>of</strong> transparency can hardly be cultivated and nurtured in an
environment characterised by paucity <strong>of</strong> information. The implication <strong>of</strong> this is that
there is lack <strong>of</strong> transparency in the solid mineral sub-sector <strong>of</strong> the Nigerian economy.
When there is paucity <strong>of</strong> information on the operation <strong>of</strong> any social system, the public
is scarcely informed about its activities and this makes it difficult to track down
development in the solid mineral sub-sector <strong>of</strong> the Nigerian economy by some conscious
Nigerians. Lack <strong>of</strong> information flow could breed corruption in the industry especially
when it operates in an opaque manner. Government, through the Nigerian <strong>Extractive</strong>

178 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
<strong>Industries</strong> Transparency Initiative (NEITI) should ensure they track and monitor the
activities <strong>of</strong> industries in the solid mineral sector <strong>of</strong> the Nigerian economy.
(ii) Closely related to the preceding is the fact that there is obvious lack <strong>of</strong> accountability in
the industry and this is manifest by the poor culture <strong>of</strong> record keeping in the three
mining sites in the study. Nearly all the three have no accurate and up to date records <strong>of</strong>
volume <strong>of</strong> production, distribution, sales and income flow. This makes it pretty difficult
to evaluate the virility and pr<strong>of</strong>itability <strong>of</strong> the miners. Furthermore, it cannot be accurately
ascertained how much money is paid into government c<strong>of</strong>fers and if paid at all, whether
it is the prescribed sum. In this light, the industries should be made to uphold the principles
<strong>of</strong> transparency and accountability in their operations through effective record keeping
in terms <strong>of</strong> their production, pattern and channel <strong>of</strong> distributions, as well as sales.
(iii) All the three mining companies exhibited good sense <strong>of</strong> corporate social responsibility
in their various host communities. They have variously intervened in the developmental
challenges <strong>of</strong> their host communities and such efforts have been adjudged satisfactory
by the beneficiaries. Some <strong>of</strong> the corporate social responsibility projects executed by the
mining companies include school classrooms, clinics, boreholes, culverts and a host <strong>of</strong>
other projects. Although some community members expressed bitter feelings about
how corporate bodies in their communities execute some <strong>of</strong> these projects without
consulting them to know actually what they want at any material time, mining
companies do show some good measure <strong>of</strong> concern about the developmental aspirations
<strong>of</strong> their host communities. However, better still they can meet the aspirations <strong>of</strong> their
host communities by engaging leaders in dialogue with a view to determining
developmental projects preferred by the people as against the unilateral determination
<strong>of</strong> what project to execute without gauging the expectations <strong>of</strong> the communities.
(iv) The active involvement <strong>of</strong> civil society organisations in scrutinising the activities <strong>of</strong>
extractive industry actors to ensure strict compliance with prescribed operational rules
aimed at promoting transparency and accountability, the coalition <strong>of</strong> civil society
organisations under the umbrella <strong>of</strong> “publish what you pay” should be supported by
government to raise the consciousness <strong>of</strong> Nigerians about the activities <strong>of</strong> the extractive
industry sub-sector. Beyond the involvement <strong>of</strong> civil society, community members should
also be encouraged to monitor development within the industry in view <strong>of</strong> the fact that
they are directly and indirectly affected by the activities <strong>of</strong> these industries. They should
pay particular attention to the deleterious effects <strong>of</strong> mining activities on the environment
<strong>of</strong> the host communities with a view to securing the integrity <strong>of</strong> the environment. In a
sense, mining <strong>of</strong> solid minerals should be undertaken in a way that the integrity <strong>of</strong> the
environment is not compromised.
(v) All the necessary mechanisms should be put in place to ensure that NEITI enforces full
disclosures <strong>of</strong> revenues accruing to the extractive companies as well as ensure close

Transparency and Accountability ... 179
monitoring <strong>of</strong> the revenues paid to government so that they are not privatised by certain
corrupt public <strong>of</strong>ficials. NEITI should be adequately empowered to enable it discharge
its statutory functions toward freeing resources for promoting the developmental
aspirations <strong>of</strong> the local communities in particular and the Nigerian society in general.
The NEITI should not be made another ineffective structure in combating the monstrous
phenomenon <strong>of</strong> corruption in Nigeria.
(vi) The Ministries <strong>of</strong> Environment, Justice and other relevant governmental institutions
should ensure that all the extractive industries operate in accordance with the laid down
rules as they relate to their corporate social responsibility on one hand, and environmental
impact assessment in terms <strong>of</strong> how their activities impact on the environment, and the
host communities in general. This is necessary so as to promote the culture <strong>of</strong>
environmental renewal and restoration by strict enforcement <strong>of</strong> operational procedures
by actors in the sub-sector.

180 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
References
Ayodele, A.(Ed) (2003) Corruption, Accountability and Transparency for Sustainable for
Development, Abeokuta: Africa Leadership Forum.
Diamond, L. (2004) “Building a System <strong>of</strong> Comprehensive Accountability to control
corruption,” in Agbaje, Diamond and Onwudiwe (Eds) Nigeria’s Struggle for Democracy
and Good Governance, Ibadan: Ibadan University Press.
Human Rights Watch (1999) The Price <strong>of</strong> Oil: Corporate Responsibility and Human Rights
Violations in Nigeria’s Oil-Producing Communities.
Joseph, R. (2003) State, Governance and Insecurity in Africa Development, Journal <strong>of</strong> West
Africa Affairs, Vol. 3, No. 2.
Kwanashie, M. (2003) “Intra-Government Synergies on Corruption: The Role <strong>of</strong> the Judiciary
and Police” in Ayodele (Ed) Corruption, Accountability and Transparency for Sustainable
Development, Abeokuta: Africa Leadership Forum.
Okolo, A. (1987) Foreign Capital in Nigeria: Roots <strong>of</strong> Underdevelopment, Lagos: Heartland
Publishing House.
Ozo-Eson, P. I. (2006) Solid Mineral and National Development: The NEITI Approach, in
CISLAC, Civil Society and the EITI in Nigeria, Solid Minerals, Vol. 2.
CISLAC (2006) Civil Society and NEITI in Nigeria: Solid Mineral, Vol. 2, Abuja: CISLAC.

6
A Survey on the Impact and Consequences
<strong>of</strong> Solid Mineral Extraction in Dorowa Community
<strong>of</strong> Barkin Ladi Local Government Area <strong>of</strong> Plateau State
Rahila Gowon
181

Abstract
The need to raise the consciousness <strong>of</strong> the grassroots population on the
impact and consequences <strong>of</strong> solid mineral mining on mining communities
in Nigeria necessitated these research efforts. It set out to investigate the
impact <strong>of</strong> mining activities on Dorowa Community <strong>of</strong> Barkin Ladi LGA
<strong>of</strong> Plateau State as a case study. A base-line survey was undertaken
using the questionnaire, oral interview and the FGD question guide.
Responses <strong>of</strong> 200 respondents were analysed using the mean tables, bar
and pie charts. The study found out that in addition to the negative
impact <strong>of</strong> past activities, illegal and small–scale mining still pose a threat
to communities as their activities further degrade the land, create more
death traps and negatively impact the health <strong>of</strong> the population <strong>of</strong> mining
communities. Mining activities in communities were found to be
unregulated, while these communities on the other hand are not aware <strong>of</strong>
the gap existing between mining practices, legislations and policies and
their rights as enshrined in those legislations and policies.
Recommendations on ways to educate stakeholders in solid mineral mining
on rights, privileges, obligations and ways to holistically address problems
<strong>of</strong> devastation in the sector are suggested.
182

Key Terms
A Survey on the Impact and Consequences ... 183
Solid Minerals
Solid Minerals are natural solid occurring substances derived from the earth’s crust and its
upper mantle, which are <strong>of</strong> economic value to man. Solid minerals are considered as solid
substances that are broadly grouped into various categories such as energy, ferrous, non-ferrous,
metallic and non-metallic. Solid minerals thus, encompass a wide variety <strong>of</strong> solid substances
ranging from iron ore to coal, sand and gravel; some <strong>of</strong> them are found on the surface <strong>of</strong> the
earth, while others can only be gotten from the earth through underground mining.
Small-scale mining
Small-scale mining are mining activities mostly undertaken by groups and individuals with
minimal capital such as money, machineries and a large workforce. They are also characterised
with small and low quantity and areas <strong>of</strong> operation. Most <strong>of</strong> the small-scale miners operate as
marketers as they do not excavate the earth for the raw minerals. They buy from illegal and
informal miners after the excavation and the separation <strong>of</strong> earth particles from the raw minerals;
further process and sale same to bigger marketers or export them.
Informal Mining
Informal mining is mining, that is undertaken as a part-time activity and not as a main economic
activity.
Illegal Mining
Illegal mining is mining activity that is unlicensed or unregistered. Mining activity<strong>of</strong> this type
is mostly undertaken by informal miners.
Mine Pond
A mine pond is a body <strong>of</strong> water which is formed as a result <strong>of</strong> huge craters created by solid
mineral mining activity. This can occur as a single pond, twin or triple ponds. Some are used
by affected communities for economic and domestic purposes, while some <strong>of</strong> them contain
toxic water that pollute underground water and remain death traps for both animals and
humans.
Mine Dump
Mine dump is a hill-like earth material that has pilled up through the years. They are excavated
from the deep parts <strong>of</strong> the earth, but not returned into the earth as part <strong>of</strong> reclamation.
Mine Wastes
Mine wastes are degraded and unsuitable mined products that are <strong>of</strong> no economic value as a
solid mineral. They are usually found at processing sites <strong>of</strong> solid minerals. Much <strong>of</strong> mined
wastes contain toxicity <strong>of</strong> high levels, but unsuspecting people in the community use them
either for building or frying purposes.

184 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
6.1 Introduction
Solid mineral mining in Nigeria existed in pre-colonial times spanning most regions <strong>of</strong> Nigeria
such as; Jos Plateau, Kwara, Kogi Oyo and Enugu. Exploitation <strong>of</strong> these minerals by the
communities were done in crude forms until their contacts with the Europeans. This contact
changed the mode <strong>of</strong> operations as multinational companies brought in industrialised equipment
for extracting solid minerals, while legislations were enacted to sustain production and maximise
pr<strong>of</strong>its. Dwindling pr<strong>of</strong>its from solid minerals and the discovery <strong>of</strong> oil led to the collapse <strong>of</strong>
large-scale solid mineral mining; while the sector became unregulated as informal or illegal
miners and the small-scale miners operated as they willed. These two categories <strong>of</strong> solid minerals
mining left devastating consequences in their trails. The need <strong>of</strong> this research therefore, stemmed
from the desire to undertake a survey on the impact and consequences <strong>of</strong> mining on solid
mineral mining communities in Nigeria.
6.2 Discussion <strong>of</strong> the Objectives <strong>of</strong> the chapter
A lot <strong>of</strong> work and researches have been undertaken on the activities <strong>of</strong> solid mineral mining in
Nigeria. However, much <strong>of</strong> the works have focused on the technical aspect <strong>of</strong> this sector and
also on the economic value <strong>of</strong> solid mineral mining to the nation, while very little attention is
paid on how solid mineral mining have affected communities. Furthermore, reports <strong>of</strong> these
studies have not been easily accessed by the generality <strong>of</strong> Nigerians; either because <strong>of</strong> their
technical nature or because they have not been brought to the public domain.
Given the activities <strong>of</strong> oil exploration, the consequent militant activities in the Niger Delta and
the need to diversify the source <strong>of</strong> revenue for the nation; the Federal Government and many
Nigerians have suggested going back to agriculture and solid minerals mining as a means <strong>of</strong>
earning foreign exchange. This study aims to fill this gap and also provide a report that will
raise the consciousness <strong>of</strong> Nigerians on these consequences so that reactions and response to
solid mineral mining will be transparent and accountable. Specifically, the objectives <strong>of</strong> the
study are to:
1. determine the characteristics <strong>of</strong> stakeholders in the solid minerals mining sector.
2. determine the impact and consequences <strong>of</strong> solid minerals mining on communities; and
3. identify gaps between policies and practice <strong>of</strong> solid minerals mining in Nigeria.
The Questions Raised and Answered in the Chapter are:
1. What are the characteristics <strong>of</strong> stakeholders in the solid mineral mining sector?
2. What solid minerals are mined in mining communities <strong>of</strong> Nigeria?
3. What likelihood and employment exist in mining communities vis-a-vis solid mineral
mining?
4. What environmental problems <strong>of</strong> the host communities are associated with solid mineral
mining?

A Survey on the Impact and Consequences ... 185
5. How has solid mineral mining affected the land use practices in mining communities?
6. What health and safety issues <strong>of</strong> the mining population are linked to solid mineral
mining?
7. How has solid mineral mining impacted the social structure <strong>of</strong> mining communities?
8. How has solid mineral mining affected the value system <strong>of</strong> mining communities?
9. What is the level <strong>of</strong> awareness <strong>of</strong> the existence <strong>of</strong> mining policies and the implementation
<strong>of</strong> such policies by the mining communities?
6.3 Review <strong>of</strong> Relevant Body <strong>of</strong> Existing Literature
Relevant literature regarding the effects <strong>of</strong> mining on communities was reviewed under various
sub-headings as discussed below.
6.3.1 Health and Safety Issues
Mining activities cause a lot <strong>of</strong> environmental issues ranging from waste rock and tailing
disposals, land disturbances, dust and noise emissions to water and air pollution. If these are
not properly managed, they can adversely affect the health and safety <strong>of</strong> the population <strong>of</strong>
mining communities. For instance, Malo (2007) and Agagu (2009) observed that mined wastes
and materials contain radio active substances at concentrations that are harmful to human
health involving the risks <strong>of</strong> skin, lung and liver cancer and eye impairments.
UNEP (1993) noted that mined sites have been reported to be perfect avenues for spreading
contagious diseases. This is apart <strong>of</strong> the risks <strong>of</strong> sexual abuses, sexually transmitted diseases
and HIV/AIDS associated with lifestyles in mining communities. Furthermore, a WHO report
<strong>of</strong> 2000 as quoted by Fell (2009) on pollution around Shagamu and Ewekoro cement works in
Ogun State reported that; regular vibrations <strong>of</strong> mining sites increases residual seismicity, dustladen
air, while decreasing the photosynthetic and fruiting abilities <strong>of</strong> green plants. These affect
the metabolic balance and respiratory functions <strong>of</strong> both humans and animals and the nutritional
viability <strong>of</strong> the communities. These negative health and safety consequences further affect the
productivity <strong>of</strong> the workforce <strong>of</strong> mining communities and spreading the circles <strong>of</strong> poverty.
6.3.2 Environmental Effects
Mining laws that existed before 1946 had a vague clause on “reasonable restoration” <strong>of</strong> mined
area, but had been ignored by firms because regulations and instruments were not strong
enough to compel solid minerals investors to reclaim mined-out areas. However, all mining
leases given after 1946 were bound by the requirement <strong>of</strong> 70%-80% restoration <strong>of</strong> mined areas.
Unfortunately the law was not strictly adhered to because the Federal and Regional Governments
were not willing to implement the restoration and reclamation law.
Non adherence to standard best practices and environmental precautions; solid mineral
mining destroyed much <strong>of</strong> the landscape <strong>of</strong> mining environments as decades <strong>of</strong> mining left
many mined waste, pits and ponds, unclaimed farmlands, polluted air and water sources for
communities to grapple with. Fell (2009) reports that about two hundred and twenty-five

186 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
kilometres <strong>of</strong> land was taken out by tin mining on the Jos Plateau. In a similar vein, Mangvwat
(2000) Dung-Gwom (2000) Pring and Noe (2002) and Raufu (2009) note that there are several
communities and places in Nigeria where mine pits by artisanal and small-scale miners <strong>of</strong> solid
minerals are found. Mine pits, mine dumps and ponds in places such as Ririwai in Kano,
Ijeora-Ekiti, Nassarawa, Olade, Shaki, Keffi, Akwanga, Jos Plateau and other parts <strong>of</strong> Nigeria
create huge environmental hazards to farmers cattle rearers and children as many <strong>of</strong> them
have been accidentally buried or drowned.
UNEP (1993) further highlight the consequence <strong>of</strong> solid mineral mining on the environment
to include the destruction <strong>of</strong> forests and vegetation cover, thus, affecting the ecosystem <strong>of</strong> the
mined areas. For instance, Mangvwat (2000) reported that the destruction <strong>of</strong> forest shrines and
vegetation <strong>of</strong> the Jos-Plateau led to the relocation <strong>of</strong> much wild life to what is presently known
as the Yankari Game Reserve. In addition, soil fertility was destroyed as topsoil was disturbed
and flooding became a frequent feature <strong>of</strong> the mined areas.
6.3.3 Social Structure and Value System
The structural life <strong>of</strong> solid mineral mining communities and their value systems were also
disrupted. For instance Mangvwat (2000) and DungGwom (2000) noted that when the
Europeans wanted to hire the indigenous Beroms and other local tribes in the mining areas
because they were cheap labour, they rejected the <strong>of</strong>fer as a result <strong>of</strong> their agrarian background.
Consequently, the British hired the ethnic Hausas both as labourers and as supervisors, while
the ethnic Yorubas, Itsekiris, Igbos and Ghanaians were brought in because they were technical
and skilled workers. Thus, the population and values <strong>of</strong> the mining communities <strong>of</strong> pre -colonial
Jos Plateau became displaced. The Jos crises have been attributed to this historical development.
This same pattern can be attributed to the social structure <strong>of</strong> other older mineral mining
communities <strong>of</strong> Nigeria such as Enugu, Oyo and Ibadan.
Morality and family values in mining communities are noted to be low. DungGwom (2000)
explained that in many mining locales <strong>of</strong> the Jos Plateau, women functioned in multiple
capacities. For instance, a women working as a partner in the mines could also obtain income
from sex trade and from being a cook. A lot <strong>of</strong> men left their families in their villages and settled
for long periods in mining sites and with time made new families in the mining settlements.
Some towns in Plateau State even bear names <strong>of</strong> matrons <strong>of</strong> prostitutes to date.
6.3.4 Livelihood, Income and Employment
Mining in the crude fashion which is popularly referred to as artisanal mining as practiced in
Nigeria, employs rudimentary techniques for mineral extraction, as opposed to large scale
mining, and <strong>of</strong>ten operate under hazardous, labour-intensive, highly disorganised and illegal
conditions. Despite these factors, the Secretary General <strong>of</strong> the United Nations in 1996 stated
that mining is still an essential activity in many developing countries, particularly in regions
where economic alternatives are critically limited. The International Labour Organisation (1999)

A Survey on the Impact and Consequences ... 187
estimates that the number <strong>of</strong> miners is currently around 13 million in 55 countries. Of these
numbers, 70% are men, while the remaining 30% are women and children.
Men’s participation in mining generally, is in their capacity as employers and sometimes as
employees, marketers and buyers. In the mining process, they are involved in the handling <strong>of</strong>
mechanised equipment and machines. Women’s participation typically involve providing
services such as labour, provision <strong>of</strong> goods and services and are <strong>of</strong>ten solely responsible for
domestic chores. Women’s responsibilities in mineral processing activities range from crushing,
grinding, sieving, washing and panning, to amalgamation and amalgam decomposition in
the case <strong>of</strong> gold mining. Less commonly, women are concession owners, mine operators, dealers
and buying agents, and equipment owners. In some instances where women participate in
ASSM in the family context, it is <strong>of</strong>ten the male head <strong>of</strong> household who controls the income
derived from the mining and not the women. Despite the diverse and important roles
undertaken by women in artisanal mining, limited reliable information is available on this
topic.
Children between the ages <strong>of</strong> 6 to 12 years have been found in the various mine sites and
regions <strong>of</strong> the world including solid mineral mine sites <strong>of</strong> Nigeria. Their engagements run
through all the stages <strong>of</strong> the mining process except in marketing, because they are employed
as labourers in the mines sites. Where they market, they usually do so without the knowledge
<strong>of</strong> the older ones. The consequences <strong>of</strong> childrens’ involvement in mining are obvious, some <strong>of</strong>
which include:
É Those children not going to school at all or irregularly.
É Problems in the physical and psychological development <strong>of</strong> those children because <strong>of</strong>
all the abuses that they might likely undergo in such environment.
É Health problems, through the use <strong>of</strong> mercury, other toxins and the danger in carrying
heavy loads.
É Accidents associated with mining work.
Literature reviewed revealed that even as gains are made in the solid mineral mining sector,
communities where mining took place, and are still taking place are greatly affected because;
international safety and environmental precaution and standards are not observed. Their
physical and socio-economic environment is affected, which also affects the lives <strong>of</strong> the people.
The aftermaths are; poverty, water and air pollution, diseases, devastated and barren lands and
social displacement <strong>of</strong> values.
6.4 The Methods Used In Generating Data/Information
The Research used the Baseline Survey as results obtained could be used for further research
work and studies. Instruments for data collection where the Questionnaires, Focus Group
Discussions and Oral Interviews, which were used for collecting primary data. Literature review
<strong>of</strong> existing related works and writings were the source <strong>of</strong> secondary data. Religious and

188 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
community leaders were interviewed, while FGD were held with elders, youths and women
groups. The stratified random sample was used to sample 200 respondents from the various
strata <strong>of</strong> Dorowa population, who are largely artisanal miners, traders and farmers <strong>of</strong> both
gender.
6.5 Description <strong>of</strong> the Study Area
Dorowa is a rural settlement located approximately 65 kilometres away from Jos and 5 kilometres
east <strong>of</strong> Barkin Ladi. The area is bounded by Mangu LGA on the east. On the south is bounded
by Ganan Daji and Ex-land, while it is bounded by Rafan and Fan in the west and north
respectively. The population <strong>of</strong> the area by the 1999 census is 602 comprising 249 males and
308 females. The major ethnic group in Dorowa is the Berom, beside other minor ethnic groups
like the Hausa, the Mwaghavul, the Mushere, the Ron Kulere, the Igbos and the Yorubas.
Mining activities are usually at their peak during the dry and early rainy seasons. The area is
equally endowed with mineral deposits such as Tin, Columbite, Kaolin, Zircon, Quartize,
Fieldspare and Ilmennite/rutile.
6.5 Methods Used for Analysing Data
The administered questionnaires were collected, coded and analysed using the frequency and
mean tables. The pie and bar charts were also used to graphically present the analysed data.
These tables and charts were then used to answer the questions earlier raised for the research.
6.6 Presentation <strong>of</strong> data
Question 1 – What are the characteristics <strong>of</strong> stake holders in the solid mineral mining sector?
Tables 1 – 4 below answer this question.
Table 1: Mining Activities Across Age And Gender
Age Mining Activities Grand percen
total tage (%)
Tin Kaolin Precious
Mining Mining Stone Mining Sub Total
M F M F M F M F
15 – 25 9 7 2 1 - - 11 8 1 9 9.5
25 – 35 8 5 5 2 4 2 1 - 90 5 4 144 7 2
35 – 45 2 1 1 3 1 0 - - 22 1 3 3 5 17.5
45 – 55 2 0 0 0 - - 2 0 2 1
SUB
TOTAL 117 7 2 7 3 1 125 7 5 200
GRAND
TOTAL 189 1 0 1
PERCE
NTAGE 94.5 5 0.5
Source: Field work 2009

A Survey on the Impact and Consequences ... 189
Table 1 reveals that 189 respondents (94.5%) were tin miners, while kaolin and precious stone
miners were 10 (5%) and 1 (0.5%) respectively, thus showing that the major mining activity in
Dorowa is tin mining. The table further reveals that 144 respondents (72%) were between the
ages <strong>of</strong> 25-35. This is followed by 35 respondents (17.5%) who are between the ages <strong>of</strong> 35-45, 19
respondents (9.5%) were between the ages <strong>of</strong> 15-25, while 2 respondents (1%) were in the age
range <strong>of</strong> 45-55. This indicates that the average age <strong>of</strong> miners in Dorowa is obtained as 32years.
Majority (62.5%) <strong>of</strong> the miners were found to be males, while only 37.5% were females. The
multiple bar charts in fig 1 portray this information.
Figure 1

190 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Table 2: Mining Activities By Educational Level
MINING
ACTIVITY EDUCATIONAL LEVEL TOTAL
NO FORMAL PRIM- SECON- TERT- ADULT PERCEN-
EDUCATION ARY DARY IARY EDUCATION TAGE (%)
TIN
MINING 16 81 58 8 26 189
KAOLIN
MINING 2 4 3 1 10
PRECIOUS
STONE 1 1
TOTAL 18 85 61 8 27 200
Table 2 shows that most tin miners were primary school leavers, followed by those who completed
Secondary School with 30.5%. Only 8 tin miners (4.2%) have completed tertiary institutions.
Table 3: Mining Activities By Marital Status
MINING
ACTIVITIES MARITAL STATUS TOTAL
MARRIED SINGLE WIDOWS WIDOWERS DIVORCEES SEPERATED
TIN
MINING 99 59 10 7 5 9 189
KAOLIN
MINING 5 2 1 - 2 - 10
PRECIOUS
STONE
MINING 1 - - - - - 1
On the marital status <strong>of</strong> stakeholders in mining, table 4 show that more than half <strong>of</strong> them are
married (i.e. 52.5%). This is followed by single persons with 30.5% , while widows and widowers
constitute 9% and the divorcees and those separated constituted 8%. This further indicated that
single- headed families constitute 47.5% <strong>of</strong> the total population <strong>of</strong> those surveyed.
Question 2 – What solid minerals are mined in mining communities <strong>of</strong> Nigeria?
Tables 5 – 8 are used to answer this question.

Table 5: Mining Activities By Process Being Followed
Mining Activities Process Being Followed
Registerd Non Due Non Due Total
Registerd Process Process
Tin Mining 2 90 97 189
Kaolin 5 1 4 10
Precious
Stone 1 1
Total 8 91 4 97 200
Percen
Tage (%) 4 45.5 2 48.5 100
A Survey on the Impact and Consequences ... 191
Table 5 indicates that 3 types <strong>of</strong> solid minerals are mined in Dorowa community. Of the 3
minerals that are mined, the tin mining has the highest illegal miners with 98.9%, while only
1.1% is legal. 90% <strong>of</strong> kaolin miners are legal and only 10% are illegal. The only precious stone
miner in Dorowa is registered. The table also indicate that 97respondents (48.5%) do not follow
due process, followed by 91 respondents (45.5%) who indicated that mining activities in Dorowa
are non registered.
Table 7: Marketability <strong>of</strong> Products Across Solid Minerals Mined
Source: Field work 2009
Mineral Mined Buyers
Private Companies Individuals
Tin Ore 54 135
Kaolin 7 3
Precious Stone - 1
Total 61 139
Percentage (%) 30.5 69.5
Table 1 reveals that 189 respondents (94.5%) were tin miners, while kaolin and precious stone
miners were 10 (5%) and 1 (0.5%) respectively, thus showing that the major mining activity in
Dorowa is tin mining. The table further reveals that 144 respondents (72%) were between the
ages <strong>of</strong> 25-35. This is followed by 35 respondents (17.5%) who are between the ages <strong>of</strong> 35-45, 19
respondents (9.5%) were between the ages <strong>of</strong> 15-25, while 2 respondents (1%) were in the age
range <strong>of</strong> 45-55. This indicates that the average age <strong>of</strong> miners in Dorowa is obtained as 32years.
Majority (62.5%) <strong>of</strong> the miners were found to be males, while only 37.5% were females. The
multiple bar charts in fig 1 portray this information.

192 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Table 7 reveals that 139 representing 69.5% sold their products to individuals, while only 61
respondents (30.5%) sold their products to private companies. From the table, it can be deduce
that 135 tin miners (71.4%) sold their tin ore to individuals, while 54 (28.6%) sold to private
companies. For kaolin miners 7 out <strong>of</strong> the 10 representing 10% miners sold their products to a
private company. Only 3 miners (30%) sold to individuals. The only precious stone miner sold
his products to individuals. (See Fig. 3)
Table 8: Composition <strong>of</strong> Miners
Composition Of Miners Frequency Percentage (%)
Indigenes 104 52
Settlers/ Migrants 96 48
Total 200 100
Source: Field work 2009
Table 8 reveals that majority <strong>of</strong> the miners (52%) in Dorowa are indigenes, and only 48% are
migrant and/or settler miners.
Figure 2

A Survey on the Impact and Consequences ... 193
QUESTION 3 – What livelihood and employment exist in mining communities vis-a-vis solid
mineral mining activities?
Tables 9 and 10 are use to answer this question.
Table 9: Occupation By Educational Level
Occupation Educational Attainment Total Perce
No Formal Primary Secon Teri Other ntage
Education dary ary
Mining 12 94 25 2.5
Farming 16 14 2 32 16
Trading 22 - 1 2 25 12.5
Civil
Servant 4 3 5 - 12 6
Mining
And
Farming 10 - 9 19 9.5
Farming
and Trading 11 6 22 2 13 54 27
Mining,
Farming,
Transport
and Trading 7 10 10 6 33 16.5
Total 18 85 62 8 27 200
Percentage 9 42.5 31 4 13.5 100
Table 9, indicate that the main occupation <strong>of</strong> Dorowa population is both farming and trading
with 54 respondent 27% this is followed by those who indicated mining, farming and trading
as their occupation. Interestingly, only 25 respondents (12.5%) indicated that mining alone is
their occupation (see Fig. 5). The table also shows that few <strong>of</strong> the respondents are civil servants,
while majority <strong>of</strong> them are involved either in farming, mining and trading or in a variety <strong>of</strong> a
combination <strong>of</strong> the three livelihoods.

194 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Figure 3

A Survey on the Impact and Consequences ... 195
Question 4 – what enviromental problems <strong>of</strong> the host communities are associated with solid
mineral mining?
Table 11 is used to answer this question.
Table 11: Impact <strong>of</strong> mining activities on the environment by type <strong>of</strong> solid mineral
mined
Impact Type <strong>of</strong> Mineral Mined Total
Tin Ore Kaolin Precious stone
Gulley Errosion 7 10 - 17 8.5
Degradation 108 1 109 54.5
Creation <strong>of</strong> ponds 14 - - 14 7
Gulley
errosion
degradation
andcreation
<strong>of</strong> ponds 60 60 30
Total 189 10 1 200 100
Table 11 indicates that 109 respondents (54.5%) stated that the major environmental impact <strong>of</strong>
mining on mining communities is land degradation. 60 respondents 30% stated that the impact
is gulley erosion, degradation and creation <strong>of</strong> ponds, while 17 respondents (8.5%) stated that
the impact on land is only gulley erosion. Only 14 respondents (7%) said that mining create
ponds. Of all the 3 minerals mined, it is tin mining that devastate the environment most as 189
(94.5%) tin miners are involved in all the forms <strong>of</strong> environmental devastation identified. The pie
chart in Fig. 7 portrays the impact <strong>of</strong> mining on the environment.
(%)

196 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Figure 4

Picture showing a twin- mine pond and a mined dump in Dorowa.
Picture showing illegal miners operating in Dorowa.
A Survey on the Impact and Consequences ... 197
Question 5 – How Has Solid Mineral Mining Affected The Land Use Practices In Mining
Communities?
Table 12 Is Used To Answer This Question.

198 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Table 12: Consequences <strong>of</strong> mining on the environment and efforts made at
reclaimation
Consequences Efforts made to reclaim
devastated environment Total Percentage
(%)
No effort Fishing ponds Irrigation
Death trapsmine
pits
and ponds 108 1 5 114 57
Land Degra
dation- Removal
Of Top
Soil &Vegetative
Cover 78 - 8 86 43
Total 186 11 13 200
Percentage
(%) 93 0.5 6.5 100
Table 12 shows that the major consequences <strong>of</strong> mining on the environment are the presence <strong>of</strong>
mine pits and ponds, which are death traps. 114 respondents (57%) attested to that, while only
(43%) <strong>of</strong> the respondents indicated that land degradation as a result <strong>of</strong> mining is a negative
impact on the environment.
On efforts being made to reclaim the land, 186 respondents (93%) said there are no efforts in
that regard. 13 respondents (6.5%) said that some ponds are being used for irrigation, while 1
respondent (0.5%) indicated that ponds are used for fishery. See Fig. 5.

Figure 5
A Survey on the Impact and Consequences ... 199

200 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Question 6 – What Health And Safety Issues Of The Mining Population Are Linked To Solid
Mineral Mining?
Table 13 Is Used To A nsw er This Question
Table 13 H ealth Implications By Type Of M ineral M ined
Source: Field work 2009
Health Implications Types Of Mineral Mined Total Perce
ntage
(%)
Tin Precious
Ore Kaolin stone
HIV 3 3 1.5
Std’s 6 1 7 3.5
Muscular and
Skeletal Injuries 141 3 1 145 72.5
Respiratory
Infections &
Diseases 33 5 38 19
Other Ill Health 6 1 7 3.5
Total 189 10 1 200 100
Table 13 and Fig. 9 show clearly that both muscular and skeletal injuries are the major health
implication in mining communities with 141 (72.5%) respondents, followed by respiratory
infections and diseases with 33 (19%) respondents. More than half 146 (72.5%) <strong>of</strong> the miners
that indicated injury as the major consequence are among tin miners, while half 5 (50%) <strong>of</strong> the
kaolin miners stated their health and safety issues are respiratory even though 33 tin miners
also have respiratory infections as health challenges.

A Survey on the Impact and Consequences ... 201
Figure 6

202 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Question 7 – How has solid mineral mining impacted the social structure <strong>of</strong> mining
communities?
Tables 15 and 16 are used to answer this question.
Table 14: Relationship <strong>of</strong> miners with host community by mining activities
Miners Relationship Not Total
Cordial Cordial
Tin Miners 187 2 189
Kaolin
Miners 9 1 10
Precious
Stone
Miners 1 - 1
Total 197 3 200
Percen
tage (%) 98.5 1.5 100
On the relationship that existing between miners and the host community; 197 respondents
(98.5%) stated that it is cordial, while 3 respondents (1.5%) said it is not cordial (see table 15).
The table further reveals that out <strong>of</strong> the 189 tin miners in Dorowa 187 (98.8%) said the relationship
between the miners and the host community is cordial and 9 out <strong>of</strong> the 10 kaolin miners (90%)
also indicated that their relationship with the host community is cordial. This cordiality could
be because most <strong>of</strong> the informal and illegal miners are largely from within the community or
live in nearby communities.

Figure 7
A Survey on the Impact and Consequences ... 203
Table 15: Relationships <strong>of</strong> miners with other communities across mining activities
Miners Relationship Total Total Percentage (%)
Cordial % Not Cordial %
Tin Miners 186 93 3 1.5 189 94.5
Kaolin 8 4 2 1 10 5
Miners
Precious 1 0.5 - - 1 0.5
Stone Miners
Total 195 97.5 5 2.5 200 100
Table 15 shows that 195 respondents 97.5 said that a cordial relationship exist between miners
and other communities, while only 5 respondents (2.5%) said the relationship is not cordial.
Out <strong>of</strong> the 189 tin miners, only 3 respondents (1.6%) said there is no cordial relationship
between the miners and other communities. 2 out <strong>of</strong> the 10 kaolin miners (20%) said the
relationship with other communities is not cordial.

204 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Question 8 – how has mining activities affected the value system <strong>of</strong> mining communities?
Tables 16 and 17 are used to answer this question.
Table 16: Responses on Whether Mining Affects the Belief System or Cultural Values
<strong>of</strong> Mining Communities
Opinion Sex Total (%)
M F
Affect belief
System 68 53 121 60.5
Do not affect
The belief system 54 25 79 39.5
Total 200 100
From Table 16, it can be observed that 121 respondents (60.5%) stated that mining affects their
belief system, while 79 (39.5%) stated that mining t does not affect their belief system.
Table 17: Respones On How Mining Affects Value System In Dorowa Community
Value System Sex Total Percentage (%)
M F
Erosion <strong>of</strong>
Social Values 12 9 21 10.5
Sexual
Promiscuity 8 11 19 9.5
Low Family
Values 10 8 18 9.0
Change In
Name Of Places 12 5 17 8.5
All The Above 74 51 125 62.5

A Survey on the Impact and Consequences ... 205
Table 17 show that 125 respondents (62.5) stated that mining affects the value system (erosion
<strong>of</strong> social values, sexual promiscuity, low family values and change in names <strong>of</strong> places and
people).
Figure 8

206 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Question 10 – What is the level <strong>of</strong> awareness on the existence <strong>of</strong> mining policies and the
implementation <strong>of</strong> such policies?
Tables 18, 19 and 20 will be used to answer this question.
Table 18: Miners Level <strong>of</strong> Awareness on Existence <strong>of</strong> Policies
Policies Miners Awareness Total Percentage (%)
Aware Not Aware
Colonial Policies 22 8 30 15
Fed. & State
Govts. Policies 140 4 144 72
Local
Government
Policies 25 1 26 13
Total 187 13 200 100
Percentage (%) 93.5 6.5 100 100
Source: Fieldwork 2009
The data in table 18 show that 187 respondent (93.5%) are aware <strong>of</strong> the policies while only 13
(6.5%) are not aware. Out <strong>of</strong> the 187 respondents who are aware <strong>of</strong> the policies, 140 (74..9%)
are aware <strong>of</strong> both federal and state governments policies, 25(13.4) are aware <strong>of</strong> local government
policies and only 22 respondents (11.8%) are aware <strong>of</strong> the colonial policies Even though there is
some level <strong>of</strong> awareness on the existence <strong>of</strong> different policies regarding mineral mining, the
awareness is not a critical one as all respondents are not sure <strong>of</strong> the contents <strong>of</strong> the policies. See
fig 9.

Figure 9
Table 19: Government Policies On Mining and The Level <strong>of</strong> Implementation
By Miners
Government Policy Level Of Implementation (%) Total Percentage
(%)
1 – 25% 26 – 50%
Restriction 68 9 77 38.5
License 89 22 111 55.5
Tenure 11 1 12 6
Total 168 32 200 100
Percentage (%) 84 16 100
A Survey on the Impact and Consequences ... 207
Table 19 indicate that the major government policy put in place is the license with 111
respondents (55.5%), followed by restriction with 77 respondents (38.5%) and tenure with 12
respondents (6%). On the level <strong>of</strong> implementation table 11 further reveals that majority <strong>of</strong> the
respondents (84%) rated the level <strong>of</strong> policy implements as low (1-25%). 32 respondents (16%)
rated the policy implementation between 26-50%; however, it is sad to learn that even the
license policy which is a source <strong>of</strong> revenue to government, has a low level <strong>of</strong> implementation.
See fig 10.

208 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Figure 10

Table 20: Implementation <strong>of</strong> government policy by various arms <strong>of</strong> government
Arms <strong>of</strong> government Implemented Non implemented
Local government 18 182
State government 22 178
Federal government 0 200
A Survey on the Impact and Consequences ... 209
Table 20 reveals that all the respondents stated that there is no implementation <strong>of</strong> government
policy by the federal government. As for the implementation <strong>of</strong> government policy by state
government, 78 respondents (89%) indicated that there is no implementation, while 22 (11%)
said there are some levels <strong>of</strong> implementation. 182 respondents (91%) stated that there is no
implementation <strong>of</strong> government policy by local governments. Only 18 respondents said there is
some level <strong>of</strong> implementation by the local government. Tables 19 and 20 show that solid mineral
mining practices are unregulated. Where some regulations occur, they are uncoordinated and
poorly implemented.
6.7 Discussions
The study revealed that illegal mining, ( the most practiced mining in Dorowa) is always
associated with several pits sunk over several hectares <strong>of</strong> land by several mining groups in a
cluster fashion. The immediate consequences <strong>of</strong> this is the large scale <strong>of</strong> land degradation that
invigorate soil erosion, mines pits become death traps and the loss <strong>of</strong> arable land from the
limited available land after previous mining activities. For instance, in the last ten years, mine
pits and ponds have caused the drowning <strong>of</strong> 26 people; 16 chidren, 10 adults and 19 animals,
while 24 people have been buried in mine pits in the case study community.
Since health and safety precautions have not been observed in the mining communities the
immediate health consequences are mostly traumatic muscular-skeletal injuries, diseases and
deaths from accidents in mining pits and ponds. However, slow and long term ill health <strong>of</strong>
respiration because <strong>of</strong> dust particles from mining related factories also occur in mining
communities. These include bronchitis asthma, tuberculosis and eye ailments.
Despite their contibutions to past and present mining activities, most mining communities
do not have basic social amenities such as primary health care facilities. For instance, Dorowa
community does not have a primary health facility though a private chemist shop provides
such services. Suffocation to death <strong>of</strong> sub–surface workers due to poor ventilation; poor
illumination and collapse <strong>of</strong> ro<strong>of</strong>s are some <strong>of</strong> the problems confronting solid mineral mining
communities in Nigeria. Sexually transmitted diseases and HIV/AIDS are diseases that are
also common in mining communities although these are not openly discussed. Drunkeness,
promiscuity and loitering is a common phenomenon among most youths in the community -
a sign <strong>of</strong> hopelessness.
Mining activities have not only affected the physical environment, but have also affected
the value system <strong>of</strong> these communities as shown in the erosion <strong>of</strong> their traditional values in all

210 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
spheres <strong>of</strong> their lives. In Dorowa for instance, shifting cultivation which used to be practised
has stopped, rather irrigation farming and the planting <strong>of</strong> crops that require minimal soil
nutrition are used in rainfed farming. The means <strong>of</strong> livelihood and employment for members
<strong>of</strong> mining communities is a combination <strong>of</strong> many activities as mining activities have degraded
and impoverished their environments being the sole source <strong>of</strong> their sustainance. In the area
studied, the few farmers have very small farm holdings ,they now make a livelihood in a
combination <strong>of</strong> mining, farming, trading and the motorcycle transportation. 47.5% <strong>of</strong> the
respondents interviewed are from single- head families, a situation quite different from their
traditional past.
Most members <strong>of</strong> mining communities are very aggressive towards visitors, especially if
they sense that visitors are coming in connection with mining. This aggressiveness towards
outsiders is contradictory. While they accuse the past and present governments and miners <strong>of</strong>
not doing anything for them and for degrading their lands; they themselves and those <strong>of</strong>
nearby communities further degrade their environment through illegal mining.
Another important finding <strong>of</strong> the research is the non – implementation <strong>of</strong> mining policies
by miners. This is consequent <strong>of</strong> the fact that most <strong>of</strong> the miners operate illegally, even though
when confronted they respond that their operations are licensed. The reluctance and weak
enforcement <strong>of</strong> mining regulations by both local and state regulatory and enforcement agencies
and agents is also a factor on encouraging illegal mining.
6.8 Recommendations
From the results <strong>of</strong> the study, issues critical to solid mineral mining and sustainable environmental
management were identified.The following recommendations are suggested as ways <strong>of</strong>
addressing them.
It was observed that information and enlightenment on issues relating to solid mineral
mining is limited, both among current miners and in mining communities. There is therefore,
the need to enlighten target miners, mining communities and governmental agencies on these
issues.This should be embarked upon by civil society organisations and the three tiers <strong>of</strong>
government.
For this to be sustained, procedures and proccesses <strong>of</strong> campaigns should have the input <strong>of</strong>
communities in all stages <strong>of</strong> the education. When communities are aware <strong>of</strong> their rights, priveleges
and obligations, they will demand them and develop mechanism for getting same.
Due to the large scale <strong>of</strong> environmental and land degradation and the incapacitating position
<strong>of</strong> mining communities to carry out massive rehabilitation, it is recommended that, programmes
<strong>of</strong> this nature should be borne by governments and miners. Activities <strong>of</strong> rehabilitation should
also include the community and must feature refilling <strong>of</strong> mine pits and ponds, reclaiming
those that can be utilised, revegetating barren land and afforestation.
Utilisation <strong>of</strong> ecological funds must be targeted to needy areas and decisions on “how and
what” <strong>of</strong> utilisation must be done in conjunction with community members. This should not
be left to the discretion <strong>of</strong> government <strong>of</strong>ficials.

A Survey on the Impact and Consequences ... 211
Governments regulatory organs and individuals including mining communities should be
empowered to enforce regulations while Civil Society Organisations can facilitate these process.
6.9 Conclusion
The study set out to determine the impact and consequences <strong>of</strong> solid mineral extraction on
mining communities in Nigeria using Dorowa community <strong>of</strong> Plateau State as a case study. For
the baseline survey, with instruments <strong>of</strong> questionnaire and FDG questions guide were used to
obtain data from 200 respondants. The frequency mean tables, bar and pie charts were used to
analyse primary data. It was found that environmetal degradation is the first and most
prominent negative impact that solid mineral extraction has on mining communities.This result
in the formation <strong>of</strong> ponds, gullies, pollution <strong>of</strong> ground surface water and the loss <strong>of</strong> soil fertility
and vegetation.
A second negative impact <strong>of</strong> the population <strong>of</strong> mining communities is that their health and
safety is negatively affected through the toxicity from radioactive substances <strong>of</strong> mine products
and processes and also through accidents <strong>of</strong> humans and animals resulting to traumatic
muscular-skeletal disease, injuries and deaths. The social structure <strong>of</strong> the population was also
affected as the population developed new lifestyles and livelihood with the dislodgement <strong>of</strong>
their social and physical environments with the arrival <strong>of</strong> new persons with new values. The
study suggested a wholistic and continues education <strong>of</strong> stakeholders in the sector on all issues
relating to solid minerals mining.

212 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
References
Agagu, Olusegun, 2009, Threats to The Nigerian Environment: A Call for Positive Action, being
a paper presented at the 7 th Chief S. L. Edu Memorial Lecture, organized by Nigerian
Conservation Foundation.
Dung-Gwom, John, 2000,The Impact <strong>of</strong> Tin Mining on Economic Activities in Plateau State, in
Land and Desecration and Environmental Degradation on Nigeria’s Jos Plateau; Jos: League
for Human Rights.
Fell, George, 2009, Pasted an article on the Internet titled The Tin Mining Industry in Nigeria,
XXXVIII, browsed on June, 2009.
Malo, Stephen, 2007, Minerals and Mining on The Jos Plateau; Published by ACON: Jos, Plateau
State, Nigeria.
Mangvwat, Monday, 2000, Tin Mining and Environmental Degradation on the Jos Plateau,
1902 – 1994, in Land and Desecration and Environmental Degradation on Nigeria’s Jos
Plateau; Jos: League for Human Rights.
Onah, Felix Ezema, 2009, Promotion <strong>of</strong> Economic Activities Through Development <strong>of</strong> Solid
Mineral Potential <strong>of</strong> the States, browsed on the Internet in June, 2009.
Pring, George, and Noe, Susan, 2002, “The Emerging International Law <strong>of</strong> Public Participation
Affecting Global Mining, Energy, and Resources Development”. In Human rights in
Natural Resource Development (Oxford Uni. Press; Eds. Zalman, Lucas & Pring.
Raufu, Abiodun, 1999, ‘Tin Mining Wrecks Havoc on ‘beautiful’ Nigerian City’, a Panos Feature
<strong>of</strong> 31 March, 1991.
Ugwu, F. N, 1996, “Optimisation <strong>of</strong> Nigerian Coal Production”. Nigerian Coal: A Resource for
Energy and Investment. H.C. Okolo and M.C. Mkpabi (eds.) Abuja Raw Materials and
Research and Development Council).
United Nations Economic and Social Council, Committee on Natural Resources, Small Scale
Mining Activities in Developing Countries & National Legislation Regarding Enterprises
in This Area: Report <strong>of</strong> the Secretary-General, 1 st Session, Agenda Item 12, United Nations
Doc. E/C.7/1993/11 (1993).
United Nations Environment Programme (UNEP), Environmental Impact Assessment: Where
to From Here? UNEP Environmental Economic series Paper No.6 (Oct. 1993), website -
http://www.unep.no/unep/products/eev/ecoserie/ecos62.htm
United Nations and Social Council Developments in small-scale mining, being a Report <strong>of</strong> the
Secretary General. April 1 st , 996. www.un.org/documents/ecosoc/c7/1996/ec71996-9htm.
Walde, Thomas, 1993 “ Environmental Policies towards M ining in Developing Countries.” 10 th
Journal <strong>of</strong> Energy & Natural Sources Law 327 (1992); reprinted in 30 Public Land and
Resources Law Digest 41.
Wikipedia, the free encyclopedia- Mining Industry <strong>of</strong> Nigeria, browsed on the Internet in June
2009.

Appendices
A Survey on the Impact and Consequences ... 213
Questionnaire
1. Gender: (a) Male (b) Female
2. Age: (a) less than 15yrs (b) 15-25yrs (c) 25-35yrs (d) 35- 45yrs (e) 55 above
3. Marital Status: (a) Married (b) Single (c) widow (d) widower (e) divorce (f) separated
4. Religion: (a) Christianity (b) Traditional (c) Islam
5. Level <strong>of</strong> Education: (a) No formal (b) Primary (c) Secondary (d) Tertiary
(e) Others Specify______________
6. Occupation: (a) Mining (b) Farming (c) Trading (d) Civil Servant
(e) Others Specify______________
7. If you are in mining activities which type are you involved in
(a) Tin Mining (b) Kaolin (c) Precious stone (d) Others specify__________
8. Are you aware <strong>of</strong> mining activities in the area (a) Yes (b) No
9. What solid minerals are mined in Dorowa (a) Tin Ore (b) kaolin (c) Precious
stone
10. When did mining start in Dorowa (a) 10 – 20yrs (b) 20 – 30yrs (c) 40-50yrs
(d) 50yrs above.
11. What are the consequences <strong>of</strong> mining on the environment?
(a) Destruction <strong>of</strong> vegetable (b) Deat traps (c) Land degradation (d) all <strong>of</strong> the above
(e) Others Specify____________
12. What effort are/is been made to reclaim some mining ponds (a) tree
planting
(b) leveling (c) Fish pond (d) Irrigation (e) all <strong>of</strong> the above (f) no effort
(g) other specific__________
13. What methods <strong>of</strong> mining do you know in Dorowa (a) Open Cast?
(d) Deep cast (c) others specify__________
14. What mining process is duely followed (a) Registration
(b) Non Registration (c) Due process (d) Non Due process
15. What health implication has the mining on Dorowa Community?
(a) HIV (b) STD’s (c) Injuries (d) Respiratory (e) all <strong>of</strong> the above
16. If the mining ponds are death traps: (a) How many people lost their lives
(b) How many animals where lost in the pond (c) how many people where trap in the
pond.
17. What are the benefits <strong>of</strong> mining in Dorowa to the miners and the community: (a) Income
generation (b) employment (c) provision <strong>of</strong> infrastructure? (d) tourism
(e) water for irrigation (f) others specity_______
18. What benefit has mining in terms <strong>of</strong> relationship in the community
(a) Cordial Relationship (b) Not cordial relationship.
19. What benefit has mining brought in terms <strong>of</strong> relationship with other communities? (a)
Cordial Relationship (b) Not cordial relationship

214 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
20. Is mining activities on the (a) Decrease (b) Increase (c) As before
21. What conflict has arisen as a result <strong>of</strong> mining in Dorowa:
(a) Land conflict (b) Ethnic conflict (c) Religious conflict (d) community
interest.
22. Who are the miners (a) Indigenes in Dorowa (b) Settlers (c) Non Settlers (d)
all <strong>of</strong> the above (e) Others specify_________
23. Are participants in mining activities (a) Male (b) Female (c) all <strong>of</strong> the above
24. Key actors in mining activities are (a) Youths (b) Elders (c) Both
25. What policies are put in place for mining in Dorowa (a) Colonial policy
(b) Government policy (c) Local Policy
26. What is the level <strong>of</strong> awareness <strong>of</strong> existing mining policies by stake holders
(a) Aware (b) not aware
27. Which <strong>of</strong> the following government policies are you aware <strong>of</strong> as non-miners
(a) restriction (b) Loan (c) License (d) tenure
28. Which <strong>of</strong> the following government policies are you aware <strong>of</strong> as a miner?
(a) Restriction (b) Loan (c) License (d) tenure
29. Is/are the policies you are aware <strong>of</strong> being implemented by the miners (a) Yes(b) No
30. If yes what is the level <strong>of</strong> implementation (a) 1-25% (b)26- 50% (c) 51-
75% (d) 76-100%
31.Is/are the policies you are aware <strong>of</strong> being implemented by the local government (a) Yes
(b) No
32.If yes what is the level <strong>of</strong> implementation
(a) 1 – 25% (b) 25 – 50% (c) 51-75% (d) 76 – 100%
33.Is/are the policies you are aware <strong>of</strong> being implemented by the state government (a) Yes
(b) No
34.If yes what is the level <strong>of</strong> implementation
(a) 1- 25% (b) 25-50% (c)51-75% (d) 76 – 100%
35.Is/are the policies you are aware <strong>of</strong> being implemented by the federal government (a)
Yes (b) No
36.If yes what is the level <strong>of</strong> implementation (a) 1-25% (b) 25-50% (c) 51-75% (d) 76
– 100%
37.How has solid mining affected land in Dorowa
(a) gully Erosion (b) Degradation (c) Afforestation (d) displacement <strong>of</strong> people (e)
creation <strong>of</strong> ponds/dumps (f) others specify__________

A Survey on the Impact and Consequences ... 215
38. Who are the buyers? (a) government (b) private companies (c) individual
39. Who are you working for? (a) self (b) for the miner (c) mining company
(d) government
(e) others specify_________
40. How has mining affected land use in Dorowa
(a) Irrigation (b) Fishing (c) rainfed (d) recreation
41. Has mining affected the belief system or cultural values in Dorowa community? (a)
Yes (b) No
42. How has mining affected the value system in Dorowa community
(a) erosion <strong>of</strong> African traditional religion
(b) increased aggression
© low family values
(e) changes in name <strong>of</strong> places
(f) all <strong>of</strong> the above
43. How has mining affected the cultural values in Dorowa community
(a) minimal rainfall farming
(b) more irrigation farming
© more trading and transport business
(d) all <strong>of</strong> the above
Oral Interview and FGD Question Guide
1. Any association/group formed as a result <strong>of</strong> mining activities in Dorowa community? /
How long have you been in this community?
2. What role does the groups/association has on Dorowa community as a result <strong>of</strong> mining
activities? / How have been you or members <strong>of</strong> the community been involved in the mining
activities?
3. Can you describe the people involved in mining in this community?
4. How has mining affected your community at the personal, family and community levels?
5. Any old story related to mining activities in Dorowa community
6. What are your suggestions for miners, the community and the governments in handling
the issues <strong>of</strong> mining?
7. What efforts has the community, the miners and governments put in place to forestall the
effects <strong>of</strong> mining in the community?

216 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...

A Survey on the Impact and Consequences ... 217

218 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...

7
Best Practices In Solid Minerals: International Dimension
And Comparison
Victor A.O. Adetula
219

Abstract
Solid minerals sector plays major roles in the economies <strong>of</strong> both the mineral-rich and
consuming countries. However, while the few mineral-producing countries in the North
have benefitted greatly from mining and mineral processing, only a handful <strong>of</strong> their
counterparts in the developing regions have something to show for hosting mineral
deposits. The benefits acquiring to countries from mining minerals as well as the risks
associated with the process vary depending on a number <strong>of</strong> internal and external factors
that affect the discovery, assessment, development, production in the solid mineral sector.
Such include policy and legal and institutional framework, state power and control over
foreign capital, international regime on mining. This paper takes cognisance <strong>of</strong> the
importance <strong>of</strong> internal factors and the global context <strong>of</strong> mining and mineral processing.
It reviews the discourse about development potentials <strong>of</strong> solid mineral development
focusing on comparative experiences <strong>of</strong> both producing and consuming countries but
with some emphasis on best practices. In this regard the paper compares trends and
developments in some African mineral-rich countries and points out some <strong>of</strong> the challenges
that are associated with the extraction <strong>of</strong> mineral resources in regions and countries
where control and regulatory frameworks and other institutions <strong>of</strong> governance are not
working effectively and efficiently. The paper notes that while in the industrialised
countries such issues as easy access to and availability <strong>of</strong> mineral commodities and the
threat <strong>of</strong> supply interruptions in strategic and critical minerals, dominates discussions
about minerals and mining, in the South the issues are endless. The long list includes
the role <strong>of</strong> mineral exploitation in economic development, the Dutch disease, and the
links between mineral wealth on one hand and corruption and conflict on the other,
environmental effects <strong>of</strong> mining and material use, the role <strong>of</strong> government policy and
corporate social responsibility for controlling them, impact <strong>of</strong> mining on indigenous
people and local communities, sustainable development and the exploitation <strong>of</strong> nonrenewable
mineral resources. The paper also discusses current global developments that
are affecting solid mineral mining and development notably globalisation, the rise <strong>of</strong>
China and India, and the growing global competition for mineral resources. It concludes
that for solid mineral exploitation to contribute to growth and development in the host
countries especially, such best practices like sound governance system, capacity to
administer and monitor the sector, and better linkages between the solid mineral subsector
and other sustainable sectors <strong>of</strong> the local economy are required.
220

Key Terms
The following related terms and concepts, namely ‘development’, dependency’, ‘resource
‘dependence’ ‘resource curse’ and ‘globalisation’ are central to the main discussions and analyses
in this chapter. Development refers to a process <strong>of</strong> social, economic and political transformation
that focuses on the well being <strong>of</strong> the people and which moves a society closer to condition in
which the basic needs <strong>of</strong> people are met. In this context, development includes diverse elements,
such as sustainable economic growth, social advancement, human empowerment and
consideration for such issues as participation, inclusiveness and good governance, transparency
and accountability and efficient and effective delivery <strong>of</strong> goods and services to the majority <strong>of</strong>
the people. Conceived in this way development represents a many-sided process that include
concerns for the political, cultural and social spheres. In this way, development is more
encompassing and it involves the totality <strong>of</strong> human and societal affairs, and hence cannot (and
should not) be restricted to the economic sphere.
The concept <strong>of</strong> ‘dependency’ adequately captures the relationship between the industrialised
countries <strong>of</strong> the North and the developing countries <strong>of</strong> the South in the international system.
Dependency refers to a complex set <strong>of</strong> relations that are designed to enhance the integration <strong>of</strong>
the countries and regions in the periphery into the world system. Dependency demonstrates
lack <strong>of</strong> related domestic, external and transnational characteristics. These domestic and
transnational features are sometimes referred to as “parts <strong>of</strong> the structural distortions”, showing
the numerous ways by which the local economy is structured to meet the needs <strong>of</strong> the foreign
sector. Lack <strong>of</strong> integration <strong>of</strong> various domestic sectors due to the strong linkage between portion
<strong>of</strong> the economy and foreign interests, the marginal status <strong>of</strong> displaced domestic groups, and
the growing gap between elites and masses are all dominant characteristics <strong>of</strong> a dependent
political economy.
The international system is characterised by a division <strong>of</strong> labour that confers many
advantages on the industrialised countries <strong>of</strong> the North as the ‘core’ countries while the countries
in the South that constitute the ‘periphery’ and are at disadvantage. In this characterisation the
‘core’ countries exhibit hegemonic powers in the world economy and direct the process <strong>of</strong>
development and underdevelopment in the ‘periphery’. The main thesis centres on the
hegemonic input and dominant influence <strong>of</strong> the North which conditions development and
underdevelopment in the South. The international division <strong>of</strong> labour is today characterised by
inequities which are sustained through unequal exchange, aids, foreign investment, technological
dependency and resource dependency. The structure <strong>of</strong> the mining sector in many mineralrich
countries in the South reinforces dependency syndrome. Also, it has continued to sustain
unequal relationship between the North and the South in international division <strong>of</strong> labour. The
industrialised countries in the North exercises significant control on the capital and technology
while the mineral-rich countries in the South merely collect rents on their mineral deposits.
221

222 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Natural resource dependence relates to the negative effect <strong>of</strong> unbridled dependence on
natural resource endowment in mineral-rich countries without due consideration for sustainable
development. It is a situation whereby mineral-rich countries depend largely on imports for
raw materials while the industrialised countries enjoy the benefits <strong>of</strong> modern industrial growth
which rarely spread to the periphery. Resource dependence in many mineral-rich countries has
continued to promote poor governance, social and economic inequities, corruption, institutional
backwardness and rent-seeking mentality and other features <strong>of</strong> countries bedeviled by the
‘resource curse’ which is a common label for a cluster <strong>of</strong> negative outcomes that a mineral-rich
country may experience as a result <strong>of</strong> over-dependence.
The term ‘resource curse’ refers to a situation where the populations <strong>of</strong> mineral-rich countries
suffer because <strong>of</strong> the extraction and exportation <strong>of</strong> their resources. As countries with abundant
natural resources appeared to perform less well than their more poorly endowed neighbours,
more attention was devoted to term ‘resource curse’ by both scholars and development experts.
Weak state institutions, inadequate governance and absence <strong>of</strong> fiscal responsibilities have
aggravated the adverse effects <strong>of</strong> the ‘curse’ in many resource endowed countries. Also, in
many instances the negative effects <strong>of</strong> ‘resource curse’ have been reinforced by environmental
degradation, human rights abuse and growing internal conflicts. Some countries such as
Botswana, Chile and Malaysia have been able to avoid the resource curse. Mineral-rich countries
require stable social and political order with capable public institutions in order to overcome
the resource curse.
Globalisation refers the integration <strong>of</strong> economies <strong>of</strong> the world through increased flow <strong>of</strong>
trade and finance, inter-country movement <strong>of</strong> labour, and also through mutual exchange <strong>of</strong>
technology and knowledge. Globalisation should not be restricted alone to the issues <strong>of</strong> extensive
tariff reductions, implementation <strong>of</strong> trade promoting measures, fiscal liberalisation, easier foreign
capital inflows and easy access <strong>of</strong> foreign financial money markets. It should include concerns
in social sphere as well. For example, globalisation has quickened the involvement <strong>of</strong>
international NGOs, human rights groups, media groups, voluntary organisations, etc.
essentially promoting global consciousness around such issues as droughts, environmental
degradation, famines, conflicts, and refugee-settlement. In some instances politically sensitive
issues such as press freedom, general elections and human rights abuse have provoked crossborder
interest and as well received the attention <strong>of</strong> the emergent civil society under the current
wave <strong>of</strong> globalisation. This some times have given rise to anti-globalisation protests.
Globalisation has come with some new challenges for governance and the management <strong>of</strong>
global public goods (such as health, education, human security, etc.). Today, more than ever
nation states and inter-governmental organisations are under pressure to adopt neo-liberal
reform agenda. The adoption and implementation <strong>of</strong> economic liberalisation policies and
programmes in many countries has not only deregulated the economy, it had also “signed
away” the power <strong>of</strong> the nation-state to regulate and enact policy vis-Ñ-vis foreign actors.
Consequently economic liberalisation and other neo-liberal policies and programmes such as

Best Practices in Solid Minerals ... 223
the liberalisation <strong>of</strong> foreign trade, greater openness to foreign direct investment, and the
deregulation <strong>of</strong> key economic sectors have continued to gain much ground as part <strong>of</strong> the new
global processes leading towards international integration and interrelatedness. It is within this
context the current move toward privatisation <strong>of</strong> state mining assets and also the increasing
role <strong>of</strong> corporate actors in many producing countries are being entertained and presented by
the elites to the masses as development programme.

224 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
7.1 Introduction
The potential for mining and mineral processing to contribute to the development <strong>of</strong> the
producing countries does not provoke debate any longer. Many <strong>of</strong> the world’s richest countries
have benefitted greatly from minerals extraction. Australia, Canada, Finland, Sweden, and the
United States, for example, have all had extensive minerals industries and used them as a
platform for broad-based industrial development. The benefits <strong>of</strong> minerals-led development
are not restricted to the mineral-rich countries in the North. Few countries in the South that are
endowed with mineral resources have also benefitted from solid minerals especially where they
are able to put in place appropriate legal, policy and framework to guarantee transparency
and accountability, ensure adequate level <strong>of</strong> political stability, and also have well-defined property
rights. South Africa and Botswana are examples <strong>of</strong> success stories in managing natural resources
wealth in Africa. Elsewhere in the world such as in the case <strong>of</strong> Norway, some countries have
been successful in using natural resources funds to fuel their growth and development.
In this chapter, we undertake a review <strong>of</strong> the link between mining processing and
development, a brief discussion <strong>of</strong> trends and developments in solid mineral industry and the
extent to which the benefits and losses are influenced by global realities. We conclude the
chapter by pointing out that for the mineral sector to contribute to sustainable development in
the host countries, sound governance system at national, regional and international levels that
are complimented by appropriate international regimes is required. Also, a sustained knowledgebased
advocacy activity around issues <strong>of</strong> transparency and accountability, environmental ethics,
corporate and social responsibility, human rights values, labour relations, and other best practices
is recommended.
7.2 Goals, Aims and Objectives
The purpose <strong>of</strong> this chapter is to show the importance <strong>of</strong> internal and external factors in the
development <strong>of</strong> the solid mineral sectors. Specifically, in this chapter we note the increase global
concern about the development <strong>of</strong> solid minerals, and also review the discourse about
development potentials <strong>of</strong> solid mineral development focusing on comparative experiences <strong>of</strong>
both producing and consuming countries but with emphasis on Africa countries. Thus the
specific objectives <strong>of</strong> the chapter include:
(i) Review <strong>of</strong> the discourse on the development potential <strong>of</strong> the solid mineral sector ;
(ii) Comparative analyses <strong>of</strong> dominant characteristics, orientations/values and policy focus
<strong>of</strong> solid mineral sector in selected countries;
(iii) Analysis <strong>of</strong> internal and external dynamics that influence solid mineral development policies
and programmes;
(iv) Analysis <strong>of</strong> emerging trends and developments in the international systems and their
implications mineral-rich countries;

Best Practices in Solid Minerals ... 225
(v) Analysis <strong>of</strong> international best practices in the development <strong>of</strong> solid mineral industry; and
(v) Suggestions and recommendations for stakeholders in the Nigerian solid mineral sectors.
7.3 Key questions
The success or failure in mining and mineral processing sector is not attributable to one single
factor rather it is a product <strong>of</strong> a complex <strong>of</strong> internal and external developments and processes.
The following questions guide our analysis:
(i) What are the factors that made it possible for some countries to make success in their solid
mineral sector while some other countries recorded failure, and some have not shown any
potential for success in the future?;
(ii) What are the current international best practices in the development <strong>of</strong> solid minerals,
and how are they being responded to in mineral-producing countries?;
(iii) What is the extent <strong>of</strong> the influence <strong>of</strong> external factors including developments in the
international system on the development <strong>of</strong> solid mineral sectors in the producing
countries?; and
(iv) What are the international best practices in the development <strong>of</strong> solid mineral industry?
7.4 Method <strong>of</strong> Data Collection and Analysis
This chapter is based on extensive review <strong>of</strong> bibliographic materials on the subject <strong>of</strong> solid mineral
development. Special attention has been paid to historical and contemporary literature on the subject
<strong>of</strong> solid mineral and development. Documentary sources produced by the relevant governmental,
inter-governmental and non-governmental agencies were used extensively. Secondary analysis
was useful throughout the entire study. In this regard, sources for the study, therefore, include:
studies presenting more condensed reports (such as analysis based on selected socio-economic
indicators; reports which focused on particular sub-themes (such as privatisation, deregulation,
globalisation, etc.); and reports angled toward a particular policy or question (such as solid
mineral development policy); and analyses based on conceptual frameworks not applied to
previous analyses. Other documentary sources that were used include <strong>of</strong>ficial reports and national
policies on solid mineral development among others. Also, <strong>of</strong>ficial documents from government
and private sources were used. Since one <strong>of</strong> the main concerns <strong>of</strong> the chapter has to do with
best practices in solid mineral development, the study identified and documents the previous
accomplishments <strong>of</strong> some countries and also maps the present situation and trends.
Qualitative analysis was adopted in this chapter. Through a series <strong>of</strong> analytic steps, the
chapter addresses the key questions listed above. This approach helped to organised data and
information for analysis. The following analysis draws on the central features <strong>of</strong> the study
methodology. In the first instance, the chapter provides an overview on the discourse on the

226 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
development potential <strong>of</strong> solid mineral mining and also the principal challenges to solid mineral
development in the South. The analysis considers trends, policies and performances in the solid
mineral sector including the role <strong>of</strong> internal factors such as the nature <strong>of</strong> the regime, and general
trends within the political system. The section on policies and performance is followed by a
more detailed consideration <strong>of</strong> the influence <strong>of</strong> the international dynamics. This section addresses
critical challenges <strong>of</strong> the external constraints. The next steps in the presentation <strong>of</strong> data call for
the adoption <strong>of</strong> international best practices .The final step in the study calls for recommendations
and conclusion.
7.5 Review <strong>of</strong> Relevant Literature
The link between mineral mining and development is now far more acknowledged as important
variable in the equation for development. There has been an increase in global concern about
how the contributions <strong>of</strong> solid mineral industry can be maximised to increase the ‘wealth <strong>of</strong>
nations’. Beyond the obsession with revenues, the discourse about ‘real’ benefits <strong>of</strong> solid minerals
in terms <strong>of</strong> improvement in the social and economic status <strong>of</strong> the people especially those in the
mining communities, is just beginning to receive appropriate attention in development discourse.
The relationship between mineral resources and development is complex. This in part explains
the different interpretations <strong>of</strong> the link as either being positive or negative. For example, many
<strong>of</strong> those who interpret the effects <strong>of</strong> mineral exploitation in negative terms <strong>of</strong>ten refer to the
problem <strong>of</strong> social and ecological degradation that has led to land shortage, resource-related
conflicts and the dehumanising condition in mining communities. Because <strong>of</strong> the problems
associated with mining activities, mineral exploitation has come to be identified with
underdevelopment in many mineral-rich countries in the South. However, some have argued
in support <strong>of</strong> the positive effects <strong>of</strong> solid mineral exploitation on growth and economic
development in the mineral producing countries.
The current thinking in development practice considers as very important the local feasibility
and implications <strong>of</strong> development projects, especially ways in which such projects will impacts
upon the local institutions (See Steven, 1978, Goodland, 1982 and Leistritz et al, 1986). Thus
development agencies and others related bodies are encouraged to pay adequate attention to
the social and economic conditions <strong>of</strong> the people; the local situations, needs, and interests <strong>of</strong> the
people (Hoben, 1982: 350). That is, the interest <strong>of</strong> the local communities should be paramount
in any consideration <strong>of</strong> development project. The people occupy the centre stage <strong>of</strong> development;
for it is they who invest in the flora and fauna which presently dominate studies on the benefit
potentials <strong>of</strong> solid mineral development.
Two major perspectives have dominated the literature for over two decades. First is the
liberal school which focuses on economic growth through competitive markets, deregulation,
privatisation and integration into global markets. The second perspective which was given
credibility by the United Nations Conference on Environment and Development emphasises
“ecologically sustainable economic development”. However, the liberal perspective has enjoys
the support <strong>of</strong> the industrialised countries and the international financial institutions. For example,
the World Bank especially convinced that “a consensus is gradually forming in favour <strong>of</strong> a

Best Practices in Solid Minerals ... 227
market friendly approach to development”, placed her facilities at the disposal <strong>of</strong> the developing
countries, and encouraged them to adopt <strong>of</strong> neo-liberal policies. These countries were advised
to “roll back the state” (i.e. less government intervention), with the following possible exceptions:
investment in people; maintenance <strong>of</strong> macroeconomics stability; integration <strong>of</strong> the national
economy into the world economy; and provision <strong>of</strong> a competitive climate for private enterprise
(World Bank, 1991).
A veritable crusade is strategically organised around the concept <strong>of</strong> ‘sustainable
development’. Sustainable development is development that “meets the need <strong>of</strong> the present
without compromising the ability <strong>of</strong> the future generations to meet their own needs” (WCED,
1987). The needs include minerals among other things. Best practices in sustainable development
that are universally acknowledged include: maintaining environmental capital; preventing
degradation <strong>of</strong> land, air and water quality; efficient production and uses <strong>of</strong> natural resources;
decreased rates <strong>of</strong> emissions <strong>of</strong> greenhouse gases; increased recycling; and prevention,
minimisation and safe disposal <strong>of</strong> wastes (Lambert, 2001). The idea and concept <strong>of</strong> sustainable
development initially was a contrasting discourse to the liberal perspective. But sooner than it
featured at negotiations leading up to UNCED in 1992, it was hijacked and became corrupted
with elements <strong>of</strong> the liberalism/neo-liberalism. The consequence <strong>of</strong> this unholy alliance is the
ready collaboration between governments and the World Bank in the inauguration <strong>of</strong> neoliberal
policies and programmes. Of course, this collaboration has placed heavy premium on
the conclusions and directions pr<strong>of</strong>fered by development experts. The dominant conceptual
framework within which mining activities are planned and implemented today is the hybrid
<strong>of</strong> the two perspectives which at best trivialises ‘sustainable development’ by the infusion <strong>of</strong>
policy prescriptions and recommendations by the international financial institutions that
emphasise the logic <strong>of</strong> markets and free economy.
The World Bank is unquestionably on the lead in the promotion <strong>of</strong> ‘new environmentalism
with its ‘green’ credential, introducing environmental impact assessments for all major
development projects, supporting the establishment and operation <strong>of</strong> the Global Environmental
Facility (GEF), and assisting to improve the “environmental stewardship” <strong>of</strong> the developing
countries (World Bank, 1992, 1994). However, despite, all these efforts and concerns, there are
still unresolved issues in the sustainability debate which are very fundamental to development
processes and outcomes in the South. It is true that the Stockholm Conference perceived the
environmental question generally as a problem <strong>of</strong> pollution and particularly for the developing
countries. But “poverty and need” constituted “the worst polluters”! A decade and half later,
the report <strong>of</strong> the Brundtland Commission reinstated the point that “poverty is a major cause
and effect <strong>of</strong> global environmental problems.” It is futile therefore to attempt to deal with issues
<strong>of</strong> environment and sustainable development without consideration for the factors underlying
poverty and inequality. Thus from Stockholm to Brundtland the concern about the
environmental problems <strong>of</strong> the developing countries - air and water pollution, urban slums,
soil degradation, decertification and deforestation – was paramount.
The idea <strong>of</strong> sustainable development in the Brundtland Report goes far beyond environmental
protection. It is a process <strong>of</strong> change in which exploitation <strong>of</strong> resources, direction <strong>of</strong> investments,

228 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
orientation <strong>of</strong> technological development and institutional changes are conducted in consistent
with inter-generational and intra-generational equity, needs and limitations. In this context,
the Brundtland Report is easily a point <strong>of</strong> departure in the discourse on natural resource
exploitation and development. The essence <strong>of</strong> the Report is its commitment to “ecologically
sustainable economic development” which is interpreted as a balance between economic
development and ecological sustainability (Nijkam et al 1990, 156). The publication titled
Caring for the Earth: A strategy for Sustainable Living (IUCN, UNEP and WWF, 1991) is an
attempt at popularising “sustainable living” and quality <strong>of</strong> life, based on respect for ecological
integrity and a critique <strong>of</strong> existing development pattern. But somehow the dominant conception
in this effort has not gone beyond the first part <strong>of</strong> Brundtland’s definition <strong>of</strong> sustainable
development: “development which meets the needs <strong>of</strong> the present without compromising the
ability <strong>of</strong> future generations to meet their own needs.” Because sustainable development within
the above frame is predominantly concerned with reviving economic growth, therefore it
logically cannot raise questions about the nature <strong>of</strong> economic growth or the inequalities in the
distribution <strong>of</strong> the benefits <strong>of</strong> the growth. These are matters for serious consideration in the
operationalisation <strong>of</strong> the concept <strong>of</strong> sustainable development in developing countries, where
the links between environmental degradation and destitution is unequivocally the fundamental
issue rather than global economic growth.
The concept <strong>of</strong> sustainable development became very popular especially in Africa due mainly
to the ready support it got from African governments and the United Nations system, as well
as the NGOs. In 1989, the United Nations General Assembly called for a United Nations
Conference on Environment and Development to be held in Rio, June 1992. Linking up with
the local community, household and even individuals became part <strong>of</strong> the global strategy for
the attainment <strong>of</strong> sustainable development. However, despite the recognition <strong>of</strong> the importance
<strong>of</strong> the ecology <strong>of</strong> local commons and role <strong>of</strong> the historical users, there is very little in practical
terms. For instance, there are yet no concrete answers to the issues <strong>of</strong> participation in decision
making by the main users <strong>of</strong> local commons. The hope to date is simply that “sustainable
development will be an ongoing cumulative process... based on millions <strong>of</strong> right decisions at all
levels <strong>of</strong> management, from the global to the local” (Carley and Christie, 1992).
The urge to regard the Rio Agreements as major shift especially in favour <strong>of</strong> participatory
strategy in environmental management is strong. Right from preparatory state the UNCED
emphasised participation by NGOs, local government, pr<strong>of</strong>essional bodies, religious
organisations, communities and individuals. Although government and international bodies
welcomed this initiatives in the Rio Agreements, governments especially insisted on the inclusion
<strong>of</strong> such phrases as “where appropriate”, “if possible” and calling for better information and
scientific research. That Agenda 21 is able to devote a whole section to the actions and the right
<strong>of</strong> nine major groups to be consulted and actively participated in matters relating to
environmental management is commendable. But even when participation receive more than
reflexive recognition in the UNCED agreement , parties to the Rio Agreements restricted it to
participative planning within the context <strong>of</strong> market forces. This ambiguous interpretation is
also reflected in the outcome <strong>of</strong> the Earth Summit. Take for instance, Principle 12 <strong>of</strong> the Rio

Best Practices in Solid Minerals ... 229
Declaration on Environment and Development on one hand strongly supports an “open
international economic system that would lead to economic growth and sustainable
development.” On the other hand, Chapter 12 <strong>of</strong> Agenda 21 advocates for “the need for new
concepts <strong>of</strong> wealth and prosperity which allow for higher standards <strong>of</strong> living through changed
life styles and are less dependent on the earth’s finite resources and more in harmony with the
Earth’s carrying capacity”. In all these, little or no attempt is made to seriously reject the
primacy <strong>of</strong> economic growth or even to interpret participation as encompassing a radical shift
in power relations towards social empowerment <strong>of</strong> the people.
In many countries in the South that adopted the various forms <strong>of</strong> economic reform
programmes, it is possible to argue that the conception <strong>of</strong> sustainable development as in the
above is pervasive both in the discussions and <strong>of</strong>ficial practice <strong>of</strong> environmental management.
Official policies and major programmes on environmental management are geared towards
the promotion <strong>of</strong> the new spirit <strong>of</strong> cooperation between the state, private enterprises and NGOs
at the expense <strong>of</strong> the ordinary people who only benefit from this arrangement by default.
Limited as the gains <strong>of</strong> Agenda 21 may have been, they have not found any comprehensive
expression in <strong>of</strong>ficial policies <strong>of</strong> many countries in the South.
Some have argued with empirical evidence that countries endowed with abundant natural
resources tend to grow more slowly than resource-scarce countries (Iimi 2006). This has been
attributed to such factors as: a strong likelihood resource-related conflicts; the Dutch disease
syndrome; the lack <strong>of</strong> forward and backward linkages and learning-by-doing effects in the
natural resources sector; as well as social lassitude associated with the abundance <strong>of</strong> resources.
What determines the degree to which natural resources can contribute to economic development
in the main is the nature <strong>of</strong> governance. The environment in many mineral–rich countries in
Africa is characterised by underdeveloped structures and institutions, which presents
extraordinarily high opportunities for corruption. Also, the civil society is <strong>of</strong>ten very weak and
lacking the capacity to demand transparency and accountability in the mining sector. The
consequence is increased opportunities for corruption to thrive. Indeed the chances are that
corruption will continue to slow down the development <strong>of</strong> the mineral sector if governance is
not adequately addressed.
Because <strong>of</strong> the weak governance environment, the expected benefits from solid minerals
have evaded most mineral-rich countries. Findings from the Afrobarometre surveys in the
2005 circa are quite revealing on corruption (A rmmah et al, 2007, 6). While high rate <strong>of</strong>
experiences were reported among Nigerians, Ugandans and Zimbabweans, in Botswana,
Malawi and Lesotho experiences were comparatively low. Botswana is an <strong>of</strong>ten-cited good
example <strong>of</strong> prudent management <strong>of</strong> mineral wealth by maintaining transparency and
accountability in the use <strong>of</strong> public resources, setting a high efficiency bar for the spending <strong>of</strong>
windfall gains, and adjusting rapidly to adverse shocks (Mwega, 2007). Botswana is a major
producer <strong>of</strong> gem diamonds that has also had one <strong>of</strong> the world’s highest economic growth rates
– averaging 9% annually in 1996-99. For mineral-rich countries to maximise returns from the
surging demand for minerals, the overriding requirement is the orderly spending <strong>of</strong> resource

230 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
rents on public goods, with the principles <strong>of</strong> effective management <strong>of</strong> resource rents well-known
(O’Connell 2006)..
7.6 Presentation and analysis <strong>of</strong> the data
Comparative trends, policies and performances
Global distribution <strong>of</strong> minerals is not even. Most mineral producing countries are in the South.
The economies <strong>of</strong> such countries are largely dependent on their mineral resources as in the
cases <strong>of</strong> Chile, Brazil, Zambia, Tanzania, Botswana, South Africa, Ghana, Mali, Madagascar,
and Niger, among others. The industrially advanced countries <strong>of</strong> Western Europe, North America
and emerging markets in Asia notably India and China are the main consumers <strong>of</strong> minerals in
the world today. Because <strong>of</strong> the role <strong>of</strong> minerals as key energy resources for the industrialised
countries the North has developed keen interests and concerns in the global supply and demand <strong>of</strong>
fuel and non-fuel mineral resources. The industrialised countries in the North need uninterrupted
supply <strong>of</strong> metallic and nonmetallic minerals for their defence industries, some essential parts in
Information Age devices such as laptops and cell phones, and other products for everyday use.
Thus, the industrialised countries have consistently reviewed the situation to assess the
implications <strong>of</strong> foreign dependence and global competition in the solid mineral industry to
ensure that the supply <strong>of</strong> strategic minerals is not disrupted by political and economic risks.
Mining and mineral processing feature prominently in North-South relationship which
historically is characterised by the inequality <strong>of</strong> partners. Prices <strong>of</strong> mineral exports and conditions
<strong>of</strong> exchange are determined almost unilaterally by the industrialised countries who also exercise
significant control on the technology required for mineral processing. Apart from unfavourable
conditions in the international market, the absence <strong>of</strong> appropriate regulatory framework, weak
indigenous capital base, and coupled with lack <strong>of</strong> political capacity <strong>of</strong> the state in mineralproducing
countries, have further compounded the situation which has left the latter at the
mercy <strong>of</strong> the industrialised countries in the North whose capital dominate the solid mineral
industry. Most <strong>of</strong> the leading mining companies in the world today have strong connections
with the North mostly in terms <strong>of</strong> ownership and supply <strong>of</strong> required technology and expertise.
Such include Barrick Gold (Canada), Newmont Mining (United States), Gold Fields (South
Africa), Escondida (Chile) Xstra (Switzerland), (Buenaventura (Peru) and Vale which was
previously known as Companhia Vale do Rio Doce (Brazil).
Globally, the solid mineral industry suffers from over-subscription to neo-liberalism logic <strong>of</strong>
open and unregulated market economy. In many mineral producing countries the goal <strong>of</strong> the
reform agenda in the solid mineral sector has been to further consolidate the influence and
power <strong>of</strong> market forces. In these countries mineral policies reflect unconcealed crave for increase
revenues and not necessary the development <strong>of</strong> the people. This trend has continued to promote
mineral dependency in the host countries. Also, it has promoted and sustained external
orientation and domination by foreign capital that has taken advantage <strong>of</strong> the weak political
capacity <strong>of</strong> the state, bad governance and pervasiveness <strong>of</strong> corruption, and thereby making
the mineral sector to be more susceptible to external manipulations. Compared with solid mineral

Best Practices in Solid Minerals ... 231
sector in the North there are huge gaps in such areas as corporate responsibility, environmental
ethics, etc. in the South.
Africa ranks first or second in the quantity <strong>of</strong> world reserves <strong>of</strong> the following minerals
which include bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals
(PGM), vermiculite, and zirconium. The mineral industry is an important source <strong>of</strong> export
earning for many African countries. In 2005, minerals fuels accounted for more than 90 per
cent <strong>of</strong> the export earnings <strong>of</strong> Algeria, Equatorial Guinea, Libya, and Nigeria. Minerals and
mineral fuels accounted for more than 80 per cent <strong>of</strong> the export earning <strong>of</strong> Botswana (led by, in
order <strong>of</strong> value, diamond, copper, nickel, soda ash, and gold) Congo-Brazzaville (petroleum),
Congo-Kinshasa (diamond, petroleum, cobalt, and copper). Gabon (petroleum and gold).
Minerals and minerals fuels accounted for more than 50 per cent <strong>of</strong> the export earnings <strong>of</strong> Mali
(gold), Mauritania (iron ore), Mozambique (aluminum), Namibia (diamond, uranium, gold,
and zinc), and Zambia (copper and cobalt). In Ghana, South Africa and Tanzania gold was a
significant source <strong>of</strong> export earnings while in Central African Republic and South Africa diamond
was a key source <strong>of</strong> export earning. Also, in Niger uranium made it as the main source <strong>of</strong>
export earnings.
The destinations for Africa’s minerals exports are mostly in the North notably Europe and
United Sates <strong>of</strong> America. There are few other destinations in the South which include countries
<strong>of</strong> the Asia and Pacific region. However while Europe, USA and Asia remained the major
destinations for Africa’s mineral exports, intra-regional mineral trade among African countries
is comparatively low. For example, South Africa imported 142,000 kilograms per year <strong>of</strong> gold
from West African countries to supply its gold refinery.
Ghana ranks second to South Africa among the gold-producing countries in Africa. Ghana’s
earning from gold grew by 300 per cent between 1990 and 2001. During the same period
Mali’s revenue from gold mining grew by 720 per cent and Tanzania’s gold output grew by
630 per cent. Nigeria is endowed with varieties <strong>of</strong> solid minerals with some 34 major mineral
deposits distributed in locations across the country. Nigeria has 43 billion barrels <strong>of</strong> Bitumen,
2.3 trillion resource estimates <strong>of</strong> Limestone deposit, 5 billion tonnes <strong>of</strong> Iron Ore and 2.3 billion
tonnes <strong>of</strong> Coal. Statistically, the level <strong>of</strong> exploitation <strong>of</strong> these minerals is very low in relation to
the extent <strong>of</strong> deposits found in the country. In 2004, the Nigerian mineral sector contributed
just #298.5 million (about $2.3 million) to an economy with a GDP <strong>of</strong> about $100 billion (i.e.
about 0.02%). The volumes <strong>of</strong> domestic trade deficit and foreign exchange losses resulting
from this deficiency are colossal. Thus, in spite <strong>of</strong> her endowment with solid minerals, and the
tremendous opportunities for investments in the solid mineral sector, revenues generated by
the sector in 1999 was a paltry #80.9 million, which slowly grew to #309.2 million in 2002, and
#298.5 million in 2004. The solid mineral sector currently accounts only for between 0.05 and
one percent <strong>of</strong> Nigeria’s Gross Domestic Product (GDP).
The most useful way <strong>of</strong> looking at the broad issues in the prevailing trends in the solid
mineral sector is through a historical perspective. There is the sense in which it can be said that
colonialism influence the development <strong>of</strong> modern mining and mineral processing activities in
Nigeria and other colonised territories in Africa and elsewhere. In such locations the early

232 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
development <strong>of</strong> the sector was associated with the dynamics <strong>of</strong> colonialism. During colonialism
and also immediately after gaining independence, mining sector was the preserve <strong>of</strong> foreign
monopoly capital. For example, in Nigeria, the British finance capital controlled the mining
sector. It was during this period that a host <strong>of</strong> foreign firms under the auspices <strong>of</strong> the Britishowned
Amalgamated Tin Mines Nigeria Ltd. had the exclusive preserve <strong>of</strong> tin mining in Nigeria.
The structure <strong>of</strong> mining that was inaugurated in many African countries during colonialism
has remained the same since independence resulting in “mixed responsibility, poor accountability
and unmerited foreign exploitation <strong>of</strong> our wasting assets without adequate provision for the
future” (Oni and Onimode, 1975: 26). The experience in Ghana and Sierra Leone was similar
to Nigeria’s where foreign firms dominated the mineral sector with the active support <strong>of</strong> the
colonial state that enacted laws and regulations that were only by default protective <strong>of</strong> the
national interests <strong>of</strong> the colonised territories.
The solid mineral sector in many African countries since their independence has been
characterised by uncoordinated mixed-approach and confusions including lack <strong>of</strong> transparency,
accountability, prevalence <strong>of</strong> illegal miners, lack <strong>of</strong> clarity on ownership rights, lack <strong>of</strong> security
in mining rights and its transferability, dominance <strong>of</strong> the sector by the government, with the
usual inefficiencies and absence <strong>of</strong> vision and weak capacity on part <strong>of</strong> agencies responsible for
the development <strong>of</strong> solid mineral sector. Bogged down with all these problems, it has been
almost impossible to attract local and foreign investment. In the 1980s most African countries
had started to specially appeal to private investors to invest in their mining sector. During this
time governments engaged in the sale <strong>of</strong> State-owned enterprises. The most important examples
have probably been the privatisation <strong>of</strong> the Ashanti Goldfield Corporation <strong>of</strong> Ghana, in April
1994.
Early in the 1990s, African mineral-producing countries experienced decline in output in
some <strong>of</strong> the key minerals. For example, except in Ghana gold output in other producing countries
in Africa remained stagnant or increased only marginally. Similarly estimates <strong>of</strong> African
diamond production dropped from a total 39 million produced in 1992 to 34 million carats in
1993 recording 12.7 per cent decrease. It was around this time that production slumped at
GÜcamines <strong>of</strong> Zaire and at the Zambia Consolidated Copper Mines (ZCCM). In 1993,
production by GÜcamines was a mere 50,000 tons, compared to more than 500,000 tons in the
late 1980s. Production dropped in Zambia by 11 per cent in the same year. African cobalt
production is practically limited to Zaire and Zimbabwe; and output has been in decline due to
the political crisis in Zaire. In 1993, aluminium production in Africa remained almost unchanged
at 618,000 tons, after consecutive growth during the previous three years.
A careful review <strong>of</strong> the economic policies and programmes <strong>of</strong> the post-colonial state since
the economic crisis <strong>of</strong> the 1980s, including the recent reform agenda in the mineral sector <strong>of</strong>
many African countries will reveal deliberative efforts to preserve and consolidate the domination
<strong>of</strong> the sector by foreign capita through reckless adherence to the logic <strong>of</strong> free market economy
in the form <strong>of</strong> deregulation and privatisation. In Ghana, there were conscious efforts to liberalise
and privatise the Ghanaian economy in the 1980s. Significant assistance came from the
International Monetary Fund (IMF) and other supportive multilateral agencies and donor

Best Practices in Solid Minerals ... 233
nations. The main concern was how to encourage private investment. In 1986, the Minerals
and Mining Law was promulgated embodying the initial terms and conditions required to
support investment. In 1993, both Burkina Faso and Ethiopian new mining codes and
regulations were put in place that further liberalised the investment environment for mining
operations.
In the 1990s, the problem in the extractive industries <strong>of</strong> the producing countries in the
South especially Africa was further compounded by the efforts to attract FDI to their natural
resources sector, which led to the formulation <strong>of</strong> overly generous investment laws and
regulations. In the 1990s the Ghanaian solid mineral sector went through a process <strong>of</strong> reform
that resulted in the attraction <strong>of</strong> foreign investment particularly in the gold sector. The Ashanti
Goldfields Company Limited, which produced 853,740 ounces <strong>of</strong> gold in 1994 (<strong>of</strong> an overall
total <strong>of</strong> 1,409,606 ounces for Ghana) was publicly floated in 1994, yielding US$ 454 million for
the Government. Ghana’s exports reached US$ 1.219 billion with gold contributing US$ 548
million. The industry depth is also improving with key private investors in gold, such as Lohnro
Plc, United States Pioneer Group, Golden Shamrock and Gencor. As a result <strong>of</strong> increasing
confidence in Ghana, the existing IFC financing for Ashanti was recently replaced by a revolving
dollar/gold facility structured without political risk insurance or a senior corporate sponsor
guarantee. As Ghana moves forward, assuming no substantial downturn in the general economic
and political situation, the basic legal, tax and accounting frameworks are in place to support
investment.
In Nigeria, the solid mineral sector went through some changes. First the investment law
was revised in 1993 to make it more attractive to new investors. The new mining law emphasises
the need for diversification <strong>of</strong> the economy away from the oil sector. The Federal Government
set up a Minerals Development Bank to facilitate s<strong>of</strong>t loans to mining investors, while removing
bureaucratic delays which existed under the previous policy. With the above development the
stage was set for the deregulation <strong>of</strong> the solid mineral sector. The privatisation <strong>of</strong> the Nigerian
Coal Corporation resulted in the sale <strong>of</strong> some coal fields in Enugu state to an Indian firm -
Taurian Resources – which is said to be investing about N6.3 billion ($50 million). Taurian
Resources won the bid for about two <strong>of</strong> the mines in Enugu state. Other foreign companies that
showed interest include Australia’s BHP Billiton, South Africa’s Mvelaphanda Resources and
Shanduka Resources. Others are Enel S.p.A (Italy), and Ivanhoe Mining (Canada).
The renewed commitment <strong>of</strong> the Nigerian state to economic liberalisation, expressed in the
support for privatisation and commercialisation programmes, courtesy <strong>of</strong> globalisation among
other things, laid the foundation for the reform in the solid mineral sub-sector. The <strong>of</strong>ficial
preference for the role and status <strong>of</strong> government as “administrator-regulator” rather than
“owner-operator” further provide enabling environment for the development <strong>of</strong> the solid
minerals sub-sector which previously was dominated and controlled by state-owned public
corporations following the indigenisation programmes <strong>of</strong> the 1970’s. Thus the new wisdom is
that a coherent policy <strong>of</strong> deregulation was required to liberate the mining sector.
Diversification <strong>of</strong> the economy to reduce over-dependence on oil as a major foreign exchange
earner was a major policy concern for both the administration <strong>of</strong> President Obasanjo. This was
the underlying conviction as well as the fundamental basis for the development <strong>of</strong> the solid

234 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
mineral potentials <strong>of</strong> the country. The Mining law is codified in the Federal Minerals and Mining
Act <strong>of</strong> 1999. Under the Mining and Minerals Decree (law No. 34 <strong>of</strong> 1999), the Federal
Government holds all mineral rights. In 1999, the administration <strong>of</strong> President Olusegun
Obasanjo began a process <strong>of</strong> selling <strong>of</strong>f government-owned corporations to private investors.
Apart from this, there are other government initiatives designed to facilitate favourable
investment climate for foreign investors. For example, the passing <strong>of</strong> a law to deregulate the
mining <strong>of</strong> solid minerals was in an attempt to attract private investment to develop the sector.
The new law guarantees tenure security, <strong>of</strong>fers incentives and provides for environmental issues
and community development. It also allows licensees to transfer their rights, opening up a
sector now dominated by small-scale miners to greater competition and consolidation. The
government sold 14 <strong>of</strong> its mineral titles at an auction in the capital Abuja in May 2007 while
several other mineral concerns have also been slated for privatisation. The new policy
consciousness in Nigeria was further institutionalised through the creation <strong>of</strong> the Ministry <strong>of</strong>
Solid Minerals Development.
In Nigeria the administration <strong>of</strong> President Umaru Yar’Adua has continued to pursue the
goal <strong>of</strong> liberalising the solid mineral sector. The Nigerian government released the Federal
Executive Council’s policy document Development <strong>of</strong> a Policy on Solid Minerals Development
and declared that solid minerals formed a strategic sector <strong>of</strong> the national economy. For several
years, international extractive resource companies had operated in Nigeria in ways and manners
that obscure their activities and conceal the details <strong>of</strong> their operations even to Nigerians. It was
to change this and promote transparency in the Nigerian extractive industries that the Federal
Government established the Nigerian <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative, (NEITI), -
a mechanism established for determining the payments, receipts and revenues accruing to the
Federal Government. The NEITI Act was signed into law on May 28, 2007. In 29 January 2008,
President Yar’Adua inaugurated, this reconstituted National Stakeholders Working Group
(NSWG), which is the governing body <strong>of</strong> the Nigerian <strong>Extractive</strong> <strong>Industries</strong> Transparency
Initiative (NEITI).
In Congo Kinshasa, there was initial attempt at mineral-led development which was not
successful. Congo (Kinshasah) is richly endowed with such mineral resources as coal, cobalt,
columbium (niobium)-tantalum (locally referred to as “coltan”), copper, diamond, germanium,
gold, manganese, petroleum, tin, uranium, and zinc. Despite the collapse <strong>of</strong> much <strong>of</strong> the formal
mining infrastructure, it is still an important world source <strong>of</strong> industrial diamond and cobalt.
However, the mineral sector has suffered set back resulting from illegal exploitation <strong>of</strong> natural
resources. In fact it was reported that criminal groups linked to the armies <strong>of</strong>Congo (Kinshasa),
Rwanda, Uganda, and Zimbabwe built up self-financing war economies across East and
Southern African, based on the exploitation <strong>of</strong> farm produce, land, and minerals.
Recently Congo (Kinshaha), with the assistance <strong>of</strong> the World Bank, has been able to enact
a new mining code with the aim <strong>of</strong> undertaking far-reaching reform in the mineral sector. The
central role <strong>of</strong> the private sector is one <strong>of</strong> the key features <strong>of</strong> the new law. The new law promotes
partnership between the state and the private sector. In fact the principal role <strong>of</strong> the state in the
new law is to promote and regulate the development <strong>of</strong> the mining industry by the private

Best Practices in Solid Minerals ... 235
sector. The law governs the prospecting, exploration, exploitation, processing, transportation,
and sale <strong>of</strong> mineral substances, which include the artisanal exploitation and sale <strong>of</strong> mineral
substances. Mining rights are vested with the state.
South Africa has a success story <strong>of</strong> its mineral sector. South Africa’s economy is structured
around large-scale, energy-intensive mining and primary minerals industries, pushing its energy
intensity to above average levels, with only 10 other countries having higher commercial primary
energy intensities. Due to its large coal deposits, South Africa is one <strong>of</strong> the cheapest electricity
suppliers in the world. Heavily dependent on coal which provides about 88 percent <strong>of</strong> total
primary energy, South Africa has the world’s sixth largest recoverable coal reserves at 54 billion
short tons, approximately 5 percent <strong>of</strong> the world total. In 2007, South Africa produced 283
million short tons (Mmst), and consumed 203 Mmst. The coal-mining industry is highly
concentrated, with six companies, Anglo Coal, BHP Billiton, Sasol Mining, Eyesizwe Coal,
Kumba Coal, and Xstrata Coal accounting for 90 percent <strong>of</strong> coal production. Production and
consumption <strong>of</strong> coal in South Africa have grown steadily over the past two and a half decades,
at an average annual rate <strong>of</strong> 2.7 percent. In 2007, about 125 million tons or 64 percent was
burned by Eskom in its power stations, with Sasol consuming another 47 million tons and
industry and small consumers accounting for the remainder.
Ghana earns the majority <strong>of</strong> its foreign exchange from gold, most <strong>of</strong> it extracted by
multinational corporations (MNCs). Although these companies are known to be putting money
into public c<strong>of</strong>fers and minimise environmental impacts, but the mining communities are
dissatisfied with the impact <strong>of</strong> mining on lands for which they receive very little in return.
Consequently, some <strong>of</strong> the people have sought for alternative means <strong>of</strong> livelihood in illegal
mining despite the threats posed by their toxic methods. Small-scale mining was an age-long
tradition in Ghana. Although it was discourage and banned by the colonial authority, but it
became eventually legalised in 1989. Even at that, the government only gave few mining
concessions to some peasants. But this gesture has not been able to prevent many others from
illegal mining.
In Africa, in countries with rich mineral reserves and unstable economies such as Nigeria,
Ghana, and Congo, thousands <strong>of</strong> the unemployed youths engages in illegal mining, either
through re-digging abandoned mine sites or digging on land controlled by large mining
companies. Operating illegally and unregulated, these miners use primitive and crude extraction
techniques that involve the use <strong>of</strong> dynamite, pickaxes, mercury, and the strength <strong>of</strong> their arms,
earning means <strong>of</strong> livelihood but at great threat to their health and environment. In many <strong>of</strong>
such mining locations there majority <strong>of</strong> the living population is improverished mostly arising
from the effects <strong>of</strong> ecological and social degradation. For instance, it is common to find out that
land is scarce which make means <strong>of</strong> livelihood for the communities an issue. Farming mostly
the predominant means <strong>of</strong> livelihood in such communities is made difficult with the shortage
<strong>of</strong> land mining activities especially where large mass <strong>of</strong> land has been devastated like on the Jos
Plateau in Nigeria. On the Jos Plateau and some parts <strong>of</strong> Nassarawa states in Nigeria, illegal
mining activities have become rampant especially among young men and women who are not

236 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
in farming. Most <strong>of</strong> the illegal miners are young as 15 years and claimed that they did not have
any other source <strong>of</strong> income.
The risks involved in the illegal activities were enormous and recent records <strong>of</strong> deaths and
injuries are enough to prompt intervention from stakeholders. In terms <strong>of</strong> risks, the illegal
miners all over the world are confronted with similar dangers such as dying in mine accidents.
Because the government in most <strong>of</strong> the natural resources – rich countries have not integrated
the miners in the informal sectors, no so much have been done to either address their challenges
or even accommodate them by and putting in place measures to safeguard lives <strong>of</strong> illegal
miners who are dying in mine accidents. While in Nigeria, the situation has not gone beyond
mere rhetoric, in Ghana there are pressures on the government to fulfill its promise to formally
give some mine dumps to miners in the informal sector. It is plausible to argue that the reluctance
<strong>of</strong> government to issue informal miners with mining licences is contributing to the spread <strong>of</strong>
illegal mining. In South Africa, especially in Johannesburg, retrenchment in the mining sector
especially in the Gold mining industry and also the high gold price, have led to an increase in
illegal mining. More than in Ghana and Nigeria, the illegal mining activities in South Africa
are well organised. These illegal miners work for syndicates that handle gold and mix it up
with legitimately acquired gold.
Apart from illegal mining, mineral resources-driven conflicts are becoming prominent in
post-Cold War Africa as part <strong>of</strong> new forms <strong>of</strong> violence. Such include violence experienced in
Liberia, Sierra Leone, the Democratic Republic <strong>of</strong> Congo, and Sudan have caused the death <strong>of</strong>
millions <strong>of</strong> people. These self-financing civil wars began initially in East Africa but it has spread
to other parts <strong>of</strong> Africa particularly West Africa where some leaders have been implicated. For
example, President Charles Taylor and Blaise Compaore were implicated in illegal minerals
deals and assistance to “Sierra Leone rebels to continue fighting a brutal civil war.” A new class
<strong>of</strong> political elites mostly war lords have their sources <strong>of</strong> primitive accumulation and illegal
control <strong>of</strong> mineral resources deposits in the various conflict spots that litter the continent. The
prospect <strong>of</strong> gaining access and controlling minerals has spurred new potential warlords to
forming ‘liberation movement’ as witnessed in Angola, Liberia, Sierra Leone and the Democratic
Republic <strong>of</strong> the Congo (DRC). For example, in the Democratic Republic <strong>of</strong> Congo there are no
less than five factions, each with its own ‘army’ under individual power mongers or warlords.
Nigeria is already experiencing the rise <strong>of</strong> ethnic warlords especially in the oil producing areas
<strong>of</strong> Niger Delta.
There is high expectation that the existence <strong>of</strong> mineral deposits should enhance process <strong>of</strong>
development. However, whether deposits turn out to be a blessing or a curse will largely depend
on some factors <strong>of</strong> which good and responsible government is paramount. This translate to
having in place a government with capacity to make laws and ensure compliance, functional
institutions in place, and interactive coordination <strong>of</strong> stakeholders - companies, civil society,
and other actors. The fundamental challenge for resource-rich African countries is to develop
institutions capable <strong>of</strong> protecting the interest <strong>of</strong> future generations, enhancing accountability

Best Practices in Solid Minerals ... 237
in the use <strong>of</strong> rents and ensuring high quality assessment <strong>of</strong> public spending projects. The
<strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative – a voluntary international standard relating to
transparency in resource extraction - is beginning to perform the function <strong>of</strong> providing
institutional checks and balances. It is interesting to note that several African governments
have committed themselves to it, including Nigeria.
International trends and external dynamics
Global developments played significant role in shaping the trends and performances discussed
above. In the same light, emerging trends in global economy are wielding significant influence
on the solid mineral industry with serious implications for both producing and consuming
countries. First, the globalisation–driven movement and transfer <strong>of</strong> capital to maximise pr<strong>of</strong>its
and returns on investments necessitated the merging <strong>of</strong> mining companies across the world
towards the consolidation <strong>of</strong> the mineral industry. Secondly and closely-related to the above,
the solid mineral sector is benefitting from improved access to loans and other facilities more
than ever. For example, World Bank finance for mining is now readily available through several
agencies. These include the Multilateral Investment Guarantee Agency (MIGA) <strong>of</strong> the World
Bank, the International Bank for Reconstruction and Development (IBRD); the International
Finance Corporation which funds mostly private sector activities; and the International
Development Association. Thirdly, international investors are now more than ever prepare to
bear exploration costs and risks. Fourthly, low-cost mineral production processes are now
available in the international technology market. If properly sourced and assembled, production
costs are likely to come down Given the incentives above and also the seemingly appearance <strong>of</strong>
generous disposition <strong>of</strong> some <strong>of</strong> the international financial institutions notably the World Bank,
is it possible to argue that there is overbearing support in the international system for mineral
mining.
The world is experiencing revived interest in the development <strong>of</strong> solid minerals whose causes
can be attributed in part to dawn <strong>of</strong> globalisation. One significant feature <strong>of</strong> globalisation is the
scramble for resources, especially petroleum and solid minerals, through foreign direct
investment by multinational companies (Emeseh, 2008). Also, globalisation process has further
consolidated the role <strong>of</strong> multinational corporations(MNCs) as important global players. While
this goes on, nation states and inter-governmental organisations are increasingly under pressure
to adapt to new changes. The predominance <strong>of</strong> neo-liberalism is affecting power relations at
various levels – national, regional and global. For example, the adoption and implementation
<strong>of</strong> economic liberalisation policies and programmes in many countries has not only deregulated
the economy, it had also eroded the power <strong>of</strong> the nation-state to regulate and enact policy.
These developments have continued to create tensions particularly for countries in the South
whose governance institutions and structures are largely underdeveloped and incapable <strong>of</strong>
managing the social conflicts that resulted from the adoption <strong>of</strong> market-friendly policies.
While some feel that growing corporate power over financial systems, economic resources,
and national and international policymaking is already producing new tensions and social
protests, others have argued that the spread <strong>of</strong> market economies and liberal democracy will

238 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
help mitigate and resolve potential conflicts. Economic liberalisation has gained much ground
as part <strong>of</strong> the new global processes. In many countries, the liberalisation <strong>of</strong> foreign trade, greater
openness to foreign direct investment, and the deregulation <strong>of</strong> key economic sectors have
recorded appreciable progress, and they have pointedly related them to the broader processes
<strong>of</strong> international integration and interrelatedness. Globalisation no doubt has implications for
mineral development in the host countries especially through direct investment by multinational
companies in solid minerals sector. The latter now enjoy the benefits <strong>of</strong> economic liberalisation
programmes <strong>of</strong> national governments as well as protection by international law from regulatory
and political risks. In the contrary the host communities continue to suffer from the social and
environmental impacts <strong>of</strong> mineral extraction (see Emeseh, 2008).
Mineral production is increasingly focused on the emerging world. Indeed the natural
resources sector is witnessing a commodity price boom, fuelled by global resource scarcity and
the entrance in the commodity market <strong>of</strong> new global resource-demanding players such as
large emerging economies like China and India whose demand for critical mineral resources is
increasing at a rapid rate owning to the rapid industrialised in both countries. It can be argue
that the demand from China and Indian is largely responsible for the increase in world demand
for minerals and price escalation. While in the Western Europe and North America consumption
is on the decline, in the Asian region, notably China and India, sales <strong>of</strong> consumer products are
on the rise. In India, capital goods and machinery are experiencing double-digit growth. China’s
burgeoning economy continues to stimulate increase demands for metals. China consumes
one quarter <strong>of</strong> global copper production and nearly a third <strong>of</strong> all aluminum (see Africa Business,
October 2008, pp. 54). Also, the sales <strong>of</strong> building materials including cement are on the rise in
China (see Newsweek, March 30, 2009, pp.12). These emerging trends imply that more mineral
resources in different parts <strong>of</strong> the world will be mined to meet the shortage <strong>of</strong> some commodities
in, October 2008, pp. 54 the in the medium and long terms. In this regard major Australian,
North American and South African owned companies have responded dramatically by increasing
the proportion <strong>of</strong> their exploration and acquisition budgets spent outside their country <strong>of</strong> origin
(Lambert, 2001).
One <strong>of</strong> the consequences <strong>of</strong> these developments is the windfalls from rise in prices <strong>of</strong> some
commodities including minerals. For example, over the period 2002-05 price gains were recorded
in a number <strong>of</strong> Africa’s exported communities including uranium (30%), gold (10%) aluminum
and diamonds (9%). Gainers from the African continent were Botswana (diamonds),
Mozambique (aluminium), Niger (uranium) and Zambia (copper) (see African Business, March
2007, pp. 22). Expectedly, the remarkable growth reported in such emerging economic powers
as China and India has been made possible in part by the Zambian copper, South African
platinum, gold and chromium, Guinean bauxite and Congolese cobalt, coltan and many more
minerals from Africa (see African Business).
The scramble for resources in Africa especially has not been without some negative outcomes.
For example, a relatively large migration <strong>of</strong> the Chinese to Africa has resulted from China’s
involvement in the continent. According to some estimates (Obwona and Chirwa, 2006), some
80,000 migrant workers from China have recently moved to Africa, creating a new Chinese

Best Practices in Solid Minerals ... 239
diaspora in Africa. In Angola, for example, some 2,500 Chinese workers have recently arrived
to work for the Chinese companies whose work will be financed by the oil-backed loan that
China granted to Angola government, with some 30,000 Chinese workers eventually expected.
This massive transfer <strong>of</strong> personnel is unlikely to have a positive impact on the African job
markets, the building <strong>of</strong> local capacity and the transfer <strong>of</strong> technologies (Tull, 2006). Also, local
retailers too are faced with rapidly increasing business competition from expatriate Chinese
traders. A cursory perusal <strong>of</strong> local press reports indicates that the diaspora alongside the
competition from cheap imports from China have in some countries stirred significant local
resentments. Some 3,000 Chinese for example live in Cameroon, 5,000 in Lesotho, 50,000 in
Nigeria and 300,000 in South Africa.
Also, there are some concerns about China’s support to undemocratic regimes, such as the
Sudan, as it tries to secure long-term energy sources from that country. China is noted for its
indifference to political considerations in business transactions which has attracted criticism
from the West. Beijing’s engagement in Africa is largely based on the principle <strong>of</strong> non-interference
and the idea that basic socio-economic rights are more important for the poor than abstracts
political rights that are derived from the Western ideas <strong>of</strong> human rights (see Taylor, 2007).
Expectedly China’s ‘cash with no political lectures’ policy has made it more popular among
African countries that are mostly jealously attached to their sovereignty. The truth is that the
promotion <strong>of</strong> democracy is not an objective <strong>of</strong> China’s foreign policy. As long as China, in
defence <strong>of</strong> sovereignty, continues to support and benefit unsavoury regimes, her interventions
in Africa are likely to undermine political liberalisation and democratic transition.
The position <strong>of</strong> China on the recent developments in East Africa, notably in Kenya and
Zimbabwe is a demonstration <strong>of</strong> the political indifference <strong>of</strong> China to political development in
Africa. The impression created is that China’s economic activities in Africa are contributing to
condition favourable for violent conflicts to thrive. For example, the same China that provided
a large contingent <strong>of</strong> peacekeeping troops to Liberia was also perpetuating and sustaining the
rule <strong>of</strong> Charles Taylor by its involvement in illegal buying <strong>of</strong> timber. Also, a recent report
points out that “China has used economic aid, diplomatic favours and in some cases, the sale <strong>of</strong>
military technology to secure energy deal” (The Guardian, 5 September 2007). The report
further indicates that the Chinese government, in the bid to meet its energy needs, has continued
to strengthen ties with countries “that defy international norms on issues ranging from human
rights, support for international terrorism and proliferation” (reported in The Guardian, 5
September 2007).
Best practices in solid mineral development
The world is no doubt on the brink <strong>of</strong> change. There is the pulling together <strong>of</strong> resources all over
the world into a network <strong>of</strong> global consciousness against corruption and lack <strong>of</strong> transparency.
The critical forces in this process include mass mobilisation on global scale, capacity building
for civil society organisations and support for reform programmes by bilateral and multilaterals
donors. Expectedly the themes <strong>of</strong> anti-corruption, transparency and accountability are now
provoking concern across many countries, and there is the sense in which it can be said that

240 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
some mineral-producing countries are beginning to derive strength from this global current
including the <strong>Extractive</strong> <strong>Industries</strong> Transparency Initiative (EITI) – a coalition <strong>of</strong> countries,
companies and civil society (supported by donor countries and organisations) that uses
transparency and accountability as instruments for ensuring that natural resources aid poverty
reduction and sustainable development in resource rich countries. That is, with good governance
the exploitation <strong>of</strong> mineral resources can generate large revenues to foster growth and reduce
poverty.
Donors, development partners and other development assistance providers are putting their
resources at the disposal <strong>of</strong> governments and other stakeholders in the solid mineral sector
towards the promotion <strong>of</strong> extractive revenue transparency in mineral-rich countries such as
Nigeria. The World Bank through the EITI Trust Fund and the international Secretariat <strong>of</strong> the
EITI based in London provide support to all countries implementing the EITI. More than twenty
countries from around the world have signed on to the EITI, with majority <strong>of</strong> them from the
West African sub-region. These countries are at different stages <strong>of</strong> compliance with best practices,
drawing strength and inspirations from the global EITI, and as well providing necessary
feedback into the global initiative, based on empirical knowledge and challenges in
implementing the NEITI. In Nigeria, current sponsors <strong>of</strong> the activities <strong>of</strong> the NEITI include and
DFID, CIDA. Also the Norwegian government has indicated its desire to provide assistance
and support. Recently China was reportedly impressed by NEITI’s performance in tackling the
issue <strong>of</strong> corruption and the misuse <strong>of</strong> the money generated from the oil industry in Nigeria,
and it is expected that this observation will lead to some partnership in future.
It is good to note that opportunities for the development <strong>of</strong> the solid mineral sector at regional
and sub-regional level are also being explored. Such include the recent effort <strong>of</strong> the Economic
Community <strong>of</strong> West African States (ECOWAS), enjoining members to work out a common
platform to ensure that international agreements (on solid minerals) entered into are capable <strong>of</strong>
ushering in rapid economic development in the sub region. ECOWAS wants the processes for
international agreements to be sensibly controlled among the 16-member states <strong>of</strong> the subregional
body. In this regard, ECOWAS is working to accelerate intra-regional harmonisation
<strong>of</strong> laws, regulations and fiscal regimes to create intra-regional synergies and promote the mobility
<strong>of</strong> goods, services and capital for the development <strong>of</strong> the mineral sector. Also ECOWAS is
considering the establishment <strong>of</strong> specialised associations <strong>of</strong> minerals producing countries “with
a view to strengthening the community’s bargaining power.
Some mineral-producing counties are already making efforts to put in place new policy
and institutional framework for the development <strong>of</strong> solid minerals sector in line with international
best practices but more importantly in accordance with the demands <strong>of</strong> globalising influence
<strong>of</strong> capital. In terms <strong>of</strong> international best practices, the new legal and institutional frameworks
in the mineral-rich countries tend to encourage good governance, transparency, accountability
and participation <strong>of</strong> civil society.
Botswana which has been variously described as ‘a model <strong>of</strong> success’, an ‘African miracle’
and a classic example <strong>of</strong> a ‘developmental state’, as mentioned above has been able to avoid
the most detrimental outcomes <strong>of</strong> the resource curse. Its success in this regard is mostly

Best Practices in Solid Minerals ... 241
attributable to its democratic credentials. It is widely acknowledged that Botswana is a
functioning liberal democracy with buoyant revenues from mineral exports especially diamonds.
While resource wealth has aggravated poor governance and fiscal irresponsibility in many
resource-rich countries, and contributed to the recklessness <strong>of</strong> the political elites in many
authoritarian political systems, Botswana has continued to display an unusual adaptation and
compliance with best practices in solid mineral development. Botswana thus provides us with
a good example <strong>of</strong> a mineral-rich country whose relative success in experimentation with key
indicators <strong>of</strong> democratic governance notably transparency, accountability and respect for the
rule <strong>of</strong> law have provided the necessary impetus for Botswana to become one <strong>of</strong> the champion
<strong>of</strong> best practices in solid mineral development.
Other best practices that are being emulated include decentralisation <strong>of</strong> government, a
greater role for direct citizen participation in the allocation <strong>of</strong> mining revenue, more cooperation
between state agencies and commercial organisations (public-private partnerships), inclusive
decisionmaking process, risk-based approach impact assessment, corporate responsibility and
increase role for non-governmental organisations. It is interesting that members <strong>of</strong> the
international community notably donor agencies and development partners have continued
to show interest in the development <strong>of</strong> the sector having noted some progress made in
transparency and accountability in some few countries. Not long ago, Botswana, Namibia,
Ghana, Mauritania, Tanzania and Zambia were reported as carrying less investment risk for
mining companies. In the same breath, Guinea, Mozambique and Democratic Republic <strong>of</strong>
Gongo (DRC) were said not to lack investor interest (see The African Report, No. 9, January-
March 2008, p. 73. Also, it is generally acknowledged that the mineral sector in some unstable
economies and conflict ridden countries that previously was neglected and lacked adequate
attention from foreign investors are experiencing positive changes as potential investors are
getting attracted to them, courtesy <strong>of</strong> the various countries’ new liberal investment environment
and international regimes on minerals.
7.7 Recommendations and Policy Implications
The development <strong>of</strong> the solid mineral sector is capital intensive and it also requires a lot <strong>of</strong>
resources especially in the age <strong>of</strong> state’s withdrawal and disengagement from direct involvement
in the mining sector. Thus there is need for the government <strong>of</strong> mineral –producing countries to
encourage the private sector to invest in the sector. The promotion <strong>of</strong> public-private partnership
for the development <strong>of</strong> the needed infrastructures to support the solid minerals sectors must be
encouraged. But while this goes on there are concerns about the poor state <strong>of</strong> infrastructure in
many producing countries. Without adequate power, roads and ports, the development <strong>of</strong> the
mining industry is most likely to remain a dream in many <strong>of</strong> these countries. There are lessons
to be learnt from the South African experience where, for instance, dedicated railway lines are
constructed for coal exports.
The need for deep reflection on the people whose life is affected by the exploitation <strong>of</strong> solid
minerals cannot be overemphasised. It is matter <strong>of</strong> grave concern that the dominant <strong>of</strong>ficial

242 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
conception <strong>of</strong> the welfare <strong>of</strong> the people in relation to mining activities in many mineral-rich countries
is still not free <strong>of</strong> some contradictions. Although it is a sound logic to mobilise consciousness towards
increasing the revenues from mineral exploitation, however it is indeed necessary to involve the
people in the designing and implementation <strong>of</strong> mining projects for these to be a successful as
anticipated, and also to reduce the potential for conflicts in the mining communities. Therefore,
programmes <strong>of</strong> environmental sustainability for the benefits <strong>of</strong> the mining communities must
necessarily address issues that are particularly salient for ordinary people in their ordinary lives.
Such include consideration on how different types <strong>of</strong> production system affect the natural
environment, the environmental dimensions <strong>of</strong> social reproduction and the caring for families,
through providing housing, food and clean water, as well as the longer term environmental issues
connected with the relationship between child-bearing and family survival strategies.
On the scramble for resources by new emergent economic powers, notably China and India in
the mineral-rich countries, there is need for caution about possible outcomes for Africa. While the
growing economic interests <strong>of</strong> China and India in Africa is recognised as a possible source <strong>of</strong>
increased revenue for the mineral-producing countries in the continent, there should be some
concerns about possible negative outcomes <strong>of</strong> the scramble for resources. Closely related to the
specific form <strong>of</strong> ‘invasion’ by China and India is how to address the challenges <strong>of</strong> the unregulated
globalisation <strong>of</strong> capitalism and its possible negative effects on sustainable development in the
solid mineral sector especially in the regions <strong>of</strong> the South. Strategies for addressing the
constraining influence <strong>of</strong> the international environment require a restructuring <strong>of</strong> the global
system. This implies a collective regional effort that seeks for the re-definition <strong>of</strong> the existing
unequal power relations between the South and the North. With these processes in place, it
should be possible to address the negative impacts <strong>of</strong> the scramble for energy resources
Africa by China and other emerging economic powers.
7.8 Conclusions
There is today considerable attention on the threat to the global environment. Indeed, in some
circles, the provision <strong>of</strong> our common planetary health seems now to be a strong attribute <strong>of</strong> a post-
Cold War international morality. However, the critical forces in this consciousness mobilisation are
placing emphasis on global environmental problems such as global warming and ozone depletion
while such local problems as land degradation, erosion, flooding and polluted water, which are
indeed serious problems associated with solid mineral mining and processing, are comparatively
ignored. According to Thandika Mkandawire (1991), “the debate on environment even in its most
global form (should be) related to the day to day confrontation <strong>of</strong> the poor with the vagaries <strong>of</strong>
nature” (1991). Government at all levels as well as investors in the solid mineral sector should
carefully interpret the perceptions, experiences and expectations <strong>of</strong> the living populations in the
mining communities. Closely related to this is the growing recognition that lack <strong>of</strong> regard by
governmental agencies and mining companies for the cultural devices through which the people in
the mining communities have been coping with ecological stresses disenchants the latter.
Consequently mining projects become easy prey for sabotage. Thus social planning and development
approaches including sponsored interventions by the mining agencies should be made to suit the
special needs <strong>of</strong> the people.

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Conclusion
A Sleeping Giant?
The book is an outcome <strong>of</strong> a diligent but simplified academic research that covered different
issues and subject matters pertinent to the solid mineral subsector <strong>of</strong> extractive industries. Such
issues included good governance, ownership, laws, gender employment and labour, impact <strong>of</strong>
the industries on communities and population, etc. All these issues were addressed at local,
national and international levels. The international dimensions and practice <strong>of</strong> the solid minerals
mining were explored and Nigeria was situated within the global context in order to draw
lessons from those countries that were successful in developing the industry. Central to all the
issues raised in the book are the potentials <strong>of</strong> the industry in reducing poverty, increasing
government revenue and for the industrial development <strong>of</strong> the country. Nigeria’s solid mineral
deposits are diverse and extensive, and located in every nook and cranny <strong>of</strong> the country. The
deposit <strong>of</strong> solid minerals is so widespread according to Adamu, and Alubo and Gambo that
there is no any state without one or two mineral deposits in commercial quantity and which
are yet to be exploited for commercial purpose. Indeed, Aladeitan reported in his chapter the
presence <strong>of</strong> over 33 strategic mineral deposits in commercial quantities spread across 400 localities
in all the States <strong>of</strong> the Federation including the Federal Capital Territory, Abuja.
As Adetula noted in this book, the potentials for the solid mineral subsector to contribute to the
development <strong>of</strong> nations is no longer debatable. All the chapters have demonstrated the potentials
and opportunities the solid mineral subsector presents to the economy, government, host
communities and people. Many developed and developing countries have exploited and benefited
from the solid mineral resources that acted as catalyst for the development <strong>of</strong> other sectors <strong>of</strong>
economy. Such countries included Australia, Canada, Finland, Sweden, the United States, South
Africa and Bostwana. In fact, most industrial nations have maximally used mineral resources
to achieve industrial development and to fuel economic growth and prosperity. It is an industry
endowed with great multiplier effect as it relates especially to the manufacturing sector <strong>of</strong> the
economy. Thus, as was noted elsewhere in this book, the solid minerals industry is very strategic
for economic growth and sustainable development if utilised efficiently. The story is different
for Nigeria, the potentials <strong>of</strong> Nigerian solid mineral resources have remained untapped and
un-exploited. The failure <strong>of</strong> the Nigerian state and people to exploit the solid mineral resources
was closely linked to what Olukesusi in this book described as the “Dutch Disease” syndrome
that diverted attention from the mineral industry to the petroleum sub-sector. This long term
neglect <strong>of</strong> the Solid Mineral sector has far reaching consequences on the development <strong>of</strong> the
industry because <strong>of</strong> it needs for huge and intensive capital investment that takes long period to
yield result.
245

246 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
The potentials <strong>of</strong> the industry and the opportunities it presents attracted the interests and attention
<strong>of</strong> various key stakeholders. Such key stakeholders included the national, state and local
governments and communities with the former having the absolute power due to constitutional
provisions that entrusted the resources to the Federal government. However, the coming in <strong>of</strong>
democracy in 1999 and the increasing agitation for resource control by the petroleum producing
states and communities, other non-oil producing states seized the opportunity to agitate for the
development <strong>of</strong> solid mineral deposits found in various locations <strong>of</strong> the country. Other
stakeholders were the private sector such as foreign investors and local artisanal and small –
scale miners, with the small scale miners dominating the scene. Quite recently, development
partners such as the World Bank, and UK-DfID have made huge investments in the sector for
the purpose <strong>of</strong> rejuvenating the industry, reducing poverty and promoting transparency and
accountability. Absent among the stakeholders was vibrant Civil Society Organisations that
could act as watchdog and pressure group <strong>of</strong> the industry
Despite the potentials and renewed interests <strong>of</strong> the solid mineral subsector by the stakeholders,
the uniform conclusion <strong>of</strong> all the papers is that, the industry is a sleeping giant that remains to
be explored, exploited and developed. What are the challenges?
Emerging Issues and Challenges:
Key multifaceted issues and challenges were identified that work against the development <strong>of</strong>
the industry. Some <strong>of</strong> which are:
1 Issue <strong>of</strong> Transparency and Accountability
The conclusion from the findings <strong>of</strong> many <strong>of</strong> the papers is that Nigerian Solid Minerals extractive
industry operates with limited openness and public scrutiny. This is demonstrated by weak
monitoring and supervisor system, operation and management <strong>of</strong> the subsector, revenue
generated, records keeping, limited sense <strong>of</strong> cooperate responsibility, illegal mining by foreign
firms and the absence <strong>of</strong> civil society organisation to act as watchdog. In fact the industry tends
to be accountable to nobody despite the establishment <strong>of</strong> NEITI. The situation is aggravated
by the Federal character nature <strong>of</strong> Nigeria where the solid minerals are located far away from
the national government that has statutory power over the minerals resource. The plan to
establish committees at state and LGA levels has not been implemented in all the states and
LGAs and where implemented, the committees have not been effective. The implication <strong>of</strong>
given the national government the exclusive power to own, control and regulate the activities
<strong>of</strong> minerals, argues Aladeitan is that the primary responsibility for ensuring that the interests
and traditional values <strong>of</strong> the communities are taken into consideration can hardly be
implemented. This is more so considering the provisions under the Land Use Act that gives all
lands, in which minerals have been found in commercial quantities to Government <strong>of</strong> the
Federation. It is obvious from the findings <strong>of</strong> many <strong>of</strong> the authors that the government has lost
control over the mining activities with unauthorise foreign companies mining the mineral
resources with little response from the government.

Conclusion 247
2 Dominance <strong>of</strong> Unlicensed Small-scale and Artisanal miners
Related to the issue <strong>of</strong> transparency and accountability is the neglect <strong>of</strong> the minerals industry
by the government which resulted in the dominance <strong>of</strong> small scale informal miners whose
activities are characterised by inefficiency, lack <strong>of</strong> formal license, credit and other supportive
facilities and resources and abuse <strong>of</strong> due process. The authors found that in addition to the
negative impact <strong>of</strong> past activities, illegal and small–scale mining still pose a threat to communities
as their activities further degrade the land, create more death traps and negatively impact on
the health <strong>of</strong> the population <strong>of</strong> mining communities. Mining activities in communities were
found to be unregulated, while these communities on the other hand are not aware <strong>of</strong> the gap
existing between mining practices, legislations and policies and their rights as enshrined in
those legislations and policies. In addition, the dominance <strong>of</strong> the Artisanal miners has negatively
impacted on the ability <strong>of</strong> the industry to expand and add value to what is mined for other
development purposes and wealth creation.
3 Inadequate and Unrealistic Policy and legal framework
In view <strong>of</strong> the importance <strong>of</strong> policy and laws in providing favourable and conducive environment
for the management and overall development <strong>of</strong> the subsector, two papers exclusively addressed
the legal and policy frameworks <strong>of</strong> the industry with the conclusion that although the 2007
Mineral and Mining Act and the National Minerals and Mental Policy <strong>of</strong> 2008 are improvements
from the previous policy and laws, they are nonetheless inadequate in addressing the current
needs and challenges <strong>of</strong> the subsector. For instance, although the Nigerian Minerals and Mining
Act <strong>of</strong> 2007 has tried to address the security <strong>of</strong> tenure, access to small, medium and large scale
miners, the unduly discretionary powers <strong>of</strong> the Minister, the pre-emptive rights <strong>of</strong> government
on all minerals extracted, inadequate environmental provisions and the involvement <strong>of</strong> other
stakeholders through the establishment <strong>of</strong> State and LGA Minerals Management Committees
and the community development agreement, there are other issues not addressed. The Act is
also said to be simpler, more transparent, less ambiguous and implementable in relation to
prospecting, mining, processing and environment. Yet, there exists wide gap and weakness in
the act in relation to labour, safety and health issues as well as issues related to gender. Both the
mineral policy and law appear to be gender blind to the peculiarities <strong>of</strong> gender relations and in
particular, the constraints women faced in the sector. Such constraints included low remuneration
for the labour <strong>of</strong> women, gender ideology that restricted women to certain jobs within the
industries and women’s lack <strong>of</strong> access to land.
4 Ownership and Labour Issues
Another important issue is ownership and labour issues in the operation and exploration <strong>of</strong>
mineral resources. This is an important issue considering the current Nigerian experience with
the oil subsector <strong>of</strong> the extractive industry which degenerated to the level <strong>of</strong> political and arm
conflict over control <strong>of</strong> the oil resource. As the findings indicated both men and women are
actively involved in different stages <strong>of</strong> minerals processing, mining and marketing. Majority <strong>of</strong>
the miners are not members <strong>of</strong> the communities where the minerals resources are deposited.
They are drawn from communities far way and in most cases, they are migrants from other

248 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
West African countries. This creates serious political problems particularly in a context where
host communities are increasingly becoming more sensitive to the issues <strong>of</strong> compensation,
resource control, environmental degradation and the sharing and distribution <strong>of</strong> benefit <strong>of</strong>
minerals mining.
Related to this is the human resource and technological needs <strong>of</strong> the sub-sector that is required
to reliably administer and monitor the industry. Unlike the oil and gas subsector that recognises
the need for manpower development and made provisions for same through the Petroleum
Technology Development Fund, the Nigerian Minerals and Mining Act makes no provision for
manpower development. It must be noted that due to the complex and highly technical nature
<strong>of</strong> the solid mineral subsector, capacity building and manpower development is a key challenge
that needs to be addressed. Similarly, the Act seems to be silent on labour related issues especially
as it concerns health, safety and compensation, and there appears to be no reference to any
existing mining regulation that deals with the subject matter.
5 Impact Assessments
Environmental degradation is the prominent negative impacts that processing <strong>of</strong> solid mineral
resources presents on mining communities. This resulted in land degradation and formation <strong>of</strong>
ponds, gullies, pollution <strong>of</strong> ground surface water and the loss <strong>of</strong> soil fertility and vegetation.
Environmental and other social and health impact <strong>of</strong> the mineral processing and mining was
found to have potential to generate conflict despite the provision <strong>of</strong> the 2007 Act that protects
the environment. As was observed by many authors in this book, one <strong>of</strong> the concerns is the
capacity and the political will <strong>of</strong> the government to implement and enforce all the environmental
protection provisions in the Act because <strong>of</strong> corruption.
Similarly, because <strong>of</strong> the limited monitoring and supervisory performance <strong>of</strong> the government,
the protection <strong>of</strong> the health and safety <strong>of</strong> the population <strong>of</strong> the mining communities was found
to be inadequate and hardly enforced. Consequently, small scale miners and the population <strong>of</strong>
mining communities were negatively affected with toxicity from radioactive substances and
mining accidents which resulted in traumatic muscular-skeletal disease, respiratory problems,
HIV/AIDS, injuries and deaths. In addition, the social structure <strong>of</strong> the mining communities
was found to be affected as people interacted and related with people from different cultures
and <strong>of</strong> different values. This resulted in the dislocation <strong>of</strong> old ways <strong>of</strong> life and the emergence <strong>of</strong>
new ones.

Conclusion 249
Recommendations:
From the foregoing conclusions and observations the following actions are recommended.
1 Transparency and Accountability
Good governance is the cardinal principle <strong>of</strong> every successful organisation or government.
Consequently, the issue needs to be addressed in order to avoid the current experience <strong>of</strong> political
and armed conflict associated with the oil sector. As a first step there is the need to ensure
regular collection <strong>of</strong> data related to solid minerals, particularly in relation to the management,
operation, marketing and revenue generation in the subsector. This is necessary because unlike
the petroleum industry, there is an acute dearth <strong>of</strong> statistics and other relevant data in the
subsector and the principle <strong>of</strong> transparency can hardly be cultivated and nurtured in an
environment characterised by paucity <strong>of</strong> information. The data is absolute requirement for the
public to be informed and to monitor and track down activities and take action in the subsector.
As is it noted, inadequate information can breed corruption. This is to be a step towards the
development and establishment <strong>of</strong> data base on the State Solid Minerals Information
Management System (SSMIMS) covering the identities <strong>of</strong> licensed miners, employment,
acreages approved for operation, royalties paid, involvement in corporate social responsibility
and royalties paid among others. To complement the efforts <strong>of</strong> the government, mining operators
and companies (licensed and unlicensed) be made to uphold the principle <strong>of</strong> transparency and
accountability by keeping records <strong>of</strong> volume <strong>of</strong> production, distribution, sales, income flow,
manpower, safety, etc. and sharing it with the government. The data collection function can be
effectively championed by NEITI. Consequently, NEITI should be adequately empowered to
discharge its statutory responsibility <strong>of</strong> ensuring transparency and accountability in the extractive
industries.
The principle <strong>of</strong> transparency and accountability can only be achieved with a well-informed
public and active support from Nigerian citizens. It is in this light that the civil society be
encouraged to collaborate with host communities and NEITI in order to raise awareness <strong>of</strong> the
general public and promote transparency, accountability and equity and in the process build
constituencies for positive change. The active involvement <strong>of</strong> civil society organisations in
scrutinising the activities <strong>of</strong> extractive industry actors would ensure strict compliance with
prescribed operational rules.
To ensure the management <strong>of</strong> the industry some institutional changes need to be done such as
constituting the State and LGA Sustainable Solid Minerals Management Committees with
people <strong>of</strong> integrity where they do not exist or making them functional and effective where they
exist. Any material or financial rewards should be linked to the performance <strong>of</strong> the committees.
In addition, there is the need for clear demarcation <strong>of</strong> the responsibilities <strong>of</strong> the governmental
Ministry, Departments and Agencies charged with environmental protection resulting from
mining operations. The activities <strong>of</strong> the various MDA should be centrally coordinated to ensure
effectiveness;

250 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
2 Issue <strong>of</strong> Artisanal Miners
It is an established fact that the Nigerian Mining sector is dominated by informal artisanal and
small scale miners. For Nigeria to develop its solid mineral sub-sector, it must come out with a
strategy <strong>of</strong> developing the capability <strong>of</strong> the artisanal miners to the level <strong>of</strong> appreciating the
need for them to be integrated into the formal sector. As it stands now it is more pr<strong>of</strong>itable to
mine and operate without license. Consequently, mining illegally must be made very expensive
and this can only be done by subsiding licensed mining operations to act as incentive and for
closer and regular monitoring and supervision. The on-going strategy <strong>of</strong> the government to
encourage small-scale miners to form cooperative societies and provision <strong>of</strong> concessionary loans
should be religiously implemented and sustained as this would reduce illegal mining activities.
Similarly, there is a need to either review the 2007 Minerals and Mining Act or for the
Minister to make regulation that will encourage an integrated value chain development
with emphasis on beneficiation and value addition to mineral resources in their raw state in
order for the small scale miners be upgraded to middle level and for the country to benefit
from the vast mineral resources in terms <strong>of</strong> wealth and job creation. This cannot be achieved
without secured credit access for small-scale and artisanal miners and investors in minerals
processing industry. This can be done by mobilising financial resources using the publicprivate
partnership approach.
Similarly, it is imperative for the Ministry <strong>of</strong> Mines and Steel Development to develop and
implement a building capacity plan for mining operators and employees. This is meant not
only to increase efficiency, but also to encourage pr<strong>of</strong>essionalism in the sector thereby
ensuring optimal utilisation <strong>of</strong> the resources.
Once this is achieved, then appropriate monitoring and enforcement strategies should be
put in place and implemented by the Mines Inspectorate Department and other relevant
agencies in order to curb the activities <strong>of</strong> illegal miners.
3 Issue <strong>of</strong> the Environment
The non-renewable nature <strong>of</strong> solid minerals and the impact <strong>of</strong> mining such minerals on the
environment require serious and effective action in order to militate against its consequences
on the livelihood <strong>of</strong> the people. The environmental restitution programme <strong>of</strong> the government is
slow and characterised by irregularities. It is suggested that the provisions for pre-project
environmental impact assessment be adhered to irrespective <strong>of</strong> size <strong>of</strong> mining project. This
therefore requires strengthening the environmental impact assessment capabilities <strong>of</strong> the Federal
Ministry <strong>of</strong> Steel and Minerals Development. Furthermore, due to the large scale and expensive
nature <strong>of</strong> environmental and land degradation associated with mining, it is recommended that
rehabilitation activities should be a collaboration between the government, miners and the

Conclusion 251
community with most <strong>of</strong> the cost borne by the government. Furthermore, in order to achieve
restoration <strong>of</strong> mines land, it is suggested that a mining restoration regulation be made with a
restoration programme or scheme made a condition precedent to the grant <strong>of</strong> mining rights.
4 Communities’ Rights
The recognition <strong>of</strong> the mining communities’ right to participate and benefit from the mining
activities is commendable. Similarly the performance <strong>of</strong> many <strong>of</strong> the licensed mining companies
in service provision to mining communities is also a positive development. However, many <strong>of</strong>
the mineral deposit sites are located in remote areas with poor infrastructural facilities. To
encourage private investment and reduce the isolation <strong>of</strong> such communities, it is recommended
that both the federal, state and LGA governments should make provision <strong>of</strong> infrastructure
mandatory using the Solid Minerals Trust fund. These facilities may include roads, electricity
and water as well as safety and security measures in the mining communities.
Similarly, Civil Society Organisations should work closely with the mineral hosting communities
to monitor the activities <strong>of</strong> miners in terms <strong>of</strong> operations, safety, physical and social environment,
marketing and general well-being <strong>of</strong> the people. In the same vein, it is recommended that CSO
should obtain information and provide such information to communities with the purpose <strong>of</strong>
enlighten them to respond and act on issues bordering on transparency and accountability.
Furthermore, to ensure prudent management and equity access to benefit accruing to
community from mining activities, a Community Trust Fund be established and managed by
a committee <strong>of</strong> reliable persons drawn from different social groups in the community.
The safety and health <strong>of</strong> the miners or employees in mining fields is very important, to this
effect, a minerals and mining (safety) regulation in the same fashion after that <strong>of</strong> the oil and
gas industry is not only necessary but very urgent.
5 Issues <strong>of</strong> Law
Although the 2007 Minerals Act is an improvement from the previous mineral laws and other
extractive industries laws, there still exist some gaps that need to be filled such as removing the
ambiguity in some <strong>of</strong> the provisions and the weakness <strong>of</strong> the Act in addressing certain issues
such as labour and gender. In view <strong>of</strong> these observations it is recommended that the Act be
reviewed to make some <strong>of</strong> the provisions clearer such as the provision in the Act that “...the
lessee shall during the continuance <strong>of</strong> the lease pay to the members <strong>of</strong> that community as
means to determine lest a government levied value.” should be expunged or reworded to bring
out the real meaning <strong>of</strong> the phrase. If however, the phrase is meant to ensure that compensation
is paid to host communities over land which they customarily win minerals, such compensation
should be assessed with the community’s representation and in agreement with the owner or
occupier <strong>of</strong> the land. On the issue <strong>of</strong> labour rights, it is recommended that the mining policy

252 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
and laws be reviewed to provide labour protection to small scale and artisanal miners as well as
address their health and safety needs.
6 Funding
Resuscitating the solid minerals extractive industries requires not only the political will and
commitment on the part <strong>of</strong> the government and Nigerian citizens but also the necessary capital
needed to finance the project. It is in recognition <strong>of</strong> this that different recommendations were
made in the book by different authors such as the establishment <strong>of</strong> the Solid Minerals
Development Bank, the Solid Minerals Producing Areas Commission and a Solid Minerals
Trust Fund. If any financial institution is created for financing the development <strong>of</strong> the solid
minerals sub-sector, it is suggested that at least 20 percent <strong>of</strong> mining royalties be kept in an
interest yielding account with the Central Bank <strong>of</strong> Bank <strong>of</strong> Nigeria. This type <strong>of</strong> fund exists in
Norway, Kuwait, Botswana, Mauritania and Alaska in the United States from where experiences
could be obtained. In addition,
7 Gender Issues
It is concluded that gender and gender related issues are assumed to be a neutral category that
requires no attention in the solid minerals industries despite the contrary evidence. This therefore
requires complete change <strong>of</strong> mindset on the way gender issues are viewed by the various
stakeholders in the industry. This is necessary because it is when that happens that stakeholders
can appreciate the way and manner in which gender relations affect women’s participation in
the industry and the need to protect them. In view <strong>of</strong> this therefore it is recommended that
affirmative actions be taken in terms <strong>of</strong> special concession on licensing to women’s group <strong>of</strong>
miners, extension services, equipment support with at least 5% <strong>of</strong> mining license and other
support services be reserved for women. In addition, data related to the minerals mining
industries be disaggregated by gender.

Researcher’s Bio
Adefemi Olokesusi is a research pr<strong>of</strong>essor at the Department <strong>of</strong> Social Governance and Physical
Development, Nigerian Institute <strong>of</strong> Social and Economic Research, Ibadan. He got his doctorate
degree in Geography (with concentration in environmental planning) from the University <strong>of</strong>
Ibadan, Nigeria and his masters degree <strong>of</strong> environmental studies from New York University,
Ontario, Canada.
He is a member <strong>of</strong> many pr<strong>of</strong>essional associations including Nigerian Town Planners
Registration Council, American /rural Sociology Association and International Association for
Impact Assessment. Dr. Olokesusi has written over seventy articles in journals and books.
Dung Pam Sha is an Associate Pr<strong>of</strong>essor at the Department <strong>of</strong> Political Science, University <strong>of</strong>
Jos. He is a member <strong>of</strong> various pr<strong>of</strong>essional associations including the Nigerian Political Science
Association and the American studies Association. Dr. Pam Sha has a very admirable research
experience as he has taken part in more than 15 research works. His Civil society assignments
have ranged from Human Rights, to labour and women issues. He has many journals and
publications to his credit.
Fatima Adamu is a senior lecturer at Uthman Dan Fodio Uiversity, Sokoto Nigeria and the
Director <strong>of</strong> Planning, Research and Statistics, National Centre for Women Development, Abuja.
She also served as a policy analyst on Gender and Social Development with Independent Policy
Group ( a think tank group <strong>of</strong> former President Olusegun Obasanjo) .
Dr. Adamu has a wide advocacy experience which is focused mainly on women and children
rights. She has carried out a lot <strong>of</strong> consultancy work and research for various development
partners. She became a British council Chevening Fellow in 1995 and a Rockfeller Womanist
fellow at the University <strong>of</strong> Georgia, USA in 1997.
Fatima Adamu got her doctorate and masters degree from the University <strong>of</strong> Bradford,
United Kingdom She has written several research papers and publications.
Lanre Aladeitan is a law lecturer in the Department <strong>of</strong> Public and International Law <strong>of</strong> the
University <strong>of</strong> Abuja with specialisation in energy and mineral resources and law <strong>of</strong> contract.
He also lectures at the Centre for Gender Security Studies and Advancement.
He is a member <strong>of</strong> a number <strong>of</strong> pr<strong>of</strong>essional bodies among which are the Nigerian Bar
Association, The Association <strong>of</strong> MBA’s and The Debt Recovery Practitioners’ Association <strong>of</strong>
Nigeria.
253

Mr Aladeitan obtained his Masters <strong>of</strong> Laws from Obafemi Awolowo University and a Post-
Graduate Certificate in International Commercial Law as well as a Master <strong>of</strong> Business
Administration both from Aberdeen Business School, Robert Gordon University, Scotland.
S.O. Alubo is the Director <strong>of</strong> Research, National Institute <strong>of</strong> Policy and Strategic Studies (NIPSS)
Kuru. He got his doctorate degree in Sociology from the University <strong>of</strong> Missouri- Columbia
USA in 1983 and his MSPH Public Health, University <strong>of</strong> Missouri-Columbia in 1982.
Pr<strong>of</strong>. Alubo was awarded a McArthur Research and Writing fellowship in 1983and a Takemi
Fellow in International Health from Harvard School <strong>of</strong> Public Health in 2000. He is also a member
<strong>of</strong> the Nigerian Sociological & Anthropological Association (NASA) and Nigerian Sociological Society
(NSS).
Before his appointment at NIPSS, he was a Pr<strong>of</strong>essor <strong>of</strong> health and social development at the
University <strong>of</strong> Jos, Nigeria. Pr<strong>of</strong>. Alubo has also carried out various community service assignments
and local and international consultancies. He has written several publications, journals, articles and
papers.
Rahila Gowon got her doctorate degree in English/education from the University <strong>of</strong> Jos. She
is currently a senior lecturer at the Division <strong>of</strong> General Studies and Faculty <strong>of</strong> Education,
University <strong>of</strong> Jos, Plateau State. She is a member <strong>of</strong> various pr<strong>of</strong>essional bodies including
International Reading Association and Counselling Association <strong>of</strong> Nigeria. She has undertaken
various research activities and has many publications to her name.
Victor Adetula currently serves as a Full Pr<strong>of</strong>essor <strong>of</strong> Political Science at the University <strong>of</strong> Jos,
and most recently Head <strong>of</strong> Department <strong>of</strong> Political Science, (July 2005- August 2008). He has
over 20 years working experience in academic career and development assistance sector,
including demonstrated leadership in African governance, politics, and civil society. Between
2005 and 2007 he served as the Senior Advisor (part-time) to the USAID-funded Advocacy,
Awareness, and Civic Empowerment (ADVANCE) project. His sensitivity toward donor
requirements and planning needs is complemented by his rapport with representatives <strong>of</strong> the
Nigerian government, NGOs, foreign governments, multilateral and governmental agencies.
Pr<strong>of</strong>. Adetula got his Ph.D in Political Science from the University <strong>of</strong> Jos in 1996. He became a
full pr<strong>of</strong>essor <strong>of</strong> Political Science in 2003.
254

Research Coordinating Committee
Mallam Haruna Yunusa Sa’eed is currently the Executive Secretary <strong>of</strong> the Nigeria <strong>Extractive</strong>
<strong>Industries</strong> Transparency Initiative (NEITI). He was a lecturer in Accounting at the Ahmadu Bello
University (ABU), Zaria from 1986 to 1993 and the Accountant General <strong>of</strong> Kaduna State from 1995
to 2006. He earned his first degree in Accounting from ABU in 1983 and his Masters in Accounting
and Finance from the same university in 1987. He has had several post-qualification trainings.
Pr<strong>of</strong> Ademola Ariyo is currently a Pr<strong>of</strong>essor <strong>of</strong> Economics at the University <strong>of</strong> lbadan. He served
as Commissioner for Finance and Economic Planning in old Oyo State between 1986-90, and
Special Adviser to the Minister <strong>of</strong> Finance, Federal Republic <strong>of</strong> Nigeria, in 1993 and also member,
Budget Monitoring Committee <strong>of</strong> the Federal Government <strong>of</strong> Nigeria. He was and still Chairman/
Member <strong>of</strong> Board <strong>of</strong> Directors <strong>of</strong> several development and manufacturing institutions. He is currently
the Director, Centre for Public-Private Cooperation, lbadan, Nigeria.
Ms. Laraba Machunga has over thirty years experience both in Downstream and Upstream oil
sector, with strong focus on Petroleum Economics & Investment Analysis, Oil & Gas Funding
Strategies, Engineering Project Management, Human Resources, Strategic Planning & Budget,
Joint Interest Management & Contracts. She has been the MD/CE, JALZ Energy Limited/Integer
Solutions. She is also a member <strong>of</strong> C4C’s Programme Advisory Panel (PAP)
Pr<strong>of</strong> A. Gbadegeshin is a Pr<strong>of</strong>essor, Department <strong>of</strong> Geography, University <strong>of</strong> Ibadan, Nigeria
and senior fellow <strong>of</strong> the Environment and Technology Policy Unit Development, Policy Centre,
Ibadan, Nigeria. Pr<strong>of</strong>. Gbadegeshin’s research has focused particularly the role <strong>of</strong> women in the
management <strong>of</strong> protected ecosystems and forest patches in the forest and savannah zones <strong>of</strong> Nigeria.
Pr<strong>of</strong>essor Gbadegesin has held several international research positions.
Dr. Festus Iyayi is a management lecturer at the University <strong>of</strong> Benin, Edo State, Nigeria. He
obtained his Ph.D in management from the University <strong>of</strong> Bradford, England in 1978 – 1980. Dr.
Iyayi has commissioned various research works by CSOs and NGOs and consulted for numerous
oil and gas companies (including refineries) in Nigeria. He is a recipient <strong>of</strong> various local and
international awards.
Dr. A.O Folawewo is an Economics Lecturer at the University <strong>of</strong> Ibadan. He is the Programme
Coordinator <strong>of</strong> the Centre for Public Private Cooperation (CPPC) and was the Project Manager for
this research. Dr. Folawewo is a prolific writer with several articles, presentations and journals to his
name. He also has a wide consultancy experience on various international projects and is a recipient
<strong>of</strong> various grants and fellowships.
255

Mr. B. A Adegbesan is a geologist with over 35 years <strong>of</strong> experience. He has written several papers
on issues relating to the <strong>Extractive</strong> <strong>Industries</strong> which reflect his passion for the job. He is a member <strong>of</strong>
various pr<strong>of</strong>essional organizations. Mr. Adegbesan has been recognized and awarded by government
institutions for his role/contributions in the Nigerian Solid Minerals Industry. He is currently a
director in Geoscience Consulting, Abuja.
Mr. Uche Igwe is currently the Civil Society Liaison Officer at the NEITI Secretariat. He has vast
civil society experience, contacts in the Oil and Gas Sector and a very powerful networker. He is a
British Council Chevening fellow and had written a lot <strong>of</strong> papers in the area <strong>of</strong> EITI implementation,
governance and reforms.
Comrade Babatunde Ogun has a first and post graduate degree in Mechanical Engineering. He
was elected as PENGASSAN PHRC Branch Secretary in 1993. He became the First PENGASSAN
Deputy President 2003 – 2005 and now PENGASSAN President (2008 – 2011). He works as a
Senior Operation Technologist at Mobil Producing Nigeria Unlimited (a subsidiary <strong>of</strong> Exxonmobil
Corporation). Comrade Ogun is currently undergoing a Post Graduate course in Labour and
Industrial Relations at the Olabisi Onabanjo University, Ogun State
Mr Soji Apampais one <strong>of</strong> the founders <strong>of</strong> The Convention on Business Integrity and the Integrity
Organisation. He is a senior Adviser to the UN Global Compact on the 10th Principle (anti-corruption)
and a consultant to the Inter-Agency Task Team charged with developing a national anti-corruption
strategy for Nigeria.
Mr. George Kobani has competencies in Economic research and analysis and carries out extensive
work in the Niger Delta Region studying development issues in the areas <strong>of</strong> local content, community
development and economic participation. He was a local lead researcher in Nigeria for the report
on “Oil Economies and Social Welfare” coordinated by CeSPI, a Rome-based European Think
Tank. He has also worked as a Researcher with the National Poverty Eradication Programme
(NAPEP) and as a Technical Assistant to the Chief Economic Adviser to the President.
Mrs Preye Grace Olowo is an accountant with Nigerian Agip Oil Companies in Port Harcourt.
She has been running her NGO for about 15 years promoting the development <strong>of</strong> the Niger Delta
Region. She is the first elected Zonal Chairperson <strong>of</strong> PENGASSAN and still holds that position
today.
Mr Soji Apampais one <strong>of</strong> the founders <strong>of</strong> The Convention on Business Integrity and the Integrity
Organisation. He is a senior Adviser to the UN Global Compact on the 10th Principle (anti-corruption)
and a consultant to the Inter-Agency Task Team charged with developing a national anti-corruption
strategy for Nigeria.
256

Project Managers
Centre for Public Private Cooperation is a research-based, registered NGO in Ibadan, Oyo
State, Nigeria. CPPC promotes good governance through policy research and analysis, and budget
monitoring in Nigeria. CPPC was borne out <strong>of</strong> a desire to provide an independent forum for fostering
mutual understanding and meaningful co-operation among the public sector, private sector and
the civil society and to evolve a think tank for promoting economic freedom, social justice and good
governance. CPPC was the coordinator for this research.
257

WRITE AT THE BACK OF PAGE 257, 258 BLANK,
THEN CIRCLE IT

Accidents, 109
-Causes <strong>of</strong>, 109 -110
Acts
-Mining, 128 -129
-Public Procurement, 151
-Rights Grantable under the, 134 – 135
Adit, 4, 10
Administration, 17
Affidavit, 79
Agagu, 185
Agenda, 228
-actionable, 2, 9
-articulate, 173
-neo-liberal reform, 222
Ajaokuta Steel Company, 4, 8, 14, 22, 57
Allison Madueke, Dieziani, 8
Alluvial, 126, 127
Artisanal and Small Scale Mining (ASM), 4,
10, 30, 75, 82, 98, 111, 134
Artisans and Small Scale Miners (ASMs), 10,
30, 31, 79
Arusha Mines Association, 99
Ashaka Cement, 24
Assessment
-Environmental Impacts, 34, 150
Bala, Alhaji, 170
Bank, 240
-Solid Minerals Development, 33
-World, 2, 13, 23, 28, 96, 100, 101, 226,
227
Bargaining power, 109
Bars, 101
Beinh<strong>of</strong>f, Christian, 100
Belmonte, Edil, 170
Beneficiary, 121, 153
Beneficiation, 4, 11, 33, 126, 127, 130, 150,
154
-plants, 46
Benefit-sharing, 3
Index
259
Benue Cement Company, 168, 173
Berom women, 177
Bitumen Project Implementation Committee,
58
Blasting, 170
Blending, 11
Book
-Registry, 139
Bower, 75
British Surveyors, 17
Brundtland Commission, 227
Burrow Pits
-Creation <strong>of</strong>, 31
Business, 108, 114, 118, 164, 165, 177
-African, 238
Cadastral Mapping Project, 33
Callaway
-and Creevy, 114
Capital outlays, 2
Capitalism, 71, 72, 73, 175, 176
-Development <strong>of</strong>, 70
-Globalisation <strong>of</strong>, 242
Carley
-and Christie, 228
Central Bank <strong>of</strong> Nigeria (CBN), 252
Certificate <strong>of</strong>
-Incorporation, 137
-Occupancy, 77
Compensation on, 145-146
Chamber <strong>of</strong> Commerce and <strong>Industries</strong>, 97
Chicago Commodities Exchange, 3
Child Labour, 31, 102
Civil Society Organisations, 173, 211, 246
Classification, 11
Cocoase Camp in Ghana, 100
Collieries, 18
Colonialism, 231
Columbite production, 2

260 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Committee on National Policy on Solid
Minerals (CNPSM), 94
Commitment
-concerns, 2, 3
-Development Agreement, 104, 132,
143
-Participation, 152
-Rights <strong>of</strong> host, 143
-Taxes, 81
-Trust Fund, 36, 251
Compaore, Blaise, 236
Compensation, 110, 117, 121
Comprehensive Host Community Agreement,
34-35, 79
Constitution <strong>of</strong> Federal Republic <strong>of</strong> Nigeria
(CFRN), 130
Contestation (s)
-and conflicts in Plateau state, 83
Continental shelf, 130
Corporations (s)
-Coal, 168
-multinational, 68, 235, 237
-transnational, 68, 72, 86
Corruption, 29, 159, 162, 165, 230
Council for Mining Engineers and
Geoscientists <strong>of</strong> Nigeria, 22
Cross cut tunnels, 10
Cycles
-boom and burst, 2
Daily Trust, 121
Dalyop, Choji Feflix, 167, 170
Dangote Group <strong>of</strong> Company, 173
Data, 1, 2, 3, 99, 100, 102, 149, 168
Dawang, J. Dongs, M, 170
Decree
-indigenisation, 103
Deforestation, 31
Degradation, 227
-and compensation, 3
-Ecological, 103, 226
-Environmental, 2, 31, 176
-Land, 195, 209
Department for International Development,
96, 240
Dependency, 221
Deposits
-Barite in Nigeria, 52-53
-Base metal in Nigeria, 53
-Coal in Nigeria, 43
-Gemstones in Nigeria, 54-55
-Gold in Nigeria, 51-52
-Iron Ore, 54
-Lead/Zinc in Nigeria, 56
-Limestone in Nigeria, 44-45
-Marble and Dolomite in Nigeria, 49
-Minerals resources in Nigeria, 40-42,
89- 91
-<strong>of</strong> Non-metallic mineral s, 46-49
-Tantalite occurrences in Nigeria, 50-
51
Development (s), 18, 23, 176
-Economic, 2
-Finance, 8
-Industrial, 18
-Interventions, 112, 119
-Socio-economic, 8
Diamond, 159, 167
Diesilisation, 19
Digging, 10
Discipline,
-Fiscal, 8
Discovery, 5
-Field, 11
-<strong>of</strong> oil, 2, 17, 174
Diseh, Okwu, 170
Distribution
-Challenge <strong>of</strong> benefits, 29
-Map showing, 16
-Spatial, 7, 14
Division <strong>of</strong> Labour
-International, 221
Documentation, 107
Dorowa Community, 191, 193, 209

Drilling, 4, 11, 18
Dung-Gwom, 167, 186
Dutch
-Disease, 2, 5, 10, 220
-Government, 5
Duties
-Custom and Import, 105
Economic Community <strong>of</strong> West African States
(ECOWAS), 240
Economic growth
-Lower rate <strong>of</strong>, 10
Economy
-industrialised, 8
Emeseh, 237, 238
Empowerment, 3
Enlightenment, 210
Enugu Coal, 3
Environmental Management Service (EMS),
149
Equity, 112
-intergenerational, 5
Ethics, 223
Evolution, 2, 36, 173
-<strong>of</strong> mining industries, 18
Excavation, 11, 31, 106, 127, 183
Exploitation, 85
-basis <strong>of</strong>, 73
-dealers <strong>of</strong>, 108
-mineral, 94, 127
-small scale, 46
Exploration
-and exploitation, 10, 17
-mineral, 131
-<strong>of</strong> tin, 176
-Geophysical, 5, 11, 18, 34
-License, 78, 126, 136-139
- Area, 126
-Minerals, 1, 18
-<strong>of</strong> natural resources, 5
-operations, 126
-partial, 47
Exxon Mobil, 5
Index 261
Falconer, J. D., 17
Favouritism
-free <strong>of</strong>, 112
Feasibility
-parametres, 5, 11
-study, 5
Federal
-Constitution (1999)
Extensive List, 11
-Environmental Protection Agency
(FEPA), 148, 150
-High Court, 146
-Inland Revenue Service, 168
-Ministry <strong>of</strong> Finance, 168
-Ministry <strong>of</strong> Mines and Steel, 168
Federalism, 72
Federation
-Account, 23, 34
-Nigeria, 166
Fell, 185
Flexibility,
-and mobility <strong>of</strong> minerals rights, 113
Focus Group Discussion, 168, 169
Foreigners
-dominance <strong>of</strong>, 172
Formations
-geological, 2
Fossil fuel, 5, 14
Framework
-accounting, 233
-broad, 160, 165
-legal, 29
and regulatory, 124, 155, 163,
230
Freedom
-<strong>of</strong> Information Bill (FOI), 167, 172-
173
-Press, 222
Freund, Bill, 75, 76
Fund
-ecological, 83

262 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Gas field, 5
Gazettes, 73
Gender, 110, 111, 112, 113, 114, 188, 252
-blindness, 95, 121
-differences, 101
-discrimination, 97, 101
-equity, 175
-ideology, 175
-neutrality, 97
-relations, 93
Geography, 2
Geological
-confirmation, 54
-surface analysis, 127
-survey, 34, 127
Department, 56
-Survey <strong>of</strong> Nigeria (GSN), 17, 18, 56,
57, 128
Geophysical
-and geochemical maps <strong>of</strong> Nigeria, 148
-surveys, 127
Geoscience information, 34
Gestation period, 2
Global Environmental Facility, 227
Globalisation, 220, 221, 222, 225, 233, 237,
238
Goodland, 226
Governance, 159
-good, 162
-sound, 224
-style <strong>of</strong>, 29
Government
-colonial, 17, 18, 56
-military, 161
Green house gases, 227
Gross
-Domestic Product (GDP), 231
-National Product (GNP), 26
Hand gloves
-wearing <strong>of</strong>, 110
Hassan, Ameh Dan, 170
Health
-Hazard, 120, 173
-Environmental, 186
Helmet,
-wearing <strong>of</strong>, 110
Hinton, Jennifer J, 100
HIV/AIDS, 209, 248
Hoben, 226
Human Rights,
-Abuse, 222, 223
-Values, 223
-Watch, 161
Idonije, Jurnmal, 92
Improvement
-Economic, 119
Income, 177
Independence, 160, 8, 165
Index <strong>of</strong> employment by Economic Activity,
26
<strong>Industries</strong>
-Dirty, 3
-<strong>Extractive</strong>, 2, 5, 8, 35, 36, 82, 93, 164
Industry
-capital intensive, 10
-mining, 2
-privatisation <strong>of</strong>, 76
-solid minerals, 2, 9, 23, 28, 29, 33
-petroleum, 2, 3, 10, 28, 36
-tin, 68
Industrial Development Coordination
Committee (IDDC), 57
Information
-Age, 230
-Freedom <strong>of</strong>, 86
Institutionalisation
-<strong>of</strong> unethical practices, 165
interest
-conflict <strong>of</strong>, 105
International
-Centre for settlement <strong>of</strong> Investment
Dispute, 147

-Labour Organisation (ILO), 100, 232
-Monetary Fund (IMF), 232
Joseph, 162
Jurisdiction, 81, 117
Juma, Magdaleme, 81
Kune
-community, 81
-District
-Chief <strong>of</strong>, 81
Kuranashie, 165
Labour, 97, 105, 106, 114
-and Gender issues, 92
-and industrial relations, 112
-force, 100
-legislation on, 98
-relations, 97, 98, 223
-rights, 121
-union, 109
-unionism, 109
Lafarge WAPCO, 24, 57
Lambert, 227, 238
Landmark, 26
Land Use Act, 76, 77, 127, 129, 130, 131, 145,
246
Lawal, 98
Laws, 97, 152
-mineral, 93, 94
-oboroxious, 72
leadership, 110
-<strong>of</strong> communities, 102
league for Human Rights (LHR), 83
legislation, 2, 3, 32, 75, 86, 97, 182
Leistrict, 2, 226
Liberalisation, 238, 239
Lithology and Landforms, 14
Loans
-concessionary, 32
longhurst, 114
lotto, 115, 120
lowlands, 6
Index 263
MDAs, 32
Malaysia Mining Company, 19
Malfeasance, 32
Malo, 185
Management
-Environmental, 11
-Macro-economic, 3, 28
-Practices, 8
-Revenue, 32
-Transparent, 175
Manduga, Patrock, 81
Mangy Bitnes, 80, 81
Mangrurat, 186
Market values, 5, 6
Marketing, 100
-<strong>of</strong> mineral resources, 113
Mass media, 36
Memorandum <strong>of</strong> understanding (MOU), 28
Merelani Tanzanite Mine Tanzania, 99
Metals
-and gemstones, 10
-policy, 22, 57
metallurgical
-Development Centre Jos, 22
-Training Institute, Onitsha, 22
-Methods
-geophysical and geochemical, 11, 127
Mine dump, 183
Mines and Construction Workers Union, 99
Mines Inspectorates Department (MID), 112
Minerals
-and Metals Policy, 2008, 58, 85, 94
-and Mining Act, (1999) and (2007),
3, 23, 58, 74, 76, 77,
85, 105
-Cadastre Office, 11, 23, 28, 58, 103,
132- 133
-Deposit, 6
-Development, 2
-Exploration, 6, 14, 94

264 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
-Reserves, 6
-Resources Project
-Sustainable management <strong>of</strong>, 58
-Returns, 169-170
-Smugglers, 10
-Solid, 8, 9, 17, 19
-Endowments in, 8
-Geography <strong>of</strong>, 14
-Survey committee, 17, 56
Mining, 6, 11
-Act, 57
-Artisanal, 31, 69, 82, 94
-Actors in, 80-81, 84
-Coal, 115
-Compromises in Nigeria, 75, 78
-Companies in Plateau State, 78
-Cooperative, 78
-Development and, 11
-Dividends <strong>of</strong> me, 177
-Fees and rents, 10
-Illegal, 31, 32, 79, 81, 146-152, 210
-Informal, 94
-Leading companies in the world, 230
-Lease, 77, 78
-License, 94
-Mechanised, 31, 81
-Of oil and gas, 68
-Operations, 2, 10, 94
-Salt, 100
-Small-scale, 94, 121
-Surface, 108
-Technological company, 110
-Tin, 10, 75
Ministry
-<strong>of</strong> solid minerals development, 6, 22
-<strong>of</strong> mines and steel development, 28,
33
Mkandawira Thankdika, 242
Monopolilsation, 73
Muller, 76
Multilateral Investment Guarantee Agency
(MIGA), 237
Musa, Aliyu, 92
Multipher effect, 99
Mwega, 22
National
-Assembly, 130, 167
-Bureau <strong>of</strong> Statistics, 2006, 26
-Centre for Women Development, 92
-Commission for Museum and
Monument, 131
-Environmental Standards and
Regulations Enforcement
Agency Act (NESREA), 150,
151, 152
-Iron Ore Mining Company
(NOMCO), 22
-Minerals and Metals Policy, 2008, 23,
94, 57
-Solid Minerals Areas Producing
Commission, 32
-Solid Minerals Future Trust Fund, 33
-Stakeholders Working Group
(NSWG), 234
Natural Resources, 3
NEEDS, 31
Niger-Delta Development Commission, 32,
83
Nigeria Commodity Exchange, 4
Nigerian
-Bitumen Company, 17, 56, 57
-Cement Company, 57
-Civil War, 10, 19
-Clay Products Company, 3
-Coal Corporation, 14, 22, 57, 174
-Electric Power Authority, 19
-Enterprises Promotion Decree,
1989, 57
-Initiative (NEITI), 23, 58, 32, 35, 86,
151, 158, 162, 178, 234, 240
-Hand book, 96, 240
-Geological Survey Agency, 74, 147-
148
-Institute <strong>of</strong> Mining and Geosciences,
13, 22
-Investment Promotion Commission
(NIPC), 58
-Act, 147
-Minerals and Mining Act, 94, 104,
111, 129, 130, 155, 247
-Mining Company, 3, 19

-Mining Corporation, 14, 128, 168
-Railway Corporation, 19
-Solid Minerals Sector, 17
-Steel Development Authority
(NSDA), 3, 57
-Steel Raw Materials Exploration
Agency (NSRMEA), 14, 22
NNPC, 17
Northern
-Nigerian Government Forum, 97
-Protectorates, 17
Obsanjo, President, 233
Obligations, 101
Obwona and Chirwa, 238
O’ Connell, 230
Oil Exploration, 72
Okigbo, 166
Okolo, 167
Onah, 100
Ordinance (1946)
-Coal, 1950, 103, 128
-Minerals, 103, 128
Ownership, 75
-access and, 111
-forms <strong>of</strong>, 68, 79
-legal, 70
-<strong>of</strong> land, 31-32, 68, 117
-private, 72
-public/state, 71
-strip <strong>of</strong>, 70-71
-structure <strong>of</strong>, 67, 68
-question <strong>of</strong>, 112
Ozo Eson, 166
Participation, 71, 113, 115
-ASM, 73
-Community, 80
-Equity, 32
-Level <strong>of</strong>, 69-69
-Private, 131
Index 265
Partners
-development, 2
Partnership
-public and private, 5, 241
Penetration
-colonial, 75
Pension
-Act, 105
-Government, 82
Petroleum Technology Development Fund,
153
Ping
-and noe, 186
Plateau Environmental Coalition (PEC), 83
Polish Overseas Mining Company, 57
Population, 182, 211
Power Holding Company <strong>of</strong> Nigeria
(PHCN), then Electricity Corporation
<strong>of</strong> Nigeria (ECN), 174
Powell Duffryn Technical Services Ltd, 18
Powers <strong>of</strong> Officials
-Discretionary, 29
Power
-generation,3, 4
Private Initiative, 22
Production
-steel, 4
Prohibition, 117
Property
-collective, 68
-custodians <strong>of</strong>, 83
-intellectual, 70
-ownership <strong>of</strong>, 70, 73, 130
-private, 72
-provision and protection <strong>of</strong>, 73
-rights, 72
Prosperity
-Index <strong>of</strong> national, 8
Prostitution, 31
Race, 116
Radioactive substance, 7
Ragfield, 110
Rain boots, 110

266 An Evaluation <strong>of</strong> the Nature and <strong>Character</strong>...
Raceful, 186
Raw Materials Research and Development
Council (RMRDC), 57, 91
Reconnaissance, 127
-Permit, 127
-<strong>of</strong> the mineral resources, 17
-Method <strong>of</strong>, 94
Regime, 72
-Compensation, 144
-Fiscal, 112, 140
-Law and regulatory, 125
-Legal, 155
-Licensing, 103, 111, 112
-Macro-economic policy, 29
-Ownership and control, 153
Repression, 71
Reproduction
-social, 101
Resources
-Control
agitations for, 71
debate, 72, 85
-Curse, 221, 222
Resolution dispute, 146
Revenue, 3
-Allocation, 72
Rights
-Property, 3
Rio Agreements, 228
Robbery, 31
Royalties, 3, 29, 80, 164, 167, 169-170, 172,
176
Rule <strong>of</strong> Law, 3, 32, 160
Sabotage, 242
Scamble, 242
Secretary <strong>of</strong> state for the Colonies, 17
Sharp practices, 171
Shell, 5, 17
-D’arcy
Sex
-Unprotected, 31
-Work, 99, 101
Sites, 118, 173
-archaeological, 131
-artisanal-mining , 80
-gold, 102
-mining, 102, 105, 106
SMAs, 32
Smith, F. L., 57
Smuggling, 103
Social responsibility, 220
-corporate, 171, 172, 176, 223
Solid minerals
-Development bank, 3
-Producing Area commission
(SOMPADEC), 3, 83
-Trust fund, 3
Southern Protectorate, 17
Special Exchange Prospecting Licenses, 18
State Solid Minerals Information
Management System (SSMIMS), 228
Steel
-Plant, 22, 57
-Rolling mills, 14, 22
Steven, 226
Stewardship
-Environmental, 227
Stockholm Conference, 227
Structural Adjustment Programme, 1986,
10
Summit
-Earth, 228
-Economic, 97
Sustainable Management <strong>of</strong> Mineral
Resources Project (SMMRP), 26, 28, 96
Tariff reduction, 22
Tax, 117, 140
Taylor, Charles, 236, 239
Technicalities, 96
Techniques, 102, 127

Technology, 111
-Advanced, 2
-Extraction, 11
-Diffusion <strong>of</strong>, 166
The Economist, 5
The International
-Bank for Reconstruction and
Development (IBRD), 237
-Finance Corporation, 237
The United Nations, 71
-General Assembly
-Secretary General
Tiajpromexport (TPE), 57
Tin
-melting, 19
-mining, 19
Title
-minerals, 141-142
Toxicity, 211
Transparency, 3, 23, 28, 32, 35 36, 121
-absence <strong>of</strong>, 171
-and accountability, 82, 93, 96, 129,
158, 159, 161, 163
-lack <strong>of</strong>, 2 165
-level <strong>of</strong>, 166
-principles, 113, 177
Transportation, 210
Trap
-deaths, 183, 209
-Treatise, 151
Troops
-Peacekeeping, 239
Tull, 239
UK-DfID, 2, 13, 246
Umar, Nura, 92
Index 267
Underdevelopment, 221
Underground, 43
Unemployment
-Level <strong>of</strong>, 174
United Nations Conference on Environment
and Development, 226, 227, 228
Value (s), 211
-chain development, 29, 250
-system, 209
Variables, 164
Veigo, Marcello M., 100
Visual examination
-<strong>of</strong> surface area, 10
Warlords,
-Ethnic, 236
Watchdog, 162
Wave
-<strong>of</strong> crimes, 174
Wealth
-accumulation <strong>of</strong>, 72
-creation, 3, 29, 104, 250
-minerals, 121
Well, 80, 81, 108, 109, 115, 120
W.H.O, 185
World War II, 18, 26
Yankari Game Reserve, 186
Yar’Adua, Umaru, 234
Zero tolerance
-<strong>of</strong> corruption, 173