1.1
Background
to the Study
The
development of man is characterized by the quest to harness the abundant resources nature has bestowed upon him. Thus
he interacts with his environment in numerous but dynamic ways. Nations have
also continued to identify those factors that militate against their
development with a view to proffering enduring solutions. The dynamic nature of
the human environment further necessitates continuous study in order to keep
pace with changes in human nature.
The
successful accounts of socio - economic advancement within the EU, the USA and the
Asian countries could however not to be replicated with most African countries
especially Nigeria, this lack of development is not for want of resources. Nigeria
is not exempted from these socio – political and economic disorders. The nation
has moved from agro- based to a mono – cultural economy. The consequent over
dependence on oil has affected other sectors of the economy and by extension,
the socio- economic well – being of Nigerians. Thus the present political
dispensation was preceded by hopes for improvement.
Nigeria is endowed with about thirty four (34)
abundant mineral resources,
which could contribute immensely to the national
wealth with associated socio-economic benefits. (Adekoya,2003). The development
of the mineral sector, particularly the solid mineral sector or any other
sector of the economy, promotes economic activities through investment,
employment of resources, increased output, and enlarged aggregate demand. With
respect to solid minerals, coal was discovered in 1906 and its mining started
in 1916 (Ugwu, 1996.63).
Indeed, mining could be
one of Nigeria’s major success stories. However, it has been plagued by the
same factors that undermine the country’s potential generally such as deteriorating
infrastructure, uncertain government policies and overdependence on oil. Given
the huge amounts of capital required by mining operations and the long-term
nature of its projects, investors cannot be blamed for thinking twice about
putting their money into the sector.
Before oil became the
mainstay of the economy in the mid-1970s, solid minerals and agricultural
commodities accounted for almost all of the country’s exports. The tin mines of
the central plateau region around the city of Jos, and the coal mines around
the southern city of Enugu had been opened up by the late 19th Century. But tin
production is now down to a trickle, while coal exports slumped from a peak of
3.2 million tonnes a year in the 1970s to nothing within two decades as
successive administrations shifted to the oil boom of the 1970s and early1980s.
Proven reserves of
good quality coal, low in sulphur and ash are put at about 2.75 billion tones
according to Federal Office of Statistics (2003). Deposit of iron ore is
estimated to exceed three billion tones. Bitumen reserves put at over four
billion tones are nearly double the known reserve crude oil. The deposits of
gold and other gemstones, including sapphire, aquamarine, emeralds, topaz,
tourmaline, citrine, amethyst. are said to occur in viable commercial
quantities in different parts of the country. In addition, there are industrial
minerals, such as barites, bitumen, kaolin, gypsum, salt and iron ore, among
others that could bring substantial foreign earnings for the country. All the
states in Nigeria are endowed with abundant solid minerals including Kano State.
Kano State is endowed with bountiful solid
mineral resources some of which are in commercial quantities which can be
exploited and utilized for industrial purpose as well as a means of earning
foreign exchange. A comprehensive geological survey of some parts of the state
was initiated by the State Government in conjunction with experts, with a view
to ascertaining the availability and commercial quantities of solid minerals
existing in the State. The Riruwai mining area in Doguwa Local Government has
large deposits of columbite, granite, copper, zinc, lead and uranium. There are
evidences of Gold, Quartz, Kaolin, and Mica in Sumaila, Karaye and Shanono
Local Government areas. There are also vast deposits of Silica sand in Makoda
Local Government certified to be one of the finest in the world for glass
making.
1.2
Statement
of the Research Problem
In the light of the poor performance of the economy since independence,
despite the huge solid mineral deposits, the sector is yet to be fully exploited in the
face of vast opportunities that investors can exploit, 51 years after Nigeria’s
independence, the solid mineral sector is yet to be harnessed as part of
resource diversification in Nigeria.
A combination of
unfavourable government policy, changing country circumstances and poor
management of state owned enterprises have led to a precipitous decline in the
solid mineral sector and a situation in
which little or no new investment in mineral exploration and development, either
foreign nor domestic, could be attracted. The scale of this decline is clearly
illustrated in the drastic reduction in its sectorial contribution to GDP from
5.62% in 1980 to 0.16% in 2007(NBS, 2003)
Currently, there are no medium or large scale mining operations in Kano
State and Nigeria. Most active mining in Kano State is being undertaken by
small entrepreneurs and artisans, working deposits of precious, semi-precious,
construction and industrial minerals that are not licensed. In fact, they
operate outside the parameters of the licenses held. Consequently, the mining
sector remains in a state of stagnation in Kano State. Although, appreciable
progress has been made in recent years, with regard to legal and regulatory
reforms, nevertheless several limitations to growth through sustainable
exploitation of mineral resources still exist.
Though efforts are being
made through legislation and policy development to address the issues, the problem
of exclusive right by the Federal Government and how to implement regulations
of illegal mining has remained the bane of limitations of mineral exploitation
in Kano State for socio - economic development.
1.3
Research Questions
The following research questions will be
addressed:
a. What
is the state of solid mineral resource exploitation in Kano State?
b. How
has the exploitation of solid mineral resources exploitation enhanced the
socio-economic development of Kano State?
c. What
are the challenges facing the solid mineral resources exploitation in Kano
State?
d. What
recommendations and implementation strategies can be proffered to enhance solid
mineral resource exploitation for the socio-economic development of Kano State.
1.4 Aim and Objectives of the Study
The aim of this
study is to examine how the exploitation of solid mineral resources can
contribute to socio - economic development of Nigeria using Kano State as a
case study with a view to making recommendations and proffering implementation
strategies.
a. to
examine the state of solid mineral resource exploitation in Kano State.
b. to
assess how the exploitation of solid mineral resources has affected the socio-economic
development of Kano State.
c. to
identify the challenges facing the exploitation of solid mineral resources in
Kano state.
d. to
proffer recommendations and implementation strategies that could enhance solid
mineral resource development in Nigeria
1.5 Scope
The
study is focused on Kano State from the period 1999 to 2012 which is the period
the country returned
to the civil democratic governance and has sustained an uninterrupted
democratic rule for over a period of 13 years.
It examined the state of solid mineral exploitation in Nigeria with particular
focus on Kano State. The study has also identified the challenges facing the
sector and what legal instrument has been put in place to manage solid mineral
exploitation and proffer way(s) for addressing the problems.
1.6 Limitations of the Study
There
were basically three limitations encountered during this research work: Security,
Kano State had experienced one of the worse security challenges in its history
and this has to do with the Boko Haram quagmire in the state. Freedom of
movement within the metropolis was a big challenge throughout the period of the
study. Secondly, materials to aid a smooth undertaken of the project were
scarce. Even in the Bayero University Library and relevant ministries one could
hardly obtain any documents on the subject matter. The two limitations
mentioned above gave rise to the third dimension which is time frame. The
security challenge and dearth of materials/documents on the subject matter
prolonged the already limited time. However, newspapers, the internet,
published and unpublished documents came to the rescue.
1.7 Significance/Policy
Relevance of the Study
The need to effectively and efficiently exploit
solid mineral resources for the socio-economic development of Kano State and Nigeria
in general cannot be overemphasized. This study will provide policymakers with
options for managing the prolonged dependence on oil resources as the main stay
in Nigeria. The study will also provide materials and motivate practitioners in
Kano State on how to address small scale mineral exploration in the state. It
will also, provide an avenue for scholars in solid mineral resource sector to embark on
further research on this area, particularly from the point of view that would
enhance the development of better management of the state’s mineral resources
and that of the national economy. Furthermore, it will add and fill the gap
in existing literature on the subject matter. In
addition, it is pertinent to note that the challenge of resource
diversification for sustainable economic development in Nigeria involves both
lateral and structural process of economic transformation. Lateral
diversification entails the exploitation of alternative resources to crude oil
such as solid minerals and agriculture (CBN, Contemporary Economic Policy
Issues, 2003) .This is referred to as diversification among products. For solid
minerals, these include Bentonite, Barite, Limestone, Bitumen, Gypsum, Quartz,
Tantalite, Phosphate, Mica, Granite Stones, Kaolin etc. Both for domestic,
industrial use and export markets. Theses crucial strategic minerals provide necessary
raw materials for whole range of import/substitution industries thus,
sustaining the production capabilities (capacity utilization) of these
industries in a declining condition of foreign exchange reserve. There is yet
another diversification dimension in lateral diversification which is within a
particular product itself. For example there are many bye-products of palm
produce which include:
Production of palm oil, palm kennel oil, oleo
chemicals, palm kennel cake, wooden products, biodiesel, pharmaceuticals, motor
parts, cosmetics among others.
On the
other hand, structural diversification addresses the imperative for massive
deployment of resources for economic development through industrial
enterprises. As E. C Obioma and Uche Ozughalu explained “rapid economic
development involves rapid technological transformation. Rapid technological
transformation in a nutshell implies rapid industrialization”. This is more
explicitly explained if one considers Singapore for instance which exports
petroleum products without crude oil as an endowment and yet is one of the
largest exporters of petroleum products. While India and Israel, are largest
exporters of diamond without an equally endowed raw material for the production
of diamond.
1.8 Theoretical Framework
The theoretical
framework adopted in this study is the development and dependency theory using
the Sustainable Livelihood Approach (SL): by the Brundtland Commmision The SL
construct has emerged as "the integration of population, resources,
environment and development in four aspects: stabilising population; reducing
migration; fending of core exploitation; and supporting long term sustainable
resource management. The Brundtland Commission developed it as an integrating
concept. Livelihood meaning adequate stock and flows of food and cash to meet basic
needs; security refers to secure ownership of, or access to, resources to meet contingencies and sustainable refers
to the maintenance or enhancement of resource productivity in the long term
(McCraken, J. Pretty J.(1998). Adaptive strategies and capacities generate and
maintain means of living and enhance well-being and that of future generations.
(Titti & Singh, 1995) They represent
permanent change in community strategy, and structure, organisational processes;
these capacities are contingent upon availability, stability and accessibility
of options, which are ecological, socio-cultural, economic and political. They
are predicated on equity, ownership of resources and participatory wise
decision-making - notions of Sustainable Human Development (SHD) and SL that
incorporate the idea of change and uncertainty.
The study prefers
this theory because it provided an option that truly illustrates the
exploitative nature of the developed countries to the less developed country
(LCD) which led to dependency. That is to bring to light whether, Nigeria
economy is developing, developed or underdeveloped; factors that are
responsible for these stages or types of development. This is because, in spite
of her God given mineral wealth and good climatic weather, the country is yet to
get out of underdevelopment trap.
1.9 Methodology
Survey methods were employed
in collecting data for this study. For the primary source questionnaires and in-depth
interview method were used. The views of stakeholders such as practitioners in
solid minerals exploitation in Kano State, relevant ministries and agencies in
charge of solid mineral exploitation were explored. The Secondary source was
drawn from both published and unpublished material such as books, journal articles,
newspapers, seminar papers, memoirs and extensive use of the Internet.
The study used
random sampling method and technique for the selection of respondents for the
research.
Results from
research findings were analysed using qualitative method and generalisation was
made based on the findings. In some instances simple percentage were used for
the analysis.
1.10
Definitions of Terms
1.10.1 Minerals
Minerals may be defined as naturally
occurring substances derived from the earth’s crust and upper mantle which are
of value to man. They include such broad groups as ferrous, non-ferrous and
non-metallic substances. By simple elimination, therefore, solid minerals cover
all such substances excluding crude oil, gas and water (Committee on National
Policy on Solid Minerals (CNPSM), 1995: 4). Examples of solid minerals are
given in the following classification.
1.10.2 Development
Development is an integrated process of
expansion of substantive freedom. Economic growth, technological advancement
and political change are all to be judged in the light of their contributions
to the expansion of human freedoms. Among the most important of these freedoms
are freedom from famine and malnutrition, freedom from poverty, access to
health care and freedom from premature mortality. (Sen, 1999),
1.10.3
Socio-Economic Development:
Socio – economic Development embraces
change taking place in social and economic spheres, mostly of an economic
nature. Even though economic aspect comes to the fore in the research on
changes in the economy they cannot be isolated from social aspects. Hence, a
more apt term for the change and development is change and socio – economic
development combining the two aspects. Chojincki, (2010).
1.11 Organization of
the Study
The study is organized under five
chapters. Chapter one is the general introduction comprising background
information, statement of the problem, aim and objectives of the study,
research questions, scope of the study, significance of the study, and
organization of chapters. Chapter two is
a review of related literature. Chapter three will examine the history and
background of solid mineral exploitation in Nigeria, legal instruments, the
challenges and the development of solid mineral resources in Kano state. Chapter four will discuss and analyse the
level of exploitation of solid mineral resources and socio – economic
development in Kano State while chapter five presents the conclusion,
recommendations and implementation strategies for the study
