Jennifer Abraham
As far as export of mineral oil is concerned, Nigeria’s fate can only get dim in the coming times. The discovery of shale and other non-fossil sources of energy will continue to give Nigeria some disquiet considering that the most important governmental activity is the sharing of oil revenue.
While oil will continue to play a critical role in the nation’s economy, it will necessarily cease to be the major export product. We should soon realise that it is more beneficial to refine our crude locally into diverse products to meet our internal needs than to continue to seek paltry markets for the export of crude. This is besides the fact that the host communities where crude is presently mined will continue to demand a fairer share from the accruals. It sounds bleak for a traditional trend of questionable ease but the upheaval is necessary to rouse us out of limbo to make better use of our natural resources.
The same goes for the re-emerging mining industry. Sale of mineral ores alone will not give the economy the quality of complements it requires to wean itself from its current monolithic profile. The real competitive advantage comes through value-addition and that is where manufacturing also comes in. The benefits of value addition have been ignored for too long to the detriment of the economy. The government can only absorb so many in the civil service. It is the real sector that engages unemployed persons to generate wealth. Mining, our best alternative to oil in terms of employment generation, import substitution, foreign exchange earnings, presently contributes less than three per cent to the economy. This trend can be reversed when the states are determined to develop the mining resources in their areas.
One area where the revival of the mining sector can readily benefit Nigeria’s Gross Domestic Product is the development of its gemstones and ceramic.
Montepuez ruby mine in Mozambique earned $33.5m in its first auction in June 2014, a record that almost defrayed all start-up investments and an impressive figure that was outstripped by its second auction at the end of the year by $9.8m.
According to Jean Michelou of ICA, cut red tourmalines can sell for over $1,000 per carat, adding that emeralds, rubies and sapphires which Nigeria is well endowed with, (I am not sure of rubies) are actually the most monetarily valuable gemstones today. Michelou is an International Consultant hired by the Federal Government in 2010 to serve the now silent Gemstone Development Programme, which aimed to build gemstone centres in Ibadan and Jos. The governors of those states can take up those programmes and ensure that they are actualised to create jobs and generate revenue.
Ceramics products include tableware- plates, mugs (some of which we call China yet we can manufacture them locally), ornamental ware like flower vases, decorative porcelains, sanitary ware {water cistern units, wash hand basins, bathtubs), floor and wall tiles, etc.
It is projected that the global ceramics market would reach $408bn by 2018 and Nigeria can capture a significant share of that market. Locally, the demand is also very high as the country currently spends about N5bn annually on importation of ceramic products. Nearly 100 per cent of the required raw materials for ceramics production can be sourced locally; the raw materials for ceramics production are spread across the six geographical zones of the country.
Tragically, this nation spent billions of dollars on imported sanitary ware for the development of Abuja while local ceramics industries set up to produce those wares were shutting down in the 80s and 90s.
I once introduced an expert on ceramics to a state government to explore how the industry, which had once thrived well in that state in the 70s and 80s, could be revived and I found their response quite relaxed. They wanted to be sure that all the required raw materials existed in the state. They were informed that their state had the key mineral, about the best grade in the country but would require additional components which could be sourced from other states. That appeared too tedious to contemplate.
It was General Ike Nwachukwu (rtd.) who popularised the concept of economic diplomacy and it seems that Nigerians believe this only applies to overseas sprees. State governments can go into economic ties with one another to co-own factories, source raw materials and create markets for goods and services. Such trips will prove more rewarding than cap-in-hand jaunts to Abuja. It is unrealistic to leave the industry squarely in the hands of a struggling private sector which often times subsists with begging.
The experience we have had with investors who buy up public assets and then turn around to beg government for bailouts and banks for loans is quite instructive.
Governors must now roll up their sleeves because this is the time for entrepreneurial governance. Auspiciously, the Ondo State Government has won the right to develop the state’s bitumen resources. Mining is capital intensive so, apart from inviting the private sector, the state may need to go into economic cooperation with other states to finance, operate the mines and develop markets for the products. Imagine what Nigeria’s construction and allied industries profile will be like when that happens.
Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: editor@punchng.com
source: http://ift.tt/2v0vHye
http://ift.tt/eA8V8J
