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Nigeria risks future mineral imports, geophysicists warn

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As the Federal Government intensifies efforts to attract investment into Nigeria’s vast mineral resources and halt the export of raw ores, exploration geophysicists on Monday raised concerns that the country could one day be forced to import minerals it is currently extracting and exporting if strategic deposits are not deliberately conserved.

The warning came as the Minister of Solid Minerals Development, Dele Alake, said the Federal Government was strengthening geoscientific data, mineral exploration and professional capacity to transform the mining sector into a major pillar of Nigeria’s economic diversification.

The Nigerian Association of Exploration Geophysicists, however, argued that the push for value addition and increased mining must be matched by a national conservation policy to protect selected high-grade and strategic mineral deposits for future generations and Nigeria’s long-term industrial development.

The contrasting but complementary messages emerged at the 4th Annual International Conference and Training Workshop of the association in Abuja, where professionals examined the role of geophysics in resource exploration, environmental management and infrastructure development.

conference, themed “Geophysics: A Critical Driver in Resource Exploration, Environmental Management and Infrastructural Development,” also featured discussions on artificial intelligence, machine learning, groundwater assessment, geotechnical engineering, policy, investment and capacity building.

Alake, who was represented by a Director at the Nigerian Geological Survey Agency, Hadiza Godi, said geophysics was more than an academic discipline, describing it as a critical tool for discovering Nigeria’s underground wealth and supporting sustainable national development.

The minister said, “Geophysics is not just an academic pursuit; it is the master key that unlocks our underground wealth, protects our ecosystem, and secures the foundation of our national infrastructure.”

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He said the Federal Government had made the generation of reliable geological and geophysical information a central part of its mining reform agenda because credible data remained critical to reducing uncertainty and attracting investment.

According to him, “Accurate and reliable geoscientific data is the ultimate bedrock of mining investment.”

Alake said the ministry, through the NGSA, had expanded geological mapping and undertaken targeted high-resolution airborne geophysical surveys as part of efforts to improve knowledge of Nigeria’s mineral endowment.

He said the exercise had led to the identification of deposits of minerals considered critical to the global energy transition, including lithium, graphite, copper, manganese and rare earth elements, alongside iron, lead, zinc and aluminium.

The minister said, “Through the Nigerian Geological Survey Agency, we have executed targeted high-resolution airborne geophysical surveys and extensive field mapping. We have successfully identified major deposits of critical transition minerals and supporting minerals such as lithium, graphite, copper, manganese, the REEs, as well as the traditional to transitional bridge minerals like iron, lead, zinc, and aluminium.”

But as the government seeks to unlock these resources, the President of NAEG, Akin George, cautioned that Nigeria must avoid a situation where the rush to mine and process minerals leaves future generations without access to strategically important deposits.

George acknowledged the Federal Government’s policy on local value addition, noting that it represented a departure from the long-standing practice of exporting minerals in raw form.

He said, “It is on record that the Ministry of Solid Mineral Development has made mandation for any investor that wants to mine minerals in Nigeria to subject such minerals to value addition. In other words, no mineral leaves the shores of this country without value addition.”

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“This concept of value addition shall yield positive results if strictly adhered to. We are aware that investors have started establishing mineral processing plants in almost all the six geopolitical zones of the federation, which shall definitely create more jobs for our teeming youth in the future.”

However, the NAEG president said local processing alone should not become the sole measure of success in Nigeria’s mining policy.

He warned that minerals were finite resources and that the country needed to determine which deposits should be mined immediately, which should be developed for domestic industrial use and which should be preserved as strategic reserves.

He said, “It is well known that Nigeria is endowed with over 34 vast, varied solid mineral resources, spread in about 450 different locations across the 36 states of the federation, including the FCT. It may surprise you to state here that mineral resources are not replenishable commodities. Once mined or taken away, they are not replenished.”

The NAEG president therefore called for a national conservation policy for strategic minerals, particularly as Nigeria accelerates efforts to attract local and foreign capital into the mining sector.

He particularly called for the conservation of selected high-grade deposits of lithium and chromite, as well as other strategic minerals such as uranium, platinum and bauxite where they are found in commercially viable quantities.

On his part, the Executive Secretary of the Petroleum Technology Development Fund, Prof Shehu Ahmed, who was represented by a manager in the fund, Wasiru Ahmed, said the PTDF would continue to support the development of indigenous capacity through training, research, knowledge transfer and mentorship.

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Also speaking, a former Minister of Mines and Steel Development, Prof Musa Sada, commended the association for sustaining professional collaboration and stressed the importance of continuous learning in an industry increasingly shaped by technological changes.

Other speakers, including representatives of the Nigerian Mining and Geosciences Society, the Miners Association of Nigeria and the NGSA, called for stronger collaboration among professional bodies and improved archiving of exploration data, samples, drill logs and technical reports.

The conference also paid tribute to the Chairman of the NAEG Board of Trustees, Prof Deborah Ajakaiye, for her pioneering contributions to geophysics and her role in training generations of Nigerian geoscientists.

Source: punchng.com

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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