The Solid Mineral Sector and Economic Diversification in Nigeria

Abstract

The research studied the diversification of Nigeria economy through solid mineral sector. The objectives of the study are; to examine the  effect of policy guidelines on solid mineral mining to economic diversification of Nigerian, to explain Government neglect of the solid  mineral sector which affects economic diversification of Nigerian, and also it studied how ethnicity affects the production of solid mineral  to economic diversification of Nigeria. One hundred and thirty five (135) questionnaires were administered in Zamfara and Taraba states  to generate data and one hundred (100) were returned successfully within one year. The following hypotheses were formulated: policy  on artisanal mining has no direct relationship with economic diversification of Nigeria, funding of the solid mineral sector does not  positively affect economic diversification of Nigeria. The researcher used parametric –z test at significant level of 0.05% to accept or reject  the hypotheses and Probit analysis to confirm results. A survey design was adopted in analyzing the hypotheses which led to the findings;  that funding was greatly retarding the mining of solid mineral in Nigeria and lack of necessary laws and policies also affects  solid mineral mining in Nigeria. Estheticism also contributed adversely on solid mineral mining to economic diversification. In conclusion,  it was discovered that poor funding, ethnic sentiment and inadequate laws and policies of government were some of the factors that  militate against development of solid minerals and hence diversification of the Nigeria economy. In view of the observations the  following recommendations were given by the researcher: that adequate science data relating to solid mineral should be generated by  the government to determine the actual capacity of solid mineral in Nigeria, to recover the cost implication, government should issue sale  licenses to investors on the sector at a reasonable price, government should employ Professionals to add value to solid minerals  education and investment. Those interested in the solid mineral mining sector should be encouraged by the government by providing an  enabling environment on the area of tax reduction, security, infrastructural facility etc.