eBizGuides Nigeria

Page 126

MAIN SECTORS

OF THE

ECONOMY: INDUSTRY & TRADE

INDUSTRIAL APPLICATIONS TO SOLID MINERALS

Bitumen Development The Federal Government has approved the establishment

Although crude oil and natural gas are the chief resources

of the Bitumen Development Authority of Nigeria to expe-

extracted for trade, solid minerals are abundant in Nigeria.

dite action on bitumen exploration to generate consistent

The principal mineral resources are coal, iron ore, zinc,

revenue as well as reduce the high cost of importation of

limestone and marble among others. Despite having large

asphalt, a derivative of bitumen commonly used in road

deposits, low output has been recorded for several years.

construction. It has also entered into an agreement with a

This was mainly due to a fall in demand caused by a shift

subsidiary of an American energy company, Conoco, for

by its public sector consumers towards the use of gas and

the evaluation of technical, economical and commercial

petroleum. The solid mineral sector offers the opportunity

feasibility of exploring, developing, refining and marke-

to diversify Nigeria’s petroleum dominated economy. It

ting of Nigerian heavy oil and tar sands.

also offers viable prospects for mining, mineral processing and the manufacture of many intermediate raw materials for local industries and export. One of the objectives of

TRADE

the new National Policy on Solid Minerals is to ensure the orderly development of the mineral resources of the

Recently, Nigeria’s trade sector has been dominated by

country.

the oil industry, which accounts for up to 95% of total exports of goods. Agricultural products such as cocoa and

Nigeria’s renewed national solid mineral thrust offers a

rubber account for less than 5% while manufactured

competitive environment for solid mineral development.

goods account for less than 1% of exports. As mentioned

In collaboration with the governments of United Kingdom

earlier, plans are in effect to increase the total export of

and the Republic of South Africa, the country has recently

Nigerian made manufactured goods.

agreed to cooperate in the following areas: Formal regional trade within the Economic Community of * Re-establishment of internationally acceptable geolo-

West African States (ECOWAS) is relatively small, as the

gical laboratory

sale of crude oil to these countries is almost non-existent. However, a small volume of raw materials and finished

* Development of Regional Database of West Africa to be

products are exported to other West African states and to

centred in Nigeria.

Eastern Europe.

* Training and retraining of technical staff of Geological

To foster trade initiatives in other sectors of the economy,

Survey of Nigeria

the Nigerian government believes it should continuously push for change. It has recently drawn up a new National

* Digitalisation of Airborne Geophysical Survey Data of

Trade Policy with the aim of keeping up with global trends

Nigeria.

while providing detailed guidelines for importers and exporters.

* Production of Metallogenic Map of Nigeria. Also, a comprehensive regulatory framework, the Commodities Exchange and Futures Market Commission

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