SOLID MINERAL MINING AND ECONOMIC DEVELOPMENT IN NIGERIA: A STUDY OF QUARRIES IN EBONYI STATE 1970-2020

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Nigeria is blessed with a huge endowment of solid minerals widely distributed across the different parts of the country. The geology of Nigeria is comparable to the geology of some other African countries where world class minerals deposits have been found and many geoscientists believe that major deposits are yet to be discovered in Nigeria[1]. Presently there are deposit of tin, limestone, coal, columbite, iron, pottery clays, gild, lead, zinc, oil gas Marbles etc in various parts of the country. Mining of minerals resources in Nigeria is, however, dated far back beyond the amalgamation of Nigeria in 1914.

The contribution of solid mineral to GDP in Nigeria has not been impressive. Solid mineral output according to CBN (2018) fell from N67.14 billion in 1981 to N29.09 billion in 1990. It further fell to N21.31 billion in 2000. However, it has risen since 2003: from N23.20 billion in 2003 to N51.88 billion and N96.60 billion in 2010 and 2018 respectively. However, when viewed in terms of percentage contribution, CBN[2] reports that the contribution solid mineral to GDP has been declining over time. It declined from 0.44% in 1981 to 0.15%, 0.089% and 0.093% in 1990, 2000 and 2010 respectively. Although percentage contribution rose slightly in subsequent years (eg 0.103% in 2011 and 0.138% in 2018), it is still far below the level recorded in the 1980s.In the same vein, economic growth exhibits profound features. The economy rose from recession in the early 1980s to high growth of as much as 6.4% (in 1989) in late 1980s. It however, slowed done to average of 2.6% between 1990 and 1999. The growth rate of the economy rose to average of 7.9% between 2000 and 2014 with highest value of 33% recorded in 2004. Since 2015, economic growth has remained low: fell from 6.3% in 2014 to 2.65% and -1.62% in 2015 and 2016 respectively. Although the 2016 recession was adjudged to have ended in 2017 with growth rate of 0.81%, the growth rate improved slowly as 2018 recorded 1.92% growth. Moreso, Nigerian growth rate has been relatively low[3].

Recently, increased emphasis has come to be placed on the potential importance of the solid minerals sub-sector of the Nigerian economy[4]. The quest for diversification of the national economy and in particular, the importance attached to breaking the dominance of crude oil in the export structure of the economy, has led to a focus on the sub-sector. Yet, it must be recognised from the outset that solid mineral extraction has historically been an important contributor to the national economy in the past. Solid minerals are natural resources that forms part of the earth resources which beckon the human race for exploitation, extraction, development and utilization, and since these minerals are contained within the earth on whose surface we dwell and from whose belly we extract the minerals, our attitudes have to impact on the physical environment in which and on which the operations take place[5].

Quarry is the excavation, extraction and breaking of stones into aggregates for construction purposes such as bridges, houses, roads, railways and others^[6]. Abakaliki before the coming of the quarry industry at Onuebonyi-Izzi in Abakaliki Local Government Area, Ebonyi state, earned their livelihood mainly through agriculture. About 85% 0f Abakaliki population are farmers. Very little of the agricultural production is mechanized and so the industry depends almost entirely on family labour^[7].

Quarrying activities for rocks, sand, gravel, and limestone for road beds, to make building stones, are environmental polluting industries in Abakaliki and environs. The gains of quarrying activities notwithstanding, the impacts on water resources are quite enormous in view of the utter disregard for environmental limits, low knowledge and compliance to environmental laws[8].

Abakaliki is the capital of the present day Ebonyi State in South eastern Nigeria. The inhabitants are primarily members of the Igbo ethnic nation. It used to be parts of both Anambra and Enugu States before the creation of Ebonyi State in 1996. Abakaliki town lies at the intersection of the Enugu, Afikpo and Ogoja roads. It is a leading producer of processed rice, yam and cassava for decades. Abakaliki has an estimated population of 141, 438 according to the 2006 census³.

Naturally, Abakaliki is endowed with two typical but very important stones namely shale/sedimentary and granite⁴. These stones are predominant in Onuebonyi-Izzi, Ezzamgbo (Odomoke) and Ezillo; but the focus of the study is mainly on Onuebonyi-Izzi in Abakaliki Local Government Area. These stone types constitute construction aggregates, most of which are quarried^[9].

When Igboland came under British Colonial rule from 1900, it was extended to Abakaliki and Afikpo by August 1902^[10]. The British authorities, saddled with the responsibilities of providing infrastructure like offices and residential quarters for their officials resorted to forced labour^[11] and coerced the indigenous populace to provide them with lumps of stones cracked manually from the already existing surface sedimentary rock depositions in the area. These stones were used in the building of offices/residential quarters popularly known as Government Reserved Area (GRA) and in the construction of bridges which linked together different parts of the town.

As a result of this development, the Colonial authorities were able to initiate some reforms in the people’s means of livelihood. The establishment of indigenous banks in the 1930s and the consequences of World War II^[12] further empowered Nigerian businessmen to have access to credit facilities. The early 1950’s mineral exploration in Nigeria undertaken by the then Nigeria Mining Corporation revealed the presence of sedimentary rock deposits in commercial quantity in Abakaliki^[13]. During the period, the power to exploit minerals and the management of stone blasting was vested in the Nigerian Mining Corporation which granted a lease to Trade Afrik in 1956. Trade Afrik in turn gave stone blasting licenses to private owned companies like Ebenezer and Sons Limited, G.U Oguike, “Spera in Deo”, Muoneke and Sons Limited, Eze and Bros, and Pecuno Nigerian Limited. The lumps of blasted stones were conveyed in trucks from the mines at Onuebonyi–Izzi to the crushing sites located along the Old Abakaliki-Enugu Highway, for final processing and marketing. In 1961 the Eastern Nigerian Government established a quarry out-fit at the back of Juju Hill in Abakaliki for use in road construction and rehabilitation projects during the period under review^[14].

At the end of the Nigerian Civil War in January, 1970 General Yakubu Gowon regime embarked on his post-civil war programme based on the so called rehabilitation, reconstruction and reconciliation¹¹. It was geared towards upgrading and repair of damaged infrastructures in the former East Central State and other war affected parts of the country. As a result an Italian Multi-National Construction Company, SEGEEN Nigeria Limited, was hired for the reconstruction of the Abakaliki-Enugu Federal Highway, while Reynold Construction Company (RCC), built the Enugu Airport, commissioned on August 1976 by the Chief of Staff Supreme Headquarters, Major General Musa YarAdua^[15]. About ninety five percent of quarried stones for the reconstruction and construction of the two projects were sourced from quarries in Ebonyi State at different locations^[16].

The expiration of the multi-national firms contract coupled with the desperate bid to consolidate the gains of the new economic empowerment, led many private owned companies into obtaining licences to crush stones in Abakaliki with patronage from various parts of the old East Central State and, beyond At present, there are over one-hundred private owned quarry companies, and one government owned quarry company in Abakaliki and its environs producing quarried stones of different sizes and shapes.

The companies, both government and privately owned, have different degrees of memorandum of understanding (MoU)^[17] with the host communities who provided a conducive atmosphere for the exploitation of the solid mineral deposits. The new economic environment ignored the socio-economic status of the host communities. Recently, observations have shown that the host communities are now reluctant to give out more of their farm lands for quarrying activities. They are already aware of the environmental implications of the quarry, and the inability by the operators to adhere strictly to the international mining standard and environmental management^[18].

However, Abakaliki remains the melting pot of quarry products east of the Niger or in the south-east geo-political zone.^[19] This to a large extent has enhanced the living standard of the indigenous communities and stranger elements.

1.2 Statement of Problem

It has been raised that it is not just enough to list the number of minerals which are in Nigeria and which can attract the establishment of various industries, but it is very important to examine whether the scale of production of these minerals can sustain the operation of industries over time[20]. The scale of production of various minerals in Nigeria is still very low. Mineral raw materials exploitation and production is largely in the hands of small-scale miners whose production are still determined mainly by subsistent needs which cannot meet the huge demands of industries[21]. Large-scale production of minerals is being neglected because of various reasons some of which are listed below:

• High cost of exploitation and exploration

• Inadequate infrastructural facilities

• Lack of appropriate technology

• Problem of manpower

• Lack of finance

• Mineral resource inventory etc.

The solid minerals sector contributes 0.6 percent to the GDP of Nigeria while the government plans to increase it to only 5 percent in 2025[22]. Meanwhile, over 90 percent of the activities of the mining industry are dominated by artisanal operators, thereby accounting for the low output level in the industry. From 1970 till date, there has been a continuous decline in solid minerals contributions to the industrial sector as its value has kept on fluctuating between 0.3 percent and 0.4 percent.

The collapse of major steel-producing industries all over the country has further aggravated the issue of low solid minerals development as the story of solid minerals development cannot be complete without making reference to the Quarry industries in Ebonyi State[23].

In the year 2019, the immediate past minister of mines and steel, Abubakar Bwari, declared that Nigeria lacks the technical capacity and competence to kick off operational activities at the Quarry industries in Ebonyi State. The present administration is also making efforts to concession the Quarry industries in Ebonyi State to foreign expatriates; however, it is worthy of note that efforts by successive administrations in Nigeria to concession the industry to foreigners yielded no positive results.

In-spite of the existence of the Quarries in Ebonyi State not much have been written on the history and contribution of the Quarries in Ebonyi State. This lacuna created an avenue for debate amongst those who see the industry as having made positive contributions and those who argue to the contrary.

Quarrying in Ebonyi state area discharge waste water into surface water; an unfriendly environmental practice which is common in Nigeria and other developing countries. Quarrying activities also discharge dust and silt particles that settles on surface water used for drinking and other domestic chores in a community as witnessed in Zamfara state of Nigeria[24].

Abakaliki, has potential water deficit extending for over four months, and inaccessibility to surface water. Accordingly, the greatest source of health problem in Abakaliki is the scarcity of water and the low quality of the available amount caused by guinea worm. In recent time, the challenges of quality potable water supply were addressed by the opening up of boreholes that regrettably run dry during the dry season[25]. Due to inadequate supply of water in the area, any activity such as quarrying those compromises sustainable quality water resources in Abakaliki and its environs affects their livelihood and may force the people to rely on guinea worm infested water resources for their water supply and sanitation.

It therefore becomes imperative that both views should be critically scrutinized and evaluated with empirical data to arrive at an impartial conclusion.

1.3 Aim and objectives of the study.

The aim of the study is to examine the solid mineral mining and economic development in Nigeria: a study of quarries in Ebonyi State 1970-2020. The following are the specific objectives of the study:

1. To examine the Origin of quarries in Ebonyi state.

2. To examine the type of solid minerals mined in Ebonyi state and Nigeria in general.

3. To examine the consequences of the quarry industry on the economic growth and development of Ebonyi state.

4. To examine the growth of the quarry industry in Ebonyi state from 1970-2020.

5. To find out if solid minerals production is a significant contributor to Nigeria’s economic development.

6. To examine the short and long-run impact of solid mineral mining on the economic development of Nigeria.

1.4 Scope of Study

The study covers the period 1970-2020. This is because 1970 marked the end of the Nigerian Civil War and the beginning of the post war reconstruction programme while the year 2007 marked the end of the second tenure of the first civilian administration of Governor Sam Egwu in Ebonyi State, and the inception of Governor Martin Elechi’s first tenure which created high demand for quarry products to accommodate the ever-increasing infrastructural development in the state.