Mineral Resources

Classification of Mineral Resources

Mineral resources are grouped into different categories based on their characteristics and uses.

1. Metallic Minerals

Metallic minerals contain metal elements that can be extracted and used for industrial purposes. Nigeria has several important metallic minerals.

Iron ore is found in Itakpe (Kogi State), Ajabanoko (Kogi State), and Oshogbo (Osun State). The Ajaokuta Steel Company was built to process iron ore into steel for construction and manufacturing. However, the plant has never operated at full capacity due to poor management.

Tin deposits exist on the Jos Plateau in Plateau State. In the early 1900s, Jos was one of the world’s largest tin producers. Miners extracted tin for making cans, solder, and bronze. Today, tin mining has reduced due to depletion and illegal mining activities.

Gold is found in Zamfara, Kebbi, Niger, and Osun states. Illegal gold mining in Zamfara caused lead poisoning that killed over 400 children between 2010 and 2012. The government now tries to regulate gold mining to prevent such disasters.

Lead and zinc occur together in Abakaliki (Ebonyi State), Ishiagu (Abia State), and Ameri (Plateau State). These metals are used in batteries, roofing sheets, and electrical wiring.

2. Non-Metallic Minerals

Non-metallic minerals do not contain metal elements but serve important industrial purposes.

Limestone is abundant in Ewekoro (Ogun State), Nkalagu (Ebonyi State), Ukpilla (Edo State), and Ashaka (Gombe State). Cement companies like Dangote, Lafarge, and BUA use limestone to produce cement for construction. Nigeria now produces enough cement to export to neighboring countries.

Coal deposits are found in Enugu, Benue, and Kogi states. The Nigerian Railway Corporation used coal from Enugu mines to power steam trains in the colonial period. Today, coal can generate electricity in power plants, but Nigeria has focused more on gas and hydroelectric power.

Kaolin (china clay) is found in Kankara (Katsina State) and Ubulu-Uku (Delta State). Industries use kaolin to make ceramics, tiles, plates, and cups. It is also used in paper production and pharmaceutical tablets.

Salt comes from seawater in coastal states like Lagos and Rivers, and from underground deposits in Awe (Nasarawa State) and Uburu (Ebonyi State). Salt is essential for food preservation and chemical industries.

Gypsum occurs in Dange-Shuni (Sokoto State) and is used in making plaster of Paris, fertilizers, and cement production.

3. Energy Minerals

Energy minerals produce power when burned or processed.

Petroleum (crude oil) is Nigeria’s most valuable mineral resource. Major oil fields exist in the Niger Delta region covering Rivers, Bayelsa, Delta, and Akwa Ibom states. Nigeria produces about 2 million barrels of oil daily, making it Africa’s largest oil producer.

Oil companies like Shell, Chevron, Mobil, Total, and the Nigerian National Petroleum Corporation (NNPC) extract crude oil for export. Petroleum provides over 80% of government revenue and 95% of foreign exchange earnings.

Natural gas is often found with petroleum. Nigeria has one of the world’s largest gas reserves. The Nigeria Liquefied Natural Gas (NLNG) plant in Bonny Island (Rivers State) exports LNG to Europe and Asia. Gas also fuels thermal power stations in Egbin (Lagos), Sapele (Delta), and Afam (Rivers State).

Bitumen (tar sands) is found in Ondo, Ogun, and Lagos states. Bitumen is used for road construction and waterproofing. Nigeria has not fully exploited bitumen deposits due to focus on crude oil.

Distribution of Major Minerals in Nigeria

Economic Importance of Mineral Resources

1. Revenue Generation

Petroleum alone provides over 80% of Nigeria’s government revenue. The Federal Government uses this money to build roads, pay salaries, and fund education and healthcare. States like Rivers, Bayelsa, and Akwa Ibom receive derivation funds from oil production in their territories.

The Nigerian Extractive Industries Transparency Initiative (NEITI) reports that mining and petroleum sectors generated over N10 trillion in 2022. This money supports federal and state budgets across the country.

2. Foreign Exchange Earnings

Nigeria exports crude oil, liquefied natural gas, and cement to earn foreign currency. These exports bring dollars, pounds, and euros into the country. The Central Bank of Nigeria uses this foreign exchange to import essential goods like rice, medicine, and machinery.

Without petroleum exports, Nigeria would struggle to maintain naira value and pay for imported goods. The economy depends heavily on mineral exports to balance international trade.

3. Employment Creation

Oil companies, mining firms, and cement factories employ thousands of Nigerians. Shell, Chevron, and NNPC hire engineers, geologists, accountants, and security personnel. Small-scale miners in Zamfara, Osun, and Plateau states earn income from gold mining.

Cement production in Obajana (Kogi State) provides jobs for local communities. The Dangote Cement factory employs over 10,000 workers directly and thousands more indirectly through supply chains.

4. Industrial Development

Minerals serve as raw materials for industries. Limestone feeds cement factories in Ewekoro, Nkalagu, and Ashaka. Iron ore should supply steel mills for manufacturing cars, pipes, and machinery. Natural gas powers factories producing fertilizers, plastics, and petrochemicals.

The Eleme Petrochemical Company in Rivers State uses natural gas to produce polypropylene for plastic industries. This reduces Nigeria’s dependence on imported plastics.

5. Infrastructure Development

Revenue from minerals funds roads, bridges, airports, and schools. The Lagos-Ibadan Expressway rehabilitation uses cement from Nigerian factories. The Second Niger Bridge uses steel and cement produced locally.

States like Akwa Ibom and Rivers used oil revenue to build modern airports, hospitals, and flyovers. These projects improve quality of life and attract businesses.

6. Energy Supply

Natural gas fuels thermal power stations that generate electricity for homes and businesses. The Egbin Power Station in Lagos produces 1,320 megawatts using natural gas. Without gas, Nigeria’s electricity supply would be even worse than it currently is.

Petroleum products like diesel and petrol power generators when PHCN supply fails. Transportation depends entirely on petrol and diesel refined from crude oil.

Problems of Mineral Exploitation in Nigeria

1. Environmental Degradation

Oil spills pollute rivers, farmlands, and fishing waters in the Niger Delta. Gas flaring releases harmful carbon dioxide into the atmosphere and wastes valuable resources. Communities in Ogoni, Nembe, and Bayelsa face health problems from oil pollution.

Mining creates large pits that fill with water and become breeding grounds for mosquitoes. Illegal mining in Zamfara left toxic lead in soil and water, causing lead poisoning in children.

2. Resource Curse

Despite enormous mineral wealth, most Nigerians remain poor. Corruption allows politicians and oil company officials to steal billions of naira. Communities where minerals are extracted often lack good roads, schools, and hospitals.

The Niger Delta militants claim oil companies and government neglect their communities while taking oil wealth. This has led to pipeline vandalism, kidnapping, and violence.

3. Over-Dependence on Petroleum

Nigeria relies too heavily on oil revenue. When global oil prices fall, government income drops sharply. This happened in 2016 when oil prices crashed and Nigeria entered recession.

The government neglects solid minerals like gold, iron ore, and coal because oil brings easy money. Proper development of these minerals could diversify the economy and reduce oil dependence.

4. Inadequate Technology

Nigeria lacks modern equipment for mineral exploration and extraction. Foreign companies like Shell and Chevron own the technology for deep-water oil drilling. Local firms cannot compete due to poor technical capacity.

Small-scale miners use crude tools that waste minerals and damage the environment. Modern mining equipment would increase efficiency and reduce waste.

5. Illegal Mining and Smuggling

Illegal miners operate in Zamfara, Osun, and other states without government oversight. They smuggle gold abroad without paying taxes or royalties. This denies government needed revenue.

Illegal oil bunkering in the Niger Delta costs Nigeria billions of naira yearly. Thieves tap pipelines, steal crude oil, and sell it to foreign ships. The NNPC loses huge amounts of oil to theft every month.

6. Lack of Processing Facilities

Nigeria exports crude minerals and imports finished products. The country exports crude oil but imports refined petrol and diesel from Europe. This is wasteful and expensive.

Tin, gold, and iron ore are exported as raw materials. If Nigeria built processing factories, more value would remain in the country and create additional jobs.

Sustainable Management of Mineral Resources

1. Diversification

Government should invest in solid minerals like gold, coal, and limestone. The Ministry of Mines and Steel Development started licensing legal miners to formalize the sector. This can reduce dependence on petroleum.

2. Environmental Protection

Oil companies must clean up spills promptly. NESREA should enforce penalties for gas flaring and pollution. Mining companies must reclaim mined land by refilling pits and planting trees.

3. Local Content Development

The Nigerian Content Development Act requires oil companies to hire Nigerian workers and use local companies. This transfers technology and skills to Nigerians.

4. Processing and Refining

Building refineries to process crude oil locally will create jobs and save foreign exchange. The Dangote Refinery in Lagos (650,000 barrels per day) will reduce petrol importation when fully operational.

5. Community Participation

Mining companies should involve local communities in decision-making. Sharing profits with host communities reduces conflicts and ensures sustainable development.

Common WAEC Exam Mistakes

• Confusing mineral types: Students write “gold is non-metallic” or “limestone is metallic” – always remember metallic minerals contain metals, non-metallic do not
• Wrong locations: Stating “crude oil is found in Kano” instead of Niger Delta states – learn key mineral locations
• Vague answers: Writing “minerals help the economy” without explaining how – specify revenue, employment, or industrial use
• Listing without explanation: WAEC wants explanations, not lists – “Minerals provide employment” is incomplete; add “by creating jobs in oil companies, mines, and processing factories”
• Ignoring problems: When asked to discuss mineral exploitation, remember to mention negative impacts like pollution, not just benefits

Practice Questions

Multiple Choice Questions

1. Which state is the leading producer of crude oil in Nigeria?
a) Kano
b) Lagos
c) Rivers ✓
d) Plateau

2. Limestone is primarily used for producing:
a) Steel
b) Cement ✓
c) Jewelry
d) Electricity

3. The Ajaokuta Steel Company was built to process:
a) Gold
b) Tin
c) Iron ore ✓
d) Coal

4. Which mineral resource caused lead poisoning in Zamfara State?
a) Iron ore
b) Gold ✓
c) Limestone
d) Coal

Essay Questions

1. Explain FIVE economic benefits of mineral resources to Nigeria. (10 marks)

Examiner’s Tip: Each benefit needs clear explanation with examples. For instance: “Revenue generation: Petroleum provides over 80% of government income. This money funds infrastructure projects like the Second Niger Bridge and pays salaries of civil servants across all 36 states and the FCT.”

2. Describe FOUR problems associated with mineral exploitation in Nigeria. (8 marks)

Examiner’s Tip: Don’t just name problems – describe what happens. “Environmental degradation: Oil spills pollute farmlands and rivers in the Niger Delta, destroying fish populations and making land unsuitable for farming. Communities in Ogoni and Bayelsa suffer health problems from contaminated water.”

3. Distinguish between metallic and non-metallic minerals. Give THREE examples of each found in Nigeria. (9 marks)

Examiner’s Tip: Start with clear definitions. Metallic minerals contain metal elements (iron, gold, tin) while non-metallic minerals do not (limestone, coal, salt). Then explain characteristics and provide specific Nigerian locations for examples.

4. Suggest FOUR ways of managing Nigeria’s mineral resources sustainably. (8 marks)

Examiner’s Tip: Each suggestion should explain the method and expected outcome. “Economic diversification: Government should invest in solid minerals like gold and limestone to reduce dependence on petroleum. This protects the economy when global oil prices fall, as happened during the 2016 recession.”

Memory Aids

Three Main Types (MNE):

• Metallic minerals (iron, tin, gold – contain metals)
• Non-metallic minerals (limestone, salt, coal – no metals)
• Energy minerals (petroleum, gas, coal – produce power)

Major Oil States (RBDA):

• Rivers (largest producer)
• Bayelsa (major oil fields)
• Delta (oil and gas)
• Akwa Ibom (offshore drilling)

Cement Locations (NEON):

• Nkalagu (Ebonyi)
• Ewekoro (Ogun)
• Obajana (Kogi – Dangote)
• North states (Ashaka-Gombe, Sokoto)

Key Problems (CODE):

• Corruption and resource curse
• Over-dependence on oil
• Degradation of environment
• Exportation of raw materials (not processed)

Related Topics

• Environmental Problems in Nigeria
• Atmospheric Resources
• Industries in Nigeria
• International Trade and Balance of Payments
• Economic Development and Diversification