NIGERIA Invest in 2012-13 - Newsdesk Media

supply of electricity, though, will ruin
production and, indeed, about half was
lost in 2010 due to vandalism of the
gas supply pipeline.
More promising, perhaps, is iron
ore, which is abundant in Kogi, Kaduna,
Enugu, Nasarawa and Zamfara states.
Until recently, the development of iron
and steel-making has been hampered by
the need to import coking coal. The
recent discovery of suitable coal in
Nigeria should speed up development of
the country’s iron and steel industry.
Rare-earth minerals
Among the most promising minerals
that Nigeria has to offer in the current
climate are niobium and tantalum –
rare-earth minerals that are invaluable
to the modern electronics, nuclear and
aerospace industries. Niobium is also
used as an alloy in steel and superalloys
for the construction industry, as well as
oil and gas pipelines.
The worldwide market for rare-
earth minerals is dominated by China,
which accounts for more than 95 per
cent of global production. With the
Chinese government restricting exports,
manufacturers outside China require
reliable alternative sources.
Nigeria’s mining industry is being
supported by grants from the World Bank,
which are intended to help the country
to develop its mining sector under the
government’s Sustainable Management
of Mineral Resources Project (SMMRP).
These grants have funded training,
infrastructure development and the
equipping of the relevant institutions.
For example, the Nigerian Institute of
Mining and Geosciences in Jos was
established with help from the World
Bank-funded project. It has also
invested in geophysical surveys to
identify promising areas.
The Nigerian government has done
much to open up the country and put
the infrastructure in place to lay the
foundations for sustained growth.
However, much still needs to be done,
believes Igbu. Indeed, he has a long
‘to-do list’ that he feels still needs to be
completed. “Corruption is a cancer in
the Nigerian economy and undermines
every developmental effort. The
government must muster the will to
fight corruption,” he says.
He adds: “It must pass the
Petroleum Industry Bill and commence
true deregulation of the oil industry.
The government has to be more
the economy and finance 71
The government is hoping that the planned
construction of coal-fired power stations
will reignite Nigeria’s coal industry
accountable and responsible – even
more so after the recent protests in
Nigeria and citizens’ growing awareness
and demand for accountability,
prudence and competence in the
governance of the country.”
In addition, he believes that the
government must complete the reform of
the power sector and other free-market
reforms. Security also needs to be
tackled so that economic prosperity can
be spread from south to north.
Reasons for optimism
However, there is much to be positive
about. Under the governorship of
Charles Soludo, the Central Bank of
Nigeria reformed the country’s banking
system, helping to insulate it against the
financial crisis and creating a banking
system that is the envy of Africa.
While it is clear that there is plenty
of work to do, it’s also true that today is
a time of opportunity in Nigeria – with
such opportunities already being
snapped up by the most ambitious
Nigerian and multinational investors. �
Graeme Burton is a business journalist,
specialising in trade finance and is a
former editor of Trade & Forfaiting Review
invest in niGeRia 2012-13