Creating youth entrepreneurs in mining business
In spite of environmental challenges, Nigeria is a hotbed for investment. With songs of shift from oil and diversification, untapped solid minerals sector offers huge opportunity for Nigerians including the youth. What is key is understanding of the sector and government promotion. Fortunately, an international conference on mining is scheduled in Nigeria in May, this year to offer every explanation and serve to create PPP for passionate youth and entrepreneurs. Daniel Obi writes
Job creation
Job creation is a major issue for Nigerian economy. Every government in Nigeria battles with unemployment challenge because of its consequent effects. As at December 2017, the unemployed rate stood at 18.8% from 14.2%. The youth who form about 70% of estimated 170 million Nigeria’s population is mostly affected as many of them are in this unemployment basket.
Many reasons account for the rising unemployment. Chiefly among them is fast growing population and inadequate plans to accommodate their needs, lack of flourishing industries to absorb job applicants and lack of government policy to open areas of opportunities especially in untapped mining sector for self-employments.
Private- led sectors
Of recent, Nigeria’s bourgeoning entertainment sector, largely driven by the private sector has offered millions of direct and indirect employment to Nigerians contributing about 2.5% to Nigeria’s $430 billion GDP (2017).
Today, Fintech industry, riding on the back of GSM is growing phenomenally. Many of the firms with some number of employees are providing niche solutions to particular sectors. Aggrey Maposa, the CEO of Kantar Nigeria described the emergence of Fintech industry as the new economy. “Before now we had an economy that is based on crude oil, manufacturing and others, but the new economy is digital”, he said. There are many firms in that space creating entrepreneurs and also providing employment.
Agribusiness appears to be catching youth attention. This is partly informed by the growing population and the need to feed them. In the past, there has been lack of youth interest in agribusiness in spite efforts to stimulate their interest in agriculture as part of efforts to reduce ‘youth unemployment’. It is believed that increased involvement of Nigerian youth in agribusiness will assist to reduce the challenges of the ageing farm population. The present perceived interest of the youth in agribusiness needs to be sustained to increase the present 26% Agriculture sector contribution to GDP.
Mining sector
There appears to be a mental barrier for Nigerian youth engaging in solid mineral mining in Nigeria. Unlike the entertainment industry, agriculture and Fintech, mining business is seen either as exclusive to government, restricted to some people, unintentionally warehoused until crude oil vanishes or seen as very capital intensive business. But PPP could be created and enhanced to make participation easy for small investors.
Nigeria is rich in different solid minerals deposits which if mined are used in different sectors for different developmental purposes. A mineral is a naturally occurring substance that is solid and inorganic.
Reports suggest that there are over 30 different kinds of solid minerals and precious metals (Sapphire, Aquamarine, Topaz etc.) buried in Nigerian soil waiting to be exploited. This include: Clay, Coal, Gypsum, Magnetite, Kaolin, Limestone, Columbite, Casseterite, Fluorite, Wolframite, Gemstones, Barite, Bentonite, Tantalite, Lead, Zinc, Bitumen, Talc, Feldspar, Gold, Iron Ore, Silver, Lithium, Mica, Kyanite, Phosphate, Quartz, Manganese and Glass sand.
Kabiru Arogundade, Programme Director for Diipsolution Africa Mining Exhibition and Award – DAMEA said mining business is huge that can accommodate any player whether small or big, but said understanding the industry is key for any would-be entrepreneur.
Arogundade who is organising African conference and exhibition on mining in May 30 – June 1, this year at Eko Hotels advised young people who are interested in mining that the forthcoming conference and exhibition offers participants opportunity to get the necessary information that would make them understand the mining market better. The business demands going to the field to understand requirements and therefore try to meet those needs.
Delegates across African countries are expected at the conference who will throw more light in to the sector and seal deals.
According to him, the forum was designed to assist start- up and already established entrepreneurs to integrate themselves in the business of mining and understand the risks and benefits of the business. He explained that mining involves exploration, just like conducting feasibility study in other business areas. “Once an investor succeeds in his exploration, it could pay for all other initial investments. As an entrepreneur, taking risks is important but taking good risks is what the conference scheduled for May 30 to June 1 this year is all about.
“We want to make participation in mining business light by bringing young people and other stakeholders from Nigeria and across Africa who can share risks and benefits in the business of mining. The forum will throw up partnerships and collaboration for individuals who are passionate about mining to go into the business.
Arogundade also said that getting licence and registration in the business of mining in Nigeria may look cumbersome and rigorous for individuals who lack understanding of the industry.
He said another area start-ups and youth can come into the industry is through trading of the products. “If you are not a mining engineer and Geologist, you can invest and recruit the right people or you can trade in the products by employing individuals who are accustomed with the field that will identify market for the products”.
Arogundade who is passionate about opportunities in the mining industry also encouraged even undergraduates to prepare their future early enough by picking interest in the mining towards becoming successful businessmen or women.
He revealed that new mining projects are coming into full production this year across some African countries. The projects estimated at $18 billion are nine copper mines, four gold mines, four diamond mines, three coal mines, three platinum mines, two uranium mines, iron ore, nickel, zinc and potash mines each. Out of the investments, South Africa is taking 29%, DRC 23%, Mauritania, Namibia and Zimbabwe 8% each while Zambia takes 7%.
Mining and quarrying currently account for about 20 per cent of Africa’s economic activity and 10 per cent of the continent’s total export earnings, Arogundade said
Tunde Oduwole, managing director Tunde Oduwole and Associates who has been in business for more than 40 years said the conference on mining is an eye opener for Nigeria. He regretted that unfortunately, of all African countries, Nigeria has been behind in mining because there is no direction.
He cited countries like Tanzania, South Africa and Kenya as having thriving mining industry while Nigeria has relied heavily on crude oil for revenue.
He said Nigeria has abandoned mining while in the world today mining is a good business. He also regretted that government has not taken appreciative step to develop and encourage solid mineral mining for the private sector.
Oduwole advised government to develop and promote strong policy for mining to allow private sector and individuals participate in the business either as partnerships or go-alone business stating that UN has a grant for mining for individual businesses which he said Nigerians have not taken advantage of.
Objective of the mining conference
Diipsolution Africa Mining Exhibition Award, with expected Federal Ministry of Mines and Lagos State government strong participation is a mining impact and development summit aimed at exploring young talents and professionals for ingenuous and competitive mining solutions to strengthen the economy of Africa.
This event organized and promoted by Timidade Mineral and Mining Investment Limited is primarily focused on Africa mining industry but covers interests in other continents across the globe.
The event will provide a platform for professionals, operators, investors, governments, agencies, trainers and trainees, in the sector to converge, exchange ideas, initiate/seal deals, and win mandates. It will also be a platform for recognition of ingenuities, innovations, investments and bold strides players have made in this rich sector of national and continental economy.
According to the organisers, the conference will also strengthen the participation of young talents and professionals in the development of the sector. The event is open for all organizations who want to promote their brands to their old and new audience and or show their genuine commitment to the growth and development of the mining sector; these include: Government Agencies, Mining Bodies/Companies, Financial/Investment Companies, Manufacturing Companies, Product and Service Companies
With the song of diversification on the lips of Nigerians, mining offers another opportunity for Nigeria. As Lagos State Governor, Akinwunmi Ambode said recently, Nigeria needs to create at least four million jobs annually to meet its growth ambitions and achieve full economic potential and this cannot happen unless the country opens opportunity in areas such as mining and jettisons policies that stifle development.
Nigeria can begin today to seriously develop and promote the mining sector by encouraging youth participation to offer job opportunities, increase GDP and develop the economy.
Daniel Obi