Taking a ‘peek’ into the history of Nigeria, one can be overcome with acute nostalgia for a country which had been largely sustained by agricultural and solid mineral extraction prior to the oil boom. This whitepaper highlights the current state of Nigeria's minerals, clean alternatives and Nigeria's opportunities.

1. Author: Bekeme Masade
Title: Founder/CEO, CSR-in-Action
CSR-IN-ACTION REPORT

2. CONTENT
This whitepaper talks about:
• the current status of Nigeria’s minerals
• clean alternatives
• Nigeria’s opportunities
O

3. Taking a ‘peek’ into the history of Nigeria, one can
be overcome with acute nostalgia for a country
which had been largely sustained by agricultural
and solid mineral extraction prior to the oil boom.
Though richly bestowed with a minimum of 44
different types of mineral resources, predominantly
untapped, Nigeria is yet to gain value from many of
its mineral resources which have been identified in
more than 500 locations.
While the country depends on oil as a major
source of revenue, the current global shift from
crude oil to renewable and other forms of clean
energy has triggered the fall of oil price, with
attention shifting to the mining sector as a sector
with enormous potential for clean energy – whilst
throwing up the challenges of utilising certain
minerals, such as coal for energy, as a direct result
of it been a top source of carbon dioxide (CO2)
emissions.
Certain minerals have inadvertently positioned
some developing countries on a national path for
sustainable development. For instance, the
Democratic Republic of Congo has experienced
100% annual increase in revenue generated from
cobalt - a mineral resource which is largely
demanded for the production of lithium-ion
batteries used in electric cars today.
The Federal Government, through the Ministry of
Mines and Steel Development, had early in 2015
identified ‘Seven Strategic Minerals’ – coal,
bitumen, limestone, iron ore, barites, gold and lead
– for priority development; in a drive to diversify the
flailing oil-dependent Nigerian economy. Attendant
to that focus to increase the GDP contribution of
mining from 0.33% to 7%, there is urgent need to
mobilise resources to bridge the infrastructural
and knowledge gaps in the country, in order to
find alternative clean energy sources for
economic diversification through the minerals
and other renewable sources which the country
has in abundance.
This is especially more urgent now that the
revenue generated from liquid gold continues to
decline due to the global shift to cleaner energy
sources.
3 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
Introduction

4. 4 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
The Current Status of Nigeria Minerals
Neglected, due to the singular focus on crude oil, the mining sector is
today in dire need of revamping. The sector is marginally regulated and
over 90 per cent of mining activities in the country are within the cadre of
Artisanal and Small-Scale Mining (ASM), out of which 75 percent is carried
out illegally and to which there is minimal application of technology.
Limestone is the major source of income from the industry, and it allegedly
forms about 80% of indigenous entrepreneur, Aliko Dangote’s hugely
successful conglomerate, the Dangote Group; with other major players
including Lafarge Africa Plc – part of an international conglomerate - and
BUA Group.
The national reserves of the Seven Strategic Minerals are estimated at 3
billion tonnes of coal, 42 billion tonnes of bitumen (also known as asphalt),
limestone (undisclosed), 3 billion tonnes of iron ore, 7.5 million tonnes of
barite, 5 million tonnes of lead zinc and gold in small scale.
Analysis and projections by experts indicate that Nigeria has the capacity
to generate at least N5 trillion yearly from mining and export of its vast
solid minerals deposits. Ironically, while the nation earns over 80 percent
of her revenue from the petroleum industry, the mining sector’s growth and
contributions to GDP have remained less than ideal with only about N400
billion (or about 0.33%) contribution to the GDP in 2015.

5. 5 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
Clean Alternatives
Research on available innovations for the use of mineral resources in achieving clean
energy reveals that cobalt and natural gas are some identified resources available to
trigger a low-carbon future. Unfortunately, unlike the Democratic Republic of Congo
which supplies 60% of the world’s cobalt, Nigeria is not endowed with cobalt which is
today a critical element in lithium-ion batteries used in electric cars. Amongst Nigeria
minerals, however, it was found that coal and bitumen can be refined into high-quality oil
called ‘synthetic crude’. But, the synthetic crude is not a source of clean energy to
substitute fossil fuel.
All hope is not lost. More opportunities lie on natural gas deposits in Nigeria, which is
currently used by Russia as an alternative to crude oil energy. Natural gas is billed by
its supporters, including former President Barack Obama, as clean fuel that could
play a big role in a low-carbon future by edging out, for example, coal as an
electricity source and diesel as truck fuel. Natural gas emits 50 percent less carbon
dioxide than coal and crude oil when you burn it, and can be used in heating and
cooking, electricity generation, transportation fuel, and other industrial uses.
Natural gas is primarily methane - a product of decomposition of organic matter and of
the carbonisation of coal. The natural gas produced as a byproduct of crude oil is
classified as associated gas, and generally regarded as an undesirable byproduct, which
is either reinjected or flared. To reduce carbon emission, some countries have increased
their use of “non-associated” natural gas – a form of natural gas that is produced from a
predominantly natural gas pool and is not associated with crude oil or bitumen. For
example, in 2009, 89% of the United State’s wellhead production of natural gas was non-
associated.
Cobalt
Coal
Limestone

6. Nigeria’s Opportunity
The International Energy Agency (IEA) has stated that the growth of natural gas
demand is relatively strong in the industry as the region’s economies grow and
diversify, as well as in the power sector, where there are opportunities to
substitute gas for oil.
According to ExxonMobil’s global view of energy demand and supply report,
“as global economies grow…the energy mix will continue to diversify.
Nuclear and renewables will grow strongly with natural gas growing the
most”. A new analysis and forecast to 2022 by IEA also indicates that gas
production will grow faster than oil and coal over the next five years due to low
prices, ample supply, and its role in reducing air pollution and other emissions.
The forecast indicates that gas demand is expected to grow at 1.6 percent
yearly, a slight upward revision from last year’s forecast of 1.5 percent.
According to IEA, this means that yearly gas consumption will almost reach
4,000 billion cubic metres (bcm) by 2022, from around 3,630 bcm in 2016.
Diversification of power sources from coal firing is today leading to an increase
in demand for natural gas-fired power generation, especially among the
emerging countries. This implies that, as a developing nation with enormous
need for stable power supply, strong investment into natural gas power is also
vital to leapfrogging Nigeria’s economy to industrialised heights.
6 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
..Gas production will
grow faster than oil
and coal over the next
five years due to low
prices, ample supply,
and its role in reducing
air pollution and other
emissions.
“
“

7. 7 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
A Resolution
What the country needs urgently is investment in
research and innovation that would enhance the
exploration and beneficiation of mineral resources, the
production of natural gas and the harnessing of
renewable energy, as it is non-progressive to wait for
other countries to develop such technologies. With
such determination, Nigeria can leverage on its
enormous gas resource – expanding on its Nigerian
Liquefied Natural Gas (NLNG) project - and position
itself as a global hub for natural gas. This is a move that
can be replicated in a mining sector with a circular
chain of dependencies; one which incentivizes
exploration, local manufacturing and utilization of
technologies, beneficiation and internal consumption as
well as exportation of resources, all done using
sustainability strategies.

8. Resources:
8 | Nigeria’s 7 Strategic Minerals: Our Alternative to Clean Energy?
1. Associated and non-associated gas. PetroWiki
http://petrowiki.org/Associated_and_nonassociated
_gas
2. Can Natural Gas Be a Bridge to Clean Energy?
Christina Nunez, National Geographic MARCH 18,
2014 http://environment.nationalgeographic.com/e
nvironment/energy/great-energy-challenge/big-
energy-question/can-natural-gas-be-a-bridge-to-
clean-energy/
3. Clean electric cars are built on pollution in
Congo. David Pilling, The Financial Times, JULY
26, 2017 https://goo.gl/LbE1ij
4. Frequently Asked Questions About LNG.
California energy Commission,
http://www.energy.ca.gov/lng/faq.html
5. Fossil Fuels: Natural Gas.
ESA21, http://esa21.kennesaw.edu/activities/natur
algas/naturalgas.pdf
6. In British Columbia, Mulling the Role of Natural
Gas in a Sustainable Energy Future. Marianne
Lavelle, National Geographic, March 31,
2014. http://energyblog.nationalgeographic.com/20
14/03/31/in-british-columbia-mulling-the-role-of-
natural-gas-in-a-sustainable-energy-future/
7. Gas production to grow faster than oil, coal by
2022. Guardian Newspapers, Roseline Okere, 16
August 2017, https://guardian.ng/energy/gas-
production-to-grow-faster-than-oil-coal-by-2022/
8. Is Natural Gas ‘Clean’? Mark Bittman, The New
York Times, September 24, 2013.
https://opinionator.blogs.nytimes.com/2013/09/24/i
s-natural-gas-clean/
9. Is Natural Gas Good, or Just Less Bad? Beth
Gardiner, The New York Times, Feb. 22, 2011,
http://www.nytimes.com/2011/02/21/business/ener
gy-environment/21iht-renogas21.html
10. Mining, a Priority Sector to FG – Osinbajo.
Ministry of Mines and Steel Development, June.
http://www.minesandsteel.gov.ng/2017/06/13/minin
g-a-priority-sector-to-fg-osinbajo/

9. About
CSR-in-Action is a conglomerate of 3 sustainability driven
businesses; Consulting, Training and Advocacy. Our mission is to
redefine the sustainability terrain in Africa, through collaborative
strategies with stakeholders aimed at attaining higher levels of
corporate governance, workplace and sustainable philanthropy.
We have a clear vision to propel collective transformative action in
Africa by promoting responsibility amongst all entities in their day-to-
day individual or business activities.
Contact:
54, Udeco Medical Road, Chevron Drive, Lekki Phase1,
Lagos State.
(080) 768-848-71
info@csr-in-action.org
www.csr-in-action.org
August, 2017