Development of Natural Resources (Gold, Diamonds, Timber, etc
Natural resources are things that are not made by man, but exist in the universe, found under
or on the ground and sea, which are explored and used by a nation. The different types of
natural resources which are:
(i) Coal, Limestone, Lead and Zinc
These are sedimentary rock minerals. Coal was found in Enugu and Benue State (Okabo) It is a major source of fuel used in the olden day railway locomotives and the home, Limestone is an essential raw material for cement manufacturing. It was found in Ogun (Ewekoro and Sagamu), Edo State (Ulcpi
- Cross River State (Calabar, Anambra State
Nkalagu), Benue and Sokoto State. Lead and zinc are used in industries locally, they are
found in Ebonyi State (Abakaliki).
- Iron-Ore, Tin and Columbite
These are basement rock minerals. Iron-ore is the basis for iron and steel complex. It was found in Itakpe (Kogi State) and Aladja (Delta State) and fed to iron and steel complex in Ajaokuta (Kogi State). Tin and Columbite occur naturally together. Tin is used in the canning industry for coating while columbite is used in the manufacturing of heat resis steel used in jet engines. They are found near Jos (Plateau State). The advent of the natural resources had both positive and negative effects.
IU Iithe Contributions of Natural Resources to Nigerian Economy.
(ii’ Technology Trans/r: Foreign technology is introduced through the participation of foreign firms. Extraction of these minerals involves foreign skilled manpower and
entrepreneurship,
( Acquisition of Skills: Exploration and extraction of the natural resources enforce it
on people to acquire various kinds of skills and knowledge.
tam Pirn’ision of Raw Materials: Gasoline, fuel oil, kerosene and cooking gas are used
as fuel for industrial and domestic uses. Limestone is used by cement industries and
iron ore is used by iron and steel industries.
1w Increase in Per capita Income: There has been an increase in salaries and fringe
benefits witnessed and experienced by public servants, with the increase in
production of petroleum and other natural resources.
Generation of Government Revenue: Government derives revenue from the natural
resources through royalties and profit tax. Mining companies paid taxes including
export and import duties on minerals.
i Pivvisiorz f Foreign Exchange Earnings: Exportation of the natural mineral
resources such as coal, limestone and petroleum, etc. provides foreign exchange for
the economy. Petroleum in particular is the largest source of foreign exchange in the
Nigerian economy.
Imn Improvement of Educational Facilities: Revenue from the resources is used to
provide ftmds for better amenities of educational institutions.
il Eslablishment of Industries: Major industrial projects are embarked upon, such as
the iron and steel complex, oil refineries, vehicle assembly plants, cement industries
and breweries.
Tertiary Production: Mineral resources helped to boom the activities of banking,
inxurance and commerce.
tTJ Development of Jnfrastructure. Infrastructural facilities like roads, electricity,
telephone, pipe-borne water etc., were developed due to the presence of mineral
resources in different areas.
of Employment: There is direct and indirect generation of employment at
the prospecting mining, refining, processing and distribution stages of the natural
resources.
ru Growth Opportunities: The discovery areas of the resources like Enugu, Jos, Warn,
etc. have witnessed economic growth due to the presence of the minerals.
m) Production of Geological Maps: The discovery and mining of the resources in the
country has led to the production of certain geological maps.
th’a lrnpmvement of Balance of Payment: The rapid development of the oil industry
particularly in the I 970s has improved Nigerian’s balance of payment.
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