Do Africans Know the Worth of their Minerals?

Precious Minerals. Image generated by a.i

The conversation often surfaces on how foreign powers are exploiting Africa's most valuable natural resources at little or next to nothing. The question thus arises as to whether African nations truly understand the worth of their earth resources. There are complex reasons why Africa's minerals are often under-priced. One fundamental reason is the lack of technology. When foreign companies come to Africa with technologies that Africans do not possess, the bargaining power tips in favour of the companies. An African leader desperate for funds to run his country may succumb to unfavourable deals despite knowing they unfairly favour the foreign company. Sometimes, proceeds are shared in a ratio of 6:3 in favour of the foreign company. Take the case of Orano SA, a French company that mines uranium in the Arlit region of northern Niger. Orano holds a 63.4% stake, while Sopamin, the Nigerien state-owned company, holds a mere 36.6% of Somair Mines. What's even more striking is that the lion's share is held by a company owned by a few individuals.

In some cases, a country's colonial history gives undue advantage to certain companies. France is a typical example of a colonial power that maintains a predatory relationship with its former colonies. Currently, Mali, Burkina Faso, and Niger, all former French colonies, are fighting to correct unfair economic alliances with the European nation. The case of Nigeria is a nation blinded by oil revenues. Before the discovery of oil, Nigeria's economy was largely agro-based, relying on cash crops for revenue. The nation also depended on solid minerals for extra income. Following the discovery of oil, the Nigerian authorities failed to recognize that significant revenue can come from a combination of numerous smaller sources rather than a single giant source. The metallic mineral industry highlights the Nigerian government's contempt for non-oil industries. The authorities have failed to demonstrate a sincere willingness to reform the solid minerals industry for maximum benefit. One of the negative outcomes is the invasion of the industry by illegal miners, many of whom are foreigners who make large haulages daily.

The issue is complicated by the Exclusive Legislative List, under which earth resources fall in Nigerian law. This ensures that the prerogative to regulate activities in the industry remains in the hands of the Federal Government in Abuja. However, since the federal authorities are more concerned about oil revenues, the sector suffers. Despite the creation of an agency like NEITI (Nigerian Extractive Industries Transparency Initiative), solid minerals-producing states still suffer from a lack of funds that would be expected given the scale of mining activities in the states.

In December 2022, the Federal Government announced it had given N625 billion as derivation funds to the nine oil-producing states in Nigeria. This amounts to an average of approximately N70 billion per state per year. On the other hand, only Nasarawa State is fortunate enough to receive around N1 billion per month. In September 2024, Governor Caleb Mutfwang of Plateau State complained that the state only receives about N500 million as annual derivation revenue despite the billions generated from mining activities in the state.

Solid minerals-producing states are embittered by the unfair circumstances in which they find themselves. Some have developed mining policies that take advantage of loopholes in the Nigerian Mining Laws. The aim is to ensure they don't lose everything. These policies allow them to charge companies certain fees for registration, inspection, haulages, etc. When setting the charges, however, they are cautious to ensure that local companies are not discouraged. Total charges per annum in most states may not exceed N700,000 per annum, which is the same amount foreign companies pay. Upon hearing this, an alarmed foreign investor exclaimed, "That's just about three hundred pounds! Don't you value your minerals?" Thus, about £300 is what a Chinese company pays to a solid mineral-producing state to operate for one year, while earning hundreds of millions of pounds.

Nigeria, Ghana and the Music Conflict

Recently, Davido, the Nigerian Afrobeats superstar, rewarded a Ghanaian fan, Ananzo, who was seen miming a song from Davido’s latest album 5ive, with $5000. The incident brought to mind the acumen of music superstars, whether from Nigeria or Ghana.

The gift is a show of intelligence because it plays down the feud between ordinary Ghanaians and Nigerians regarding which of the West African nations is musically superior. While this feud lasts, I have watched closely the opinions of the artists regarding the matter. Despite the fussing and fighting at the bottom, you never hear an artist, be they Burner Boy, Davido or Stoneboy, joining the argument –they stay mature. Instead, one hears them talking good of the nations. Burner Boy once said, “When I want quiet time, I prefer to go to Ghana because they have many such places.” But even Davido's gift of $5000 to Ananzo is just another demonstration of wisdom that should be seen from celebrities.  

At the peak of the international feud, some Ghanaian “influencers” did just the contrary, telling Ghanaian music fans that it amounts to stupidity for any Ghanaian fan to support Nigerian music when Nigerians aren’t supporting their own music. Their counterparts on the Nigerian side responded with a barrage of insults.

While the Nigerian response is condemnable, there is also the need to inform their Ghanaian counterparts on how music success works. At the level of nations, music success works like a relay race. Every country has its turn. At some point, it was the South Africans. At another, it was the Congolese. Now, it is the turn of the Nigerians. A Ghanaian turn will surely come.

I always ask Ghanaians whether their music receives rave reviews in every nation except Nigeria. If Ghanaian music is currently making waves around the world, except in Nigeria, then the Nigerians are truly acting in a way that can be considered malicious. If that is not the case, then those Ghanaians need to have a rethink.

The current Ghanaian President, John Mahama, once talked of how he stayed with his step-mum in Ofa, Nigeria, for a few years while fleeing political persecution from his country and how he has come to consider Nigeria his second home. Just imagine what goes through the mind of the President when he hears common people going for each other’s jugular over issues of superiority.  

While receiving former British Prime Minister Tony Blair at the White House, the American President, George Bush, referred to Britain as the only country that is truly America’s friend. After hearing this, I started searching to see which country is truly Nigeria’s friend. There is none other than Ghana.