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Contributions of Solid Mineral Sector to Nigeria Economic Growth

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Description

– Contributions of Solid Mineral Sector to Nigeria Economic Growth –

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Abstract

Solid minerals are important to the economic growth of many countries. Minerals can either be extracted from the surface of earth or deep in earth.

A mineral is a naturally occurring substance that is solid and inorganic, representable by a chemical formula, usually a biogenic and has an ordered atomic structure.

The study addressed the contributions of Solid mineral sector to Nigeria’s economic growth from 1985 to 2014. In the study, variables captured are Capital accumulation, Exchange rate and Solid mineral production rate on Gross domestic product (GDP).

On the application of statistical techniques employed, the following information surfaced; Solid minerals do not contribute significantly to Nigeria’s economic growth during the chosen period of observation.

Solid minerals have no significantly Granger causality relationship with gross domestic product (RGDP) in Nigeria’s economy.

In generally, the R2 stood at 97 percent total variation on Gross domestic product (GDP) was affected by the influence of the increase of Capital accumulation, Exchange rate and Solid mineral production rate, shows good fit. The regression plane is statistically significant.

Introduction

1.1 Background of the Study

An established and well managed solid minerals sub-sector will accelerate economic, social and political growth of Nigeria by provision of gainful employment and rise in national income earnings far exceeding petroleum sector.

In addition, solid minerals will provide local raw materials for industries and bring vital infrastructure and wealth to the rural areas.

Solid minerals have capacity to provide all important launching pad for the development of other sectors of economy as well as give sense and meaning to the oneness of Nigerian state as minerals are located in all states of the federation.

This will douse the agitation for resource control. It is therefore vital that the nation explore this latent potential which has slumbered over years Solid minerals contributed immensely to the economic development of Nigeria in the pre-independence years.

During this period, Nigeria was known for the production of coal as an energy source for electricity, railways and also for export. Tin, columbite, lead and zinc were exported. Nigeria was the largest producer of columbite at one point.

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