Lessons from Zambia: How Nigeria can manage its solid minerals for sustainable development

From gold to limestone, tin, and iron ore, Nigeria is richly endowed with resources that can transform its economic fortunes. However, the critical question remains: how can Nigeria manage its solid minerals for long-term, sustainable growth?

Zambia’s experience in copper mining offers a valuable case study. From my visits to the southern African nation, it is evident that it has relied heavily on copper for decades, and while the industry has brought significant benefits, it has also exposed the country to a host of economic vulnerabilities and social challenges. Nigeria would do well to examine both Zambia’s achievements and its shortcomings to develop a more balanced, inclusive, and sustainable strategy for its own mineral wealth.

From economic records, copper is to Zambia what oil is to Nigeria. The metal forms the bedrock of Zambia’s economy, accounting for an estimated 70% to 80% of export earnings. In 2022 alone, Zambia earned $6.6 billion from copper exports, making it the world’s top exporter of raw copper. These earnings are critical for financing imports, paying off foreign debt, and supporting national development efforts.

Beyond foreign exchange, the copper mining industry provides a substantial number of jobs and contributes significantly to Zambia’s GDP. It is also a major source of government revenue, through corporate taxes, mineral royalties, and other fiscal instruments. These revenues help finance public services, infrastructure, and social programmes.

But this success story comes with caveats. Zambia’s deep dependence on copper has exposed it to the wild swings of global commodity prices. When copper prices drop, so does Zambia’s economic stability. Revenues shrink, foreign exchange becomes scarce, and budget deficits widen. Sounds familiar? This boom-and-bust cycle has long hindered consistent economic planning and poverty reduction.

Despite the billions earned from copper, a large portion of Zambia’s population, like in Nigeria, continues to live in poverty. Inequality remains stubbornly high, and many communities affected by mining activities see little benefit from the sector. Meanwhile, environmental degradation, pollution, and displacement caused by mining operations have become points of contention between companies, communities, and the government.

Zambia’s experience also underscores the importance of governance and transparency. Issues such as tax avoidance by multinational mining companies, weak regulatory oversight, and limited capacity to monitor environmental standards have plagued the industry. While there have been efforts to reform mining laws and improve revenue collection, implementation remains inconsistent.

Nigeria’s solid minerals sector is still in its infancy compared to Zambia’s copper industry, which presents a golden opportunity to get things right from the start. I am particularly excited by the reforms of the current Minister of Solid Minerals Development, Dr Dele Alake. Going forward, here are some of the key lessons Nigeria can draw from Zambia:

Zambia’s overdependence on copper should serve as a warning. Nigeria must avoid replicating this mistake by ensuring that its solid minerals sector is part of a broader strategy for economic diversification. Mining should complement, not replace, efforts to boost agriculture, manufacturing, and services. A multi-sectoral approach will help reduce vulnerability to commodity price shocks and foster more stable, inclusive growth.

Nigeria must prioritize strong institutions, clear regulations, and transparency in its solid minerals sector. This includes ensuring that mining licenses are granted through transparent processes, revenues are properly tracked and used, and environmental regulations are strictly enforced. The establishment of an independent regulatory body and public disclosure of mining revenues—possibly through initiatives like the Extractive Industries Transparency Initiative (EITI)—can build investor confidence and public trust.

A major lesson from Zambia is the need to ensure that mining benefits reach local populations. Nigeria should implement policies that promote local content, including job creation, skills training, and infrastructure development in host communities. Revenue-sharing arrangements, community development agreements, and participatory decision-making processes can help prevent conflicts and ensure that mining contributes to local well-being.

Zambia remains largely an exporter of raw copper, missing out on the higher value that comes from refining and manufacturing. Nigeria should strive to avoid this pitfall by investing in value-added activities such as mineral processing, smelting, and manufacturing. This approach not only creates more jobs but also helps build industrial capacity and retain more value within the country.

Mining inevitably impacts the environment, but these impacts can be minimised with proper planning, regulation, and oversight. Nigeria should adopt strict environmental standards, require environmental impact assessments, and enforce restoration obligations for mining companies. Integrating sustainability from the outset can prevent long-term damage and protect the livelihoods of affected communities.

To unlock the full potential of its solid minerals sector, Nigeria must pursue a well-coordinated, forward-looking strategy that integrates lessons from countries like Zambia. This includes:

Nigeria stands at a crossroads. It can either fall into the same trap of commodity dependence -replacing oil with metals or forge a new path where solid minerals become part of a diversified, resilient, and inclusive economy.

Nigeria stands at a crossroads. It can either fall into the same trap of commodity dependence -replacing oil with metals or forge a new path where solid minerals become part of a diversified, resilient, and inclusive economy.

Zambia’s experience with copper is a valuable case study of both the potential and the pitfalls of relying on natural resources. For Nigeria, the message is clear: managing solid minerals wisely requires more than just extracting and exporting. It demands strategic planning, private sector-led initiatives, inclusive policies, strong governance, and a commitment to sustainability. By learning from Zambia’s journey, Nigeria can ensure that its mineral wealth becomes a blessing, not a burden, for future generations.

This article is written by Olajide Abiola, an entrepreneur based in Abuja.