Financial Implications of Mining and Quarrying Sub-Sector’s Contribution to Nigeria Economy
Abstract
The study examined the contribution of the mining and quarrying sub-sector to the Nigerian economy. Background: Nigeria is a country with abundant natural and human resources. The country has substantial deposit of some natural resources which are mined for export and local consumption. The contribution of this sector (with such huge potentials) to the gross domestic product (GDP) of the country remains surprisingly low. It is worrisome that the sector is under- performing and plagued with issues ranging from inadequate infrastructure to illegal artesian mining and community challenges. Aims: The specific objectives of this study were to ascertain the effect of: crude petroleum & natural gas; coal mining; metal ores and quarrying & other minerals on GDP of Nigeria. Methods: The ex-post factor research design was adopted while data for the period was obtained from CBN bulletin 2022. The descriptive and multiple regression analysis were done and data tested at 5% level of significance. The theoretical underpinning of the study is endogenous growth theory. Results: It was found that crude petroleum & natural gas and metal ores had significant effect on GDP, while coal mining and Quarrying & other minerals had non-significant effect on GDP. Also, crude petroleum & natural gas, coal mining and metal ores had positive effect on GDP, while quarrying and other minerals had negative effect on GDP. The prob(F-statistic) value is 0.000000 and adjusted R2 value is 0.967000. Conclusion: The mining and quarrying sub-sector is therefore found to be contributing but minimally to the Nigerian economy.
