Gold mining is completely in the hands of a dozen private operators. Four of these producers also have leases for tin and associated metals mining. Two of the operators, C. Gemara and J. Passman, accounted, in 1954-55, for 62 percent of the production.

The majority of the workings are by tribute labor. The tributers work individually on alluvial deposits and in small teams when engaged on lodes. This form of labor has recently been prohibited in the Ife-Ilesha field, thus leading to a more systematic working in the area.

MISCELLANEOUS MINERALS

Tantalite

This mineral is found in pegmatite veins together with columbite. Production was artificially stimulated during World War II, with the United States taking the entire production. In recent years, the demand has fallen sharply, and output has nearly ceased.

Wolfram

Wolfram occurs in small lodes in the tinbearing veins. Production of wolfram also received a stimulus during World War II, but the demand has subsequently fallen. Larger quantities could probably be produced if necessary but prices are low and there is no inducement to separate the mineral as a byproduct of tinworking. 10

Iron

Two iron ore deposits, one on Agbaja Plateau in the Kabba Province and the other near Enugu, showed considerable promise and were investigated by the Nigerian Geological Survey. The results of this investigation were disappointing and showed that mining of the deposits could not, at present, be considered an economic proposition.

There are no other deposits of high-grade iron ore discovered as yet in Nigeria. There are many deposits of oxidized ores, which are comparatively shallow and of medium to low grade. Processes for producing pig iron from low-grade iron ore have, however, recently been developed in Germany and elsewhere. Coal without the use of coke is used, thus perhaps making this process suitable for Nigeria, since Nigerian coal is of the noncoking variety. Some special attention has been given to the possibility of establishing such an industry in Nigeria though nothing definite has been done to date.

Limestone

Suitable deposits of limestone have been found in the Nkalagu area in the Eastern Region and in Igumale, in the Northern Region some 26 miles to the north of Nkalagu. The deposits near Nkalagu consist of a series of limestone beds suitable for quarrying, alternative with shales, mudstones, and subordinate sandstones. The available tonnage is placed at over 10 million. The deposits at Igumale are said to be equally suitable. The Nkalagu deposits will be utilized by the Nigerian Cement Co., Ltd., which has been formed to undertake the production of cement with a target of 100,000 tons of cement per year.

Kaolin

Kaolin is used in the production of ceramics. At present, the substantial deposits at Osiele near Abeokuta are worked by the local inhabitants without cover of any mining title, and by a gold operator with a mining lease endorsed for kaolin. Practically the entire village is engaged on this work.

Radioactive Minerals

Certain pyrochlore-bearing granites occurring on or near the Jos Plateau are known to contain radioactive elements. They have been investigated by the Nigerian Geological Survey, which drilled 12 holes with total footage of 2,125 feet. Logs of the cores were prepared and a provisional radiometric and petrological examination carried out. The cores were recently sent to the United Kingdom for analysis of columbium and uranium. Not until the results become known can anything definite be said about the possibility of economic exploitation.

Diatomite and Clay

Extensive reserves of diatomite are known in Chad basin in northwest Nigeria. Diatomite can be used as an absorent and as an abrasive, and as a high-temperature insulator. It can also be combined with clay in the manufacture of refractory furnace bricks or roofing tiles, glazes, and pigments.

Clay exists throughout Nigeria suitable for the production of bricks, tiles, and coarse pottery.

PRIVATE INVESTMENT PROSPECTS Nigeria's future world significance as a mineral producer is totally contingent, in the short

10 Buchanan & Pugh, Land and People in Nigeria.

term at least, on the future of tin and columbite. This future is, at present, extremely beclouded by the uncertainty of world demand and certainly cannot be regarded as overly bright. Nigeria is, however, fortunate in possessing substantial deposits of coal, and present development plans of the Nigerian Coal Corporation are aimed at meeting the increasing industrial demand, which is expected to rise. In addition, it has other minerals, such as limestone, silica sands, and clays, which could be further developed in support of local industry.

Indeed, the fact that the tin deposits have been worked for almost half a century make the life expectancy of this industry an important matter for concern. Unless new tin reserves can be economically worked, or other new minerals discovered (the commercial ex

ploitation of oil would, of course, radically change the picture), the future development of mining in Nigeria would appear to be increasingly linked to internal rather than external demand.

Insofar as concerns American private capital investment in existing mining activities, prospects will depend on the initiative and will. ingness of the Nigerian companies to gain American capital participation. Nigeria's full mineral resources have, by no means, been fully explored, and many avenues would appear to be open in Nigeria to interested United States companies for the conduct of technical mineral research in the country. Certainly such investigations would be fully welcomed and facilitated by Nigerian Government officials.

Power, Transport, Communications

POWER

In common with many other underdeveloped countries, Nigeria suffers from an insufficient and high production cost power supply. On the other hand, electric service to consumers has been maintained at rates that appear to compare favorably with those in many countries, perhaps even those in countries more developed than Nigeria. To continue such a rate structure and, at the same time, to expand the supply, present problems of some magnitude for a country the size of Nigeria. With few exceptions there are no large urban centers, the pattern being one of small towns, townships, and villages, all widely dispersed. The great distances involved, the nature of the terrain, and the low potential per capita demand contribute to the problems of establishing transmission networks on an economic basis.

Power in Nigeria is produced mainly from coal from the Enugu deposits or from imported fuel oil. Active oil prospecting in the Eastern and Northern Regions is proceeding and there is promise of eventual oil from these sources, but for the present, the only alternative source for power supply is hydroelectric power, some development of which has already taken place.

Four hydroelectric power stations are established in the Jos Plateau area at Kwall Falls, Kurra Falls, and Jekko Falls, the aggregate installed generating capacity of which, as of 1954, was about 18,000 kilowatts. Power output here is produced by a private company, the Nigerian Electricity Supply Corp., and most of its output is utilized by the tin-mining companies on the Plateau. The Government, which, apart from the authorized private power suppliers on the Plateau and at Sapele,1 is the only generator of electric power in Nigeria, operates 4 small hydroelectric installations in the Southern Cameroons with an installed capacity of 2,070 kilowatts. These, at present, are the only existing hydroelectric installations. Poten

tial hydroelectric power resources exist elsewhere, particularly in the Cameroons highlands and along the Niger River, but their development will require much preliminary study and large capital outlays.

Remarkable expansion has occurred in recent years in both generating capacity and consumption, yet a large part of the country either has no electric power or a restricted supply.

Electricity Corporation of Nigeria

The installation and generation of electricity in Nigeria is in the hands of the Electricity Corporation of Nigeria (ECN), a statutory corporation set up by an ordinance of July 1950. The Corporation consists of a Chairman and 11 members who are appointed by the Minister of Land, Mines, and Power. Five members serve as representatives of the Regions, the Cameroons, and Lagos township, one member represents the interest of labor, and the others represent general interests. Of the present 11 members, 7 are Nigerians.

ECN assumed responsibility in April 1951 for the power establishment previously run direct by the Government, and the following year took over those plants that had been administered by Native Authorities. Responsibility for power operations was transferred from direct Government control to a statutory corporation with a view to developing electricity supply as a commercial proposition which would eventually pay its own way. This prospect, however, is still in the future in view of the present high costs besetting the Corporation.

The history of power in Nigeria dates back to 1898 when a diesel-engine driven plant was set up in Lagos by the Nigerian Government, but substantial development did not get under

1 A small installation is maintained by the African Timber and Plywood (Nigeria), Ltd., for use in its own industry. Surplus power from both this company and the Nigerian Electricity Supply Corp. is sold in bulk to the Government.

way until the interwar period.

Continued development of power was interrupted by Warld War II and during this period plants were greatly overloaded. The war's end found facilities in an extremely deteriorated condition, but expanded demand necessitated the use of existing plants and restricted efforts. at replacement or modernization. A major operating difficulty is still presented by the diversity of installed plant and equipment and the varying ages and conditions of such equipment.

Present scope of activities.-The ECN at present operates 19 separate installations having an installed capacity, as of March 31, 1955, of 43,506 kilowatts and generated over 130 million kilowatt-hours in the fiscal year ended March 31, 1955 (see table 11). ECN also maintains two distribution plants, at Sapele and Jos, where it purchases the surplus power produced by private undertakings. These are the only major exceptions to public ownership and operation of power facilities, and while it is possible for some industries to establish power stations for supply of their own needs, this would require governmental authorization. In general, the policy has been to authorize private power establishments only where it can be demonstrated that adequate services cannot be rendered by ECN through its own facilities.

2

The inadequacy of Nigeria's power facilities has been recognized by the Government and ECN as a key problem for the future economic development of the country. Since its inception, ECN has undertaken an extensive power expansion program and, as of March 31, 1955, had under construction plant expansions which will yield an additional 43,920 kilowatts of installed capacity, more than doubling existing capacity. For the 5 years 1955-60, £7,170,000 is to be expended for power development by ECN, the money being provided by loans from the Federal Government under the latter's economic development program. To this should be added a further sum of £2,265,000 previously allocated to ECN by the Government but not yet received in full.

Power development projects are to be aimed at consolidating and extending existing facilities rather than establishing new stations to service areas not now supplied. This policy had been recommended by the IBRD mission which visited Nigeria in 1953 and it has been accepted by ECN as the only sound policy to be pursued at present from the standpoint of finance.

Since 1951, when ECN took over operations, the generation and consumption of electricity has risen sharply. In 1955-56, 158.9 million kilowatt-hours were generated by ECN compared with 58.9 million kilowatt-hours in 195051, a threefold rise.

Operating problems.-The ECN is beset with

many difficulties in its attempt to provide cheap power where it is needed while remaining solvent. Apart from operational problems are other factors-rising fuel costs and labor shortages. Enugu coal is suitable for power generation, but the pithead price is high and has shown a tendency to rise in cost. Furthermore, transport costs for coal are heavy and have added to ECN's fuel costs.

The labor factor in power supply, however, is probably the most vexing. Qualified engineers and accountants and skilled technicians are scarce, and the cost of the alternative, imported foreign labor, very high. The ECN is attempting to tackle this problem through training programs. Scholarships are given for students to study at the Yaba Technical Institute as junior engineering assistants, and skilled technicians are trained at the Yaba Trade Center. Also, there is the Nigerian College of Arts, Science and Technology which gives engineering degrees. Professional training apprenticeships are given locally and in the United Kingdom.

The Corporation's financial report for 1954-55 shows a net loss in the operation of its under

2 There are other power suppliers but they are of exceedingly minor character, e.g., a generator for the limited needs of a mission hospital.

takings of £299,325. This compares with losses of £274,529 the preceding year and £262,910 in 1952-53. Operating expenses incurred are exclusive of capital expended on new construction and extensions that have been financed through loans. The cost of work completed and put into service during the year 1954-55 amounted to £649,981 and another £1,770,534 was spent on projects that are still under construction. Only four undertakings were operated without a loss. These were at Lagos, Katsina, the Southern Cameroons, and the Plateau (where only distribution facilities exist).

Income and costs at the undertakings vary throughout Nigeria. The differences in costs are due mainly to the variations in the cost of fuel and the efficiencies of the generating plant. The following operating statistics are an example of this diversity:

1 Katsina, however, operated at a profit because of special subsidy payments by the Government.

Source: Electricity Corporation of Nigeria, Annual Report, 1954-55, Lagos, 1956.

Power rates.-On April 26, 1956, power rates were revised upwards by ECN. For a Lagos residence with an area of less than 400 square feet, using 15 kilowatt-hours per month, the revised scale represents a rise from 5.60 pence per kilowatt-hour to 7.00 pence per kilowatthour. For a premise of 1,500 square feet using 100 kilowatt-hours the rise is from 4.10 to 4.80 pence per kilowatt-hour.

For commercial and industrial consumers, the schedule of fixed charges is standardized on a sliding scale, but additional unit charges will vary with the locality. The monthly demand charge, based on the maximum demand during the month, is as follows:

1 In addition, running unit charges are assessed varying with the area served. For Lagos, the Plateau area, Enugu, Port Harcourt, and Cameroons, this amounts to 3 pence for all kilowatt-hour up to the value of the monthly demand charges above, and 1.5 pence per kilowatt-hour in excess of this amount. Consumers having a maximum demand in excess of 50 kv.-a. can be charged at rate fixed by agreements with ECN. * Demand charge per 100 volt-amperes or part thereof. Source: Nigeria Trade Journal, June-September, 1956, Lagos.

Despite these recent rate increases, rough estimates of comparative rates would appear to indicate that power is still supplied to the consumer relatively inexpensively in comparison with many countries where operating conditions are similar. While costs in Nigeria are obviously much higher than in highly developed industrial countries, a comparison of the industrial rates in Lagos and in cities in the United States with a population of more than 50,000, do not reflect too unfavorably on Nigeria. For example, although charges are quoted per kilovolt-ampere in Nigeria and per kilowatt in the United States, assuming a power factor of 70 percent in converting kilovolt-amperes to kilowatts, and estimating a monthly use of 200 hours for both Nigeria and the United States, a demand of 1,000 kilowatts would amount to charges of $0.0375 in Nigeria and $0.0160 in the United States per kilowatt-hour. For a smaller industrial plant of 30 kilowatts, these charges would be $0.0550 and $0.0267 in Nigeria and the United States, respectively.3

Private Undertakings

The most important of the industrial undertakings are the Nigerian Electricity Supply Corp., Ltd. (NESCO) and the African Timber and Plywood (Nigeria), Ltd., Sapele. Power is generated on the Plateau by four hydroelectric stations, which in 1955-56 accounted for almost half as much electricity as the ECN. The power is distributed in bulk at 3.3 kilovolts or 2.2 kilovolts over an area of about 600 square miles to the various mines and to ECN. NESCO is in a very sound financial position, but the conditions under which it operates makes it incomparable to ECN. The availability of hydroelectric sites not far from consumption centers and the bulk delivery of power to a very small number of consumers keep NESCO's generation and distribution costs low.

Future Power Developments

Between 1944-45 and 1954-55, the maximum demand at all stations mounted from 7,400 kilowatts to 29,000 kilowatts. The present rate of growth averages 20 percent per year over all existing undertakings, and estimates indicate this demand will reach 61,000 kilowatts in 1960.

The Electricity Corporation of Nigeria estimated a growth rate exceeding 20 percent per year in the early stages and requested a loan from the Government of £10.8 million for

U. S. figures from U. S. Federal Power Commission, Typical Electric Bills, 1956, for Cities of 50,000 Population and More, U. S. Government Printing Office, Washington 25, D. C. Nigeria figures from Nigerian Trade Journal, June-September 1956, Lagos.