03/20/2026
THE OPEN IMBALANCE IN NIGERIA THAT MANY OVERLOOK
Nigeria operates a strange and often misunderstood resource structure, one that quietly exposes a deep imbalance in the way wealth is controlled and distributed across the country.
In practice, many solid minerals located in the North are largely handled through state influence, informal mining networks, and arrangements that allow enormous proceeds to remain within local power structures. In many cases, the revenues benefit governors, political elites, and their cronies more than the nation itself.
Meanwhile, crude oil, which is predominantly found in the South, South South, and parts of the South East and South West, is tightly controlled by the Federal Government. By law, petroleum resources fall under federal ownership through the Petroleum Act and subsequent regulatory frameworks. The revenue generated from these resources flows directly into the Federation Account and is then shared among all states of the federation.
This means the wealth extracted from lands in the South becomes the central financial lifeline of the entire country.
The irony becomes clearer when one considers the numbers. For decades, oil has provided about 70 to 80 percent of Nigeria’s government revenue and roughly 85 to 90 percent of foreign exchange earnings. Yet the communities where this wealth is extracted remain among the poorest, most polluted, and most neglected regions in the country.
On the other hand, Nigeria is blessed with enormous solid mineral deposits, many of which are concentrated in Northern states. Gold in Zamfara, Kebbi and Kaduna, lithium in Nasarawa and Kaduna, tin and columbite in Plateau, limestone in Sokoto and Kogi, gypsum, kaolin, barite, iron ore, and several other valuable minerals lie across the region.
Yet large scale national structures for harnessing these minerals remain weak. Much of the mining activity continues through artisanal and informal channels, creating enormous private fortunes while contributing very little to national development.
In fact, reports from regulatory agencies and security institutions have repeatedly warned that illegal mining alone drains billions of dollars from Nigeria annually. Gold from Northern Nigeria has reportedly found its way into international markets through unofficial channels, enriching a small circle of operators while the country loses critical revenue.
Then there is the question of oil ownership.
Oil rigs and oil blocks operating in Southern Nigeria are largely controlled by private companies and politically connected individuals through licenses and concessions issued by the Federal Government. Many of the beneficiaries of these allocations have little or no ancestral connection to the communities where the resources are extracted.
The structure appears carefully designed to concentrate wealth in the hands of a few, leaving host communities to grapple with environmental damage, economic neglect, and deepening poverty.
One must therefore ask a simple but necessary question.
Why should the ownership of oil blocks be structured around individuals and political patronage?
Why can ownership not be structured along state or regional lines, allowing host communities and federating units to benefit directly from the resources extracted from their lands?
Why should the lands that bear the environmental burden of extraction not also enjoy a fairer share of the wealth generated from them?
These are difficult questions, yet they are questions Nigeria must confront if it truly desires fairness, unity, and sustainable national development.
For decades, silence, manipulation, and carefully constructed political arrangements have kept Nigeria crawling where it should be walking.
A nation blessed with enormous resources should not be trapped in endless poverty and structural injustice.
The imbalance is visible.
The facts are known.
The question remains, for how long will this continue?
Nze Ukwu Ugezu J. Ugezu Writes
Ayaka Igbo Gburugburu
