ADVERTISEMENT

ADVERTISEMENT

…as Reps propose 5% total mining revenue for host communities

By Gloria Ikibah

The Governor of Nasarawa State,
Abdullahi Sule has lamented that people from other countries are benefiting more from Nigeria’s solid mineral resources than indigenes who get only peanuts from the sector.

Governor Sule stated this at a public policy dialogue on Nigeria’s minerals and mining legislation, organised by the House of Representatives Committee on Solid Minerals at the National Assembly Complex, Abuja on Monday.

He reiterated that government and other stakeholders must reform the solid mineral sector and come up with policies that benefit Nigerians, if they place priority on the future of the Nation’s economy.

He said: “One community in Nasarawa got some kind of compensation of a very small amount N700 million, they were so excited which was nothing compared to the time when lithium was running roughly about $76,000 per metric ton.

“If we are serious about the future of the economic situation of Nigeria we must reform what we call the solid mineral sector and if we must reform we must come up with policies and reform them where it has to benefit Nigerians if we didn’t do that we will just be joking.”

Chairman, House Committee Solid Minerals, Hon. Jonathan Gaza
said the Nigerian Minerals and Mining Act (Amendment) Bill being considered proposes 5% of the total revenue of all minerals mined to the host communities (hostcom).

He said the bill when passed will allow for establishment of Mines Inspection and Environmental Agency to provide improved deeper oversight of mining activities and bridge gap the between the federal and state governments to empower the Mineral Resources and Environmental Management Committee for effective and joint oversight.

“…The establishment bill for a Solid Minerals Development Company allocates 75% ownership to the private sector and 25% to the federation of Nigeria. Community Development and the Environment are really prioritised in the bill. The Petroleum Industry Act (PIA) sets aside 3% of their annual operational expenditure to host communities.

“In the bill, we have set aside 5% of the revenue of all minerals mined to the host communities, and this is due to informality of the sector. We believe that it can be reviewed and improved through this programme,” he stated.

Declaring the dialogue open, Deputy Speaker of the House, Hon. Benjamin Kalu said the legislation if passed, will represent a turning point for the nation’s mineral wealth, admitting that Nigeria’s vast mineral resources have remained largely untapped, and undeservedly overshadowed by reliance on oil.

Kalu lamented that the challenges of insecurity, inadequate infrastructure, and a lack of skilled labour continue to act as bottlenecks in solid minerals development but they would be addressed by the amendment bill and other mining-related legislation currently under consideration.

“Despite boasting over 40 commercially viable minerals, the mining sector contributes a mere 0.3% to our GDP. This, my friends, is unacceptable. Our duty call today is to turn the tide. There are indications of a renewed vigour in our mining industry, fueled by a collective will to diversify our economy, create jobs, and unlock the immense potential that lies beneath our soil.

“The 2016-2025 mining industry development roadmap, aiming to increase the sector’s GDP contribution to 3% by 2025, is already showing progress. Projects like the Segilola Gold Project in Osun state governed by a private-sector-led lens are injecting millions of dollars into our economy and attracting much-needed investment,” he added.