…as reps hold public hearing to repeal, enact Nigeria Mineral Development Company Limited (Establishment) Bill 2023
By Gloria Ikibah
The House of Representatives has held a public hearing on the repeal and enactment of a bill titled, “Nigeria Mineral Development Company Limited (Establishment) Bill 2023 and Minerals and Mining”.
Stakeholders at the hearing proposed for a 10 percent benefit or more for host communities to ensure they get the economic benefits for solid mineralOs extraction in their environment where mining activities take place.
They also advocated for a 10 years renewable mining lease rather than the 25 years captured in section 66 of the Solid Minerals Mining Act 2007.
In his submission, Tobias Lengs of RENEVLYN Development Initiative, lamented the health hazard, the environmental degradation and negligence of miners that pose a danger to host communities.
“We suggest an upward review of the extraction net value revenue that goes to the Community Development Association. 10% is suggested and this should be reviewed periodically.
“The duration of a Mining Lease is twenty-five years , and shall be renewable every twenty-four years as captured in section 66 of the Solid Minerals Act. The 25 years mining lease arrangement is too long and leaves room for operators to get away with impunity at huge cost to the nation. A 10-year mining lease is proposed instead to compel operators to be more responsive and accountable for their actions.”
He further suggested that, “The Community Development Agreement should be flexible to allow the host community determine exactly what they want to use the funds for without tying it to particularise line items. Their needs may change depending on situation hence the agreement details should not be open ended.
“They also complained about the enormous powers by the Minister which they suggested should be unbundled. The representative of Environmental Defenders Network (EDEN) stated this in their submission as well as the Nigerian Geological Survey Agency (NGSA).
“The Bill gives too much powers to the minister. Other ministries relevant to the subject including environment should be involved”, he stated.
On their part, Ms. Lumun Amanda Feese who represented Nigerian Economic Summit Group (NESG) said despite the enactment of modern legislation for the mining industry not much has been achieved economically.
“The mining sector’s impact on the economy remains suboptimal, hovering below 1 percent of GDP by 2015. In 2016, the government approved an industry roadmap aimed to enhance the sector’s role as an economic driver, targeting a 3 percent GDP contribution by 2025.
“To The NESG would like to commend the House Committee for initiating these bills to address the staggering decline of the mining sector. While both bills are noteworthy, the NESG emphasizes an urgent need for the Federal Government to instill the highest standard of good governance in the mining industry.
“This call is similar to the government’s successful approach in the oil and gas sector demonstrated through the Petroleum Industry Act (PIA) of 2021 to implement the Nigerian oil and gas policy, which was approved in 2007. The PIA overhauled the institutional, legal, and regulatory framework for the oil and gas industry, establishing two regulatory agencies and fully commercializes the Nigerian National.”
Speaking earlier, Chairman House Committee on Solid Minerals, Rep. Jonathan Gweffi Gaza noted that the proposed legislation is necessary to transform the mining sector.
“We actually need a heavy rod in the mining sector. We need a vehicle where the government can be a player in the mining sector. A situation where 5% of whatever is extracted will be given to host communities and if this is achieved Nigeria will experience astronomical growth”, he said.