Speaker of the House of Representatives, Tajudeen Abbas has said it is now imperative that the nation address the mining sector through comprehensive legislative reforms that will create a conducive environment for sustainable mining practices….READ FULL ARTICLE...READ THE FULL ARTICLE HERE ▶▶
He stated this Wednesday at a public hearing for the repeal and enactment of a bill titled “Nigeria Mineral Development Company Limited (Establishment) bill 2023 and Minerals and Mining” organised by the House of Representatives Committee on Solid Minerals chaired by Jonathan Gaza (SDP, Nasarawa).
He said the mining industry plays a vital role in our economy, contributing significantly to government revenue, employment generation, and foreign exchange earnings.
According to him, “The sector holds immense potential for driving industrialization, infrastructure development, and overall economic diversification”, noting that despite its immense potential, the sector faces numerous challenges that hinder its growth and impact on national development.
“It is imperative that we address these issues through comprehensive legislative reforms”, he stated.
In a welcome remark, the chairman of the Committee, Jonathan 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.”
Meanwhile, stakeholders at the public hearing canvassed for a 10% benefit or more for host communities to ensure they derive the economic benefits for solid minerals extraction in their environments where the mining activities take place.
They also proposed a 10 year renewable mining lease instead of the 25 years as captured in section 66 of the Solid Minerals Mining Act 2007.
Ms. Lumun Amanda Feese, who represented the 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 per cent 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”.
In his presentation, Mr Tobias Lengs of RENEVLYN Development Initiative decried the health hazard, the environmental degradation and the negligence of the 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 to determine exactly what they want to use the funds for without tying it to particularise line items. Their needs may change depending on the situation hence the agreement details should not be open ended.
The representative of Environmental Defenders Network (EDEN) and that of the Nigerian Geological Survey Agency (NGSA), also make presentations at the public hearing….READ FULL ARTICLE
