The Senate has decided to look into the reasons behind the decrease in revenue from solid minerals in the country. This decision came after a motion was presented and approved during a plenary session. The motion, titled ‘Comprehensively Review the Input and Output Values of the Nigerian Mining Industry in Light of its Central Role to Economic Diversification, Foreign Exchange Earnings and Social Inclusion,’ was sponsored by Senator Osita Ngwu. Senator Ngwu highlighted the lack of coherence in policies and weak institutional alignment as factors contributing to the underperformance of the sector. He also pointed out that quarrying is the dominant activity in the mining sector, but the government does not receive significant royalties from it. The Nigeria Extractive Industries Transparency Initiative (NEITI) Solid Mineral Industry Report for 2020 revealed that the contribution of solid minerals to the country’s GDP has been fluctuating over the past five years, with Nigeria receiving only 0.45% in 2020. In contrast, other African countries such as Botswana, Congo, and South Africa have much higher contributions ranging from 18% to 40%. Senator Victor Umeh expressed concern that individuals involved in the mining sector were prioritizing personal gain over national revenue generation, leading to a suboptimal contribution to the GDP. Senator Ahmad Lawan emphasized the need for the Senate to prioritize solid minerals development and advocate for government interventions to make the sector more viable. Senate President Godswill Akpabio highlighted the neglect of the sector and the presence of illegal foreign activities that result in the loss of precious minerals without adequate revenue for the government. The Senate has called for a review of policy administrators, executors, and industry players in the sector, as well as an investigation into illegal mining activities and the complicity of local and foreign players. They have also requested a review of all privatization and commercialization programs related to mining assets and a halt to further privatization until the investigation is concluded. The Senate aims to complete the investigation within three weeks.
