Federal Government Asserts Exclusive Authority Over Mining Regulation
The Federal Government, under the leadership of the Minister of Solid Minerals Development, Dr Oladele Alake, has explicitly asserted that state governments do not possess the authority to regulate mining activities, deeming such actions unconstitutional. The bans on mining operations imposed by states have been deemed illegal and contrary to the constitution. These statements were made by the minister during a pre-event press conference in Abuja preceding the 8th edition of the annual Nigerian Mining Week 2023, scheduled from Monday to Wednesday.
Dr Alake emphasized, “The states’ prohibition of mining activities across the country is an especially sensitive issue, and it’s a matter of constitutionality. I want to reiterate to the entire Nigerian public that no state has the legitimacy to interfere in mining operations. It is a clear-cut fact, supported by the constitution.” He further expounded, stressing that mining is exclusively within the jurisdiction of the Federal Government according to the Constitution, residing on the exclusive legislative list. He highlighted that every item on the exclusive legislative list is under the purview of the Federal Government, emphasizing that there is no room for doubt.
In response to the bans imposed by states, he stated, “If states wish to partake in mining activities, they must adhere to the proper procedures and apply for a license through the designated channels.” He continued, “We are not opposed to any state engaging in mining operations, as long as they navigate the due process. Any state looking to engage in mining can establish its own special purpose vehicle, apply for a mining licence, and proceed through the requisite channels. However, for a state to unilaterally claim authority in regulating mining activities is akin to a state arbitrarily banning oil exploration, and it is fundamentally illegal.”
He further clarified that the Federal Government’s stance is not confrontational; rather, it aims to engage and educate states on the appropriate procedures. Dr Alake has held discussions with the chairman of the Nigeria Governors’ Forum and some state governors to address this issue. The PUNCH reported that several states including Kebbi, Zamfara, Taraba, and Osun recently imposed bans on mining.
Subsequently, the Kebbi State Government has offered an explanation for the ban on illegal mining activities, citing the need to regulate and improve revenue. According to the Chief Press Secretary to the state governor, Ahmed Idris, the temporary ban aims to facilitate accurate data collection and witness an increase in tax revenue. Similarly, Zamfara State Government justified its ban on illegal mining due to security challenges and acknowledged that it lacked the authority to ban mining activities. The state government imposed the ban until the security situation improves.
The Minister of Solid Minerals Development had previously issued an ultimatum to illegal mineral resource extractors, requiring them to join established mining cooperatives or face legal repercussions. In response to the progress made after the ultimatum, the minister announced an extension of the deadline by 30 days, highlighting that the extension was in consideration of practical aspects. The aim of the ultimatum was not punitive; rather, it intended to formalize and legitimate mining operations.
Moreover, the minister cautioned that mining companies failing to comply with community development agreements or requisite regulations risk losing their licenses. The Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed that 82 out of 121 mining companies did not make mandatory social payments to host communities, as outlined in the community development agreements. Additionally, many mining companies did not adhere to environmental standards during their operations.
NEITI recommended the Ministry of Solid Minerals and the Mining Cadastre Office to establish a monitoring framework for compliance with the Mineral and Mining Act 2007 and the Minerals and Mining Regulations, 2011. It also recommended penalties for non-compliance and the effective implementation of such penalties.
