The Urgency of Establishing a Mines Inspectorate Environmental Agency to Counter Illegal Mining
In a recent development, the chairman of the House Committee on Solid Minerals, Honourable Gaza Gbefwi, has expressed the urgent need for the establishment of a Mines Inspectorate Environmental Agency. This agency would play a crucial role in monitoring miners to ensure better revenue for the country, similar to the function of the Federal Inland Revenue Service (FIRS) in handling taxpayers.
Illegal mining has been identified as a major challenge in the solid minerals sector, with insufficient resources to effectively address this issue. Honourable Gaza Gbefwi highlighted this concern at the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) United Nations Development Programme (UNDP) Research Project policy dialogue in Abuja. He emphasised the potential for Nigeria to significantly advance within the subregion through the exploitation of its abundant solid mineral resources.
One of the key proposals is to increase the number of mining inspectors at the state level, establishing Mines Inspectorate offices in each senatorial district. It is hoped that these offices will eventually evolve into an independent entity known as the Mines Inspectorate Environmental Agency. This new agency would be responsible for ensuring compliance and would operate with independence and flexibility.
The chairman of RMAFC, Mohammed Shehu, also highlighted the alarming disparity in revenue generation between the solid mineral sector and the hydrocarbon sector. He underlined the need to revive the contribution of the solid mineral sector to the Nigerian economy, particularly in the context of diversifying the nation’s economy. To this end, the Commission has conducted comprehensive solid minerals revenue monitoring exercises in recent years to boost revenue generation from the mining sector.
The results of these monitoring exercises revealed that the contribution of the Artisanal and Small Scale Mining subsector to the Federation Account is disproportionately low due to the informal nature of its operations. This underscores the necessity of establishing a dedicated agency to monitor and regulate mining activities, thereby enhancing revenue generation from the solid mineral sector.
In conclusion, the push for the establishment of a Mines Inspectorate Environmental Agency is a significant step towards addressing the challenges of illegal mining and maximising the revenue potential of Nigeria’s solid mineral sector. The effective monitoring of mining activities will not only ensure compliance but also lead to a substantial increase in revenue, ultimately contributing to the overall economic development of the nation.
