Federal Government Set to Overhaul Mining Licenses and Establish Mines Police

In an effort to address revenue leakages and eradicate illegal practices within the Solid Minerals sector, the Federal Government of Nigeria is preparing to undertake a comprehensive review of all mining licenses. This initiative forms part of a wider strategy to crackdown on illegal miners and streamline operations within the industry.

Revealed during a recent press conference in Abuja, the Minister of Solid Minerals, Mr Dele Alake, presented a seven-point agenda designed to revolutionize the sector. The agenda includes proposals for the establishment of the Nigerian Solid Minerals Corporation, collaborative ventures with mining multinationals, and the creation of a Mines Police to enhance security for registered operators.

Additionally, the government aims to integrate the Nigerian Solid Minerals Corporation, with subsidiary entities operating within the key priority areas of Gold, Coal, Limestone, Bitumen, Lead, Iron-ore, and Baryte. This initiative seeks to foster investment partnerships with international firms to drive substantial Foreign Direct Investment into the mining sector.

The urgency of revitalizing the solid minerals sector was emphasized by the Minister, who highlighted the need for Nigeria’s GDP to diversify beyond its current dependence on oil. Alake cited historical data from the 1960s and 1980s, when the solid minerals sector made a substantial contribution to the nation’s economy, compared to its modest 2 percent contribution in the previous year. He also drew attention to the wealth of untapped mineral resources in the country, questioning why their potential has not been harnessed for the nation’s benefit.

A critical aspect of the government’s strategy involves the integration and formalization of artisanal miners. Notwithstanding these efforts, illegal miners continue to operate. The Ministry has granted a 30-day grace period for illegal miners to join cooperatives or seek alternative vocational pursuits. Non-compliance will result in legal repercussions, including the enforcement of Mine Police to apprehend offenders.

Furthermore, the government is proactively addressing issues related to community relations within mining licenses. The aim is to ensure peaceful and orderly interaction with communities affected by mining operations. Alake stressed the need for responsible appropriation of communal resources during the execution of mining licenses, with the establishment of community committees to address concerns relating to compensation, employment, and sustainable development programs.

The Ministry is also engaged in efforts to establish a Fund to facilitate mining investments at mutually agreed interest rates, with the goal of dispelling the reluctance of the Nigerian financial system to support mineral prospecting and mining endeavors.

These comprehensive initiatives demonstrate the government’s dedication to overhauling the mining sector and increasing its contribution to the nation’s economy. The forthcoming implementation of Mines Police and the review of mining licenses are anticipated to streamline operations, bolster investor confidence, and safeguard the industry against illicit practices.