The Urgent Need to Amend the Nigeria Mining Act

Key stakeholders in the advocacy space, including the Civil Society Legislative Advocacy Centre (CISLAC), are advocating for the immediate amendment of the Nigeria Mining Act 2007 as a means to combat banditry and other forms of insecurity in the country. This call was made during a learning event on Beneficial Ownership Transparency Implementation and the new National Action Plan for the implementation of the Open Government Partnership (OGP) Initiative in Nigeria.

The forum, which took place in Abuja, was organized by CISLAC on behalf of the Accountability in Extractive Sector (AES) cluster within the framework of the Strengthening Civic Advocacy and Local Engagement (SCALE) project. This project is being implemented by Palladium and supported by the United States Agency for International Development (USAID).

Mr Munachi Ugochukwu, the project’s facilitator representing CISLAC, emphasized the importance of amending the mining act to address the challenges posed by banditry in Zamfara State and other parts of the country. He highlighted the potential of amending the act to enhance transparency and accountability.

One of the proposed measures to address these challenges is the establishment of a Beneficial Ownership (BO) register, which would enable the identification of the true owners of companies, particularly those involved in illicit financial flows. This register would contribute to combating money laundering and tax evasion, ultimately leading to substantial savings for the country.

The implementation of BO transparency principles in Nigeria would not only help in curtailing illicit financial flows but also promote transparency and accountability in the extractive sector. By making the Beneficial Ownership Register accessible to the public through the Corporate Affairs Commission (CAC), information on Persons with Significant Control (PSC) of a company can be scrutinized, thereby fostering transparency and accountability.

Dr Harry Udoh, the Executive Director of the Support and Training Entrepreneurship Programme (STEP), further emphasized the significance of a BO register in the mining sector. He stressed that such an initiative would play a pivotal role in preventing the use of shelling companies and other corporate vehicles to siphon money out of the system.

The extractive sector has historically grappled with corruption, largely due to a lack of transparency and accountability in governance. Despite efforts to address corruption in the sector, the results have not met the desired goals. As a result, urgent reforms are needed to combat corruption effectively.

In conclusion, the amendment of the Nigeria Mining Act and the implementation of a Beneficial Ownership Register are crucial steps in addressing banditry, insecurity, and corruption in the extractive sector. These measures will not only enhance transparency and accountability but will also contribute to the overall development of the country. It is imperative for the government and relevant stakeholders to take immediate action to make these reforms a reality.