Revitalizing Nigeria’s Mining Sector: Overcoming Challenges and Ensuring Fair Revenue Distribution
The Deputy Speaker of the House of Representatives, Honourable Benjamin Okezie Kalu, has underscored the myriad of obstacles that have been impeding the growth of Nigeria’s mining sector. He has emphasized that issues such as insecurity, inadequate infrastructure, and a shortage of skilled labor have significantly hindered the industry’s potential.
During a Public Policy Dialogue on Nigeria’s Minerals and Mining Legislation in Abuja, Kalu conveyed his concern over the country’s heavy reliance on oil, which has overshadowed the vast mineral resources available in Nigeria. He emphasized that despite having over 40 commercially viable minerals, the mining sector contributes only 0.3% to the country’s GDP, a figure which he deemed unacceptable. To address this, he called for a united effort to overcome these challenges and harness the true potential of the sector.
Kalu referenced the Nigerian Minerals and Mining Act (Amendment) Bill, a proposed legislative change that he co-sponsored with Hon. Jonathan Gbefwi, Chairman of the House of Representatives Committee on Solid Minerals. He believes that the passage of this bill, along with eight other mining-related bills, will mark a significant turning point for Nigeria’s mineral wealth.
The Deputy Speaker also advocated for a private-sector-led approach to the governance of the mining sector. He emphasized the need for a crucial partnership between the public and private sectors to unlock the true potential of Nigeria’s mining industry. Kalu expressed that the public policy dialogue was aimed at creating the necessary conditions for policy adjustments and creativity to optimize the prospects of the mining sector.
In addition to Kalu’s remarks, Governor Engr Abdullahi Sule of Nasarawa State emphasized that foreigners were benefiting more from Nigeria’s solid mineral resources than the locals, highlighting the inequitable distribution of revenue from the sector. He urged for serious reforms to ensure that policies are put in place to benefit the Nigerian people and communities.
Hon. Jonathan Gaza, the Chairman of the House Committee Solid Minerals, presented the Nigerian Minerals and Mining Act (Amendment) Bill, which proposes that 5% of the total revenue of all minerals mined be allocated to the host communities. Additionally, the bill suggests the establishment of a Mines Inspection and Environmental Agency to provide improved oversight of mining activities and bridge the gap between federal and state governments.
Gaza stressed the importance of prioritizing community development and environmental protection in the bill, citing the allocation of 75% ownership to the private sector and 25% to the federation of Nigeria in the Solid Minerals Development Company establishment bill.
The proposed changes outlined in the bill reflect a commitment to informality and seek to improve the sector through an equitable revenue-sharing program. It is evident that there is a collective effort to address the challenges faced by Nigeria’s mining sector and drive its growth for the benefit of the nation and its people.
