House Committee Proposes 5% Host Communities Fund for Mining Areas in Nigeria
The Committee on Solid Minerals of the House of Representatives has endorsed a proposition to allocate 5 per cent of the revenue generated from mineral mining to the host communities. This decision was announced by the Chairman of the Committee, Hon. Jonathan Gaza, during a Public Policy Dialogue event held in Abuja.
The proposed legislation, known as the “Nigerian Minerals and Mining Act (Amendment) Bill,” was sponsored by Hon. Jonathan Gbefwi and Hon. Benjamin Kalu. Hon. Gaza underscored the importance of passing the bill to streamline formalization efforts between states and the federal government, ultimately maximizing the benefits of the sector.
The principal goal of the bill is to revise the existing Nigeria Minerals and Mining Act 2007 by reconstructing a framework focused on priority areas. Security is a major concern in the solid minerals sector, and the establishment of a mines inspection and environmental agency will ensure enhanced oversight of mining activities. Hon. Gaza also highlighted the lack of coordination between the federal and state governments as a crucial issue that needs to be addressed.
The proposed bill seeks to bridge the gap between the federal and state governments, empowering the Mineral Resources and Environmental Management Committee (MIREMCO) to facilitate effective, collaborative oversight. It also prioritizes community development and environmental concerns by setting aside 5 per cent of the revenue generated from mineral mining for the benefit of host communities.
Deputy Speaker of the House of Representatives, Hon. Kalu, emphasized the challenges hindering the growth of Nigeria’s mining sector, including insecurity, inadequate infrastructure, and the scarcity of skilled labour. He also stressed the untapped potential of the nation’s abundant mineral resources and the need to shift focus away from an overreliance on oil.
Regarding the bill co-sponsored with Hon. Gbefwi, which encompasses eight other mining bills, Hon. Kalu expressed confidence that these legislative measures would represent a turning point in the management of the nation’s mineral wealth. He underscored the importance of a private-sector-led approach in the mining sector, viewing it as a vital partnership to unlock Nigeria’s mining industry’s true potential.
Furthermore, he highlighted a renewed enthusiasm in the mining industry, driven by the collective determination to diversify the economy, create jobs, and capitalize on the country’s vast natural resources. The 2016-2025 mining industry development roadmap, aiming to increase the sector’s GDP contribution to 3 per cent by 2025, is already yielding results. Private-sector-led projects such as the Segilola Gold Project in Osun state are injecting millions of dollars into the economy and attracting much-needed investment.
In conclusion, the proposed legislative measures and the dialogue event underscore the ongoing efforts to tackle the challenges and optimize the promising prospects of Nigeria’s mining sector. These initiatives represent a significant step towards sustainable growth and development, with the aim of diversifying the economy and fully unlocking the country’s mineral resources.
