Senate Launches Probe into Declining Revenue from Solid Minerals and Calls for Halt in the Sale of Mining Assets

The Senate has taken a crucial step in addressing the declining revenue generated from solid minerals in the country. In a recent session, the Red Chamber directed its Committee on Solid Minerals to undertake a thorough investigation into the reasons behind the dwindling revenue derived from the development of solid minerals. This move comes amidst concerns over the impact of this trend on the nation’s economy and efforts towards diversification.

Furthermore, the Senate has also mandated the Bureau of Public Enterprises (BPE) to suspend any further sale of mining assets and minerals pending the outcome of the investigation into the activities within the mining sector. The objective is to ensure that the sale of such vital national resources is put on hold until a comprehensive review of the sector is conducted.

In addition, the Senate has urged relevant security agencies to enhance surveillance on solid mineral resources in order to prevent further theft and illegal activities. This demonstrates the government’s commitment to safeguarding and maximizing the potential of these valuable resources for the benefit of the country.

As part of the investigative measures, the members of the Senate Committee on Solid Minerals have been tasked with evaluating the activities of industry players at all levels of the solid minerals sector. This includes a review of policy formulation and execution, as well as the examination of BPE’s privatisation or commercialisation programmes related to mining and mineral resources. The investigation will also seek to uncover the extent and impact of illegal mining activities, as well as any complicity involving both local and expatriate industry players.

This decisive action follows the adoption of a motion proposed by Senator Osita Ngwu, the chairman of the Standing Committee on Solid Minerals. The motion called for a comprehensive review of the ‘Input and Output Values of the Nigerian Mining Industry in Light of its Central Role to Economic Diversification, Foreign Exchange Earnings and social inclusion’. Senator Ngwu highlighted the critical importance of the mining sector to the nation’s economic diversification and emphasized the need to address the disparities in the contributions of solid minerals to the GDP.

According to Senator Ngwu, the dominance of quarrying in the total output of the mining sector has raised concerns, with nearly 90% contribution and a growing growth rate largely driven by products such as granite, gravel, marble, and others. The Nigeria Extractive Industries Transparency Initiative (NEITI) Solid Mineral Industry Report 2020 revealed that the contribution of solid minerals to the GDP has been inconsistent and fluctuating in the past five years, with Nigeria receiving a mere 0.45% in 2020, in contrast to other African countries like Botswana, Congo, and South Africa, which enjoy significant contributions from the sector.

Furthermore, Senator Ngwu expressed concerns about the ongoing privatization and commercialization of public-funded facilities related to the Nigerian mining and mineral sector by the Bureau of Public Enterprises (BPE). Despite this initiative, there has been little evidence of any tangible beneficial impact on the mining industry, raising doubts about the effectiveness of such programmes.

In response to these pressing issues, the Senate President, Senator Godswill Akpabio, has given the Senate Committee on Solid Minerals a three-week timeframe to conduct the investigation and report back to the House. This demonstrates the urgency and seriousness with which the Senate is approaching the challenges facing the solid minerals sector.

Ultimately, the Senate’s decision to launch this probe and call for a halt in the sale of mining assets signals a resolute commitment to addressing the issues affecting the mining sector. By conducting a comprehensive review and identifying the factors contributing to the declining revenue from solid minerals, the Senate aims to enact meaningful legislative actions that will revive the sector and harness its potential for the benefit of the Nigerian economy and its people.