Foreign Exploitation of Nigeria’s Mineral Wealth: A Call for Reform

Governor Abdullahi Sule of Nasarawa State has expressed his concerns about the exploitation of Nigeria’s solid minerals by non-Nigerian entities. He emphasized that these foreign operators are reaping substantial profits while leaving behind mere scraps for the citizens.

During a public policy dialogue on Nigeria’s minerals and mining legislation, Governor Sule highlighted the need for institutional reforms to ensure that the solid minerals sector benefits Nigerians. He cited an example of a community in Nasarawa State that received a minimal compensation of N700 million, which pales in comparison to the substantial earnings from minerals like lithium, which were fetching around $76,000 per metric ton at one point.

The Chairman of the House Committee on Solid Minerals, Jonathan Gaza, presented the Nigerian Minerals and Mining Act (Amendment) Bill, which proposes allocating five per cent of the total revenue from mined minerals to the host communities. Additionally, the bill aims to establish a Mines Inspection and Environmental Agency to provide enhanced oversight of mining activities and bridge the gap between the Federal and State Governments in managing mineral resources.

Deputy Speaker of the House of Representatives, Benjamin Kalu, expressed optimism about the potential impact of the proposed amendment bill, stating that it could mark a significant turning point for the nation’s mineral wealth. He noted that despite Nigeria’s abundance of commercially viable minerals, the mining sector contributes a mere 0.3 per cent to the country’s Gross Domestic Product. Kalu stressed the importance of tapping into this sector to diversify the economy, create jobs, and boost economic growth.

The 2016-2025 Mining Industry Development Roadmap, which aims to increase the sector’s GDP contribution to 3 per cent by 2025, has already shown promising progress. Private sector-led projects like the Segilola Gold Project in Osun State are injecting millions of dollars into the economy and attracting much-needed investment.

The need for reform in the solid minerals sector is evident, as it has the potential to significantly contribute to Nigeria’s economic growth and development. By ensuring that policies and reforms are put in place to benefit Nigerians and empower host communities, the nation can harness its mineral wealth for the collective prosperity of its citizens.