The House of Representatives Committee on Solid Minerals in Nigeria is proposing that 5% of all minerals’ revenue should be allocated to host communities. This recommendation was put forward at a Public Policy Dialogue in Abuja by Committee Chairman Hon. Jonathan Gaza, who emphasized the importance of the proposed “Nigerian Minerals and Mining Act (Amendment) Bill.”
The bill, which has been sponsored by Hon. Benjamin Kalu and Hon. Jonathan Gbefwi, aims to assist states and the federal government in formalizing strategies to maximize benefits in the mining sector. According to Hon. Jonathan Gaza, the primary objective of the bill is to repeal and re-enact the principal Nigeria Minerals and Mining Act 2007 to create a more effective structure based on priority areas.
One of the key focus areas of the bill is addressing security, which has been a significant contributing factor to the challenges faced by the solid minerals sector. The proposed establishment of a mines inspection and environmental agency is aimed at providing improved and deeper oversight of mining activities. Additionally, offices of the agency will be established in every state to facilitate reporting and oversight.
The bill also highlights the lack of coordination between the federal and state governments as a major oversight in ensuring security in the sector. Therefore, the bill aims to bridge this gap to enable the Mineral Resources and Environmental Management Committee (MIREMCO) to effectively carry out its oversight functions.
Furthermore, the bill emphasizes the importance of community development and environmental protection. Under the proposed legislation, 5% of the revenue from all minerals mined will be set aside for the benefit of the host communities, in contrast to the 3% allocation made by the Petroleum Industry Act (PIA) for host communities. This adjustment is deemed necessary due to the informal nature of the sector.
In addition, the bill seeks to implement more efficient policies to enforce the environmental remediation fund, ensuring that host communities are not left with deplorable sites and that the environment is adequately protected and restored after mining activities.
During the public policy dialogue event, the Deputy Speaker of the House of Representatives, Kalu, acknowledged the various challenges that have hindered the growth of Nigeria’s mining sector, including insecurity, inadequate infrastructure, and lack of skilled labour. He highlighted the fact that the nation’s vast mineral resources remain largely untapped and overshadowed by the country’s heavy reliance on petroleum.
In conclusion, the proposed amendments to the Nigerian Minerals and Mining Act aim to address critical issues in the mining sector, such as security, oversight, and community development. If implemented effectively, these changes could lead to significant enhancements in the sector’s productivity and the overall well-being of host communities.