The Speaker of the House of Representatives, Tajudeen Abbas, underscored the importance of comprehensive legislative reforms to address the mining sector in Nigeria. This emphasis was made during a public hearing for the repeal and enactment of a bill titled “Nigeria Mineral Development Company Limited (Establishment) bill 2023 and Minerals and Mining”, organized by the House of Representatives Committee on Solid Minerals. Abbas emphasized the need to create a conducive environment for sustainable mining practices in the nation. This initiative comes in response to stakeholders’ demand for a 10% royalty for host communities to ensure they benefit economically from solid minerals extraction in their areas.
Abbas also highlighted the significant role of the mining industry in Nigeria’s economy, contributing to government revenue, employment generation, and foreign exchange earnings. He stressed the sector’s immense potential to drive industrialization, infrastructure development, and overall economic diversification. Nevertheless, the sector faces numerous challenges that hinder its growth and impact on national development, making it imperative to address these issues through comprehensive legislative reforms.
The chairman of the Committee on Solid Minerals, Jonathan Gaza, noted the necessity of the proposed legislation to transform the mining sector in Nigeria. He expressed the need for a government vehicle to actively participate in the mining sector and emphasized the importance of ensuring that host communities receive economic benefits from solid minerals extraction. Stakeholders at the public hearing echoed this sentiment, advocating for a 10% benefit for host communities and proposing a 10-year renewable mining lease instead of the current 25-year arrangement.
Representatives from the Nigerian Economic Summit Group (NESG) emphasized the urgent need for the federal government to instil the highest standard of good governance in the mining industry. They highlighted the suboptimal impact of the mining sector on the economy and commended the House Committee for initiating the bills to address the decline of the sector. Additionally, they underscored the importance of implementing the highest standard of good governance in the mining industry.
Mr Tobias Lengs of RENEVLYN Development Initiative raised concerns about the health hazard, environmental degradation, and neglect of miners posing a danger to host communities. He suggested an upward review of the extraction net value revenue that goes to the Community Development Association, proposing a 10% benefit and a flexible Community Development Agreement to meet the specific needs of host communities.
In conclusion, the public hearing on the proposed legislative reforms for the mining sector in Nigeria has brought to light the urgent need for sustainable mining practices. With stakeholders advocating for host communities to receive economic benefits, a renewable mining lease, and improved governance in the mining industry, it is evident that comprehensive reforms are crucial for the sector’s growth and its positive impact on national development.