The House of Representatives Committee on Solid Minerals has proposed allocating five per cent of mining revenues to host communities. This announcement was made by committee chairman Jonathan Gaza during a public policy dialogue in Abuja, focusing on amendments to Nigeria’s Minerals and Mining Act.
Key Points:
– **Proposed Amendment**: The bill aims to reserve five per cent of the total revenue derived from minerals to benefit host communities.
– **Oversight Improvement**: Establishment of a Mines Inspection and Environmental Agency is set to enhance regulation and empower the Mineral Resources and Environmental Management Committee.
– **Ownership Structure**: The Solid Minerals Development Company, outlined in the bill, suggests a 75 per cent share for the private sector and 25 per cent for the Federal Government.
– **Compensation Concerns**: Nasarawa State Governor Abdullahi Sule highlighted issues of inadequate compensation for communities, citing an instance where a community received only N700 million despite significant lithium prices.
– **Sector Challenges**: Deputy Speaker Benjamin Kalu noted that the sector faces obstacles such as insecurity and lack of infrastructure but emphasised a collective effort to harness Nigeria’s mineral wealth, which has been largely overlooked in favour of oil.
– **Economic Contribution Goal**: The Mining Industry Development Roadmap aims to boost the sector’s GDP contribution from 0.3 per cent to 3 per cent by 2025, with private investments like the Segilola Gold Project already contributing significantly.