The Exploitation of Nigeria’s Solid Minerals by Foreign Entities: A Call for Reform

The governor of Nasarawa State, Abdullahi Sule, has expressed deep concerns regarding the exploitation of Nigeria’s solid minerals by non-Nigerians, who are reaping substantial profits from the sector while the local population receives minimal benefits. Speaking at a public policy dialogue on Nigeria’s minerals and mining legislation, Governor Sule stressed the necessity of constitutional reforms to rectify this imbalance and ensure that the wealth generated by the sector directly benefits Nigerian citizens.

Addressing the House of Representatives Committee on Solid Minerals at the National Assembly Complex in Abuja, Governor Sule highlighted the significant gap between the compensation received by Nigerian communities and the substantial profits accrued by foreign entities engaged in the mining of the country’s solid minerals. He specifically mentioned a case in Nasarawa where a community received a paltry compensation of N700 million, while the global market value of lithium stood at approximately $76,000 per metric ton.

Governor Sule underscored the urgency of reforming the solid mineral sector to secure Nigeria’s economic future, emphasizing the importance of policy reforms that prioritize the interests of Nigerian citizens. He cautioned that without substantial reforms, the nation would continue to be disadvantaged in the exploitation of its natural resources.

In response to these concerns, the Chairman of the House Committee on Solid Minerals, Jonathan Gaza, disclosed that the Nigerian Minerals and Mining Act (Amendment) Bill, currently under review, includes provisions for the allocation of five per cent of total mineral mining revenue to host communities. Furthermore, the bill seeks to establish a Mines Inspection and Environmental Agency to enhance oversight of mining activities and facilitate collaboration between the Federal and State Governments through the Mineral Resources and Environmental Management Committee.

The proposed reforms aim to address the exploitative practices prevalent in the solid minerals sector, such as inequitable compensation for local communities and insufficient regulatory oversight. By empowering local communities and enhancing the monitoring of mining operations, the bill seeks to ensure that the sector’s wealth is harnessed for the benefit of Nigerians.

In conclusion, Governor Sule’s impassioned appeal for constitutional reforms to rectify the exploitation of Nigeria’s solid minerals by foreign entities underscores the need for concerted action to safeguard the nation’s economic interests. The proposed amendments to the mining legislation present a promising avenue for addressing these longstanding issues and reshaping the sector to deliver equitable benefits for all stakeholders. It is imperative for policymakers to prioritize the welfare of Nigerian communities and institute robust regulatory mechanisms to govern the sustainable exploitation of the country’s abundant solid minerals.