Proposal to Allocate 5% of Mining Revenue to Host Communities

The House of Representatives Committee on Solid Minerals has proposed that five per cent of solid minerals revenue should be allocated to host communities. This proposal was announced by the committee’s chairman, Jonathan Gaza, during a public policy dialogue on Nigeria’s minerals and mining legislation held at the National Assembly Complex in Abuja.

The proposed Nigerian Minerals and Mining Act (Amendment) Bill would require that five per cent of the total revenue from all minerals mined be given to the host communities. Additionally, the bill aims to establish a Mines Inspection and Environmental Agency to enhance oversight of mining activities and bridge the gap between the Federal and State Governments, in order to empower the Mineral Resources and Environmental Management Committee for more effective joint oversight.

According to Jonathan Gaza, “The establishment bill for a Solid Minerals Development Company allocates 75 per cent ownership to the private sector and 25 per cent to the Federation of Nigeria. Community Development and the Environment are prioritised in the bill.” Gaza also highlighted that the Petroleum Industry Act already sets aside three per cent of annual operational expenditure for host communities, and the proposed bill aims to further support host communities by allocating five per cent of the revenue from all minerals mined.

Governor Abdullahi Sule of Nasarawa State, who also participated in the session, expressed concern that non-Nigerians operating in the nation’s solid minerals sector were reaping substantial profits at the expense of Nigerian citizens. He emphasised the need for institutional reforms to ensure that the sector benefits Nigerians.

Deputy Speaker of the House of Representatives, Benjamin Kalu, who declared the dialogue open, remarked that the proposed bill, if passed, would represent a significant milestone for the nation’s mineral wealth. He stressed that Nigeria’s vast mineral resources have been largely untapped and overlooked due to reliance on oil, and that the challenges facing the solid mineral sector, such as insecurity, inadequate infrastructure, and a lack of skilled manpower, would be addressed by the proposed amendment bill.

Kalu also highlighted the potential for the mining industry, pointing out that despite boasting over 40 commercially viable minerals, the sector currently only contributes 0.3 per cent to the nation’s Gross Domestic Product. He emphasised the need to diversify the economy, create jobs, and unlock the immense potential in the country’s natural resources.

Overall, the proposal to allocate a portion of mining revenue to host communities represents a significant step towards ensuring that the solid mineral sector benefits Nigerians and contributes more substantially to the nation’s economy. With continued efforts to reform the sector and implement policies that prioritise the welfare of host communities, Nigeria can unlock the full potential of its mineral wealth for the benefit of all.