Proposed Legislation Aims to Allocate 5% of Mining Revenue to Host Communities
The House of Representatives Committee on Solid Minerals has recently put forward proposed legislation that would allocate five per cent of revenues from solid minerals to host communities. This was revealed by Jonathan Gaza, the committee’s chairman, at a public policy dialogue on Nigeria’s minerals and mining legislation at the National Assembly Complex, Abuja.
The amendment bill currently under consideration aims to establish a Mines Inspection and Environmental Agency to provide enhanced oversight of mining activities and bridge the gap between the Federal and State Governments. In addition, it intends to allocate 75 per cent ownership of a Solid Minerals Development Company to the private sector and 25 per cent to the federation of Nigeria. Prioritising community development and environmental concerns, the bill also seeks to set aside five per cent of the revenue for all minerals mined to the host communities.
Nasarawa State Governor, Abdullahi Sule, has expressed concerns about non-Nigerians profiting significantly from the country’s solid minerals sector, leaving the citizens with minimal benefits. He has stressed the need for institutional reforms to ensure that the sector’s fortunes are turned around for the benefit of Nigerians.
Deputy Speaker of the House of Representatives, Benjamin Kalu, emphasized during the dialogue that the passing of the bill would mark a significant milestone for Nigeria’s mineral wealth. He highlighted the untapped potential of the nation’s vast mineral resources, noting that reliance on oil had overshadowed the sector for too long. Addressing challenges such as insecurity, inadequate infrastructure, and a lack of skilled manpower, the proposed amendment bill aims to pave the way for the sustainable development of the solid mineral sector.
Kalu pointed out that although Nigeria boasts over 40 commercially viable minerals, the sector currently contributes only 0.3 per cent to the Gross Domestic Product. He called for a collective effort to diversify the economy, create jobs, and unlock the immense potential lying beneath the nation’s soil.
The 2016-2025 Mining Industry Development Roadmap, designed to increase the sector’s GDP contribution to three per cent by 2025, is already making progress. Private-sector-led projects like the Segilola Gold Project in Osun State are injecting millions of pounds into the economy and attracting much-needed investment.
Source:
The Guardian Nigeria, https://guardian.ng/news/reps-propose-5-mining-revenue-for-host-communities/
