In November, Nigeria’s government introduced amendments to the Nigeria Minerals and Mining Act (NMMA), originally established in 2007, to invigorate the nation’s stagnant mining industry, which currently contributes a mere 0.3% to GDP. The revisions aim to decentralise authority over mineral rights, shifting responsibility from the federal government to local authorities, thereby empowering communities to combat illegal mining and bolster legal operations. The changes are part of a broader strategy to diversify the economy away from oil dependency.

Historically, Nigeria’s mining sector thrived pre-1970s before the oil boom overshadowed it. In the wake of the civil war, many mines were abandoned, and despite the 2007 law aimed at attracting foreign investment, illegal mining has proliferated, particularly in states such as Kaduna and Zamfara, impacting local communities and the environment. The ongoing trade of illegally mined gold for arms and safety concerns surrounding mining sites exacerbate these challenges.

The amended NMMA will enable states to generate more revenue from legal mining, thus incentivising local governance and compliance. However, challenges such as inadequate transport infrastructure, security issues, and the overshadowing presence of the oil sector still hinder mining’s growth potential. As the bill awaits parliamentary approval, its potential to effect transformational change remains in question, primarily due to Nigeria’s deeper structural economic issues.

Nigeria’s mining sector has been largely stagnant due to an outdated mining law that hasn’t been revised since 2007. With current mining output contributing only 0.3% to GDP and the nation heavily reliant on imports for minerals, there is an urgent need for reform. As the oil and gas industry dominates the economic landscape, the government strives to rebalance its economy by revitalising mining through significant legal amendments that aim to devolve regulatory power to local entities and combat widespread illegal mining.

The proposed changes to the Nigeria Minerals and Mining Act reflect a critical effort to stimulate the mining sector by empowering local governments and communities. As new responsibilities are transferred from the federal government to state and local levels, the hope is to address illegal mining and cultivate legitimate sector growth. Nonetheless, substantial challenges, including security and infrastructure, may continue to impede significant progress. Therefore, while the amendments are pivotal, they alone may not transform the mining industry without additional institutional and economic reforms.

Original Source: african.business

The post Nigeria’s New Mining Law: A Strategic Shift to Revitalise the Sector first appeared on Nigerian Mining News.

The Federal Government has mandated the Mineral Resources and Environmental Management Committee (MIREMCO) to enhance its performance within a 90-day timeframe, or face penalties. Minister of Solid Minerals Development, Dr. Dele Alake, expressed dissatisfaction with the committee’s ability to mediate between stakeholders in the mining sector, failing to fulfill its statutory obligations. Under the Nigeria Minerals and Mining Act of 2007, MIREMCO is meant to oversee compliance among operators with environmental regulations, which has evidently not been the case. Dr. Alake warned that failure to meet expectations would prompt federal intervention to restore effective management of mineral resources in Nigeria.

The government is also focusing on bolstering the mining sector by establishing six mineral centres across Nigeria’s geopolitical zones. This initiative accompanies a new policy aimed at ensuring that mineral extraction activities contribute maximum value to the economy by enforcing that mining applications include plans for local processing and value addition. Ongoing challenges such as limited active mining projects and funding constraints were highlighted by the Director General of the Nigeria Mining Cadastre Office, Obadiah Nkom.

The Mineral Resources and Environmental Management Committee (MIREMCO) is a regulatory body under the Nigeria Minerals and Mining Act of 2007, tasked with ensuring compliance and mediating between stakeholders, including local communities and mining operators. Currently, there are issues surrounding its effectiveness, which has resulted in governmental dissatisfaction. In addition, the Nigerian government aims to improve the mining sector significantly, seeking to add local value to extracted resources and develop local industries to tackle economic losses.

The Federal Government’s ultimatum to MIREMCO aims to enhance oversight and compliance in the mining sector, reflecting a commitment to effectively manage Nigeria’s mineral resources. With a 90-day deadline set for improvements, the initiative underscores the need for strong institutional frameworks and policies that promote local value addition, which will ultimately benefit the economy and local communities.

Original Source: nairametrics.com

The post Federal Government Issues 90-Day Ultimatum to MIREMCO for Performance Improvement first appeared on Nigerian Mining News.