When President Bola Tinubu assumed office on May 29, 2023, he promised to prioritise economic diversification.
The target is to grow the economy of Nigeria to more than one trillion dollars by the end of its first term particularly through the non-oil sector.
One of such sectors is solid minerals which analysts say has been neglected over the years, which has caused its gross underdevelopment.
The Minister of Solid Minerals Development, Mr Dele Alake, says the administration is putting in place policies and initiatives, aimed at diversifying the economy and ensuring that it generates more revenue than oil in the near future.
The solid mineral sector is expected to be one of the pillars of the initiative.
According to Alake the Federal Government is working towards ensuring that the solid minerals sector is able to contribute more to the Gross Domestic Product (GDP) than the oil sector has done.
He said the move was necessary considering the global upsurge in energy transition which could reduce the demand for oil.
He also stated that Nigeria possesses critical minerals for the energy transition in commercial quantities across its states.
In addition, a German company, Geoscan, conducted a preliminary survey that estimates that Nigeria has $750 billion worth of solid minerals yet to be unearthed.
But while Nigeria has this vast potential, analysts argue that necessary steps need to be taken to harness it and ensure operators enjoy ease of doing business.
The sector has faced various challenges particularly in the area of illegal mining, poor infrastructure and insecurity.
These factors have combined to deprive the government of the royalties, levies and other deserved accruals.
In March, the Mining Marshals, a special security unit, was inaugurated by the solid minerals ministry to secure mining sites across the nation.
Additionally, efforts have been made to formalise mining operations in the sector, also aimed at combating banditry.
Alake has also embarked on a campaign to market Nigeria`s solid minerals globally with a view to attracting major players to the sector and generating Foreign Direct Investment (FDI) for the country.
One of the tools deployed for the marketing is a software called the Nigerian minerals resource Decision Support System (DSS).
It was unveiled on May 14 to serve as a one-stop shop for investors seeking credible and decisive information on Nigeria’s mineral resources, facilities and infrastructure.
These efforts and many more are part of efforts to the sanitise the sector, which stakeholders say have started yielding results.
However, they observe that one growing concern is state governments` interferences with mining operations.
They continue to decry what they consider as the over regulation of the sector and the multiple taxation imposed by state governments, all in an attempt to control the mineral resources in their regions.
However, the exclusive ownership and control of mineral resources are vested in the Federal Government by the Constitution of the Federal Republic of Nigeria (CFRN) and the Nigerian Minerals and Mining Act of 2007 (NMMA 2007).
Sections 1(2) and 22 of the mining act priortise mining operations over other land uses, classifying them as an overriding public interest in accordance with the Land Use Act.
While these regulations are clearly spelt out, analysts note that miners continue to face interference from state governments in their operations, which has become a burden on their operational costs.
The National President of the Miners Association of Nigeria (MAN), Dele Ayankale, affirmed that the cost of doing business in the mining sector has increased due to state governments interference.
He said that the interpretation of the laws is creating challenges for mining title holders nationwide, which could hinder efforts to attract investors to the sector.
“We all know what the constitution says about mining; it is in the exclusive list, there are provisions between local and host communities but what we are experiencing now is deviation from the norms.
“The state governments are setting up their own regulatory framework and structure, and all these come with their own regulatory levies, and some conditions may be difficult for the titleholders to meet.
“It is also creating confusion in the sector and negating Federal Government`s dedication to attract investors.
“There is the need for government to re-enact its laws and be solely committed to address this situation and speak with one voice,” he said.
At a recent news conference, a group, the Forum of Concerned Stakeholders in the Nigerian Minerals and Mining sector decried shutdown of legal mining sites across states due to the constant interferences of state governments.
The president, Nigeria Mining and Geosciences Society (NMGS), Prof. Akinade Olatunji, said state governments obviously want control over natural resources within their territories with such actions throwing the sector in to confusion.
“These actions from the sub-nationals do not only complicate the business environment for investors.
“They also introduce a huge level of unquantifiable risks capable of hindering and sabotaging the Federal Government`s vision for the accelerated investment flows in to the sector,” he said.
He listed the interferences to include the establishment of Ministries, Departments and Agencies (MDAs) by state governments, and requesting that dully signed licensed operators should register with such state-run MDAs.
He alleged confiscation of lawfully mined products from operators without reason, brutalisation of personnel of operators and, in some instances, vandalism and setting on fire of hard-earned equipment.
He also alleged that the state governments also institute frivolous court cases against operators.
According to him, the conduct of the affected state governments can be partly traced to the lack of establishment or effectiveness of the States Mineral Resources and Environmental Management Committee (MIREMCOs).
He said that the forum wants an authoritative directive from the office of the Minister of Solid Minerals Development to address the situation at the sub-nationals.
He said that the directive should instruct all regulatory agencies and structures by subnational entities to be deemed illegal.
“As stakeholders, we believe that the state and the Federal Government should be on the same page to ensure the attainment of the aspirations of the governments at all levels for the sector.
“The present situation where states are competing among themselves to ban or regulate the minerals and mining space in their states will only destroy whatever gains the sector had made in recent years.
“The FG cannot be going round the world to seek for FDIs in the minerals and mining sector while the states are busy enacting and implementing measures that negate investment in the sector.
“We, as stakeholders are alarmed and worried that the huge investment made by operators in the sector are currently being endangered by the actions of the state governments and their agents,” he said.
According to Olatunji, if the situation is allowed to fester, the Seven-Point agenda for the sector as enunciated for the promotion of a resurgent minerals and mining sector will be undermined, compromised and unreaslised.
Similarly, Niran Ajibade, the President of the Gemstones Miners and Marketers Association of Nigeria (GMMA), also expressed concern on the over regulation of the sector, and state governments` interferences in mining operations.
Ajibade said states were establishing parallel agencies similar to those of the federal government in the mining sector which require prompt action to address the situation.
“As a result, the sector is now over-regulated, and we are reporting to too many government agencies.
“Some of them have imposed bans on mining and have set up task forces.
“They go to the mining sites and burn down equipment and infrastructure there,” he said.
But while these stakeholders frown at the situation, Civil Society Organisations have urged them to be patient as the sector was being sanitised and would require time to achieve the desired results.
Mr Philip Jakpor, Executive Director, Renevlyn Development Initiative (RDI), said the mining sector was `a jungle` and largely unregulated, but now receiving the attention needed to address the gaps between the federal and state government regulations.
Jakpor said various interventions at both the state and federal levels were part of efforts to regulate the sector.
He said the move was necessary following reports of some foreign nationals taking advantage of poor regulation to engage in illegal mining, thereby denying government the much-needed revenue.
“Chinese come here and mine nobody knows what they are doing.
“They are registered as an agro-commodity company only for them to be involved in lithium collection and they have been exporting this for long. Nobody is regulating what they are doing.
“There is nowhere this is done. There should be stiff regulations; it doesn’t stop those who are making money from the sector from doing so.
“However, let them pay the necessary dues they are supposed to pay to the government and royalties to communities and then everyone is happy,” he said.
According to the RDI official, multiple taxation can be addressed through advocacy.
Meanwhile, Alake has assured that discussions are ongoing with state governors and the Nigerian Governors Forum to address the situation.
He said the deliberations by a joint task force of the ministry and the NGF would be scaled up to resolve complex issues in the sector, including concerns raised by stakeholders on state governments interference.
By Martha Agas, News Agency of Nigeria (NAN)
