FG’s Vision for Mining Sector Under Threat — Stakeholders Warn

A group, the Forum of Concerned Stakeholders in the Nigerian minerals and mining sector, has decried the shutdown of legal mining operational sites across states in the country.
The group claimed that the sites were shut down using law enforcement agencies and task forces not known to extant industry regulations.
Prof. Akinade Olatunji, president of the Nigeria Mining and Geosciences Society (NMGS), delivered the forum’s stance at a news conference on the state of affairs in the Nigerian mining industry on Wednesday in Abuja.
Mr. Olatunji said that the situation was frustrating to the stakeholders who had met all the requirements and completed the necessary steps to obtain their licenses.

He described the action as unconstitutional and conflicting with the Nigerian Minerals and Mining Act of 2007, which grants the federal government exclusive ownership and control of mineral resources.
He said that the situation was due to the constant interference of state governments in mining operations within their territories in their quest for control over natural resources.
“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 into the sector,” he said.
He listed the interferences as including the establishment of ministries, departments, and agencies (MDAs) by state governments and requested that all duly licensed operators register with such state-run MDAs.
He said that there was also confiscation of lawfully mined products from operators without reason, brutalization of personnel of operators, and, in some instances, vandalization and setting on fire of hard-earned equipment.
He accused the state governments of also instituting frivolous court cases against operators, adding that the series of interferences had thrown the entire sector into confusion.

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 noted 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 also mentioned that the directive should instruct all regulatory agencies and structures by subnational entities to be deemed illegal.
According to Mr Olatunji, the forum wants the suspension of the implementation of the upward review of rates and charges for all activities in the mining sector, which was announced on July 5 without consultation.
“An appeal to the minister to pause the implementation of the new regime of fees and royalty rates payable in the sector.
“This is pending the constitution of a panel of stakeholders and ministry officials to make recommendations to the minister after due consideration of all empirical parameters,” he said.
He said that the forum also wanted a review of the operational guidelines for Mining Marshals engaged in securing mining sites.
According to him, this is to ensure proper coordination of the security outfit to align with and complement the functions of the Department of Mines Inspectorate and Mines Environmental Compliance.
Other demands made by the forum included engagement of stakeholders for consultation toward the review of the Mining Act and the establishment of the Mining Corporation and in policy formulation.
It also demanded a directive to the Solid Minerals Development Fund to take over the management of the N2.5 billion warehoused with the Bank of Industries to provide single-digit interest loans to mining operators.
The forum comprised NMGS, Miners Association of Nigeria, Women In Mining In Nigeria, and Nigeria Society of Mining Engineers.
Others are the Gemstones Miners and Marketers Association, ECOWAS Federation of Chambers of Mines, and Association of Miners and Processors of Barite, among others.