Imperative of retuning solid mineral sector to boost economy

Before now, the Ministry of Mines and Steel had been faced with dwindling revenue generation. But a Road Map 2007 launched by the former Minister of Mines and incumbent governor of Ekiti State, Dr. Kayode Fayemi, ensured a turn-around in the fortunes of the sector such that it began to meet-up with its constitutional obligation and to generate needed revenue for the country.

Though, industry players have faulted the attitude of successive governments in neglecting the solid mineral sector in favour of the oil sector, claiming it has led to non-industrial development, they expressed the opinion that with adequate funding, specifically in research and development, the sector would experience economic growth and sustainability.

The stakeholders stressed that for Nigeria to metamorphose from a mono economy, it must improve its drive for development and diversification of the economy in such manner that mineral resources will take centre stage and help shore the dwindling economy.

In view of this, the Mining Cadastre office (MCO), led by its Director General, Simon Obadaih Nkom noted that to move the sector to an enviable level, the federal government must have a rethink and concentrate on the solid mineral sector to diversify the economy and increase the nation’s revenue base as prices of oil continue to dwindle internationally on a daily basis.

While noting the need to attend to the issue of budget constraints, which had been hampering efficiency of the ministry, Nkom stated that with about 44 Minerals, there is also a need to invest in accurate data gathering in order to attract the right investors to the sector.

The Director General disclosed that as part of the re-engineering process, the focus of Mining Cadastre office (MCO) is to be able to imbibe transparency, security of tenure and non-subjectivity, all with a view to attracting the needed investment to the sector.

The main agenda of the present administration is diversify the economy through non-oil sector, particularly solid mineral and agriculture. And seven years into the administration, the mining sector has received adequate attention after several years of neglect.

Recall that Vice President, Prof. Yemi Osinbajo recently highlighted the need for the country to get the fundamental of its solid mineral resources right, if it must change the narrative of suffering in the midst of plenty.

Osinbajo noted that while the Ministry of Mines and Steel has legislative mandate to regulate mining, many state and local councils have embarked on the imposition of their own rules and regulations including issuance of registration, permits, Community Development Agreements (CDA) and Memorandum of Understanding (MoU] on miners.

The Vice President further said that some state governments, in a bid to shore up their revenues, impose illegal fees, taxes and levies on foreign and local licensed mining companies and operators.

He added that enforcement of the taxes often lead to the frequent arrests and harassment of licensed miners and their workers, and closures of mine sites.

It was part of the bid to revamp the sector that birthed the 2007 Road Map, which has now made the sector attractive to investors and placed the mining sector on the path of recovery, growth and development.

It was also in an effort to regulate all aspects of exploration and exploitation of solid minerals in the country that the Nigerian government re-enacted the Nigeria Mineral and Mining Act.

The Act was to foster the growth and development of the sector, while also vesting the ownership and control of all lands in which minerals are found in commercial quantities in the government. This prohibits unauthorised persons from exploration or exploitation of the mineral resources.

The Act further stated that the right to explore or exploit minerals in Nigeria is evidenced by the grant of a Mineral Title, which can be granted to an eligible applicant under the Act in accordance with the Nigerian Minerals and Mining Regulations (NMMR) and after the submission of an irrevocable consent form by land owners or occupiers.