Undue state interference in mining could derail FG’s 7-point agenda — Stakeholders

Concerned stakeholders in Nigeria’s minerals and mining sector have raised alarms over alleged undue interference by state governments in mining operations across the country, warning that if the situation continues it will undermine the federal government’s 7-point agenda for the sector.

Led by Prof. Akinade Olatunji, the miners, at a press conference in Abuja on Wednesday, argued that these actions breach the 1999 Constitution (as amended) and the Nigerian Minerals and Mining Act of 2007.

The miners claimed that state governments interfere in several ways, including the establishment of ministries, departments, or agencies (MDAs) for minerals and mining and mandating licensed operators to register with these state-run MDAs.

Other forms of interference include closing operational sites using law enforcement agents and task forces not recognised by industry regulations, confiscating lawfully mined products, brutalising personnel, vandalising equipment, and using state apparatus to institute frivolous court cases against operators.

“These unchecked usurpations of Federal Government functions by state authorities directly violate the Constitution and the Mining Act, throwing the entire sector into confusion,” they noted.

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The miners expressed concerns that state governments’ unwholesome behaviour stems from the ineffectiveness of the states’ Mineral Resources and Environmental Management Committee (MIREMCOs), as prescribed by the NMMA 2007 and the NMMR 2011.

They called for strict compliance with the Act and regulations to curtail state interference in the mining sector’s governance framework.

The miners also warned that if this situation continues, the 7-point agenda for the sector, as enunciated by Minister Dele Alake, will be undermined.

They urged the federal and state governments to work together to achieve the sector’s goals and stressed that the current competition among states to regulate or ban mining activities would destroy the sector’s recent gains.

The stakeholders, including the Miners Association of Nigeria (MAN), Women in Mining in Nigeria (WIMiN), the Nigeria Society of Mining Engineers (NSME), and others, called on the Minister to declare all regulatory agencies, orders, enactments, and structures by subnational entities as illegal.

They also urged the minister to pause the implementation of new fees and royalty rates pending the constitution of a panel of stakeholders to provide recommendations after due consideration of empirical parameters.

Additionally, they called for a review of the Mining Marshall’s operational guidelines and for the Minister to direct the SMDF to take over the management of the N2.5 billion warehoused with the Bank of Industry to provide single-digit interest loans to mining operators.