Stakeholders are canvassing for a 10% benefit or more for host communities to ensure they derive the economic benefits for solid minerals extraction in their environment where the mining activities take place.
The Stakeholders expressed their views during the public hearing on the bill which seeks to repeal and re-enact the ‘Nigeria Mineral Development Company Limited (Establishment) bill, 2023 and Minerals and Mining’, held at the instance of the House of Representatives Committee on Solid Minerals chaired by Hon. Jonathan Gweffi Gaza.
Meanwhile, the Stakeholders who decried the enormous powers by the Minister, called for unbundling of the powers as encapsulated in the extant legislation.
In his opening remarks, Chairman, House Committee on Solid Minerals, Hon. Jonathan Gaza noted that the proposed legislation is necessary to transform the mining sector.
“We actually need a heavy rod in the mining sector. We need a vehicle where the government can be a player in the mining sector. A situation where 5% of whatever is extracted will be given to host communities and if this is achieved Nigeria will experience astronomical growth.”
The Stakeholders who spoke during the public hearing also demanded 10 10-year renewable mining lease instead of the 25 years as captured in Section 66 of the Solid Minerals Mining Act, 2007.
In his submission, Mr. Tobias Lengs of RENEVLYN Development Initiative decried the health hazard, the environmental degradation, and the negligence of the miners that pose a danger to host communities.
“We suggest an upward review of the extraction net value revenue that goes to the Community Development Association. 10% is suggested and this should be reviewed periodically.
“The duration of a Mining Lease is 25 years and shall be renewable every twenty-four years as captured in section 66 of the Solid Minerals Act.
“The 25-year mining lease arrangement is too long and leaves room for operators to get away with impunity at huge cost to the nation.
“A 10-year mining lease is proposed instead to compel operators to be more responsive and accountable for their actions.”
He further suggested that: “the Community Development Agreement should be flexible to allow the host community determine exactly what they want to use the funds for without tying it to particularise line items. Their needs may change depending on situation hence the agreement details should not be open ended.”
Meanwhile, the representatives of Environmental Defenders Network (EDEN) and Nigerian Geological Survey Agency (NGSA) during the hearing, urged that the enormous powers conferred on the Minister should be unbundled.
While frowning at the current status of the Act, they canvassed that other ministries relevant to the subject including environment should be involved.
Speaking on behalf of Nigerian Economic Summit Group (NESG), Ms. Amanda Feese who represented said despite the enactment of modern legislation for the mining industry, nothing much has been achieved economically.
“The mining sector’s impact on the economy remains suboptimal, hovering below one percent of GDP by 2015. In 2016, the government approved an industry roadmap aimed to enhance the sector’s role as an economic driver, targeting a 3 percent GDP contribution by 2025.
“The NESG would like to commend the House Committee for initiating these bills to address the staggering decline of the mining sector. While both bills are noteworthy, the NESG emphasizes an urgent need for the Federal Government to instill the highest standard of good governance in the mining industry.
“This call is similar to the government’s successful approach in the oil and gas sector demonstrated through the Petroleum Industry Act (PIA) of 2021 to implement the Nigerian oil and gas policy, which was approved in 2007.”
She averred that the PIA overhauled the institutional, legal, and regulatory framework for the oil and gas industry, establishing two regulatory agencies and fully commercialises the Nigerian national oil company.
