President Muhammadu Buhari recently charged senior officials of the Ministry of Mines and Steel to reverse the current underutilisation of the nation’s solid mineral resources. The ministry officials, who were in Aso Rock as part of the on-going briefing of the President by the Ministries, Departments and Agencies (MDAs) of government, were told to change the situation in which the exploitation of solid minerals was mostly in the hands of illegal operators.
The president signaled his determination to fully harness mining for
accelerated national development, but the road to that goal appears
paved with thorns. This is not the first time that a government in
Nigeria would indicate its readiness to develop this sector. But, all
promises by past administrations to make the sector a major revenue
earner to reduce the nation’s dependence on oil revenue have so far come
to nought. We hope that Buhari’s government will be a game changer in
this regard. He should match his words with action.
Past governments in the country have, indeed, been sleeping on their rights and those of the entire country by allowing an otherwise vital sector of the economy to remain in the hands of illegal operators. The National Mining Corporation (NMC), supposedly a core agency of the Ministry of Mines and Steel, is reportedly currently grossly undermanned and underfunded. Reports have it that the NMC presently does not have up to 10 staff, with the parent ministry usurping its responsibilities and performing them mostly in the breach.
It was no surprise, therefore, that the president was quoted to have had “one of the most demoralising briefs” from the ministry. The present situation of our mining industry is scandalous. The responsibility for this awry state of affairs must go to the past governments. Having struck oil just before independence, and with its ascendancy as a foreign exchange earner, all other sectors were neglected, resulting in the present economic quagmire. Can a nation truly develop relying on only one resource, especially a wasting resource like oil?
Now, the day of reckoning has come, and the country must look for other sources of revenue. The solid minerals sector is a very good place to begin this search. It is good that we have a new government to lead this effort, so the development of the sector should begin in earnest. Good enough, the distribution of mineral resources in the country is about even, with no state having less than two viable minerals. So, what have we been waiting for all the while?
A major impediment may have been the Land Use Act (1978), which vested the authority over all lands in state governors. In addition, the Minerals and Mining Act No 34, 1999, vests the authority over all minerals, including petroleum and solid minerals, in the Federal Government. However, given our well documented attitude to government business, it means that this vital sector can only move at government’s snail pace, denying it the entrepreneurial skills of the citizenry, who could be better motivated if they are allowed to own the mines and pay royalties and taxes to government.
Sadly, our mining sector is replete with illegal activities, with very little revenues accruing to government. There is also serious environmental degradation at most mining sites. The sector is wholly under-regulated, making it an “all-comers” affair. Those currently in charge either do not understand the potentials of the sector or are too satisfied with their salaries to bother about the task assigned to them. This is the reality which we hope the president understands and is ready to deal with.
As a first step, the regulatory powers of the National Mining Corporation must be restored. The agency must be properly staffed and funded to make it effective. From now on, the mining sector must be run as a business compatible with global best practice. New funding from the private sector, including direct foreign investments, must be encouraged to flow in, while the sector is properly managed to sustain new investments and interest in the sector.
Government may have to review the present land laws as they affect the mining sector with a view to removing impediments that may hamper investments. Here, government must be ready for the hard decisions, and the federal legislature must be ready to be a partner in progress.
The high unemployment figures indicate a need to address the problems in this sector promptly, because the mining of solid minerals has the capacity to generate jobs. Nigerians know of the Jos tin mines and the Enugu coal mines which are now largely moribund. The government should get all the data it needs to fully harness these resources, to address the current revenue shortfalls and grow the economy.
In the interim, illegal miners must be stopped. Government must show a resolve to identify and deal with them. The present regulatory framework is ineffective and should be discarded. A new approach must be found, complete with adequate personnel and empowerment to ensure a reverse of the present poor state of affairs in the sector.
The task of reversing the rot in this sector is a big one, but it is not insurmountable. Given the right attitude, the government can change this sad story and develop our abundant mineral resources for the much-needed national development and economic growth.
Past governments in the country have, indeed, been sleeping on their rights and those of the entire country by allowing an otherwise vital sector of the economy to remain in the hands of illegal operators. The National Mining Corporation (NMC), supposedly a core agency of the Ministry of Mines and Steel, is reportedly currently grossly undermanned and underfunded. Reports have it that the NMC presently does not have up to 10 staff, with the parent ministry usurping its responsibilities and performing them mostly in the breach.
It was no surprise, therefore, that the president was quoted to have had “one of the most demoralising briefs” from the ministry. The present situation of our mining industry is scandalous. The responsibility for this awry state of affairs must go to the past governments. Having struck oil just before independence, and with its ascendancy as a foreign exchange earner, all other sectors were neglected, resulting in the present economic quagmire. Can a nation truly develop relying on only one resource, especially a wasting resource like oil?
Now, the day of reckoning has come, and the country must look for other sources of revenue. The solid minerals sector is a very good place to begin this search. It is good that we have a new government to lead this effort, so the development of the sector should begin in earnest. Good enough, the distribution of mineral resources in the country is about even, with no state having less than two viable minerals. So, what have we been waiting for all the while?
A major impediment may have been the Land Use Act (1978), which vested the authority over all lands in state governors. In addition, the Minerals and Mining Act No 34, 1999, vests the authority over all minerals, including petroleum and solid minerals, in the Federal Government. However, given our well documented attitude to government business, it means that this vital sector can only move at government’s snail pace, denying it the entrepreneurial skills of the citizenry, who could be better motivated if they are allowed to own the mines and pay royalties and taxes to government.
Sadly, our mining sector is replete with illegal activities, with very little revenues accruing to government. There is also serious environmental degradation at most mining sites. The sector is wholly under-regulated, making it an “all-comers” affair. Those currently in charge either do not understand the potentials of the sector or are too satisfied with their salaries to bother about the task assigned to them. This is the reality which we hope the president understands and is ready to deal with.
As a first step, the regulatory powers of the National Mining Corporation must be restored. The agency must be properly staffed and funded to make it effective. From now on, the mining sector must be run as a business compatible with global best practice. New funding from the private sector, including direct foreign investments, must be encouraged to flow in, while the sector is properly managed to sustain new investments and interest in the sector.
Government may have to review the present land laws as they affect the mining sector with a view to removing impediments that may hamper investments. Here, government must be ready for the hard decisions, and the federal legislature must be ready to be a partner in progress.
The high unemployment figures indicate a need to address the problems in this sector promptly, because the mining of solid minerals has the capacity to generate jobs. Nigerians know of the Jos tin mines and the Enugu coal mines which are now largely moribund. The government should get all the data it needs to fully harness these resources, to address the current revenue shortfalls and grow the economy.
In the interim, illegal miners must be stopped. Government must show a resolve to identify and deal with them. The present regulatory framework is ineffective and should be discarded. A new approach must be found, complete with adequate personnel and empowerment to ensure a reverse of the present poor state of affairs in the sector.
The task of reversing the rot in this sector is a big one, but it is not insurmountable. Given the right attitude, the government can change this sad story and develop our abundant mineral resources for the much-needed national development and economic growth.
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