The Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector has denied making any inputs in the recent increase in fees, rents, and royalties in the mineral resources sector, claiming the hike in dues was implemented without proper consultation with stakeholders.
President of the Nigerian Mining and Geosciences Society, NMGS, Prof. Akinade Olatunji made this known who briefed newsmen on the state of affairs in the Nigerian Mining sector earlier today (Wednesday, August 21) in Abuja, argued that the steep hikes could force many operators out of business, particularly in the current harsh economic climate, and called for a review of the new rates to ensure fairness.
The forum applauded the Minister of Solid Minerals Development, Dr. Oladele Alake for the closure of the Mineral Sector Support for Economic Diversification (MinDiver) Project, which ended in May, noting that initiatives like the National Geodata Center and the Nigerian Mineral Decision Support System have been pivotal to the sector’s growth.
NMGS expressed concerns over State governments’ interference in mining operations, what with many many states establishing their regulatory bodies, despite the Constitution and the Nigerian Minerals and Mining Act of 2007 granting exclusive control of mineral resources to the Federal Government, noting that “this, according to many stakeholders, has led to a chaotic environment, with mining sites being closed and equipment confiscated, all in violation of federal laws.”
“They said state interference has eroded investor confidence, with stakeholders warning that the resulting risks could sabotage the Federal Government’s vision for accelerated investment in the sector,” the NMGS president stressed.
Prof Olatunji urged the Minister to declare state-run regulatory agencies in the mining sector illegal, as their actions contravene federal laws.
He criticized the review of the Mining Act, arguing that it lacks sufficient input from key industry players and warned that excluding stakeholders could lead to laws that fail to address the sector’s most pressing needs, calling for a return to the inclusive consultation processes that shaped the current legal framework.
According to Prof Olatunji, the Forum therefore proposed several measures to address the sector’s challenges, which includes aligning the operations of the Mining Marshalls with existing federal departments, decentralizing the approval of mineral titles and permits to improve efficiency and calling for urgent reforms to prevent the sector’s decline.
He, therefore, emphasized commitment to partner the government to ensure the success of Nigeria’s mining industry, which holds significant potential for economic diversification.
“Without unified action from both federal and state governments, however, this potential may remain unrealized”
