A Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector (FOCSONIMMS) has raised alarm over governors’ intervention on mining activities their states, noting that it will prevent new players from joining libralised sector.
The President of the Nigeria Mining and Geosciences Society (NMGS), Prof. Olatunji Akinade, while addressing a news conference in Abuja on Tuesday during its stakeholders’ forum said this was one thing making mining unattractive to many people important for nation-building into piloting it back after being abrasive by mismanaging leaders over the years.
It had in attendance notable personalities like Dele Ayanleke (National President, Miners Association of Nigeria), Engr. Among them were Janet Adeyemi (National President, Women in Mining in Nigeria); Dr. Umar Albarka Hassan (President, Nigeria Society of Mining Engineers); Hon Kelvin Dele Oye(National President,National Association Of Chambers Commerce Industries Mines And Agriculture ); Engr. Others are Adeniran Ajibade (President, Gemstones Miners and Marketers Association of Nigeria); Alhaji Sani Shehu (Chairman, ECOWAS Federation of Chambers of Mines); Patrick Odiegwu (Secretary General, Association of Miners and Processors Barites; AMAPOB)
Akinade noted that given that exclusive control of mineral resources to the federal government, various regulations introduced by state governments are discouraging investment in the highly lucrative mining sector. He explained that the interference by state governments contradicts the Constitution and the Nigerian Minerals and Mining Act of 2007.
He said the sector has been made chaotic by states establishing their own regulatory bodies, leading to a chaotic environment where mining sites are being shut down and equipment seized, all in violation of federal laws. This interference, he warned, is eroding investor confidence and poses significant risks to the federal government’s vision for accelerated investment in the sector.
He called on the Minister of Solid Minerals Development, Mr. Dele Alake, to declare state-run regulatory agencies in the mining sector illegal, arguing that their actions contravene federal laws. Akinade also criticised the recent increase in fees, rents, and royalties in the mineral resources sector, stating that these were implemented without proper consultation. He warned that these steep hikes could force many operators out of business, especially in the current harsh economic climate, and called for a review of the new rates to ensure fairness.
Akinade commended the closure of the Mineral Sector Support for Economic Diversification (MinDiver) Project in May and noted that initiatives like the National Geodata Center and the Nigerian Mineral Decision Support System have been pivotal for the sector’s growth.
In his view, the ongoing review of the Mining Act lacks sufficient input from key stakeholders in the industry. He warned that excluding key players could result in laws that fail to address the sector’s most pressing concerns, and he called for a return to the inclusive consultation processes that shaped the current legal framework.
In order to address the challenges bedeviling the sector, Akinade suggested several measures, including positioning Mining Marshalls with existing federal departments, decentralising the approval of mineral titles and permits to improve efficiency, and implementing urgent reforms to prevent the sector’s decline. He restated the stakeholders’ commitment to collaborate with the government for the success of Nigeria’s mining industry, which holds significant potential for broader economic gains.
