Nigerian Mining Sector

The Federal Government has given the Mineral Resources and Environmental Management Committee (MIREMCO) 90 days to improve its performance or face sanctions. The Minister of Solid Minerals Development, Dr Dele Alake, made the announcement at the 2024 Annual General Meeting (AGM) of MIREMCO Chairmen, expressing dissatisfaction with the committee’s execution of its mandate.

Dr Alake criticised MIREMCO for neglecting its statutory responsibilities, particularly its role as a mediator between subnational authorities, local communities, operators, and the federal government. He noted that the government relies on MIREMCO’s reports to assess operators’ compliance with environmental and other sectoral regulations but remains unimpressed with its efforts.

Solid Minerals

Citing Section 19, Sub-section 3g of the Nigeria Minerals and Mining Act (NMMA) 2007, the minister highlighted MIREMCO’s obligation to serve as a liaison among stakeholders in the solid minerals sector. He attributed the frequent interference by local governments, including unconstitutional shutdowns of mines, to MIREMCO’s failure to fully enforce the provisions of the Act.

Dr Alake emphasised that MIREMCO already includes subnational representation, with state governments nominating chairmen and five of the ten committee members. He urged the committee to make significant improvements within the stipulated timeframe, warning that failure to meet expectations would prompt federal intervention to ensure the effective management of mineral resources and environmental concerns.

In a related development, the Federal Government plans to establish six mineral centres across Nigeria’s geopolitical zones to enhance the mining sector. It has also introduced a policy requiring investors to include plans for local processing and value addition in their mining applications. This measure aims to prevent the extraction of raw minerals without value addition, foster local industry growth, and create employment opportunities.

The Nigeria Mining Cadastre Office (NMCO) has issued approximately 7,000 mining licences, but fewer than 1,000 mines are active. NMCO Director General Obadiah Nkom attributed the inactivity to funding constraints and inefficiencies in licence issuance and ownership regulations. Despite generating over ₦8 billion in revenue by October 2024, NMCO struggles with financial limitations that hinder its ability to effectively manage the sector.

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