By Nathaniel Zaccheaus and John Danjuma, Abuja
The Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector yesterday warned of potential threats to its future due to critical challenges that need urgent attention from the Federal Government.
The forum, led by the President of the Nigerian Mining and Geosciences Society (NMGS), Prof Olatunji Akinade, indicated while briefing reporters on the state of affairs in the Nigerian Mining sector at a press conference in Abuja.
He highlighted several pressing issues that could hinder the sector’s contribution to economic diversification.
The forum also alleged that governors’ interferences in the mining operations within their respective states discouraged investments.
Those in attendance were Dele Ayanleke (National President, Miners Association of Nigeria); Engr (Mrs) Janet Adeyemi (National President, Women in Mining in Nigeria), and Dr Umar Albarka Hassan, (President of Nigeria Society of Mining Engineers)
They also included Kelvin Oye (National President of the National Association of Chambers of Commerce, Industries, Mines and Agriculture), Adeniran Ajibade (President of Gemstones Miners and Marketers Association of Nigeria), and Alhaji Sani Shehu (Chairman of ECOWAS Federation of Chambers of Mines).
The rest were Patrick Odiegwu (Secretary-General, Association of Miners and Processors of Barite (AMAPOB)) and Seun Olatunji (Mining Thematic Lead, Lagos Chamber of Commerce and Industry).
*Accuse governors of discouraging investors through interference
Akinade, who spoke on behalf of the stakeholders, said the various regulations introduced by many state governments discouraged investments in the highly lucrative sector.
The President of the NMGS said the state government’s interference in mining operations runs contrary to the Constitution and the Nigerian Minerals and Mining Act of 2007.
He said both legislation grant exclusive control of mineral resources to the Federal Government.
He, however, lamented that many states have established their regulatory bodies.
Akinade said, “This has led to a chaotic environment, with mining sites being closed and equipment confiscated, all violating federal laws.
“The state interference has eroded investor confidence, and we are warning that the resulting risks could sabotage the federal government’s vision of accelerated investment in the sector.”
Akinade urged the Minister of Solid Minerals Development, Dr Dele Alake, to declare state-run regulatory agencies in the mining sector illegal, as their actions contradict federal laws.
He also lamented the recent increase in fees, rents, and royalties in the mineral resources sector, claiming it was implemented without proper consultation.
He argued that the steep hikes could force many operators out of business, particularly in the harsh economic climate. He called for a review of the new rates to ensure fairness.
He applauded Alake for concluding the Mineral Sector Support for Economic Diversification (MinDiver) Project in May.
He noted that initiatives like the National Geodata Center and the Nigerian Mineral Decision Support System have been pivotal for the sector’s growth.
Akinade criticised 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.
He, therefore, proposed several measures to address the sector’s challenges.
These included aligning the operations of the Mining Marshalls with existing federal departments, decentralising the approval of mineral titles and permits to improve efficiency, and calling for urgent reforms to prevent the sector’s decline.
He emphasised the stakeholders’ commitment to partner the government to ensure the success of Nigeria’s mining industry, which holds significant potential for economic diversification.
