.. as Reps propose 5% total mining revenue for Hostcom

… foreigners benefiting more from Nigeria’s Solid Minerals -Gov Sule

By Gift ChapiOdekina

The Deputy Speaker of the House of Representatives, Hon. Benjamin Okezie Kalu on Monday stated that insecurity, inadequate infrastructure, and lack of skilled labour have continued to act as bottlenecks hampering the growth of Nigeria’s mining sector.

Kalu made the assertion while delivering his address at a Public Policy Dialogue on Nigeria’s Minerals and Mining Legislation in Abuja.

He said that the nation’s vast mineral resources have remained largely untapped, and undeservedly overshadowed by our too much reliance on oil.

Kalu said that despite boasting over 40 commercially viable minerals, the mining sector contributes a mere 0.3% to the country’s GDP, saying it is unacceptable. He therefore called all hands to be on deck to turn the tide.

Making reference to a Bill he co-sponsored with the Chairman, House of Representatives Committee on Solid Mineral, Hon. Jonathan Gbefwi titled Nigerian Minerals and Mining Act (Amendment) Bill as well as eight other mining bills, Kalu said that the bills when passed into law will represent a turning point for the nation’s mineral wealth.

The Deputy Speaker also noted that governments hold many of the levers to deal with the great challenges, adding however, that businesses have the innovation, technology, and talents to deliver the needed solutions.

Kalu also opined that the governing philosophy in the mining sector in Nigeria should henceforth be approached with a private-sector-led lens, stressing that it is through this crucial partnership that the true potential of Nigeria’s mining sector can be unlocked.

He said “This public policy dialogue is engineered to create the appropriate right of way for the necessary adjustments and policymaking creativity that is required to optimize the promising prospects of Nigeria’s mining sector. Today, I stand before you not only as Deputy Speaker of the House of Representatives but also as a co-sponsor of the HB.751: Nigerian Minerals and Mining Act (Amendment) Bill so ably sponsored by Hon. Jonathan Gbefwi. This legislation if passed will represent a turning point for our nation’s mineral wealth.

Also speaking at the event, the Nasarawa State Governor, Engr Abdullahi Sule also stated that people from other countries were benefiting more from Nigeria’s solid mineral resources than the indigene who get only peanuts from the sector.

According to Governor Sule, if government and other stakeholders are serious about the future of the economic situation of Nigeria, they must reform the solid mineral sector and come up with policies that benefit Nigerians.

He said: “One community in Nasarawa got some kind of compensation of a very small amount N700 million, they were so excited which was nothing compared to the time when lithium was running roughly about $76,000  per metric ton.

“If we are serious about the future of the economic situation of Nigeria we must reform what we call the solid mineral sector and if we must reform we must come up with policies and reform them where it has to benefit Nigerians if we didn’t do that we will just be joking.”

Also speaking,  the Chairman, House Committee Solid Minerals, Hon. Jonathan Gaza

said the Nigerian Minerals and Mining Act (Amendment) Bill being considered proposes 5% of the total revenue of all minerals mined to the host communities (hostcom).

He said the bill when passed will allow for establishment of Mines Inspection and Environmental Agency to provide improved deeper oversight of mining activities and bridge gap the between the federal and state governments to empower the Mineral Resources and Environmental Management Committee for effective and joint oversight.

“The establishment bill for a Solid Minerals Development Company allocates 75% ownership to the private sector and 25% to the federation of Nigeria. Community Development and the Environment are really prioritised in the bill. The Petroleum Industry Act (PIA) sets aside 3% of their annual operational expenditure to host communities.

“In the bill, we have set aside 5% of the revenue of all minerals mined to the host communities, and this is due to informality of the sector. We believe that it can be reviewed and improved through this programme,” he stated.