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Solid Minerals Devt: Host communities demand 5% derivation formula

Solid Minerals Devt: Host communities demand 5% derivation formula

By Gabriel Ewepu

ABUJA- ON the heels of 13 per cent derivation allocation paid to States having solid mining activities, host mining communities under the auspices of the Federation of Nigeria Host Communities, demanded a separate five per cent that would fast-track development in host communities and mitigate impact of mining activities.

The National Co-Chair, FNHC, Habibu Wushishi, made the demand during a press conference following the amendment of the Mining Act by the National Assembly.

On the amendment of the Mining Act, Wushishi said there has been a demand which points to Section 72, Subsection 2d of the Constitution, with the provision of exploitation of human resources in any form whatsoever for any reasons other than for the good of the host community.

He also said that part of the Constitution would positively impact the lives of the people in the host communities, and added that such a measure would ensure a standard set for associations in order to get rid of phantom groups that indulge in criminal activities to claim what they are not to receive the five per cent derivation.

He also spoke on the need for the amendment of the Mining Act on clear terms of the Community Development Agreements based on judicious and accountable use of funds meant for host communities’ development.

Meanwhile, he (Wushishi) demanded adequate security and welfare of mining host communities following the attacks suffered by mining host communities, whereby they are made to leave the communities and the criminals freely carry out illegal mining.

He also said in the Minerals and Mining Act that would be amended there is need for the expansion of Environmental Impact Assessment, where it will be known as Environmental and Social Impact Assessment.

He added that there is a need for the inclusion of Civil Society Organizations and Mining Host Communities in the State Mineral Resources and Environmental Management Committee, MIREMCO, Regulation of Artisanal and Small-scale Mining.

Therefore, the need to separate regulatory and administrative functions of the Ministry of Solid Mineral Development, and other amendments.

He said: “We insist that the proposed amendments to the Act must better serve the interests of all stakeholders, particularly mining host communities, promote sustainable development in the mining sector and contribute to the socioeconomic advancement of our nation.

“We recommend the inclusion of the provision of a five per cent for mining host communities, separate from the 13 per cent allocation to the state, recognizing their integral role in mineral resource extraction and the need for equitable benefit sharing.”

Also speaking was the Chairman, House of Representatives Committee on Solid Minerals, Hon Jonathan Gaza, which Gaza also emphasized that the five per cent derivative funds for the host communities is imperative.

“We are proposing, it is still a proposal, it has not been passed into law by Mr. President. It hasn’t been accepted by Mr. President or it has not even been, we haven’t gotten concurrence yet from the Senate, but we are proposing five of whatever is gotten for the host community”, he said.

Meanwhile, the lawmaker disclosed that there are over 2,000 mining licenses and the irregularities in the mining industry is alarming, however he said that the Mines Inspectorate and environmental agency within the Ministry should support the effort of the mining marshals.

Earlier, the Executive Director, Global Rights Nigeria, Abiodun Baiyewu, called on the Tinubu-led administration to adequately fund the Ministry of Solid Minerals Development.

According to Baiyewu, the Ministry lacks the manpower or finance to tackle the many challenges observed in mining host communities.

“With the current effort of the ministry talking about the security challenges in host and other mining communities, their efforts would be inconsequential, if the ministry lacks the manpower or finance to tackle the many challenges observed in mining host communities. While the ministry sent them out to work, sometimes their duties are diverted due to poor or lack of funds”

“Essential foundations had been laid in the constitution in section 14, B and C and Section 17, 2C that says that the primary essence of government is to ensure the welfare and security of citizens, noting that the rights of citizens that the exploitation of any resource in a community should be for the benefit of the community.”

On the 13 per cent derivation she said, “So the 13 per cent derivation goes to the States and it also recommends further breakdown to the local government areas, so far of the 13 per cent, it was only recent in Nigeria that the 13 per cent started to go to the States.

“So far not a single State has given the account of how they utilize the 13 per cent but our work with the communities, we have not seen the single effect in any community.

“We don’t have enough mining Marshalls, first the act allows community members to mine with specifications and quantity, but a larger proportion are under regulated, the Ministry is grossly under-funded, and they can’t afford the parameters of regulations.

“They are also looking for investment and their thirst for investment outweighs their thirst for regulation, one of the things that the federation has asked for is they also separate that power from the Ministry, if you are going to do administrative work do administrative and if regulations do regulations but also remember that 80 per cent of mining is artisanal.”