Gabriel EWEPU

BUJA- The Solid Minerals sector in Nigeria is seen as one with huge potential in all ramifications, with President Muhammadu Buhari reiterating on the need to diversify the economy and revenue sources.

Solid minerals

Major stakeholders recently converged in Abuja, the nation’s capital to interact with the Minister of Solid Minerals, Dr. Kayode Fayemi, during which they agreed on some useful development strategies that will add value and grow the sector.

The Minister also confirmed that Nigeria is not seen as a mining destination, because of the perception investors have about Nigeria as an oil and gas producing nation and not solid minerals producing country.

The operators, who were basically chief executive officers and consultants of registered mining companies, emphasised the need for adequate funding of the sector, massive provision of infrastructure, and formulation of investor friendly policies. These, they said, will provide a conducive and enabling investment environment and effective operation in the sector.

The Executive Director, Corporate Affairs Relations, Eta Zuma Group, Amb. Joseph Ayalogu, said the sector needs a National Solid Minerals Development Bank, to ease financial burden of operators.

He added that the bank should be adequately funded and manned by professionals, to restore investors’ confidence in the sector, thereby making it more attractive and viable.

On the issue of reviving the Mining Inspectorate Department, stakeholders suggested that a trust fund should be set up from companies’ Profit Before Tax of 10 percent, which will be managed by the operators, even as government tackles the issue of double taxation.  They noted that Australia took a similar decision with companies’ profit before tax , which over the years have strengthened its minerals sector.

The Inspectorate Department functions are reconnaissance, exploration and mining to ensure compliance of the Act. In fixing this important department, experts also suggested that the department be overhauled to function effectively, while government provides funding, operation vehicles and helicopter for proper surveillance of mining sites.

They further sought the establishment of a mining police department in collaboration with the Nigerian Police, to check and address the menace of illegal miners and smugglers.

To this end, Fayemi was urged to collaborate with his Finance counterpart to fashion out new strategies to curb the illicit trade in the sector, by tightening security at the airports, seaports and land borders. He was also asked to work with the Ministry of Interior to address the issue of illegal migrants and over bloated number of expatriates in companies within the sector, thereby depriving Nigerians of job opportunities.

The minister was also advised to revamp cardinal companies of strategic economic importance like Ajaokuta Steel Complex, Alaja Steel Rolling Mill, Itakpe Iron Ore Mining Company, to boost growth and development.

Furthermore, operators urged government to consider establishing equipment hiring centres, through which they will have access to relevant equipment and plants for easy and safe mining operations, while also making available reliable geosciences data that will attract investors. This is in addition to having a functioning website.

They stressed the need for proper sensitisation of traditional and religious leaders, to create awareness on the dangers inherent in illicit trade of solid minerals, citing the Zamfara and Niger states lead poisoning incidence, which would have been minimised.