Stakeholders in Nigeria’s mining sector have issued a stark warning to the Federal Government about escalating challenges that threaten the industry’s progress.
The Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector, led by Prof. Akinade Olatunji, acknowledged recent successes but highlighted critical issues that could derail economic diversification efforts.
This was made known during a press conference on the state of affairs in the Nigerian Mining sector on Wednesday in Abuja.
The forum applauded the Minister of Solid Minerals Development, for the closure of the Mineral Sector Support for Economic Diversification (MinDiver) Project, which concluded in May.
Prof. Olatunji noted that initiatives like the National Geodata Center and the Nigerian Mineral Decision Support System have been pivotal for the sector’s growth.
However, the Forum expressed concerns over state government interference in mining operations. Despite the Constitution and the Nigerian Minerals and Mining Act of 2007 granting exclusive control of mineral resources to the Federal Government, many states have established their own regulatory bodies.
This, according to stakeholders, has led to a chaotic environment, with mining sites being closed and equipment confiscated, all in violation of federal laws.
State interference has eroded investor confidence, with stakeholders warning that the resulting risks could sabotage the Federal Government’s vision for accelerated investment in the sector.
They urged the Minister to declare state-run regulatory agencies in the mining sector illegal, as their actions contravene federal laws.
Additionally, stakeholders criticized the ongoing review of the Mining Act, arguing that it lacks sufficient input from key industry players.
They 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.
Concerns were also raised about the recent increase in fees, rents, and royalties in the mineral resources sector, which stakeholders claim was implemented without proper consultation.
They argued that the steep hikes could force many operators out of business, particularly in the current harsh economic climate, and called for a review of the new rates to ensure fairness.
The Forum proposed several measures to address the sector’s challenges, including aligning the operations of the Mining Marshalls with existing federal departments and decentralizing the approval of mineral titles and permits to improve efficiency.
The letter, endorsed by key industry leaders, called for urgent reforms to prevent the sector’s decline. Stakeholders emphasized their commitment to partnering with the government to ensure the success of Nigeria’s mining industry, which holds significant potential for economic diversification. Without unified action from both federal and state governments, however, this potential may remain unrealized.
