As the country continues to grapple with declining revenue, experts have pointed out that the mining sector can help bridge the gap, OLASUNKANMI AKINLOTAN writes
Nigeria is often referred to as the giant of Africa. This is not only because of its vast human resources, being the largest Black nation in the world with a population of over 200 million people. The country is also known for its richness in natural resources, which sets it apart from many other countries.
Despite its abundance of natural resources, the country has been plagued by revenue shortages, extreme poverty, and high inflation. Unfortunately, poverty is most prevalent among communities warehousing these natural resources.
The conditions of the host communities are worsened by the activities of illegal miners of these mineral resources, who are mainly foreigners, who repatriate the proceeds of their illegal activities to the homelands.
Despite its great potential, the mining & quarrying sector contributed only 8.32 per cent to the overall GDP in the third quarter of 2023, higher than the contributions recorded in the 2022 third quarter at 7.32 per cent, according to the National Bureau of Statistics.
This has been giving the Minister of Solid Minerals Development, Dele Alake, since he assumed office. In November 2023, the minister revoked the operating licenses of 1,633 mining title holders, for failure to pay annual service due to the government’s coffer.
Alake disclosed this during a press conference in Abuja, stating that the move was aimed at sanitising the sector and freeing up space for new investors who will live up to expectations.
Also expressing his frustration, the minister, while appearing before the House of Representatives committee on solid minerals to defend the ministry’s 2024 budget estimate, fingered “powerful Nigerians” as being behind illegal mining in the country.
Alake also put the conservative amount of minerals deposited in the country at over $700bn. but He lamented, “If we are given that amount of money, I can tell you that what the ministry will contribute will outweigh other ministries, including what we are deriving from oil.
“We can return trillions to the coffers of this country as revenue if we are given such a budget as proposed.”
The Economic and Financial Crimes Commission arrested 13 Chinese nationals last month in Ilorin, Kwara State, for allegedly indulging in unlawful mining activities.
Also, the Nigeria Security and Civil Defence Corps apprehended at least 21 suspected illegal miners in Cross River State in May 2023.
The suspects were apprehended by NSCDC personnel in cooperation with the Federal Ministry of Mines and Steel Development in the Utanga village of the Obanliku Local Government Area of the state.
The challenges confronting the Federal Ministry of Mines and Steel Development have continually hampered the development of the country, as the government continues to struggle with revenue shortfall.
Worried by those challenges, a group identified as Think Tank, comprising different professionals led by the former Managing Director of Krestal Laurel Limited, Dideolu Falobi, was formed with the motive of proffering solutions.
The group noted that there are three forms of mineral resources in Nigeria namely; metallic minerals, non-metallic and Energy minerals.
According to the group, metallic minerals in Nigeria include; iron ore, gold, tin, niobium-tantalum, lead-zinc, manganese, copper, tungsten, titanium, nickel, zirconium, and chromium (molybdenum, silver, tungsten, and bismuth).
The non-metallic minerals are; barite, gypsum, phosphate, talc, salt, bentonite, clays, kaolin, zircon, marble, mica, tourmaline, beryl, kaolin, glass sand, and gemstones. Industrial rocks are limestone, shale, granite, dolerite, sand, and laterite.
The group also gave the third mineral resources as; energy minerals: which also have coal, bitumen/tar sand, and uranium.
In a compendium of its communiqué, the group observed that foreigners were in charge of many mining sites in the country, citing Iwajowa Local Government Area of Oyo State.
The group further stated that illegal artisanal miners in Nigeria mined over 80 per cent of the natural resources without making any form of remittance to the government.
The professionals stressed that the same illegality in the mining sector had also been perpetrated by unknown persons in six local government areas of Osun State.
Think Tank also claimed that the involvement of some traditional rulers in organised crime gave credence and cover to the illegal miners against the Nigerian state.
Having discovered over 40 different types of solid mineral resources spread across 450 locations in the country but with little or no economic benefits to Nigeria, the body of professionals came up with advisory guidelines, which it claimed could lift Nigeria from the menace of corruption in the mining sector.
The Thin Tank called on the government to get more serious about the situation and hand over the gold mines to trusted local and international organisations through a transparent process.
“The Federal Government needs to get more serious about this situation and roll out an expression of interest to recover the gold assets in these mines through transparent national and international bidding. The recovered gold can be put in a secured vault,” the group stated.
It also advocated a national mining company, which should be created to own the assets and be listed on the gold stock exchange in London, the USA, and Hong Kong.
It further said, “Gold refineries must be established to refine some of the gold from time to time to make ornaments and jewellery for sale locally and internationally. This same process can be applied to over 36 other minerals available in Nigeria in commercial quantities but currently exploited by artisanal or illegal miners.
“Government should industrialise the sector by supporting it with more mechanised and advanced mining technology. This would lead to the reduction of unemployment within the country especially within the mining localities. The local miners are knowledgeable, skilled, and organised. All they need is motivation from either the organised corporate sector or people-oriented investors.”
The Think Tank has requested better collaboration between the State and Federal Governments. They have stressed that the central government must provide exploration licenses to states that possess natural minerals. This will enable the effective harmonisation of artisanal miners into cooperative societies.
It suggested, “There should be a declaration of a state of emergency in this sector as most of the precious minerals are being mined illegally and sold every day without returns to the government.
“Empowerment of the local government areas to become major ‘empowerers’ in these mining sites will ease the tension of insurgents and burden of exploitation by some faceless foreigners. Using representative fractions, the Local tier should exercise higher authority over fiscal reality.
“There must be political willpower and readiness from the security operatives to combat the mess of natural resources exploitation in Nigeria; remedial measures should be put in place by the regulatory agency or ministry mandating mining companies, to put in place, measures to remediate the environment that has been negatively impacted by mining exploration activities. Mining activities leave host communities environmentally devastated. Hence, it became mandatory for them to restore the mined sites to their original topography.”
According to the group, mining companies whose activities posed a health challenge to the people within the community should be mandated to provide health facilities to those communities.
“And where host communities/villages share proximity location with mineral mining locations, for health reasons, such communities should be relocated far from mining locations to prevent health hazards to children and others.
“Mining operations/activities generate fine dust and soot that are dangerous to humans. Mining companies should be mandated to provide basic primary health facilities to host communities. A dispensary, managed by a local matron, will be ideal in a mining community.
“Government, ministry, or any other regulatory agency, must create a unit to supervise remedial work to ‘heal’ the environment of local communities that have been devastated by mining operations, with a view to managing the environment, and post-mining operations situation. The villagers must be aware and properly oriented to hold the miners accountable for all forms of land degradation that might have occurred in the process of mining operations,” the Think Tank suggested.
The group also insisted that there was a need to break down the value chain in the mining sector through participative roles that allow the private and the public sector to synergise.
“Part of the ways to improve what the government is doing is PPP (Public Private Partnership). Considering this private participation, there is a need to break down the value chain, and the participatory roles expected from the private sector, this step of PPP could stop and stabilise the theft currently experienced in the mining industry.
“The Nigerian Customs Service must rise to the occasion in their responsibilities to curb the excesses of illegal exportation of these resources out of Nigeria which evidently goes through the border post of Nigeria; The 13 per cent derivative approach given to the oil producing states should be applicable to the mining host states.
“The same 13 per cent derivative should be allocated to the mining host states and an Environmental impact assessment, health risk analysis, and other safety procedures must be adopted to ensure residents of these mining locations are free of health endemics,” it concluded.
Aside from the issues of mining in the country, the group also delved into the menace of corruption, which has been identified as a bane to the country’s development.’’
The Think Tank called corruption a cankerworm in society that has the potential to hinder national growth and development and emphasized the urgent need to address the issue holistically and effectively.
The group held that to effectively address corruption, it was important to delve into the intricate web of societal norms that perpetually trigger unethical behaviour.
It added that in the fight against corruption, it was crucial to focus on transforming behaviours and fostering a culture of integrity and accountability.
The group emphasised, “Governments, religious bodies, civil societies, individuals, and other stakeholders need to work together to fight against corruption. To effectively tackle the problem, it is essential to build a strong legal framework and adopt robust anti-corruption policies.”
According to the Think Tank, there is a need to strengthen the rule of law, ensure transparency and accountability, and create a conducive environment for citizens to speak out.
The group noted, “Efforts must be made to increase public awareness and education on the consequences of corruption, as well as to reduce opportunities for corruption by utilising technology.”
It posited that though corruption may not be wiped off completely, it could be drastically reduced.
“Office holders in all sectors should be held to account and civics should be taught at different levels of the education sector,” Think Tank stated.
To survive the precarious situation of the country, the Think Tank insisted that everyone should work together to systematically uproot corruption.
