By Egbodo Queen
The House of Representatives Committee on Solid Minerals has suggested that five percent of the revenue from solid minerals should go to the host communities.
This was disclosed on Monday at a public policy dialogue on Nigeria’s minerals and mining legislation, organized by the committee at the National Assembly complex, Abuja. The chairman of the committee, Jonathan Gaza, stated this.
Gaza said the Nigerian Minerals and Mining Act (Amendment) Bill being considered would give five per cent of the total revenue of all minerals mined to the host communities.
He said when the bill is passed, it would allow for the establishment of a Mines Inspection and Environmental Agency to provide enhanced and effective oversight of mining activities and bridge the gap between the Federal and State Governments to empower the Mineral Resources and Environmental Management Committee for efficient and collaborative oversight.
He said, “The establishment bill for a Solid Minerals Development Company allocates 75 per cent ownership to the private sector and 25 per cent to the federation of Nigeria. Community Development and the Environment are prioritized in the bill. The Petroleum Industry Act sets aside three per cent of their annual operational expenditure for host communities.
“In the bill, we have set aside five per cent of the revenue for all minerals mined to the host communities, and this is due to the sensitivity of the sector. We believe that it can be reviewed and improved through this programme.”
Governor of Nasarawa State, Abdullahi Sule, who attended the session, said non-Nigerians working in the nation’s solid minerals sector were making huge profits, leaving the citizens with peanuts.
He called for institutional reforms to turn around the fortunes of the sector for the benefit of Nigerians.
Sule said, “One community in Nasarawa received some kind of payment of a very small amount of N700m. They were so excited but this was nothing compared to the time when lithium was selling for nearly about $76,000 per metric ton.
“If we are serious about the future of the economy of Nigeria, we must fix what we call the solid mineral sector and if we must fix it, we must come up with strategies and fix them to benefit Nigerians. If we don’t do that, we will just be joking.”
Earlier while declaring the consultation open, the Deputy Speaker, House of Representatives, Benjamin Kalu, said the bill, if passed, would mark a turning point for the nation’s mineral wealth, stressing that the nation’s vast mineral resources had remained largely untapped and unjustifiably neglected due to reliance on oil.
Kalu pointed out that the challenges of insecurity, inadequate infrastructure, and a lack of expertise had continued to hamper the development of the solid mineral sector, adding that the proposed amendment bill would address these issues.
“Despite boasting of over 40 commercially viable minerals, the mining sector contributes a mere 0.3 per cent to our Gross Domestic Product. Our call to duty today is to turn the tide. There are signs of a renewed vigour in our mining industry, fueled by a collective will to diversify our economy, create jobs, and unlock the immense potential that lies beneath our soil.
“The 2016-2025 Mining Industry Development Roadmap, aiming to increase the sector’s GDP contribution to three per cent by 2025, is already showing progress. Projects like the Segilola Gold Project in Osun State driven by a private-sector-led approach are injecting millions of dollars into our economy and attracting much-needed investment,” he stressed.