A policy advocacy group, ‘Think Tank On Nigeria’, TTON, has made recommendations to the Federal Government, with specific emphasis on Nigeria’s mining sector, to address the challenges that bedevil this sector.
In its 19-points communique, TTON, identified the problems of workers in the mining sector and host communities. Also, the roles of investing organizations and their expected roles within the sector were identified.
TTON’s recommendations are expected to be a reference document for government to address the problems of workers, investors and host communities.
COMMUNIQUE NO – TTON/6/2022
BY “THINK TANK ON NIGERIA”, AN ONLINE POLICY
ADVOCACY PLATFORM
SUBJECT: THE MINING SECTOR AND NATIONAL
DEVELOPMENT
DATE: 25th January, 2023
PREAMBLE
The Think Tank on Nigeria(TTON) organization is a policy
advocacy platform with 286 members of various professions,
drawn from the geo-political zones of Nigeria, charged with
discussing Nigerian politics, as well as analysing political
candidates and policies. The goal is to proffer solutions to policies
and developmental challenges which the country might be faced
with, through diverse contributions of expertise in different fields,
which could be converted to veritable actions if adopted, to bring
needed positive changes.
THE DISCUSSION
This discussion was moderated by the Convener, Engr. Dideolu
Falobi. It examined the Mining Sector and its contribution to
Nigeria’s GDP. Despite the sector’s potential to increase the IGR
of the nation, it has remained depleted, underutilized, and
underproductive to the disadvantage of national development.
Rather, the sector has become tainted with consistent exploitation,
and unmitigated smuggling of these natural resources by
foreigners with the connivance of some unscrupulous indigenous
elements due to some induced filthy lucre to shut their conscience.
Nevertheless, this deliberation tried to proffer answers to the
following critical questions:
1) How can we increase the contribution of mining to the National
GDP?
2) Today, the labour force in the mining sector is largely informal,
under-trained, and underpaid among others. How can that be
changed?
3) On Funding, technology, Health, Safety, and Environmental
standards. Are we optimal?
4) Is the government doing enough? If not, are there ways in
which we can improve what the government is doing?
PREAMBLE
According to M. A. Olade in a work, titled “Solid Mineral
Deposits and Mining in Nigeria: A Sector in Transitional Change”
published in July 2019, posited that “In 2015, Nigeria’s solid
minerals and mining sector accounted for a paltry 0.3% of the
GDP which increased slightly to about 0.5% in 2018 whereas the
sector contributed only 0.02% of Nigeria’s total exports.
There has been some progress in Nigeria’s solid mineral sector in
the past few years due to the implementation of new policies, but
the change is still minuscule. Between 2010 and 2015, reports
indicated that the contribution of the sector to the GDP doubled
from $143 million to $290 million and to about $2 billion in 2018.
The increase in revenues can be attributed not to higher mineral
production as such, but mostly to more efficient revenue collection
mechanisms and the increased foreign investment through the
purchase of mineral titles.”
However, a 2021 study by KPMG on the Nigerian Mining Sector
attributed a major part of the contribution to quarrying activities
which comprise sand, gravel, and crushed rocks e.g., Limestone
(for producing cement). This may be indicative of an increase in
construction activities across the country as well as an increase in
the export of clinkers manufactured from Limestone.
M. A. Olade further predicated that Nigeria has often been
described as a country endowed with vast solid mineral resources
which include ferrous and base metals, energy minerals, and a
variety of industrial (non-metallic) minerals and rocks. He also
asserted that over 40 different types of solid minerals have been
discovered from approximately 450 locations, spread widely
across the country.
However, many of these occurrences can
justifiably be described as ‘mineral showings’ with little or no
economic potential.”
OBSERVATIONS
The participants observed as follows:
1) Solid Minerals in Nigeria are broadly classified into the :
a) Metallic minerals: – Iron ore, Gold, Tin, Niobium- Tantalum,
Lead-zinc, Manganese, Copper, Tungsten, Titanium, Nickel,
Zirconium, and Chromium (Molybdenum, Silver, Tungsten, and
Bismuth).
b) Non-metallic minerals (and rocks): – Barite, Gypsum,
Phosphate, Talc, Salt, Bentonite, Clays, Kaolin, Zircon, Marble,
Mica, Tourmaline, Beryl, Kaolin, Glass sand, Gemstones.
Industrial rocks are Limestone, Shale, Granite, Dolerite, Sand, and
Laterite.
c) Energy minerals: – Coal, Bitumen/Tar sand, and Uranium.
2) These mineral resources are exploited as follows:
a) There is a report that in Iwajowa LGA of Oyo State, the Mining
Sector is being run by foreigners from Guinea, Senegal, and Mali
to mention a few. There is an assertion that there is little or no
Government presence there. These unscrupulous elements mine
precious stones and travel to Thailand to sell off our collective
commonwealth. These foreigners not only cart away our
commonwealth, but they also cause other menaces like
impregnating our girls by enticing them with the proceeds of the
natural minerals.
b) The corruptive collaboration of Monarchs is a major bane
setting the industry back. Thereby emboldening these thieves to
mindlessly exploit the resources. They give exotic cars to the
Monarchs in return for tapping away our natural resources.
c) In the same vein, gold in Ijesaland, made up of six local
government areas in Osun State i.e Ilesha West, Ilesha East,
Atakumosa West, Atakumosa East, Oriade, and Obokun is being
exploited by some nameless individuals from China and other
countries with local collaborators according to reports.
d) These coordinated crimes have been in existence for a very
long-time from the reports gathered.
e) In Zamfara State, the illegal miners of gold, sell to ready buyers
who do not pay anything to the government and would take the
gold out of Nigeria. The Chinese are very popular on these sites
and they even buy up the residual sand from these sites and export
them to China raw to extract the over 60% gold that could not be
extracted by the artisanal miners locally.
3) Incoherent coordination of the Mining Sector by the Nigerian
Government:
a) Illegal artisanal miners in Nigeria mined over 80% of the
natural resources without remitting any tangible revenue to the
coffers of the Nigerian Government. A lot of efforts by the
Ministry saddled with the responsibility to plan, devise and
implement the national policies on Mines and Steel development
could not articulately manage the entrenched menace which
consequently led to the recent ban of all forms of illegal mining by
the government, but unfortunately, the government cannot enforce
the ban because they lack the willpower, adequate security
personnel, and requisite technology.
b) The choice of a lackadaisical attitude by the Nigerian
Government further emboldened the armed insurgents to illegally
protect the bushes where these heinous crimes are being perpetrated because their survival is dependent on the continuation
of these criminal activities.
c) Evidence abounds that gold today is sold for about N30,000.00
per gram and some of these sites produce 1kg per day which is
about N30million per day continuously for years.
KEY RESOLUTIONS/CONSENSUS/OUTCOME
1) 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.
2) The recovered gold can be put in a secured vault.
3) A national mining company should be created to own the assets
and be listed on the gold stock exchange in London, the USA, and
Hong Kong.
4) Gold refineries must be established to refine some of the gold
from time to time to make ornaments and jewelry for sale locally
and internationally.
5) 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.
6) Government should industrialize the sector by supporting it
with more mechanized 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 organized. All they need is motivation
from either the organized corporate sector or people-oriented
investors.
7) The Minister that will be appointed to man the Mines and Steel
Ministry must possess the requisite knowledge of the industry.
He / She, like other Ministers, must be ready to sign a performance contract that will spell out timelines to effectively
diversify the Nigerian economy from oil to mining.
8) There must be a seamless synergy between the State and
Federal Government. The Federal Government must give
exploration licenses to the States with the natural minerals; in
order to harmonize the artisanal miners properly into cooperative
societies.
9) 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 Government.
10) Empowerment of the Local Government Areas to become
major stakeholders in these mining sites will ease the tension of
insurgency and burden exploitation by some faceless foreigners.
Using representative fractions, the Local tier should exercise
higher authority over fiscal reality.
11) There must be political willpower and readiness from the
security operatives to combat the mess of natural resources
exploitation in Nigeria.
12) 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 its original
topography.
13) 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.
14) 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.
15) 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 postmining operations situation. The locals/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.
16) 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 stabilize the theft currently experienced in the
mining industry.
17) The Nigerian Customs Service must rise to the occasion of
their responsibilities to curb the excesses of illegal exportation of
these resources out of Nigeria which evidently goes through the
border post of Nigeria.
18) The 13% derivative approach given to the oil producing states
should be applicable to the mining host states. The same 13%
derivative should be allocated to the mining host states.
19) 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.
Endorsed by:
1. Engr. Dideolu Falobi, FNSE, FIoD – CONVENER
2. Umudu, Chika Michael
3. Engr. Jones Nwadike, FNSE, KSM
4. Engr Abdullahi Usman FNICE
5. Fasanu Adebayo Olutosin
6. Richard Oladotun Agbaje-McThomas
7. Oluwafemi FAMUREWA
8. Adebusuyi Tobiloba ADELEYE
9. Elder Délé Ògúnjùbéè JP.
10. Kofo Ajelabi
11. Dr. Adegboyega Ehinmowo
12. Adepoju Akinleye Caleb
13. Dr. Fasoranti Joseph
14. Engr Dare Olugbemi
15. Engr Anas SULEIMAN
16. Mr Osikoya Ambrose Olufemi
17. Olumide Adenekan MIET, MIAM.
18. Dr. ATANSUYI Nathaniel, FIIM, MNCS
19. Aderonke Lawal-Are
20. Mr. Onorakpene Eviosekwofa
21. Adekitan Isaac Adeyemi
22. Dr. Princess Ronke Ogunremi
23. Engr Busari Kamoru,FNSE
24. Prince Folagbade Kudehinbu
25. Sam ‘Femi Adetunji-Teniola
26. Engr Solomon Okogun
27. Berti Ozumba
28. Olatunji A. Ope
29. Joshua Oyeniran Ajewole; DPE
30. Ayo FANIMOKUN
31. Engr. Ayotunde Ogunnoiki, FNSE.
32. Gbenga Ehinola
33. Alhaji Olayemi Nasiru, FCA
34. Kunle Coker
35. Oni Oluwole
36. Mobolaji Olugbenga Oluwadunsin
37. Olufemi ESAN
38. Engr. John Okodi-Iyah
39. Engr. Oguara Rankins MNSE
40. Kola Adesina
41. Engr. Adesina Osinloye
42. Engr. Olusegun Afolabi
43. Osikoya Ambrose
44. Engr. Adeleke Bodunrin
45. Omosewa Arowolo, GMNSE
46. Jimoh D. Akogun
47. Alhaji Ibrahim M. Magaji
48. Prince Wale Odubote
49. Aare Ayodele Bankole
50. David Duru
51. Oke S.O.
52. Engr. Biodun Oyedepo, FNSE
53. Dr. Rasheed Salami
54. Engr. Dr. Omolola Adetona, FNSE, FNICE
55. Komolafe IOS
56. Oladipo Olayinka
57. Tunde Awobiyi, FNGE
58. Dr. Babatope Babalobi
59. Rafiu BALE
60. Jael Simon
61. Engr. David Adeyeye
62. Philip Adewunmi
63. Benjamin Ubido
64. Olatunji Ope
65. Tayo Magbagbeola
66. Engr. Oluwole Shodunke
67. Abiola Falayajo
68. Oluwaseun Babafemi
69. Engr. Adekunle Bello
70. Pastor Sunday Ojemoron (Engr.)
71. Agbeluyi ‘Sina Kingsley
72. Oluseye Ekun
73. Sir Gbenga Badejo FCA, KJW
74. Bashorun Olabode
75. Damisola Matti-Balogun
76. Lawal Olasunkan
77. Gbenga Ehinola
78. Engr. Solomon Okogun
79. Jessica Okoli.