A coalition of key players in Nigeria’s minerals and mining sector, known as the Forum of Concerned Stakeholders, has expressed deep concern over the closure of legal mining sites across various states in the country.
The coalition jointly represented by Akinade Olatunji president Nigerian Mining and Geosciences Society (NMGS), Dele Ayanleke national president, Miners Association of Nigeria (MAN), Janet Adeyemi, national president Women In Mining In Nigeria (WIMiN) and Umar Albarka Hassan, President Nigeria Society of Mining Engineers (NSME) among others alleged the shutdowns were carried out using law enforcement agencies and task forces that are not recognised by current industry regulations.
Speaking at a press conference in Abuja on Wednesday, Akinade Olatunji, the President of the Nigerian Mining and Geosciences Society (NMGS), conveyed the forum’s dissatisfaction with the situation in the mining industry. Olatunji noted that the closures have been especially frustrating for stakeholders who have complied with all legal requirements and completed the necessary steps to obtain their licenses.
He described these actions as unconstitutional and in direct conflict with the Nigerian Minerals and Mining Act of 2007, which grants the Federal Government exclusive ownership and control of mineral resources.
Olatunji attributed the situation to the persistent interference by state governments in mining operations within their jurisdictions, driven by their desire to assert control over natural resources.
“These interventions by sub-national entities not only complicate the business environment for investors but also introduce significant and unquantifiable risks that could hinder and sabotage the Federal Government’s vision for accelerated investment in the sector,” he remarked.
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The interference by state governments, according to Olatunji, includes the establishment of Ministries, Departments, and Agencies (MDAs) by these governments, which then require all legally licensed operators to register with them. Additionally, he cited instances where lawfully mined products were confiscated without justification, personnel were brutalized, and valuable equipment was vandalized or destroyed.
Olatunji also pointed out that state governments have been filing frivolous lawsuits against operators, leading to widespread confusion within the sector. He suggested that these issues stem partly from the ineffective establishment or functioning of the States Mineral Resources and Environmental Management Committees (MIREMCOs).
The forum has called for a decisive directive from the Minister of Solid Minerals Development to address the situation at the state level. They demand that all regulatory agencies and structures established by sub-national entities be declared illegal.
Furthermore, the forum urged the suspension of the recent increase in rates and charges for all mining activities, which was announced on July 5 without proper consultation.
They requested that the implementation of the new fees and royalty rates be paused until a panel of stakeholders and ministry officials can provide recommendations based on thorough analysis.
The forum also called for a review of the operational guidelines for Mining Marshalls, who are tasked with securing mining sites, to ensure better coordination with the Department of Mines Inspectorate and Mines Environmental Compliance.
Other demands include engaging stakeholders for consultations on reviewing the Mining Act, establishing a Mining Corporation, and participating in policy formulation. The forum also wants the Solid Minerals Development Fund to take over the management of the N2.5 billion currently held by the Bank of Industry, with the goal of providing low-interest loans to mining operators.
The forum is composed of various industry groups, including the NMGS, Miners Association of Nigeria, Women In Mining In Nigeria, Nigeria Society of Mining Engineers, Gemstones Miners and Marketers Association, ECOWAS Federation of Chambers of Mines, and the Association of Miners and Processors of Barite, among others.
