From Kenneth Udeh, Abuja
The Senate on Thursday decried the meager contribution of the Solid Minerals sector to the nation’s GDP, job and infrastructural development due to the unabated activities of illegal mining companies in the country.
The Senate deliberating on a motion sponsored by Senator Osita Ngwu (Enugu West) recounted how Nigeria records loses in revenue as a result of illegal Mining firms extracting and illicitly export Gold and other minerals with Billions out the country without remitting a kobo to the coffers of the Government.
After due considerations the Senate directed its committee on Solid Minerals Development to investigate the extent and impact of illegal mining activities and the extent of complicity of both local and expatriate industry players.
The Senate also resolved to investigate the immediate and remote causes of the dwindling revenue derivable from solid minerals development in the country
The Senate further tasked the committee to review all the Bureau of Public Enterprises (BPE) privatization or commercialization programs of all mining and mineral resources related programs from the 1999 date. This was after Osita informed the Senate that the BPE has been selling and is on the verge of concluding the privatization and commercialization of all public funded facilities relating to the Nigerian Mining and mineral sector, in spite of the fact that none of its privatization programs has shown any concise beneficial impact to the mining Industry as it had severally pronounced.
Addressing his colleagues the Enugu West Senator in his motion titled “Comprehensively review the input and output values of the Nigerian mining industry in light of its central Role to Economic Diversification lamented how mining companies engage in exploration activities without the necessary approval from the statutory regulatory authorities.
The Chairman Senate Committee on Solid Minerals Development pointed out that virtually all economic development programmes and fiscal documents, ranging from the Vision 20-20-20 Report, the National Economic Empowerment Development Strategy, NEEDS, the 30-year infrastructure Master Plan Development Programme and the current Midterm National Development Plans, MTNDP (2021-2025/2026-2030) all identified the Nigerian Mining sector as central to economic diversification and social inclusion.
Despite the Federal government’s plan to diversify the economy from oil as its major source of income Osita said that the performance of the Solid Minerals sector to the gross domestic product, GDP of the economy has remained dismal due to several decades of policy incoherence and weak institutional dis-alignment.
He gave a statistical analysis of the scourge; “While quarrying dominates the total output of mining sector with almost 90% contribution and an increasing growth rate that is largely driven by products such as granite, gravel, marble and other construction materials in high demand within the Housing sector, the requisite benefits to the government are not significantly evident by way of royalties.
According to Osita the Nigeria Extractive Industries Transparency Initiative NEITI Solid Mineral Industry Report, 2020 indicates that the five year trend of solid minerals contribution to GDP from 2016 to 2020 has been inconsistent and fluctuating.
He said ; “while Nigeria gets less from the Sector, about 0.45% in 2020, other African countries enjoy a significant contribution from the sector to their GDP. For example, the sector contributes over 40% to the GDP of Botswana; and in Congo and South Africa, it is about 25% and 18% respectively.
Further concerns were expressed by Osita that despite the abundant mineral endowment of the country, their critical national importance and huge resources so far expended by the government, the contribution of the mineral sector has remained poor owing to the uncheckmated activities of illegal mining.
Adding his voice to the motion Senator Mohammed Muntari (Katsina South) bemoaned that most criminal elements depend on the natural resources. He added that they collaborate with locals and foreigners to carry out their nefarious acts.
Senator Victor Umeh (Anambra Central) complained that the returns given to the Government can’t be compared to what foreigners take away. He said; “It is regrettable that solid minerals deposits all over the country have not been properly harnessed due to illegal mining. When you go to Ebonyi, Zamfara you will see quantities all over the state but the revenue is not garnered by the Government. Royalties are insignificant compared to what foreigners take away from the State.
The amount stolen by the illegal Miners was made known by Senator Mohammed Onawo (Nasarawa South) in his contribution he said;”Nigeria is a place where foreigners come and mine at will. A ton of Gold is worth 1.5 million naira and we have tons taken out of the country without remitting a kobo to the Government. 1 gram of Gold is over 60 thousand naira.
Consequently the Senate mandated a review of the activities of the policy administrators, the policy executors, and the industry players at the policy formulation, policy execution, and the downstream, midstream, and upstream operations of the solid minerals sector.
Additionally the Senate mandated the BPE to immediately stop further sale of Nigerian Assets until the Senate concludes its investigation and the Senate also urged the security agencies to strengthen surveillance and security to forestall criminal mining.
The Senate thereafter mandated its committee on solid minerals development to report back its investigation within three weeks.