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Business News of Wednesday, 9 August 2023

Source: www.nairametrics.com

Mining: Miners Association complains State Governors attempting to overregulate sector

Mining site Mining site

The Miners Association of Nigeria (MAN) revealed that it is ready to work with the Tinubu administration to set up a blueprint for its contributions to a mining regime that will support the economic diversification agenda in pragmatic terms.

This was disclosed in a conference by its President, Mr. Dele Ayanleke, said in Abuja, warning on the issue of the state government’s interference in mining activities.

They expressed concerns that some new governors have started issuing executive orders, either banning mining activities or attempting to regulate the sector.

State Governors interferences

The association said that so many legacies challenging the issue of state governments usurping the functions of constitutionally recognized mining industry regulators started gaining momentum recently.

MAN added it would like to make a clarion call to the government on the need to come up with the agenda for its administration on the solid minerals sector, Ayankele noted that:

“On our part as a body of investors and operators, we shall reach out to the new administration soon with a blueprint of our contributions to a mining regime that will support the economic diversification agenda in pragmatic terms,”
FG Partnership and Overreaching Governors

The Mining lobby group also noted that as the umbrella body of operators and investors in the sector, it has never been in support of illegal mining operations under any guise.

They added that the association was ready to partner with the Federal Ministry of Mines and Steel Development and other relevant stakeholders to ensure a sanitized mining environment, and also expressed concern that some new governors have started issuing executive orders, either banning mining activities or attempting to regulate the sector.

They said the states are Ebonyi, Osun, Enugu, Cross River, and Taraba among others, noting:

“Taraba state government went as far as setting up a Task Force on illegal mining and deforestation with full authority to arrest, summarily prosecute and sentence anyone found culpable under its laws.
“We believe and conviction that the issue of illegality in the system must be appraised and confronted as a whole.
“A situation where a group of stakeholders is being stigmatized as the perpetrators of illegality by the holders of coercive machinery of state is unacceptable.
“Drawing from the above, Taraba State Government, or any other state and local governments for that matter, does not have the competence to determine the legality of any operator.
“Such competence resides with the ministry or any of its agencies, saddled with the various regulatory functions,” 
Exclusive List
Ayanleke said that section 44(3) of the 1999 constitution, as amended, and section 1(1) of the Mining Act 2007, place the ownership of mineral resources and mining regulations in Exclusive Legislative List, urging that the constitution was made to address the socioeconomic and environmental concerns of the lower tiers of government, he said:

“The Federal Government, through its appropriate agencies, is saddled with the oversight responsibility on any mining and minerals related issues; including, but not limited to mining titles administration.
“It is on this note that we hereby appeal to the Federal Government to call state governments to order by honouring their oath to defend and uphold the constitution of the nation.
“This is to engender an atmosphere of mining best practices so that local investors can contribute their quotas to the economic development of the country and open windows for foreign investments.
The MAN president said that the importance of the meeting was not to vilify or wage war against any state government, but to draw attention to a critical governance impediment militating against the solid minerals sector as a veritable option in the government’s economic diversification agenda, adding:

“Nigeria cannot afford to help other nations develop their industries through mass exportation of our unprocessed solid minerals, while our citizens wallow in poverty.

“It is time our government takes a cue from the initiative of our founding fathers.

“Our founding fathers invited technologies that turned our agricultural resources into huge industrial development with attendant wealth creation in the post-independence First Republic.

In case you missed it

Nairametrics reported recently that the Nigerian Government said the activities of illegal artisanal miners in Nigeria’s mining industry are responsible for huge revenue losses. 

Permanent Secretary, Ministry of Mines and Steel Development, Dr Mary Ogbe disclosed this last week during the inauguration of the new National Executive Council of the Miners Association of Nigeria (MAN) in Abuja. 

Illegal Mining

Dr Ogbe noted that such practice has added to the unemployment rate in the country, and hindered development, she said: 

“I seize this opportunity to draw your attention to the disheartening practices of some members of your association who interfere with the mandates of the ministry. 

“Some of your members prefer to  indulge in illegal mining activities, instead of being partners in progress to develop the sector. 

“This attitude has hindered the sustainable development of the sector and constituted huge revenue losses. 

“I urge the leadership of your association to advise its members to shun illegal mining activities.”