The House of Representatives has begun consideration of a invoice that might reshape relations between Nigeria’s mining firms and host communities, with stakeholders sharply divided on its potential influence.
The laws, sponsored by Sunday Dekeri (APC, Edo), handed second studying in July 2024.
It seeks to create a fee that may shield the rights of communities the place stable minerals are mined, and guarantee they profit immediately from the assets extracted from their lands.
The invoice got here beneath evaluate at a public listening to of the Committee on Stable Minerals Improvement on Thursday, with group leaders strongly backing its passage whereas some trade voices raised issues about its overlap with present legal guidelines.
On the listening to, representatives of mining host communities described the initiative as lengthy overdue.
Delivering an in depth memorandum, Redzie Jugo of the Federation of Nigeria Mining Host Communities instructed lawmakers that for too lengthy, mining host communities had been handled as “sacrifice zones,” left in poverty and environmental degradation regardless of being the supply of immense nationwide wealth.
“Minerals communities should not be handled as sacrifice zones, however as companions and stakeholders in Nigeria’s growth,” Mr Jugo declared.
He defined that the proposed fee, if correctly designed and led by representatives of host communities themselves, would assure fairer outcomes.
In line with him, the framework ought to be certain that mining communities are adequately represented in decision-making, {that a} fair proportion of mineral wealth is reinvested regionally, whereas growth tasks are tailor-made to pressing social, environmental, and financial wants.
Mr Jugo harassed that the invoice goes past monetary obligations, because it symbolises the dignity and justice lengthy denied to host communities.
He praised the committee for what he known as a “groundbreaking” initiative and warranted lawmakers of the Federation’s full assist. He added that mining host communities are able to work as companions with authorities and buyers to make sure the sector’s development doesn’t come on the expense of their livelihoods and atmosphere.
However, Teslim Jimoh, a mining marketing consultant with Dangote Industries Ltd, mentioned whereas the invoice is effectively intentioned, a few of its provisions may complicate Nigeria’s mining panorama if not rigorously aligned with present legal guidelines.
He defined that the Minerals and Mining Act already defines the federal authorities as the only real custodian of mineral assets and offers for host group obligations by floor rents and group growth agreements.
He mentioned, ”This invoice can truly kill funding rights. It’s in conflict with the Minerals and Mining Act which has specified the obligations of the buyers to the group.
“The group doesn’t personal the minerals. It’s the federal authorities. The floor land is what belongs to the group.”
In line with him, these mechanisms, although usually poorly enforced, stay the authorized basis of engagement between mining buyers and communities.
Mr Jimoh warned that introducing new obligations akin to obligatory fairness possession and profit-sharing for host communities, as contained within the invoice, might discourage funding.
He added that many mining firms already battle with regulatory hurdles and excessive operational prices, and that any further burden may drive buyers away.
As a substitute, he really helpful that the federal government strengthen enforcement of present group growth agreements, which by regulation should be signed and renewed each 5 years earlier than mining can start.
Committee Chairperson Gaza Gbefwi, nevertheless, harassed that the Home stays dedicated to placing the welfare of host communities first.
He famous that weak enforcement of group growth agreements had left mining areas underdeveloped, whilst firms continued to revenue from their assets.
He drew parallels with the South-south agitation that led to grease sector reforms, insisting that Nigeria should keep away from repeating errors within the mining sector.
In line with him, the fee envisioned by the invoice may grow to be a automobile for justice, fairness, and shared prosperity if correctly designed.
Mr Gbefwi assured stakeholders that the committee would work carefully with the Ministry of Stable Minerals and trade operators to handle gray areas and harmonise the invoice with present legal guidelines.
He mentioned lawmakers wouldn’t assist any laws that undermines funding, however equally wouldn’t enable communities to stay impoverished within the midst of wealth.
Historic background
Nigeria’s mining sector was as soon as a cornerstone of the financial system, with tin, columbite, and coal from Plateau and Enugu driving exports and offering 1000’s of jobs.
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Nevertheless, a long time of neglect, weak regulation, and the shift to grease revenues left mining host communities deserted.
It’s in opposition to this historical past that lawmakers and communities are pushing for a authorized framework that ensures mining host communities not stay on the margins of Nigeria’s useful resource wealth.
