Stakeholders Lament Unwholesome Governors’ Interference in Mining Sector

•Say unconstitutional action discouraging investors

Sunday Aborisade in Abuja

The Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector, yesterday raised concerns over alleged governors’ unwholesome interferences in the mining operations within their respective states.

President, Nigeria Mining and Geosciences Society, Prof. Olatunji Akinade, raised the alarm at a news conference, attended by stakeholders in the sector yesterday in Abuja.

Those in attendance were, Dele Ayanleke (National President, Miners Association of Nigeria); Engr. Janet Adeyemi (National President, Women in Mining in Nigeria) and Dr. Umar Albarka Hassan, (President Nigeria Society of Mining Engineers)

They also included Hon. Kelvin Dele Oye (National President, National Association of Chambers of Commerce, Industries, Mines and Agriculture); Engr. Adeniran Ajibade (President Gemstones Miners and Marketers Association of Nigeria); and Alhaji Sani Shehu (Chairman, ECOWAS Federation of Chambers of Mines).

The rest were Patrick Odiegwu, (Secretary General, Association of Miners and Processors of Barite (AMAPOB) and Seun Olatunji of the Mining Thematic Lead, Lagos Chamber of Commerce and Industry).

Akinade, who read a speech, duly endorsed by the stakeholders, said various regulations introduced by many state governments were discouraging investments in the highly lucrative sector.

The President of the NMGS stressed that state governments’ interference in mining operations runs contrary to the Constitution and the Nigerian Minerals and Mining Act of 2007.

He said both legislations grant exclusive control of mineral resources to the federal government.

He, however, lamented that many states have established their regulatory bodies.

Akinade said, “This has led to a chaotic environment, with mining sites being closed and equipment confiscated, all in violation of federal laws.

“The state interference has eroded investor confidence and we are warning that the resulting risks could sabotage the federal government’s vision for accelerated investment in the sector,” he added.

Akinade, urged the Minister of Solid Minerals Development, Mr. Dele Alake, to declare state-run regulatory agencies in the mining sector illegal, as their actions contravene federal laws.

He also lamented the recent increase in fees, rents, and royalties in the mineral resources sector, claiming it was implemented without proper consultation.

He argued that the steep hikes could force many operators out of business, particularly in the current harsh economic climate, and called for a review of the new rates to ensure fairness.

He applauded Alake for the closure of the Mineral Sector Support for Economic Diversification (MinDiver) Project, which concluded in May.

He noted that the initiatives like the National Geodata Center and the Nigerian Mineral Decision Support System have been pivotal for the sector’s growth.

Akinade, criticised the review of the Mining Act, arguing that it lacks sufficient input from key industry players and warned that excluding stakeholders could lead to laws that fail to address the sector’s most pressing needs, calling for a return to the inclusive consultation processes that shaped the current legal framework.

He, therefore proposed several measures to address the sector’s challenges.

These included aligning the operations of the Mining Marshalls with existing federal departments, decentralising the approval of mineral titles and permits to improve efficiency, calling for urgent reforms to prevent the sector’s decline, among others.

He emphasised stakeholders’ commitment to partner government to ensure the success of Nigeria’s mining industry, which holds significant potential for economic diversification.