Nigerian Banks raise N1.7trn through e-Offering in Recapitalisation Exercise

Environmental Degradation: Minister allays fears of States Government over Mining Activities

The Minister of Solid Minerals Development, Dele Alake, says the Ministry is addressing the fears of States about Environmental Degradation by ensuring that Mining Companies comply with stipulated Standards.

Alake stated this at the Closing of the 9th Nigeria Mining Week on Wednesday in Abuja.

The Minister stated that there were Departments responsible for overseeing the Operations of the Operators.

He said that the Departments have the veto to make sure that the Operators comply with Environmental Standards and Regulations.

Alake added that the move was aimed at addressing Reports of Subnational interference involving overregulation of the Sector and Multiple Taxes imposed by State Governments, among other Issues.

“This Issue came up at the Chief Executives Roundtable on Tuesday. We have been engaging the Sub-National Authorities, which are not necessarily States alone but Local Governments as well.

“Some Local Governments also claim Ownership of the Land and then get into dispute with Operators, so I have been engaging with these Governments,” he explained.

He said that, in addition to the move, he encouraged State Governments to apply for Mining Licenses to give them a sense of belonging and participation.

According to the Minister, Findings reveal that Sub-Nationals have grievances about possessing Mineral Resources in their Areas but do have access to them.

He said that the move was easing tensions in States, with infractions by Mining Companies being reported to the Ministry for appropriate action.

The Minister urged Mining Stakeholders to think outside the box and introduce Innovations and Initiatives to address their challenges, stating that concerted efforts were required to develop the Sector.

Alake further said that during Engagements with Chief Executive Officers of Mining Companies, a suggestion was made for the Government to establish a Solid Minerals Bank.

“I told them why don`t you think outside the box, why don`t you bend a little bit from a conventional perspective, and why can`t the Operators come together and establish their own Bank that will service themselves?

“If you wait for Government to establish the Bank, automatically Government will control it, and it will now be subject to Political Influence, and the Structure may not endure beyond the Government that established it,“ he said.

He expressed confidence that the Mining Week stimulated Intellectual Engagements, the Exchange of Ideas, and provided a Platform to explore Opportunities aimed at developing the Sector.

The Theme for the Mining Week is ‘From the Inside Out: Building the Mining Sector to be the Cornerstone of the Economy.’ 

Credit NAN: Texts excluding Headline

Solid Minerals Sector contributes ₦1.137trn to Government's Purse from 2007 to 2023

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for transparency and accountability in the Mining Sector to ensure the growth of the Industry and justice for Host Communities.

The Executive Secretary of the organisation, Orji Ogbonnaya Orji, made the call at the ninth Nigeria Mining Week on Tuesday in Abuja.

Ogbonnaya noted that a robust Regulatory Frameworks and effective Inter-Agency Collaboration were critical for building a transparent, accountable, and resilient Mining Sector that drives Economic Growth.

He said that the Federal Government should introduce a comprehensive Executive Bill on Solid Minerals Sector Reforms, aimed at addressing gaps in the 2007 Solid Minerals Act.

He listed other Measures to include enhancing Data transparency for Informed Decision-Making; encouraging Private Sector Participation through targeted Reforms; and investing in Infrastructure and Local Capacity Development.

“By addressing these priorities, the Mining Industry can play a Transformative Role in boosting Nigeria’s Revenue Base, reducing Unemployment, and attracting Foreign Direct Investment, “ he said.

He said that the Mining Sector plays a Critical Role in fostering Sustainable Development, generating Employment, and promoting Inclusive Growth as part of Nigeria’s Economic Diversification Strategy.

According to Ogbonnaya, the findings from NEITI’s recently released in the 2023 Solid Minerals Audit Report underscores the Sector’s potential and its incremental progress.

“Over the 16 Audit Cycles spanning 2007 to 2023, the Solid Minerals Sector has contributed a cumulative ₦1.137trn (approximately $3.86bn) in direct payments to Government Revenues.

“Notably, Government Receipts rose from ₦7.59bn in 2007 to ₦341.27bn in 2022—a 44-fold increase, highlighting the Sector’s Growth Trajectory and Reporting Compliance.

“In 2023, Nigeria’s Solid Minerals Production reached an impressive 95.07 million tonnes, generating ₦9.01bn in Royalties.

“Export Volumes also rose to 4.32 million metric tonnes, valued at ₦117.29bn, signaling the Sector’s expanding footprint in International Markets, “ he said.

He, however, said that in spite these Achievements, the Sector’s contribution to the Gross Domestic Product remains modest.

“In 2022, it accounted for ₦1.66trn—or 0.83 per cent—of Nigeria’s GDP of ₦202.36trn. This improved slightly to ₦1.76trn—or 0.75 per cent—in 2023.

“These figures reflect untapped Opportunities that, if harnessed, could transform the Sector into a cornerstone of Nigeria’s Economic Diversification Strategy, “ he said.

He said that the Mining Week provides an opportunity for Collective Stakeholder Engagement aimed at advancing the growth of the Sector, which could create a Legacy of Economic Transformation, Sustainable Development, and shared prosperity for Nigeria.

Credit NAN: Texts excluding Headline