The Minister of Mines and Steel Development, Kayode Fayemi, has canvassed an urgent review of the country’s laws to allow states play more prominent roles in mining issues as a necessary step in making the mineral and mining sector more profitable.

The Minister stated this in his keynote address at the fifth annual lecture of the School of Management Technology, Federal University of Technology, Akure (FUTA), on Friday.

Fayemi, in the lecture titled “Mineral Resource Management for National Cohesion and Progress”, said the present situation where state governments were not adequately involved in the administration of mineral titles despite bearing the brunt of impact of resource exploitation, grossly affect growth of the sector.

He said the country needed to take a cue from her experience in the oil rich Niger Delta, where oil riches rather than cementing national cohesion, became a source of discord and a toxic bone of contention in the polity and where decades of oil exploitation have resulted in a legacy of ecological degradation, trans generational poverty and violence.

“The critical difference between resource-rich performers and resource-rich underperformers is simply resource management. We must now end this grossly self-destructive culture of governmental, economic and political irresponsibility.”, Fayemi said in a statement issued on Sunday.

Although the Minister said the Ministry of Mines and Steel Development has put in place some administrative measures to involve the states and ensure they take advantage of the resources in their domains, he maintained that a review of the laws giving the Federal government exclusive rights over mining must be effected in order for states to play more prominent roles.

Fayemi, however, assured that the President Muhammadu Buhari administration has the political will and the preparedness to do what is necessary in this regard,

The Minister also said that government needs to create about two million jobs annually in the next decade in order to effectively tackle the menace of unemployment among its teeming youths.

He added that mining would help in in the realisation of this massive job creation through the on going reforms in the sector.

“About 70% of Nigeria’s population is under 35 years of age. Unemployment levels are high, in some cases approaching 30% – 50% in certain age and education categories. It is critical that we create 2 million jobs per annum to help absorb such manpower over the coming decade; mining can be an important part of the solution.

Speaking further Fayemi said: “The constitution ordains the exclusive jurisdictional hegemony of the federal government over mining matters. The responsibility for licensing and regulating mining operations resides solely in the federal sphere. Accordingly, the very architecture of resource governance resulted in tensions between the federal government, particularly the Federal Ministry of Mines and Steel Development, state governments and communities and became the main hindrance to the development of the mining sector.

“The structure of the sector was designed to relegate state governments, and offered no incentives to the states and local governments to support the growth of the industry. They have no direct access to royalties and taxes and thus, are excluded from optimally sharing revenue from the mining of resources in their respective jurisdictions.

“One consequence of these ills has been the low investment in the sector largely as a reaction to the systemic hostility towards private mining operators by states. These problems are connected to larger contentious subjects such as the proper location of fiscal domain and governmental jurisdiction in a federal system, resource rights and subsidiarity.

“ These issues are valid, and we recognize that we cannot truly achieve sustainable growth without addressing them. This grossly limits the capacity of states to boost their internally generated revenue.

“There is a broad consensus that this arrangement requires reform. A key objective would see the transfer of mines and minerals from the exclusive legislative list and therefore exclusive federal jurisdiction to the concurrent legislative list where states can exercise greater jurisdiction than is presently the case.

“In the long term, fundamental legal, legislative and constitutional reforms are required to fix these problems. These long-term solutions are in our roadmap and we will activate them at the appropriate time. However, in the immediate term, we have sought to leverage available administrative mechanisms that can instantly defuse the tension between the federal government and states, pending the enactment and institutionalization of more sustainable solutions.

“Since exclusive federal jurisdiction and the lack of transparency and accountability in the sector have caused disaffection between the federal government and states and communities, we have taken practical steps to address these two concerns. We have established two key oversight bodies mandated to hold our ministry accountable to following through with the provisions of the Roadmap – the Mining Implementation Strategy Team (MIST) and the National Council on Mining and Mineral Resources Development (NCMMRD). State Governments are represented on the MIST and every state commissioner in charge of the mining sector in the respective states, is a member of the NCMMRD.

The Minister stated that the NCMMRD’s inaugural summit, held two months ago, took some critical decisions to deepen cooperation between federal and state authorities in the mining sector.

According to him, “The participants agreed, among other things to forge synergy among federal, state governments and local government areas “through the instrumentality of Minerals Resources and Environmental Management Committee (MIREMCO) as provided for by Section 19 of Nigerian Minerals and Mining Act, 2007; as well as a synergy between the Ministry of Mines and Steel Development and the state governments to improve operational collaboration and enhance communication for effective execution of the roadmap for the growth and development of the mining industry.”

The minister who echoed opinions of some experts in the sector maintained that partnership between the federal, state, and local governments with regard to the mining sector would go a long way in breaking down existing barriers to the sector’s development and unlock its profit potential.

Saying that the ministry was exploring feasible administrative models that will involve states in the process of issuance of consent for the granting of mineral titles, the Minister said the establishment of  a forum of state commissioners responsible for mineral resources development to constantly engage the federal government on crosscutting areas in mining activities, would address some gray areas.

Fayemi also revealed that in line with the ministry’s aim of improving beneficial participation of state governments in the mining sector, approval have been secured for state governments to be beneficiaries of thirteen percent (13%) derivation from mining revenue exploited in their respective states. This , he said, was in addition to “building the capacity of state governments to actively participate in mining enterprise in their states through Special Purpose Vehicles and Joint Ventures with private sector players”.

“To stem the illegal trading of minerals, the ministry has registered over thirty Mineral Buying Centers, and enacted the Revenue and Reporting Compliance Agreement with the Nigeria Customs Service, which has improved the policing of mineral exports.

“Our first successful assignment in our reform agenda was the release of a collaboratively formulated roadmap for the mining sector that was the product of exhaustive and inclusive deliberations involving representatives of every stakeholder group in the sector, subjected to a rigorous feedback/validation cycle including parleys with state governments and other industry stakeholders and only after broad-based consultation approved by the Federal Executive Council.

“The wide-ranging participatory process of the framework’s development accounts for its broad acceptance. We now have an industry-wide consensus that provides a pathway for the sustainable turnaround and growth of the mining and metals sector, over the short, medium, and long term.”

Source: https://www.businessdayonline.com/fayemi-canvasses-removal-mining-exclusive-concurrent-legislative-list/

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Smart I hope NASS listens to him. I know a good number northern states would love this, if not all of them. This on top of 13% derivation would be very nice.

It is critical that we create 2 million jobs per annum to help absorb such manpower over the coming decade; 

Are u guys anywhere close to this number per year. That's a tall order but it's possible.

Hmm..can this pull through?
I also implore the federal government to look into the possibility of each state generating their own power supply,and paying tax to the federal account.


Who is with me on this..?

All noise! We are applauding already Mr Paper Tiger!

Buhari is not coming back in 2019 anyway.

For this to fly and enjoy maximum support, they must be prepared to decentralise d oil n gas sector and cut down that centralised control currently being exploited by the FG. If mining is removed from d exclusive list without taking crude oil drilling along, there's no telling what will become of the Niger Delta.

irepnaija4eva:
Hmm..can this pull through?
I also implore the federal government to look into the possibility of each state generating their own power supply,and paying tax to the federal account.


Who is with me on this..?

nobody

freeze001:
For this to fly and enjoy maximum support, they must be prepared to decentralise d oil n gas sector and cut down that centralised control currently being exploited by the FG. If mining is removed from d exclusive list without taking cude oil drilling along. , there's no telling what will become of the Niger Delta.

Which is precisely why it will never happen. If there's one thing large parts of the Nigerian elite (and in particular the northern portion) won't tolerate, that is losing access to the Niger Delta's oil rents. Just consider that the same northerners who stand to gain the most from the abolition of the Land Use Act - since they have the most land - are willing to keep it in place forever, even to the detriment of their own rural populace, if the alternative is "resource control". So many of Nigeria's problems can be laid at the door of the massive oil rents which politicians cynically use religion and tribe to fight over.

freeze001:
For this to fly and enjoy maximum support, they must be prepared to decentralise d oil n gas sector and cut down that centralised control currently being exploited by the FG. If mining is removed from d exclusive list without taking cude oil drilling along. , there's no telling what will become of the Niger Delta.

Well the constitution says oil and gas are included under minerals. It would be foul of them to try an exclude it from concurrent list. The oil and gas being in concurrent list wouldn't change much. The ND states benefit too much to hurt the goose that lays golden eggs. Then allocation is staying put since nobody in government wants and end to it.

1999 constitution Second Schedule Legislative Powers Exclusive Legislative List

39. Mines and minerals, including oil fields, oil mining, geological surveys and natural gas.

Blue3k:
Smart I hope NASS listens to him. I know a good number northern states would love this, if not all of them. This on top of 13% derivation would be very nice.

The northerners will only love it if they can continue to treat oil revenues differently, but even they know that would probably lead to all-out warfare in the ND if Buhari's government were foolish enough to try such a thing. Given the choice between

Are u guys anywhere close to this number per year. That's a tall order but it's possible.

It isn't possible from mining alone. As resource-rich as South Africa is, they have never managed such a feat, while even more resource-rich Australia has only 25 million people in total, most of whom have nothing to do with mining. The only way Nigeria's millions of unemployed will ever find meaningful work is through massive industrialization, and that will require vast sums of FDI the country is nowhere close to being able to attract. In addition, it doesn't help matters that Nigerians continue to churn out vast numbers of new children to join the ranks of the already unemployed "youths", so massive industrialization without serious population control is also destined to fail.

Lol hmm

omohayek:

The northerners will only love it if they can continue to treat oil revenues differently, but even they know that would probably lead to all-out warfare in the ND if Buhari's government were foolish enough to try such a thing. Given the choice between



It isn't possible from mining alone. As resource-rich as South Africa is, they have never managed such a feat, while even more resource-rich Australia has only 25 million people in total, most of whom have nothing to do with mining. The only way Nigeria's millions of unemployed will ever find meaningful work is through massive industrialization, and that will require vast sums of FDI the country is nowhere close to being able to attract. In addition, it doesn't help matters that Nigerians continue to churn out vast numbers of new children to join the ranks of the already unemployed "youths", so massive industrialization without serious population control is also destined to fail.

The oil rents wouldn't stop from what I can see. The allocation firmly stuck in constitution for every tier of government. The only thing that changes is percentages historically. All this would change is how much states regulate mineral activities. The Land use act I can't fathom why they are spitting their face keeping that law from Obassanjo's coup. It would be pure paranoia that have anyone spite their face.

Agree on both point two. I just meant in general not just mining. It would be impossible unless they don't plan in using time saving machines. Lol you know I'm all about industrialization. I just see mining and manufacturing as nice. Example being the potential integrated aluminium industry I think is possible If the FDI was present.

Blue3k:


The oil rents would stop from what I can see. The allocation firmly stuck in constitution for every tier of government. The only thing that changes is percentages from time to time. The Land use act I can't fathom why they are spitting their face keeping that law from Obassanjo's coup.

The northerners have openly said why they want to keep the Land Use Act: because they fear that getting rid of it will lead to "resource control through the back door". See the following:

The senators had been sharply divided along geopolitical lines on Tuesday, following push by northern senators to reject the proposed amendment to the Land Use Act.

It was gathered on Wednesday that the northern caucus in the Senate moved against the passage of the amendment on Tuesday night when they orchestrated information that passing the Land Use Act amendment would give rise to resource control through the back door.

Some of the lawmakers said the northern senators were able to frustrate the Land Use amendment clause by instilling the fear of resource control in others.

“What happened was that senators from the North, who had made up their mind to frustrate the amendment bill, sent words round that passing the amendment amounts to approving resource control. That scared senators from the Middle-Belt who had earlier promised to vote alongside their southern colleagues,” a senator had said.

If Nigerian politicians really governed in the best interests of their electorates, it would be harder for them to behave this way, as the Land Use Act is a huge part of why so many northern and middle-belt farmers remain desperately poor. Unfortunately, the primary interest of Nigeria's political elites is self-enrichment, and helping subsistence farmers to gain access to credit markets is not such a great means of making millions of dollars in a few years, while getting bigger federal allocations is.

Agree on both point two. I just mean in general not just mining. It would be impossible unless they don't plan in using time saving machines. Lol you know I'm all about industrialization. I just see mining and manufacturing as nice. Example being the potential integrated aluminium industry I think is possible If the FDI was present.

It's a nice dream, but the only way it will happen is under radically different leadership than what Nigeria has now or is likely to in the future. It would require somebody with the economic and financial knowledge of an El-Rufai or a Fashola in the presidency, but that's not likely to happen while the likes of Atiku, Buhari and even Jonathan are still dreaming of going to Aso Rock in 2019.

Mr.Fayemi?

I wonder if more states will take advantage of the Special Purpose Vehicles and Joint Ventures. Only Ondo has from for bitumen mining. Also queen dies the minister plan to put the natural resource development fund to use?

I don't get it.

this will work well if Nigeria is restructured and states have full access to their natural resources. this will enable healthy competition and rapid development.
first time I will hear sense from Buhari's cabinet.

I hope that includes petroleum resources

Usual noise.

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BruncleZuma:
I don't get it.

Essentially the rights he doesn't want natural resources and mining to be exclusively in control of Federal government. This why he wants both states and federal government to share control by putting item in concurrent list.

careytommy7:
I hope that includes petroleum resources

It should since petroleum is included under mining and natural resources in constitution.

1999 constitution Second Schedule Legislative Powers Exclusive Legislative List 

39. Mines and minerals, including oil fields, oil mining, geological surveys and natural gas.

I no understand nigeria matter again

Blue3k:


Essentially the rights he doesn't want natural resources and mining to be exclusively in control of Federal government. This why he wants both states and federal government to share control by putting item in concurrent list.

Blue, you know that's a Herculean task especially asking it from the federal level.

He should just come out and say let us practice true federalism and be done with.

For this to fly and enjoy maximum support, they must be prepared to decentralise d oil n gas sector and cut down that centralised control currently being exploited by the FG.

When i hear mining, the only thing i think of is AFonja skull � mining

who is going to read all this epistle?

One of most reasonable things I have heard from an official of this govt, they should also remove more items on exclusive lists, its clear the centre can't manage everything.

Media Stories.....


Atiku2019

mr talk talk no action. what happened to the so called nickel discovered. makes no diff is its taken

irepnaija4eva:
Hmm..can this pull through?
I also implore the federal government to look into the possibility of each state generating their own power supply,and paying tax to the federal account.


Who is with me on this..?

I support this, the exclusive list thing is part of what should be restructured about Nigeria, the responsibilites on FG is too much and they have clearly shown they lack capacity to meet up with it.

BruncleZuma:


Blue, you know that's a Herculean task especially asking it from the federal level.

He should just come out and say let us practice true federalism and be done with.

Shouting true federalism is a platitude in my opinion. The have to be specific to know how exactly to alter text or delete to achieve that goal. Next like I mentioned before to everyone the allocation system is already in place constitutionally. As good as it is would take more amendments actually.

This why any little change takes an amendment from land use to copyright.