Nasarawa State Governor Abdullahi Sule has called for an urgent need for institutional reforms to address the mounting concern over exploitation in Nigeria’s solid minerals sector.
Speaking at a public policy dialogue organized by the House of Representatives Committee on Solid Minerals, Governor Sule highlighted the disparity between the earnings of non-Nigerian operators and the compensation received by local communities.
Governor Sule expressed dismay over the situation, citing an example where a community in Nasarawa received a mere N700 million in compensation, significantly lower than the potential earnings from minerals like lithium, which can reach up to $76,000 per metric ton. He stressed the importance of policies that prioritize the interests of Nigerians to avoid further exploitation.
The Chairman of the House Committee on Solid Minerals, Jonathan Gaza, outlined proposed amendments to the Nigerian Minerals and Mining Act aimed at addressing these issues.
The amendments include allocating five percent of total mineral revenue to host communities and establishing a Mines Inspection and Environmental Agency for enhanced oversight.
In his remarks, Deputy Speaker Benjamin Kalu underscored the untapped potential of Nigeria’s vast mineral resources and the need to diversify the economy away from oil dependency.
He stated the ongoing efforts, such as the 2016-2025 Mining Industry Development Roadmap, which aims to increase the sector’s GDP contribution to three percent by 2025.
Despite boasting over 40 commercially viable minerals, Nigeria’s mining sector currently contributes only 0.3 percent to the Gross Domestic Product (GDP).
However, initiatives like the Segilola Gold Project in Osun State demonstrate progress, attracting investment and injecting millions of dollars into the economy.
