The House of Representatives Committee on Solid Minerals is proposing significant amendments to the Nigerian Minerals and Mining Act with the aim of addressing the informality of the sector and empowering host communities. During a Public Policy Dialogue held in Abuja, Hon. Jonathan Gaza, Chairman of the Committee, outlined the key provisions of the proposed legislation.
The proposed amendments include:
- Allocation of 5% of the revenue of all minerals mined to host communities (hostcom) to address the informality of the sector and prioritize community development and environmental protection.
- Establishment of a Solid Minerals Development Company, with 75% ownership allocated to the private sector and 25% to the Federation of Nigeria, to bridge the gap between federal and state governments and facilitate effective oversight of the sector.
- Empowerment of the Mineral Resources and Environmental Management Committee (MIREMCO) to enable joint oversight of the sector by federal and state governments.
- Creation of a Mines Inspection and Environmental Agency with offices in every state to provide improved oversight of mining activities and address security challenges.
During the dialogue, Deputy Speaker of the House of Representatives, Rep. Kalu, emphasized the importance of optimizing the promising prospects of Nigeria’s mining sector. He highlighted the need for a private-sector-led approach to unlock the true potential of the sector for economic growth, sustainable development, and shared prosperity.
Rep. Kalu expressed confidence in the proposed amendments to the Nigerian Minerals and Mining Act, stating that they represent a turning point for Nigeria’s mineral wealth. He underscored the need to diversify the economy, create jobs, and increase the sector’s contribution to GDP, noting progress already made towards these goals through projects like the Segilola Gold Project in Osun state.
Overall, the proposed amendments aim to formalize the solid minerals sector, empower host communities, and promote sustainable development while fostering collaboration between government and stakeholders in the private sector.
