Nasarawa Governor Calls For Liberalisation Of Nigeria’s Mining Sector
Governor Abdullahi Sule of Nasarawa State has called for the liberalisation of the mining sector to attract investors and open up the abundant opportunities in the sector, as witnessed in the oil and gas sector.
Governor Sule made the call in Abuja while delivering a goodwill message at the 60th Nigerian Mining and Geosciences Society annual international conference and exhibition.
The Governor insisted that the only way Nigeria could make headway in mining is by undertaking a holistic liberalisation and modernisation to ensure sustainable growth.
He said that he contested for governor in 2019 because of his desire to ensure proper harnessing of the vast solid mineral resources of the state.
“When I became the Governor, two weeks later, the first place that I visited was the Ministry of Solid Minerals Development. I visited in order to understand how many licenses were given. As at that time, 416 licenses were awarded in Nasarawa State. Yet Nasarawa State Government was not getting one million naira as revenue in that area.
“I took the matter before the National Economic Council seeking to understand why Nasarawa is not getting anything in form of revenue despite this high number of mining licenses operating in the state.
“My background is not solid minerals but oil. I came with the 13 percent derivation mentality. I was asking, where is the 13 percent derivation for all these 416 licenses? That was where the problem started and that was when the game plan started,” he added.
With the focus then only on barite, tantalite precious metals, he said he sought to find out how to obtain a mining license and was dismayed to discover that all it took was a consent letter from the community.
“I said that will not work. That is why I urge you to help us in campaigning for the innovation, transformation we have to do that in the mining sector, because the wealth of Nigeria is not only in oil but also in mining. We must go beyond consent letter,” he stated.
The Governor said in order to address the obvious shortcoming, his administration introduced an executive order mandating any person carrying out mining activities at commercial level to process the minerals in the state.
“When we realized it was going to be tough to do that, in Nasarawa we introduced an executive order, stating that anybody mining in Nasarawa state, especially in commercial quantity, that person must also process in Nasarawa state. That was the beginning of our law. When we came up with that law, we came across a lot of opposition, but at the end of the day, Nasarawa state is now the home of many processing plants.”
He listed some of the companies to include the biggest lithium mining and processing plant in Nigeria recently commissioned by President Bola Ahmed Tinubu, with a bigger plant owned by Canmax to be commissioned in the next three months, as well as smaller companies in the area of tin mining and processing.
He pointed out that the steps his administration has taken to reposition the mining sector in Nasarawa State is similar to what China did to become a global player.
“This is what I discovered China did. It is not about the money. It is about the transfer of technology so that our people would be able to learn everything about mining. We must go beyond just talking about it.
“I’m not having it easy because there are big men in the country who are only interested in making quick money in mining. But the quick money is not going to help Nigeria. What is going to help Nigeria is the industrialisation of the mining sector,” he stated.
He said that even though he is still facing stiff challenge in the implementation of the executive order, he remains hopeful that with persistence, the state would continue to record successes.
In a welcome address, President, Nigerian Mining and Geosciences Society, Professor Akinade Olatunji said that the conference will fine tune innovative solutions to the challenges in the country’s mining sector.
