Extractive Sector Reform, Mining to be expunged from the Exclusive List

Mr. Kayode Fayemi, the Nigeria’s Minister of Mines and Steel Development, has joined Nigeria’s civil society organizations, and the mining host communities in their demand for the states to have major control over the solid minerals deposit in the state.

At the Federal University of Technology, Akure (FUTA), Ondo State fifth annual lecture, Mr. Fayemi asked the Nigerian state to remove mining from the exclusive list to concurrent list. He argued, when this happens, it will create all the necessary mechanisms for the states to play more prominent roles in mining exploration in Nigeria.

One of the key reforms in the extractive sector will be to address the legislation that has constituted an impediment to robust extractive sector development in Nigeria, which has over the years denied the states opportunity to actively participate in the sector.

As we push for extractive sector overhaul, the federating states involvement in the administration of mineral titles becomes most fundamental.  The state bears the brunt impact of resource exploitation, and if not allowed to actively participate will grossly affect growth of the extractive sector.

By November 27, 2017, Mr. Muda Yussuf, the Director-General, Lagos Chamber of Commerce, complementing Mr. Fayemi, appealed to the National Assembly to review the law to allow mining to be removed from exclusive list to concurrent list.

He argued, at the moment, the royalty from mining goes to the Federal Government and if that continues, states will not generate the needed revenue from mining. And, domiciling miming in the concurrent list will give state opportunity for active participation and revenue generation.

Besides addressing the legislation, the federal government is putting in place policies that will address illegal mining. And this it will do through bringing artisans and informal miners under one umbrella.

As the state pushes for legislation that will address the bottleneck in the mining sector, we also ask that the legislation must make provisions for mining revenues accountability. And we consider the accountability aspect the most central.