The Federal Government has issued a 90-day ultimatum to the Mineral Resources and Environmental Management Committee (MIREMCO) to improve its performance or face sanctions.
The Minister of Solid Minerals Development, Dr. Dele Alake, made the announcement during the 2024 Annual General Meeting (AGM) of MIREMCO Chairmen, citing dissatisfaction with the committee’s execution of its mandate.
Dr. Alake criticized MIREMCO for failing to fulfil its statutory responsibilities, which include acting as a mediator between subnational authorities, local communities, operators, and the federal government.
“The federal government is supposed to rely on your reports on the activities or inactivity of operators and whether they comply with environmental regulations and all other sundry regulations governing the sector. We are not impressed by the execution of that mandate, and we will not hesitate to wield the big stick if, after 90 days, the committee fails to turn a new leaf,” he said.
Legal obligations
The minister referred to Section 19, Sub-section 3g of the Nigeria Minerals and Mining Act (NMMA) 2007, which mandates MIREMCO to serve as a liaison between stakeholders in the solid minerals sector.
“If provisions of the act had been effected by MIREMCO, the spate of interference that we witness by the subnationals, in some instances, local governments shutting down Mines, making policy pronouncements that are outrightly unconstitutional, would have been minimal,” he stated.
Dr. Alake emphasized that MIREMCO’s structure already includes subnational representation, with chairmen and five members out of the ten-member committee nominated by state governments. Despite this, he charged the committee to demonstrate significant improvements within the given timeframe.
“Failure to meet the expectations of the federal government within 90 days will leave us with no option but to act appropriately to restore effective management of the nation’s mineral resources and its attendant environmental concerns,” he warned.
What you should know
The Federal Government has announced plans to establish six mineral centres across the six geopolitical zones of Nigeria as part of its effort to boost the mining sector.
- In addition to the establishment of the mineral centres, the government has developed a new policy aimed at ensuring Nigeria derives maximum value from the extraction of its mineral resources. Alake pointed out that in the past, investors have extracted raw minerals from Nigeria without adding any value, which has been a significant loss to the country’s economy.
- The new policy mandates that, moving forward, the government will not approve any mining applications unless investors provide a concrete plan for local processing and value addition. This policy is intended to promote the development of local industries, including technology, skills transfer, and employment opportunities.
- Obadiah Nkom, Nigeria Mining Cadastre Office (NMCO) Director General revealed that the office has issued around 7,000 mining licenses; however, fewer than 1,000 of these mines are active.
Nkom attributed this to various challenges, including funding constraints and the need for reforms in the issuance of mining license fees and the ownership of mining titles. T
Despite generating over N8 billion in revenue as of October 2024, NMCO continues to face significant financial limitations, which hinder its ability to efficiently manage the sector.