The Guardian (Nigeria)

Federalism is the answer, after all ( 46)

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ICONTINUED ON PAGE 6 N the course of elucidatin­g why and how the practice of true federalism can which is firmly within the grips of the governors. It is worth recalling that unlift this country from its morass of underdevel­opment, this newspaper had EDITORIAL der the Land PAGE 18 Use Act, governors are the custodians of the land, held in trust focused on the mining sector, with a strong contention that it is best handled for the people of their state. It makes a lot of logic therefore that the states by the federating units producing the minerals. That need keeps surfacing, should be held responsibl­e for the minerals, not just in terms of exploitati­on as reflected in current activities of the Senate arm of the National Assembly and accountabi­lity, but also in terms of security. which would, in three days time begin a three- day public hearing on illegal If anything, the country’s experience in the oil sector ought to provide very mining and gold smuggling and the attendant losses of about $ 9 billion yearbig lessons, to the effect that the people are best put in charge of their rely to Nigeria. sources. Recall that over the past 40 or so years, cries of undue exploitati­on

A theme that is expected inevitably to ring out of deliberati­ons on the issue of people and their resources, as well as degradatio­n of the environmen­t have is how government can reverse the huge loss it is presently posting due to ildominate­d the public space in the oil producing regions; and even with derlegal mining activities. It will be interestin­g to know how effectivel­y the Fedivation funds being given the oil producing states, and institutio­ns like the eral Government has been protecting the mining reservoir, considerin­g that Ministry of Niger Delta and the Niger Delta Developmen­t Commission ( NDthe sites are scattered widely and deeply in the states, the topography of

DC) being set up, there is yet no deep or satisfacto­ry consolatio­n. The question then is whether or not Nigeria will be prepared to replicate the Niger Delta agitations in all the regions producing solid minerals. At the moment, the discussion is on gold. To be sure, it will extend to other minerals.

The coming Senate hearing is sequel to a motion by Abia North Senator and Chief Whip of the Senate, Orji Uzor Kalu. Former Nasarawa Governor and Chairman, Senate Committee on Solid Minerals, Mines, Steel Developmen­t and Metallurgy, Tanko Al- Makura, is expected to preside over the legislativ­e hearing in which the Senate would be expected to grill major government and non- government­al stakeholde­rs in the mining sector over the prevalence of clandestin­e activities of illegal miners.

According to a notice signed by AlMakura, the committee extended invitation­s to state governors; Central Bank of Nigeria; ministers of Mines and Steel Developmen­t; Finance and Budget; Mines and Steel Developmen­t; DGS/ CEOS of parastatal­s and agencies under the Ministry of Mines and Steel Developmen­t; Executive Secretary NEITI; Nigeria Labour Congress, Nigeria Immigratio­n, among others. The Senate action has been lingering. At its plenary last year, it had passed a resolution to investigat­e the losses from illegal mining activities.

In his motion, Kalu, former governor of Abia State, had disclosed that Nigeria lost an estimated $ 54 billion from 2012 to 2018 due to illegal smuggling of gold. He also said the country was losing about $ 9 billion yearly to illegal mining and gold exportatio­n. He lamented the activities of unlicensed miners and incessant smuggling of the solid minerals out of the country by middlemen given the huge revenue losses.

Kalu said gold mining operations in Nigeria was capable of providing no fewer than 250,000 jobs and over $ 500 million annually in royalties and taxes to the Federal Government. According to him, jobs and revenues accruing to the mining sector would further diversify the nation’s economy and improve its foreign exchange reserve. He said due to Nigeria’s current estimated gold reserves of over 200 million ounces, most of which have not been exploited, developing sustainabl­e programmes that would catalyse increased investment in the extraction and refining of gold sourced from mines in Nigeria, was vital.

Making reference to data obtained from the Ministry of Solid Minerals and Developmen­t, Kalu explained that there were gold deposits in the Federal Capital Territory Abuja, Abia, Bauchi, Cross River, Edo, Niger, Sokoto, Kebbi, Oyo, Kogi, Zamfara, Osun and Kaduna states. He argued that if the country conserves her gold reserves, and ensures effective exploitati­on, the accruing revenue would surpass that of oil and gas.

He drew the attention of the Senate to section 44 ( 3) of the Nigerian Minerals and Mining Law of 1999 which provides that ownership and control of all minerals in Nigeria is vested in the Federal Government, which is mandated to manage such natural resources in a manner as may be prescribed by the National Assembly.

From all indication­s, the Senate hearing looks set to be more of the same old story, given that the Senate has shown no indication of radicalisi­ng exploitati­on of solid minerals to reflect genuine federalism. Acting on Kalu’s motion, the Senate in its resolution­s mandated its Committee on Solid Minerals, Mines, Steel Developmen­t and Metallurgy to investigat­e the matter and report back to the Senate. That being so, its deliberati­on next week may be overtaken by events even before it commences.

Already, other matters scheduled for the three- day public hearing include bills on Nigerian Minerals Developmen­t Corporatio­n ( Establishm­ent) Bill 2021 ( SB. 505; Solid Minerals Producing Areas Developmen­t Commission ( Establishm­ent) Bill 2021 ( SB. 713); and Institute of Bitumen Management ( Establishm­ent) Bill 2021 ( SB. 663). These are all in preparatio­n for a repeat experience of the Niger Delta conundrum.

But it does not have to be so, if only the Senators look beyond their personal convenienc­e and the immediate gains for the country. Nigeria, in the long term, will benefit immensely and more peacefully when and if the states are allowed to control their solid mineral resources among others; and tend, within agreed formula, to the needs of the Federal Government at the centre. The issue of theft will be kept at a minimum, just as the people will be highly motivated to see the returns of their resources directly on their vicinity. That will, for once, be a sincere demonstrat­ion of the federal structure that the country has professed only theoretica­lly over many years.

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