ROAD TO REDEMPTION
Joe Edet reckons the opening of the mining sector will stimulate economic development
Recently the federal government made public a policy shift allowing states’ participation in mining exploration and exploitation. The announcement by the Minister for Solid Minerals, Dr. Fayemi Kayode concerning investment right comes as a welcome relief. The inference is that states can now play complimentary role in revenue generation and equally stimulate economic growth in their respective territories. The seismic shift in crude oil pricing at the petroleum exchanges where producer nations are left at the whims and caprices of the consumer markets is a sublime notch for deep introspection. We are glad this has yielded this new thinking. Having struck the breaker index in our development stride, we are now forced to re-navigate our way back to what we have over the years neglected.
Nigeria as a nation is blessed with enormous deposits of immensely valuable minerals. Analyses show that every state, including the Federal Capital Territory, Abuja is endowed with mineral deposits.
Given the new agenda, it is now the prime responsibility of the National Assembly to liberalise the investment arena toward completely strengthening the states from the command structure in economic management. This will assist the states in appreciating the diversification policy in the non-oil sector of their economies. The erstwhile regime of states waiting cap-in-hand for the federal government to distribute funds from Abuja will become a thing of the past. The boon in economic transformation will lead to the revamping of moribund infrastructure rendered useless.
The new policy direction will help us to embrace the principles and values of true presidential democracy. And states governments will have capacity to galvanise growth, and generate employment for the ever-growing population.
Today we celebrate the Asian Tigers – Indonesia, Thailand, Singapore and Malaysia, without taking cognisance of their stress points in the process of re-inventing their societies. Elsewhere, Brazil, Russia, India and China have overshot Western permutations. Their achievements are what we aspire to attain in our match toward greatness.
While antagonists may have their reservation, it remains one decision that guarantees confidence and will earn Nigeria greater foreign direct investment. With good governance, whatever is viewed now as our present challenges remain veritable opportunities to invest.
There are short and long term benefits flowing from the opening up of the mining sector by the federal government. The pronouncement presents a politically credible pathway to redefining the political-economics of the federating states. Also of value is the fact that states can now enter into joint ventures with global players for exploration and value added services, while supporting local investors and allied industries.
In Cross River State through the visionary leadership of Prof. Ben Ayade a blueprint is already articulated toward leapfrogging the state in effectively driving its economy. The state government has created three ministries that will play a critical role in the sub-sector and has incorporated about five special purpose vehicles for this purpose. These ministries include Petroleum, Gas and Solid Minerals. These are the frontier ministries charged with the mandate of re-inventing the state’s economic fortunes in the mineral resources subsector. To drive home the Cross RiverRiver State’s determination, the special purpose vehicles are up and running, so as to give the would-be investors the needed assurance. It is to further guarantee that the period of laissez-faire is over, as government is vigorously promoting support toward creating conducive economic climate.
While thinking ahead (as if) preempting the federal government, the Cross River government has a well laid-out framework in this regard. It is a purposive realisation that in years to come mining is expected to be a key industry, attracting huge investments in terms of domestic and foreign participation.
Working on a lean budget, the Department of Mineral Resources (DMR) has been able to compile a comprehensive databank of the mineral mining industries in the state including the various mineral deposits and their commercial value. Through its supervision the state government has also incorporated its emblematic enterprises to participate in the emerging sector.
Conscious of the need of private sector participation, the DMR also has a vibrant template to harness their contributions vis-a-vis the revenue to be realised. More so, to ensure that regulatory standards envisaged for the industry are complied, the DMR has warned existing artisans and small scale miners against the potential negative impact and disadvantages which will play down on government development efforts and set targets.
With the new policy thrust, it is imperative for the government to cause an efficient and effective legal and regulatory framework for mineral resources management in the state to be enacted. Flowing from the above, the state government greenfield sites having been charted will allow the government to keep a close-watch on the existing companies, and contract freely and even auction mining leases.
As we poised for a post-crude oil economy, it is worthy to press for the de-classification of legislations on mineral resources by transferring these enactments to the concurrent list. When this is resolved, states will be disposed to effectively regulate the mining sector within their jurisdictions, as well as check the excesses of rogue miners. We commend the state and federal government on this new initiative.