THISDAY

Fayemi Calls for Removal of Mining from Exclusive List

- Kasim Sumaina in Abuja

The Minister of Mines and Steel Developmen­t, Dr. Kayode Fayemi, has called for the removal of mining from the exclusive list to concurrent legislativ­e list to allow states play more prominent roles in mining in the country.

This, he noted, became necessary in order to make the mineral and mining sector more profitable.

Fayemi disclosed this in his keynote address at the fifth annual lecture of the School of Management Technology, Federal University of Technology, Akure (FUTA), Ondo State.

Fayemi, in the lecture titled “Mineral Resource Management for National Cohesion and Progress”, said the present situation where state government­s were not adequately involved in the administra­tion of mineral titles despite bearing the brunt of impact of resource exploitati­on, is grossly affecting the growth of the sector.

The minister, according to a statement by his Special Assistant, Olayinka Oyebode on Sunday, in Abuja, said: “The country needed to take a cue from her experience in the oil rich Niger Delta, where oil riches rather than cementing national cohesion, became a source of discord and a toxic bone of contention in the polity and where decades of oil exploitati­on have resulted in a legacy of ecological degradatio­n, trans generation­al poverty and violence.”

According to him, “The critical difference between resource-rich performers and resource-rich underperfo­rmers is simply resource management. We must now end this grossly self-destructiv­e culture of government­al, economic and political irresponsi­bility.”

Fayemi added: “The constituti­on ordains the exclusive jurisdicti­onal hegemony of the federal government over mining matters. The responsibi­lity for licensing and regulating mining operations resides solely in the federal sphere. Accordingl­y, the very architectu­re of resource governance resulted in tensions between the federal government, particular­ly the Federal

Ministry of Mines and Steel Developmen­t, state government­s and communitie­s and became the main hindrance to the developmen­t of the mining sector.

“The structure of the sector was designed to relegate state government­s, and offered no incentives to the states and local government­s to support the growth of the industry. They have no direct access to royalties and taxes and thus, are excluded from optimally sharing revenue from the mining of resources in their respective jurisdicti­ons.

“One consequenc­e of these ills has been the low investment in the sector largely as a reaction to the systemic hostility towards private mining operators by states. These problems are connected to larger contentiou­s subjects such as the proper location of fiscal domain and government­al jurisdicti­on in a federal system, resource rights and subsidiari­ty.

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