Leasing arrangement: Stakeholders propose 10-year term, 10% benefits for host community

By Christiana Ekpa

Stakeholders yesterday canvassed for a 10% benefit or more for host communities to ensure they derive the economic benefits for solid minerals extraction in their environment where the mining activities take place.
The stakeholders are also proposing a 10 years renewable mining lease instead of the 25 years as captured in section 66 of the Solid Minerals Mining Act 2007.
These were some of the recommendations of various stakeholders who participated at the public hearing of repeal and enactment of a bill titled; “Nigeria Mineral Development Company Limited (Establishment) bill 2023 and Minerals and Mining” organised by the House of Representatives Committee on Solid Minerals chaired by Rep. Jonathan Gweffi Gaza (SDP, Nasarawa).
In his submission, Mr Tobias Lengs of RENEVLYN Development Initiative decried the health hazard, the environmental degradation and the negligence of the miners that pose a danger to host communities.
“We suggest an upward review of the extraction net value revenue that goes to the Community Development Association. 10% is suggested and this should be reviewed periodically”
“The duration of a Mining Lease is twenty-five years , and shall be renewable every twenty-four years as captured in section 66 of the Solid Minerals Act. The 25 years mining lease arrangement is too long and leaves room for operators to get away with impunity at huge cost to the nation. A 10-year mining lease is proposed instead to compel operators to be more responsive and accountable for their actions.”
He further suggested that , “the Community Development Agreement should be flexible to allow the host community determine exactly what they want to use the funds for without tying it to particularise line items. Their needs may change depending on situation hence the agreement details should not be open ended.
CSOs also complained about the enormous powers by the Minister which they suggested should be unbundled. The representative of Environmental Defenders Network (EDEN) stated this in their submission as well as the Nigerian Geological Survey Agency (NGSA).
“The Bill gives too much powers to the minister. Other ministries relevant to the subject including environment should be involved.”
On their part, Ms. Lumun Amanda Feese who represented Nigerian Economic Summit Group (NESG) said despite the enactment of modern legislation for the mining industry not much has been achieved economically.
“The mining sector’s impact on the economy remains suboptimal, hovering below 1 percent of GDP by 2015. In 2016, the government approved an industry roadmap aimed to enhance the sector’s role as an economic driver, targeting a 3 percent GDP contribution by 2025.
“To The NESG would like to commend the House Committee for initiating these bills to address the staggering decline of the mining sector. While both bills are noteworthy, the NESG emphasizes an urgent need for the Federal Government to instill the highest
standard of good governance in the mining industry. “