The Federation of Nigerian Mining Host Communities and its civil society partners have applauded the Nigerian Parliament over recent attempts by the House Committee on Solid Minerals to amend the Minerals and Mining Act of 2007, aimed at strengthening the legal and policy frameworks to ensure equitable distribution of benefits derived from the sector.
Previous to the current bill, Minerals and Mining (Repeal and Re-Enactment) 2023, the federation said it had on numerous occasions advocated for the Act to be amended, particularly to reflect the intent of Section 17(2)(d) of the Nigerian Constitution which provides that “the exploitation of human or natural resources in any form whatsoever, other than the good of the community, shall be prevented”; and Section 14(2)(b) and (c) of the constitution which states that the security and welfare of the people shall be the primary purpose of government, and that “the participation by the people in their government shall be ensured in accordance with the provisions of this Constitution”.
“In light of these constitutional provisions, at a public hearing, we and our civil society partners advocated for the following amendments, and are holding this press conference to reiterate our stance”, the Federation said in a statement.
The amendments it listed include:
- The security and welfare of mining host communities are critical and must be reflected throughout the amended Minerals and Mining Act. In particular, we called for:
- The expansion of Environmental Impact Assessments to Environmental and Social
Impact Assessments. In addition to this, we propose that the bill make a provision that compels artisanal and licensed operators to conduct and publish bi-yearly impact reports of their mining activities as a requirement for their continued mining operations with clear penalties for default. - Inclusion of Civil Society Organizations and Mining Host Communities in state MIREMCOs. The proposed Section 9 which seeks to amend Section 19 of the Principal Act should be amended to include a rotation of representatives of civil society organizations and mining host communities as members of the Mineral Resources and Environmental Management Committee (MIREMCO). This inclusion would foster greater transparency, accountability, and community participation in decision-making processes. In addition to having a representative of affected mining host communities and CSOs, at each sitting where issues that impact their communities are discussed as active participants in the process.
- Chairmanship of, and Acknowledgment of State Autonomy in MIREMCO. We commend the proposed amendment to Section 19(2)a of the Principal Act which gives the chairman of MIREMCO to the State Commissioner of Solid Minerals and the autonomy granted to state governments in MIREMCO is commendable, as it enables tailored approaches to address regional challenges and priorities within the mining sector. However, the problem of the funding of state MIREMCOs still exist and was not properly addressed in the proposed amendment. We therefore recommend that funding of state MIREMCOs should be housed in the Central Bank of Nigeria which is independent of the State and Federal arms of Government.
- Clarity and Specificity on the definition of the term “Community”. We also advocate that this term to be inclusive of affected communities.
- Clarity and specificity of the term ‘Community Development Associations’. The proposed Section 33 which seeks to amend Section 116 of the Principal Act should be amended to recognize that not all communities have an ‘organised’ existing community development association. As such, ‘association’ as stated in this subsection must be verified and approved by the state, with executive members elected by members of the community, to be regarded as legitimate stakeholders in the mining sector and authorised to receive the 5% derivative from mining. This measure would ensure that there is a standard set for these associations and to curb the issue of multiple associations claiming the right to receive the 5% derivative. Moreso, the law needs more clarity on what the Community Development Association is composed of, and what they would do with the funds/the formula for utilizing the funds and ensuring transparency.
It also said determining the leadership of the community with the authority to sign a CDA is a consideration that must be had, adding that some state governments should ensure host communities are active participants in the Environmental and Social Assessment process, and are equipped with access to the services of a lawyer, an environmental impact expert, and a non-profit organization able to advise them and vet agreements, to ensure their free, prior and informed consent before agreements are entered into.
- Community Development Agreements (CDAs). CDAs do not presently reflect environmental and social impact assessments or their recommendations. Free, prior, informed consent must also be sought with the full import of the EIA explained to the community before they agree on the terms of the CDA.
- Regulation of Artisanal and Small-Scale Mining. We commend the inclusion of specific provisions aimed at regulating the Artisanal and Small-Scale Mining Sector. More than 80% of solid mineral mining in Nigeria is artisanal in nature. Effective regulation is essential to promoting responsible mining practices and safeguarding the environment and the rights of mining host communities. We therefore recommend the development of artisanal mining regulation code in this regard.
- Separation of regulatory and administrative functions of the ministry. The Ministry of Solid Mineral Development is currently saddled with the responsibility of regulation and administration. We therefore recommend that these roles be separated with the ministry solely responsible for the administrative functions under the mineral and mining Act while the regulatory function be moved to a unit created at the Federal Ministry of Environment.
- Derivative Allocation for Mining Host Communities. We recommend the inclusion of the provision of a 5% derivative for mining host communities, separate from the 13% allocation to the state recognizing their integral role in mineral resource extraction and the need for equitable Benefit-sharing.
- Inclusivity in Board and Committee Composition. We recommend that the bill make deliberate provision for gender, youths and persons with disability in the constitution of all boards and committees established under the Act. This will ensure diverse perspectives and representation, contributing to more balanced decision-making processes.
- Completion of Social and Environmental Impact Assessments before Issuance of Licenses. We recommend that the proposed bill amend relevant sections of the Principal Act to ensure exploration title holders fully complete Environmental Impact Assessment before mining licenses are granted.
It concluded by saying that the Federation of Nigerian Mining host communities and its civil society partners commend the efforts of the National Assembly to introduce legal reforms aimed at ensuring equitable governance of the solid mineral sector.
“We insist that the proposed amendments to the Act must better serve the interests of all stakeholders, particularly mining host communities, promote sustainable development in the mining sector and contribute to the socioeconomic advancement of our nation”, it said.
