Abuja, Nigeria – Mediaage NG News – The Nigerian Senate on Thursday called for an immediate halt of the sale of public funded facilities by the Bureau for Public Enterprise (BPE), relating to the country’s mining and mineral sector.
While seeking a review of all Bureau for Public Enterprise (BPE) privatisation or commercialisation programs in mining and mineral resources from 1999 to date, it also asked for an immediate investigation of the remote causes of the dwindling revenue derivable from solid minerals resources.
These emanated from a motion sponsored by Senator Osita Ngwu (Enugu West), calling for a comprehensive review of the input and output values of the Nigerian mining industry, in light of its central role to economic diversification, foreign exchange earnings and social inclusion.
The Senate also noted that virtually all economic development programmes and fiscal documents, ranging from the Vision 20-20-20 Report, the National Economic Empowerment Development Strategy (NEEDS), the 30 year Infrastructure Master Plan Development Programme and the current Mid-Term National Development Plans (MTNDP).
It further observed that while quarrying dominates the total output of the mining sector, with almost 90 percent contribution and an increasing growth rate largely driven by products like granite, gravel, marble and other construction materials in high demand within the housing sector, the expected benefits accrued to the government are not significantly evident in ways of royalties.
The Red Chambers recognised that the 2020 Nigerian Extractive Industries Transparency Initiative (NEITI) Solid Minerals Report revealed that the five year trend of solid minerals contribution to the GDP of the country, from 2016 to 2020 has been inconsistent and fluctuating, while the country keeps getting less from the sector.
It also said about 0.45 percent the mining industry contributes to the nation’s economy in 2020, other African nations boost of a more contribution of the sector to their GDP. Citing countries like Botswana whose mining sector contributes 40 percent to its GDP, it said Congo and South Africa gets 25 and 18 percent respectively from their mining industries.
Contributing to the motion, Senator Victor Umeh said it is true that oil is a major source of revenue for the country, solid mineral resources is certainly another key aspect of revenue generation for the country, if properly given the attention the oil industry commands.
This was agreed to, by Senator Mohammed Mongono (Borno North) who described the motion as apt. “The sector can be seen as an alternative source of revenue that can rival the oil industry”, he said.
Accordingly, the Senate resolved for a review of the activities of policy administrators, executors and industry players at the policy formulation, execution and the downstream, midstream and upstream operations of the solid minerals sector.
It in addition, agreed to ascertain the extent and impact of illegal mining activities and the extent of complicity of both local and expatriate industry players.