Fayemi and the Solid Minerals ministry

The nature of our fixed mentality is such that when Kayode Fayemi was appointed as the minister of Solid Minerals, very little enthusiasm was shown for this seemingly insignificant portfolio.

Whereas, a deeper reflection reveals that indeed, and particularly in these times, one of the most important and strategic portfolios is this particular ministry. A disaggregation of what solid minerals involves shows that Nigeria is enormously endowed by nature.

On this score, it is important to appreciate that the Solid Minerals industry has the worth of a trillion dollar profile. This becomes obvious when it is considered that Nigeria is known to have about 44 mineral resources –many of which are in commercial quantities.

The gargantuan worth of the solid minerals industry can also be appreciated from the fact that from gold exploration alone, Nigeria can easily earn about N8 trillion annually. Meanwhile, there is also the dismal assertion that the solid minerals industry in Nigeria accounts for only 0.3 percent of our GDP.

It is therefore clear that the ministry is bedevilled by a number of problems. A report prepared by a firm of chartered accountants indicates that there are no adequate records of operations in the sector. It was further revealed that although the Minerals and Mining Act of 2007 requires that any exporter of solid minerals must request permit to export such; yet in a clear defiance of the Act, there is no such request for permit or approval to export minerals by the operating countries. The report goes further to contend that the informal players are mostly artisan miners, medium scale operators and illegal miners who hardly keep records. This untoward situation has been complemented by an unflattering scenario in which there are no official records from the ministry on the actual volume of minerals exported out of the country within the period under review.

On this note, we wish to suggest that a simplification of the procedures for obtaining a mining licence will go a long way to ensure future development of this vital sector. In the past, the new minister may wish to know that efforts to achieve this objective have been thwarted by an indifferent bureaucracy and the absence of a focused federal policy. Therefore, the government as the main regulator should in the main, act as a regulator and allow the private sector to take the leading role in the development of this industry. In the bid to facilitate this objective, the Federal Government can always catalyze the process by putting in place a number of features. These include tax concessions, deferred royalty payments and availability of relevant infrastructures.

At the risk of sounding overtly optimistic, a viable policy in this sector has the potential of ensuring diversification of our economy. Such a policy also has the potential of easing the gridlock which is the lot of our lopsided federal system. This is because such is the democratic spread of the minerals across the country that every state of the federation can avail itself of this bonanza from nature. In the process the much-touted and current bailouts will be unnecessary.

Still, we wish to sound a note of warning to the minister here. The mistakes of the past must not be repeated. Solid minerals should not be exported in its crude form for cash. Rather, value addition should characterize the process with a view to generating employment for our teeming and stranded youths.

The silver lining here is that the new minister, Fayemi, is an academic. And in view of this, we believe that he has the cerebral capacity to analyze problems and come up with viable solutions. Such a problem clearly presents itself in the current state of our solid minerals industry. We therefore urge the minister to rise to the occasion in consonance with his intellectual background. Certainly, we wish him the very best as he sets about the onerous task of giving a new lease of life s to this critical component of our nation.