Lack of government support funding for the Small and Medium Scale Enterprises for the exploitation of solid minerals deposits is fuelling illegal mining in the country, the Nigeria Employers Consultative Association has said.
The Director-General of NECA, Dr Timothy Olawale, while speaking in Lagos, said the need to decentralise the operation to capture the SMEs.
He was reacting to the recent arrest of some Chinese nationals and locals in Zamfara and Osun states by the police for illegal mining.
It has been reported that Nigeria loses about 500,000 jobs and billions of dollars to illegal mining.
Olawale said there was a need for the three tiers of government to work together with the host communities to fully harness the potential of the nation’s solid minerals.
He noted that the nation was well endowed with some of the rich natural resources ranging from metals to various precious stones and industrial minerals.
He added the sector offered a viable alternative for foreign exchange earnings, moving away from oil.
Olawale, however, lamented that there was no sufficient data on illegal mining, as it was free-for-all business without monitoring and even foreigners were involved.
“Lack of accessible government support funding for the exploitation of solid mineral deposits by the Small and Medium Enterprises poses a threat to the security of the nation’s solid minerals.
“Section 44 (3) of the 1999 Constitution of Nigeria vests the ownership of mineral resources on the Federal Government. As such, the licence to explore mineral resources is the exclusive right of the Federal Government.”
“The central control of the country’s minerals by the Federal Government in itself is also, respectfully, a hindrance to the success of the sector as a source of economic development for the country.
“The illegal miners hide under the fact that mining is the exclusive preserve of the Federal Government and victimise the communities where they operate, due to lax of the federal oversight.”
Olawale noted that partnership between the federal, state and local governments in the mining sector would go a long way in breaking down the existing barrier to the sector’s development and profitability.
“Collaborative efforts would open up new opportunities for the federal, state and local governments to brainstorm and take decisions on mining operations with limited frictions and ensure a lot of goodwill.”
Olawale further noted that the economic implication of the activities of the illegal miners had had negative impact on the country, as “it has been reported that Nigeria loses about 500,000 jobs to illegal miners and billions of dollars to illegal mining.”