THE House of Representatives on Thursday tasked Federal Government on the need to commence full reactivation and resuscitation of coal industry across the country.
The resolution was passed sequel to the adoption of a motion sponsored by Hon Nnaji Nnolim who highlighted the abounding socio-economic opportunities in the sector.
In his lead debate, Hon Nnolim explained that the motion was aimed at encouraging the diversification of the economy through industrialisation.
This, he stated will improve employment opportunities and wealth creation.
According to him, the coal mines can also help as alternative sources of power generation.
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“Coal generated a lot of revenue for Nigeria between the years 1916 and 1970 when it was one of Nigeria’s major revenue earners, before its decline with the discovery of crude oil. This resulted in the subsequent abandonment of the massive infrastructures at the mines managed by the then Nigeria Coal Corporation (NCC).
“The House is aware that Nigeria still holds large coal reserves estimated to be at least 2 billion metric tons, the discovery of bituminous coal suitable for the use in coke production – iron and steel industries, opened up potential new domestic markets with the loss of its domestic consumers. The NCC began exporting coal to Italy and the United Kingdom as its low sulphur content is desirable.
“The House recognised that the Federal Government in a bid to revitalise the coal mine industry and attract foreign direct investments, signed a multi-billion dollar Memorandum of Understanding with a Chinese firm HTG-Pacific Energy Consortium to generate power from coal in Enugu.
“This company was meant to develop these large coal resources and construct coal-fired generating plants that will connect to the country’s electricity distribution grid. The project requires that about 1000 – 12000MW coal power generating plant is to be developed.
“The domestic coal market is latently large. Besides the potential for power generation, there is also the potential for coal exports to countries such as China, Israel, Japan, Ghana, United States, Europe and India,” he noted.
In his remarks, Hon Francis Waive called on the committee that will work on the motion to investigate why the privatized industries are not working as they should so that a solution can be proffered.
The House also urged Federal Government to liaise and partner with the State Governments of the mining areas and the community folks in dialogue on all matters concerning the resuscitation with the view to provide socio-economic needs, infrastructural development, power generation and above all increase in job creation.
To this end, the Deputy Speaker, Hon Idris Wase who presided over the plenary session mandated the Committee on Mines to embark on a fact-finding visit to Enugu coal mining sites, being the foremost site where coal was discovered including other coal mining sites across the country and report back to the House for further legislative action.
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