Stakeholders urge SMDF to take charge of N2.5bn mining fund

Stakeholders in the mining sector have called on the Solid Minerals Development Fund (SMDF) to assume control of the N2.5 billion mining fund currently deposited with the Bank of Industry (BOI).

They made this call at a press briefing in Abuja to address unwholesome developments in the Nigerian Mineral Resources Sector.

The President of the Nigerian Mining and Geosciences Society (NMGS), Prof. Akinade Olatunji, speaking on behalf of the stakeholders, argued that SMDF’s management of the fund would ensure its disbursement aligns with the sector’s needs and the provisions of the law establishing SMDF.

They believe this move would provide much-needed financial support to mining operators and boost the sector’s growth.

The stakeholders also advocated for a review of the fund’s access procedures to make it more accessible and beneficial to mining operators. Additionally, they suggested exploring alternative uses for the fund, such as equipment leasing arrangements in organized Artisanal and Small-Scale Mining (ASM) clusters.

ALSO READ: Rivers LG election: Okocha-led APC seeks Court injunction to stop October 5 poll

By urging SMDF to take control of the fund, stakeholders aim to unlock its potential to transform the mining sector and improve the livelihoods of mining communities.

Prof. Olatunji expressed appreciation for the Minister’s efforts in successfully closing the seven-year-old Mineral Sector Support for Economic Diversification (MinDiver) Project of the Ministry of Solid Minerals Development at the end of May.

“Among the project’s several achievements are the establishment of geoscience data infrastructure, specifically the National Geodata Center and the Nigerian Mineral Decision Support System at the Nigerian Geological Survey Agency (NGSA), to disseminate geoscience data generated by the project for investment decision-making.”

“Another important achievement is the upgrading and automation of the Mining Cadastre Office (MCO) system through an Electronic Mining Cadastre (eMC+) platform for online applications, e-recording, and archiving.”

“These two critical achievements have positioned the Nigerian minerals and mining sector for growth.”

However, he noted that after due and critical consideration of the trends in the Nigerian minerals and mining sector, and the need to assist your office in continuing to reposition the sector for meaningful economic contributions to the nation, concerns remain.

“We, the key players in the Nigerian mining industry, consisting of the Presidents of the Associations of Investors and Professionals, representing the critical mass of mining companies, investors, and professionals in the industry, wish to draw your attention to some concerning developments that require urgent remediation to prevent further setbacks in a sector that has not fully recovered from decades of neglect.”

“These issues include, but are not limited to, the unbridled interference of state governments in mining operations within their territories.”

“The Honourable Minister will recall that the Constitution of the Federal Republic of Nigeria (CFRN) and the Nigerian Minerals and Mining Act of 2007 (NMMA 2007) grant the Federal Government exclusive ownership and control of mineral resources.”

“The NMMA 2007 also provides in Sections 1(2) and 22 that ‘the use of land for mining operations shall have priority over other uses of land and be considered for the purposes of access, use, and occupation of land for mining operations as constituting an overriding public interest within the meaning of the Land Use Act,’ with ‘all lands in which minerals are found in commercial quantities acquired by the government of the Federation in accordance with the provisions of the Land Use Act.’”

“However, contrary to the inviolate provisions of the CFRN and NMMA 2007, virtually all states of the Federation have, in the past few years, embarked upon concerted processes and activities that have encroached into the control and regulation of mineral operations within their territories, interfering with the activities of duly licensed operators across the country,” he added.