The Influence of Government Policy on the Performance of Solid Mineral Resources in the Northern Nigeria
Abstract
Nigeria has abundant oil and solid mineral deposits virtually in all the zones that made up Nigeria as a country. However, Nigeria depends solely on crude oil for a long time for its revenue leaving the solid mineral resources untapped. With the current economic hardship bedeviling Nigeria, it becomes imperative for government to look beyond oil and delve into other economic deposits which solid mineral resource becomes an area of interest for the government. One of the factors that will form a base for government to increase its revenue base through solid mineral resource is policy. This study examines the influence of government policy on the performance of solid mineral resources in Northern Nigeria. Data collection will be obtained through survey method to elicit information from respondents. The instruments adopted included questionnaire, interviews, discussion and observation. A total of 300 respondents were selected from the solid mineral mining communities, miners, MDAs, and questionnaire was administered to them. Both descriptive and inferential statistical methods were used to carry out the analysis. Review of related literature was carried out on published materials on the subject. This study found out that major areas of government policy which influenced the performance of solid mineral resource in Northern Nigeria are; performance contract to the accountability with immediate consequence for failure, engagement of appropriate human resources and enhancement of the capacity of available ones, technical assistance, realistic planning. The study also found out that there was an improvement in the productivity of the sector and its contribution to the federation account about, N25b in 2016, against N700m in 2015.
References
1. While drafting policy or reviewing an existing one, the major stakeholders, especially the more direct beneficiaries which in this case are the mining communities, should be allowed to make their contributions for the purpose of acceptability to all and sundry.
2. The solid minerals policy should now be reviewed for performance with a view to incorporating appropriate strategies for implementation. This review can include increasing the number of solid mineral cooperative societies and facilitating access to the Solid Mineral Development Fund as provided for in the Mining and Minerals Act 2007.
3. Public-private ownership option of solid minerals in the country should be properly studied and given a trial. This can be in the form of making the necessary technology available to the local miners and exposing them to training that is considered adequate for their level of operations. The quantity of minerals exploited will then determine the level of assistance from government.
4. Appropriate derivation formula for sharing proceeds of minerals should urgently be devised to ensure more active participation by states and local governments in the exploitation and processing of solid minerals. Government should license more buying centres through which reliable information could be obtained on productivity upon which the derivation formula will be based. The derivation formula suggested is Federal (50%), State (30%) and Local Government (20%), while individuals will be given a rebate of 20% on royalties payable to the buying centres.
5. Any derivation formula subsequently agreed upon by stakeholders should continue to be applied transparently in the sector to encourage artisanal miners and other individuals.
6. The general level of infrastructure in the country should be improved upon to encourage both local and international investors to participate actively in the sector.
7. There is need to involve environmental experts in the assessment of the health implications on host communities
8. Infrastructural facilities such as roads, communication and electricity should be well maintained to ease exploitation and processing of solid minerals.
9. There should be proper monitoring of funds meant for maintenance of infrastructure to ensure that they are judiciously utilized for the progress of the sector. This can be done by the government through further confirmation with people directly benefiting from such infrastructural facilities
10. Land acquisition procedure should be made less cumbersome to encourage venturing into the solid minerals sector especially by young graduates and other interested parties. Government can acquire such lands and apportion them among interested young graduates and others with the payment of reasonable rents.
11. The land use Act of 1978 should be reviewed in its entirety to ensure that a more realistic act that will provide enough cushioning effect on land acquisition in Nigeria for the purpose of minerals exploration and exploitation is put in place.
12. Governments at various levels in the country should concentrate more attention on the local exploitation and processing of solid minerals to be able to derive more economic benefits from them just like other countries. This can be done by encouraging our young engineers to design local equipment that can be used by artisanal miners to exploit and process further such minerals.
References
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