THE Chairman of the House Committee on Solid Minerals, Gaza Gbefwi, said the committee is working to ensure that mining host communities receive five per cent of total benefits from minerals in their domains in the bill seeking amendment of the Minerals and Mining Act.
Gbefwi said the committee arrived at the decision having realised the critical need for mining host communities to receive a fair share of benefits from their natural resources.
The lawmaker, disclosed this on Thursday, July 25, at a press briefing organised by the Federation of Nigerian Mining Host Communities in partnership with Global Rights, and other civil society organisations.
Gbefwi, also emphasised the significant development the allocation would make in the development of the communities, noting that “the host communities of oil companies have been able to get three per cent as a result of the PIB. Imagine if they had been able to get that three per cent earlier. There would have been massive development all around.”
“The host communities deserve to benefit from their God-given resources. And that is why we are pushing for it. That is why we are proposing five per cent of whatever is gotten for #MiningHostCommunities,” he added.
In addition to the proposed five per cent allocation, Gbefwi discussed the Environmental Remediation Fund, which he said aimed to address the environmental damage inflicted on mining host communities.
He, however, acknowledged that the predominance of artisanal mining in Nigeria posed a significant challenge.
Addressing concerns about the proposed five per cent allocation being insufficient, Gbefwi argued that it was a meaningful contribution.
“It’s not small. Bear in mind that mining is very capital-intensive. The government (State and Federal), the mining company and the community share proceeds as is deemed necessary. So, it’s better a community gets five per cent of something rather than getting 100 per cent of nothing. Now, one mining site has the capacity to make 1 trillion every year. Now imagine five per cent of one trillion every year. It will really go a long way.
Stakeholders’ demands
Meanwhile, the Federation of Nigerian Mining Host Communities and its civil society partners, applauded recent attempts by the National Assembly, to strengthen the legal and policy frameworks to ensure the equitable distribution of benefits derived from the sector.
The CSOs said it had on numerous occasions advocated for the Act to be amended, particularly to reflect the intent of Section 17(2)(d) of the Nigerian Constitution which provides that “the exploitation of human or natural resources in any form whatsoever for reasons, other than the good of the community, shall be prevented.”
Highlighting their demands, the host communities federation’s chairman, Habeeb Abubakar Wushishi said the CSOs made 12 appeals at the public hearing, which he said bordered around the security and welfare of the mining host communities.
The appeals are:
- The expansion of environmental impact assessments to environmental and social impact assessments.
- Inclusion of civil society organisations and mining.
- Chairmanship of, and acknowledgment of state autonomy in MIREMCO.
- Clarity and specificity on the definition of the term “community”.
- Clarity and specificity of the term ‘community development associations’.
- Community development agreements (CDs).
- Regulation of artisanal and small-scale mining.
- Separation of regulatory and administrative functions of the ministry.
- Derivative allocation for mining host communities. Five per cent derivative to host communities and 13 per cent allocation to the state.
- Inclusivity in board and committee composition.
- Completion of social and environmental impact assessments before issuance of licenses.
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: [email protected]. He tweets @UsmanMustapha_M