State Government and Mining: Challenges and Solutions


In the course of going about my job as a mining engineer, I have been to several states/provinces right here in Nigeria, and I can categorically tell the level of the poverty-stricken shape of the faults in the villages I have visited. The smile, the greeting, and the warmth help most times may want to overshadow the suffering amongst these people. That has not taken away the fact that they have no school, no good water, no good road, and a good health care system. Yet, I realized they sit on what the whole world needs. They sit on valuable minerals that can put an end to these problems, and give everyone good life. 
A deep reflection makes you wonder why these people are happy when they struggle to have basic things in life. In the bigger picture, the capital cities are not left out. It's no longer news that many states in our beloved country pay less than $100 minimum wage. They also have bad roads and a struggling economy. 
One thing that comes to mind as a mining engineer is this. Of what use are the minerals found in the state to the state government? It's not news that the minerals in all states/provinces belong to the Federal Government, with irregular policy structure, and commitment capable of regulating the sector. 


No doubt, several policies have been made, and still going to be in place to stabilize the industry. Irregular implementation, evaluation, and monitoring are some of the reasons why the sector still crawls. Scholars in the sector have spoken and the elite in the industries have spoken, yet, we are still where are. This string of unfortunate signatures shows an element of political brouhaha. 
In my own opinion, I think the state's government can also be of help in finding long-lasting solutions to the problem. You will agree with me that under the Land Use Act, the control and administration of land are vested in the State Government, and the mineral embedded in the subsurface belongs to the federal government. Therefore, mining on that same land requires collecting the right from the Federal Government. 
State Government can get a mineral title, and can either mine or get an MOU with foreign investors on a discovered mineral within the state. I understand some states are already into this policy while some are far from it. I see a situation where the state government can generate revenue from mining proceeds to improve Federal Government allocation. State Governments can create employment with this idea, to lessen unemployment, and reduce poverty stricken pattern of the people.  

Technology advancement has improved so many things in today's world, a very well-structured mining company that operates to the point of extraction can add to the financial fortune of any state. I am not referring to getting the raw material and exporting it to have the final product shipped back to the country. I mean a thorough mining practice that includes all operations. 
I was opportune to visit NIOMCO in Itakpe, Kogi State sometime back and I realized the company has several other institutions for staff and community. I discovered the company has schools, healthcare facilities, and so on.  So if someone says a teacher can be employed within the four walls of a mining company please don't doubt it.
Some say Nigeria is a nation that each government in power does not support continuity. You are not wrong. I believe for such an institution to be continuous, a stakeholder body consisting of foreign partners, members of state boards, the judicial arm, the council of Obas, elders, and the federal government should not be neglected. 


In summary, I will suggest the following for the state government; 

1. Get state mineral title.
2. Institutionalize a mini-chapter for the state that looks into the mineral operation of the state which can conveniently operate under the Ministry of Commerce. 
3. The state can have a restructuring scheme that commercializes mining proceeds. The scheme will be responsible for registering all miners both artisan and mine operators in the State/Provinces. This can also help the government to register a proper miners cluster within the state.
4. In expo that brings investors for an exhibition to see minerals mined in States/Provinces. 
5. Have a council of stakeholders responsible for managing the mines with a regular financial Statement Report printed every quarter. 

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