Minister of Solid Minerals Development led by Dr Dele Alake
The Minister of Solid Minerals Development, Dele Alake, has warned state governments against the closure of mining sites, stressing that sub-nationals lack the constitutional authority to do so.
Alake stated that mining activities fall under the Federal Government’s exclusive jurisdiction and no state has the authority to interfere in mining operations.
The ministers’ comment is in response to recent proclamations by state governors in Gombe and Kogi states and the closure of Segilola Mining Company by the Osun State Government over taxation and operational matters.
The governors said the directive aims to protect host communities from exploitation and safeguard the environment from the adverse effects of unregulated mining.
But responding in a statement signed by his Special Assistant on Media, Segun Tomori, on Friday, Alake said, “State governments’ ban on mining activities across the country is a point that is really sore and it is a constitution matter.
“I want to use this opportunity to tell the entire Nigerian public that no state and I repeat no state, has the authority to interfere in mining operations. No state government has that authority. It is a no-brainer and is a constitutional matter. Mining belongs exclusively in the purview of the Federal Government.
“According to the Constitution, it is in the exclusive legislative list and not in the residual or concurrent. It is in the exclusive legislative list and every item on this list belongs to the Federal Government.”
He said it’s outright illegal for a state to regulate mining activities, just as it would be illegal for a state to ban oil exploration.
The minister also noted that some state governors are not well grounded in the constitutional imperatives and dynamics of the sector and are in need of adequate education and enlightenment.
“Indiscriminate closures of mining operations by subnationals raise the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies.
“Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Alake asserted.
The minister observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that the closure of mining operations by subnationals could abort efforts to attract Foreign Direct Investments and provoke divestment.
“We are not against any state that wants to engage in mining operations as long as it follows the due process. If any state wants to engage in mining, it can form its own Special purpose vehicle, apply for a mining license from the office of the solid minerals minister, go through the due process and will be licensed if it meets all the criteria. That’s the law.
“But for a state to wake up and say it’s regulating mining activities is like a state waking up to ban oil exploration. That’s downright illegal,” he said.
Alake further clarified, “We are engaging state executives, chairman of the Nigeria governors forum and I am going to address the national economic council soon to educate the states on what is happening. Some of them are not vast in the constitutional imperatives and dynamics of this sector and so there is a need for adequate education and enlightenment.”
On the closure of the Segilola mining factory, the minister said it’s probing the claims and counter-claims of the Osun State Government over taxation and operational matters.
He also said that a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony.
Led by Dr Mary Ogbe, the Permanent Secretary, Ministry of Solid Minerals Development, the committee will include representatives of the Federal Inland Revenue Service, the Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture.
The minister reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth and increase employment and community development.
He stressed that any cessation of industrial production would undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.
Alake further called on both parties to cooperate with the fact-finding team and allow production to continue while the issues are resolved.
“I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by the closure of operations at the factory.” he appealed.
