Abuja – Mr Kayode Fayemi, Minister of Solid Minerals Development expressed displeasure on the low income generated by the sector through mining activities.
Fayemi said this while receiving the delegations of the Miners Association of Nigeria in Abuja.
According to him, the report made available to the sector indicated that the ministry is generating 0.3 per cent which is far less than what is expected.
“The report from the Nigeria Extractive Industry and Transparency Initiatives (NEITI) clearly showed that lots of Gold was being exported but no tax, loyalty and modality is recorded, everything is zero.
“Gold is being mined in Nasarawa, Zamfara, Niger and Osun but they are being sold through middlemen outside the country; something must be wrong with our calculation of what the sector is generating,’’ he said.
According to him, the ministry is in collaboration with all the Chief Executive Officers of all the banks to set up solid mineral desk and to pull funds from the Central Bank as intervention funds to assist miners.
The minister said modality would be put in place for genuine miners to assess funds through micro-finance bank and banking institutions with repayment scheme.
He said President Muhammadu Buhari was optimistic that mining would generate employments and become source of income for the country.
He commended the association for the proposal presented to the ministry, as its contents were practical, achievable and measurable.
He added that it would help in moving the sector forward.
He promised to meet and strike a balance with all states governors regarding minerals in their states to ensure that all interests are achievable.
Alhaji Abubakar Bwari, the Minister of State for Solid Minerals Development, said the action plans of the ministry for 2016 were to generate data of existing minerals, generate funds and job creation opportunities.
Alhaji Mohammed Amate, the Director General, Nigeria Mining Cadestre Office, urged the association to adhere to the rules attached to licences.
“Some members applied for exploration licences and when they are being granted, they commenced in mining of minerals instead of explorations; this will not be accepted again .’’
Earlier, Alhaji Sani Shehu, National President of the association, tasked the ministry on continuous generation and updating of geological data to provide reliable information on solid minerals deposit in the country.
In the same proposal, he called for proper funding for the sector to support artisanal and small scale operations or an outright establishment of specialised financial institution as it was done in agriculture and other sectors.
He also called for extension of the local content law to the mining sector by ensuring in-country sourcing of minerals with raw materials application in industries to the fullest.
He enumerated some of the association’s challenges as unfavourable conditions for accessing the fund, inadequate skilled labour, artisanal operations which constitute about 90 per cent of mining operations.
Others are multiple taxation and hostilities of mining communities, inadequate funding of the ministry and its department to efficiently carry out their statutory regulatory and oversight functions.
