The Small Scale and Artisanal Miners Association of Nigeria (SSAMAN) has appealed to the Minister of Solid Minerals Development, Dr. Dele Alake, to ‘intervene without bias’ in the ongoing disagreement between Artisanal and Small Scale Mining (ASM) operators and the Nigerian Mining Cadastre Office (MCO).
The disagreement is triggered by the government’s intention to implement an upward review of licensing fees, rates and royalties in the solid minerals sector.
The Secretary, Board of Trustees of the Association, Hon. Abubakar Saleh Katsina, who made the call at an exclusive interview in Abuja on Monday, faulted the upward reviews, citing the absence of an enabling environment for mining businesses across the states of the federation.
He stated: “The minister, Dr. Dele Alake, recently set up a committee to review rates, royalties and fees in the solid minerals sector. We thank him for the effort. However, the truth is that the issue is not about setting up a committee to review the fees. The challenge is that state governors do not respect the licenses issued to miners. As a result, we can hardly operate in the states.”
“So, the federal government needs to protect the sanctity and authority of the mineral titles it issues to miners. It is only when the government wins the respect of state governors for the titles it issues to miners that miners can operate and make profit in the states across the federation.”
Katsina explained that it is only when miners operate that they make profit, adding that the fees they pay to the government are the proceeds of their mining operations. “We are private operators and this is the reality of the situation,” he said.
While saying that state governors have no regard for mining licenses issued by the federal government, Katsina disclosed that the lawless interference and non-cooperation of state governors have led to huge economic losses suffered by licensed mining investors. “Our painstaking investments are trapped and strangulated by the unbridled lawlessness of state governors,” he said, adding that state governors continue to prevent licensed miners from operating in their respective states.
“Nigerian miners were the happiest people when the Honorable Minister announced that the Tinubu administration would reposition the solid minerals sector and ensure that it contributes 50% to the Gross Domestic Product (GDP).”
“It means that he will address the challenges faced by operators (notably the interference by state governors), thereby enabling miners to make the profit they must make in order to pay as much royalties, which will translate to a 50% contribution to GDP.”
“Miners did not imagine that the government would review rates when it has not addressed the problems militating against our businesses.”
Katsina stated: “If the government had put in place the enabling environment needed by miners to operate freely in the 36 states of the federation, miners would have made so much progress and would have gladly welcomed the upward review of taxes and royalties,” he said, adding that the mining sector needs an enabling environment for businesses to thrive, especially in the states of the federation.
“So, the issue of upward review of fees would have been a minor one if there was an enabling environment.”
“We are not illegal miners; we are operators who are licensed by the government to carry on the business of mining in the country,” he said, adding that the most daunting challenge confronting private mining investors in Nigeria is the rejection they suffer at the hands of state governors who brazenly disregard mining licenses issued by the federal government.
“In Nigeria, miners count their losses even after paying rates and royalties to the government through the Mining Cadastre Office. This is because the state governors continue to frustrate the investment plans of lawful miners who were issued valid mining permits by the government in line with the law.”
“How do you expect licensed miners whose businesses are grounded by governors to raise money for increased taxes?” he asked rhetorically.
When asked if the minister was aware of the challenge, he said: “The Miners Association had tabled it before Dr. Dele Alake, and I am aware that Alake promised to address the challenge with state governors shortly after he took over as Minister of Solid Minerals Development, but the challenge persists till date.”
“As we speak, miners in Nigeria are confronted with toxic executive orders issued by state governors, a situation that makes it difficult for miners to operate, let alone make profit.”
“The Nigerian mining sector needs a regulator that clearly understands the challenges of indigenous operators; a regulator that understands the highly technical and speculative nature of the sector; a regulator that will not kill small scale businesses by imposing unjustifiable tax regimes even when it (the government) is yet to address the challenge of the non-cooperation of state governors, a major problem that has long been placed before it.”
“So, there is no enabling environment for miners to operate in the states of the federation, except perhaps in the FCT. This is well known to the minister. We have presented this particular challenge to him and he promised to address the challenge but he has yet to do so, even though we expect that he will keep his promises.”
“I repeat that we are responsible miners who want to pay royalties as and when due to the government. We are patriotic and we desire the development of the sector for economic diversification. We desire to trade, make modest profit and pay every fee due to the government. Unfortunately, governors have prevented us from operating in the states.”
“Under the circumstances, how are we expected to make profit to the point of being able to pay the increment in fees and rates charged by the federal government through the MCO?”
“We appeal to the Minister and also to President Bola Tinubu to put themselves in our shoes. If they do, they will easily agree that a lot of things need to be put in place before muting the idea of an upward review of rates.”
When asked to discuss a scenario where the non cooperation of a state governor led to an investment loss, Katsina said, “A typical example is the ugly situation that happened in Taraba State. Some indigenous lawful mining investors followed the rules and were issued mining leases, small scale licenses and exploration permits by the federal government. But the governor had no respect for anybody or any title, and he declared Taraba State a no-go zone for miners.”
“Under such circumstances, a lot of licensed miners who paid for licenses made huge losses because they could not operate. We expected the government to defend the licenses we were issued, but the government did not do so and has not done so till date. But they came up with an increase in rates. We believe that it is not the right thing to do.”
When asked to discuss another scenario, he said, “There are many such sad stories of losses and I can tell many more: I know a miner in one of the northwestern states of Nigeria. He paid for relevant mineral licenses and they were promptly issued by the Mining Cadastre Office. Then he invested huge sums of money in the procurement of large scale mining equipment. All the equipment he bought was brand new. Then he moved to the site, but the governor said to him, ‘I will not let you mine in my state because mining attracts banditry. It is very disheartening.”
“So, the governor blocked the lawful miner, a miner who paid to obtain all the required mineral titles and licenses! The issuer of the licenses did not note to defend the title and miner. This is the situation faced by miners in the country,” he added.
“We appeal to the minister to appeal to President Bola Tinubu to address the recurring challenge of unlawful interference by states in mining matters. Governors should be told to respect the constitution.”
“I want to make it categorically clear that miners desire a solid minerals sector that will contribute more than 50% to the GDP, as avowed by Minister Dele Alake. But the right steps need to be taken to ensure sustainable realization of the set noble goal,” he said, adding that the various underlying challenges faced by operators need to be addressed.
“Imagine a situation where you pay to be issued a mining license, you receive the license to go and mine in a state like Taraba, and you get there to discover that the license is of no use to you because the governor says he doesn’t want your activities in his state because he is afraid it may attract bandits.”
“So, we want Alake and Tinubu to address the underlying issue of the lawlessness of governors. Let them work together to do whatever should be done to ensure an enabling environment for mining operators. When this is done, then we will happily move to the site with our titles and then make some profit, and then cheerfully pay our fees and royalties.”
“Until the federal government stops the lawlessness of governors, until the government ensures that its mineral titles are respected by governors, it is unfair to implement upward review of fees,” he said, and warned that government should be careful not to retard the decades of snail progress made by the solid mineral sector in Nigeria.
“Nigerian miners are hungry for the concern of the government. In addition to protecting the sanctity of the mineral titles, we need the government to ensure justice for the miners who paid for titles and made huge losses because they were never permitted to mobilize to site even after they did a lot of due diligence and paid fees and royalties to government.”
“We appeal to the Honorable Minister to prevail on President Tinubu to send a circular to governors, telling them to respect our mining titles in line with the provisions of the constitution. Mining is on the exclusive list of the Constitution. It is not on the concurrent list. Only the federal government (through the Mining Cadastre Office) is empowered by law to issue mining titles. The states are bound by law to welcome licensed miners. We need the minister to ensure that this provision is respected by governors.”
“Very importantly, Nigerian miners desire the government to compensate the various investors who were issued licenses but who suffered losses in the states as a result of the rejection they suffered from the state governors.”
