The approval given to
states by the Federal Government to exploit mineral resources in their domains, if they so desire, may face challenges because of the land Use Act, says an investor.
An investor in the sector, Dr Abdul Bello, state this in Lagos, saying as long as the Land Use Act is still in operation, the open invitation to willing states would meet some brick walls.
Explaining that unless the Land Use Act is reviewed, mining at state levels will remain a challenge because while mining license were issued by the federal government, ownership of the land rests on the state and communities.
According to Bello, who says he uses potash as raw materials for his products, many licensed miners have been chased away by landowners in some communities while attempting to exploit solid minerals that gives licenses for running. In the local governments, there are people who claim ownership of the land and miners face resistance from them. How can the Federal Government give licence up there and you as an investor cannot even use the land?
“The Land Use Act should be reviewed in such a way that states and local governments can work together and also benefit from the exploration. Either that, or a mining commission should be established to handle the sector.”
According to the investor, it was not enough for the minister to issue a directive, adding that such a directive could only be effective if it was backed by an Act of Parliament.
It could be recalled that the minister of Solid Minerals, Dr Kayode Fayemi, recently announced that states were free to explore and exploit the mineral resources in their domains.
He said although the Federal Government had exclusive rights to mine any kind of minerals across the country, the constitution encourages states to either set up their own investment corporations or partner private investors to exploit minerals in their domains.