Editorial
Fayemi And Exploitation Of Natural Resources
The Minister of Solid Minerals Development,
Dr. Kayode Fayemi, recently advised States
to take advantage of mineral resources within their respective domains and pay royalties to the Federal Government. He, however, cautioned them against encroaching on areas already allocated to mining firms and other stakeholders in the sector.
The Minister was reported to have given the advice in Abuja when the Lagos State Commissioner for Energy and Mineral Resources, Mr. Wale Oluwo, led a delegation to present some requests before the Federal Government concerning the enormous resources in the South West.
According to Fayemi, “that is one of the points I have tried to emphasise about governance when people ask about the exclusivity of mineral rights in the Nigerian Constitution. Yes, it is exclusive; but there is absolutely nothing in the law; in fact, it is being encouraged in the law for States to either set up their own investment corporations or go into partnership with the private sector in order to exploit what is available in their States.
“This is provided the co-ordinate has not been given to another interested stakeholder before application comes from the States. This is very important for you to know. So, our primary interest is that these resources are explored and exploited.”
The Tide thinks that this advice is heart-warming in so many ways, especially as it could mark the beginning of States baking their own cakes instead of always waiting to share from the so-called national cake. Sadly, the national cake is depleted and the struggle for it outdated.
The new thinking is also welcome because it will ultimately stop a few individuals and firms from continually exploiting the nation’s natural resources on their own terms and for their sole financial benefit. The idea of using their resources as private and taking petroleum as belonging to everybody must stop.
It also puts a seal of approval on practices in some States that participate in the sharing of the proceeds of natural resources to the exclusion of the Federal Government. The exploitation of Igbeti Marble Project in Oyo State is an example.
Incidentally, the right of States to exploit their mineral resources has been the cry of many Nigerians over the years. Indeed, that is the way to go if the economy must recover.
All the advanced democracies apply the system and have had to run their economies on all cylinders every time. Even here in Africa, whereas Nigeria’s solid minerals have accounted for less than one percent of her Gross Domestic Product (GDP), Central and Southern African countries have these resources constituting between 20 and 40 percent of their respective GDPs.
Unfortunately, the Constitution of the Federal Republic of Nigeria has domiciled oil, gas and solid minerals in the Exclusive List. But with the new thinking, the Federal Government must make haste to amend the Constitution to allow for fiscal federalism in Nigeria.
This will not be new in Nigeria as the days of groundnut pyramids, cocoa and palm oil also flourished under that legal framework. It will encourage agriculture and truly diversify the economy.
Under that system, the restiveness and pollution in the Niger Delta will end as the people will now take charge of exploiting the wealth in their land and draw due benefits. The idea of people in Abuja calling the shots while the Niger Delta burns must stop.
The Senate recently disclosed that Nigeria loses about N4 trillion yearly to the activities of illegal miners. We see this as worrisome considering that the country has over 40 confirmed mineral resources which can generate such enormous revenue to the country as well as create employment for the people.
The Federal Government should therefore establish Mines Police Unit, upgrade its mining cadastral office and the inspectorate directorate for closer monitoring of mining activities in the country.
As a matter of fact, States must look inward and develop their potentials instead of complaining about dwindling federal allocation. Nigeria should not expect to get different results by doing things the same old ways. All States must work and contribute to the national pool instead of taking.
This is an idea which time has come. To continue to ignore it is to tie Nigeria down and endanger the future of 170 million humans. It must be noted that laws are made in the interest of humans and not the other way. Laws that limit the potentials of the people must change.
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