Conflicting Mining Rules May Scare Investors, Alake Warns States

The Federal Government has cautioned state governments against creating independent mining regulations, saying conflicting policies could discourage investors and weaken ongoing reforms in Nigeria’s solid minerals sector.

The Minister of Solid Minerals Development, Dr Henry Dele Alake, made this known in Abuja when he met with officials of the South-South Development Commission (SSDC), led by its Director-General, Usoro Offiong Akpabio.

Alake said the government was prepared to work with regional development bodies to expand mining activities and maximise the country’s mineral resources.

However, he maintained that states must conduct their activities in accordance with the laws and regulatory structure established for the sector.

He explained that allowing different states to operate separate regulatory systems could create uncertainty for investors and undermine efforts by the Federal Government to establish a more attractive mining environment.

The minister said all levels of government shared the same objective of developing Nigeria’s mineral resources, adding that better coordination was needed to achieve meaningful results.

He therefore urged state authorities to work through existing federal regulatory channels instead of establishing systems that could compete with or contradict national regulations.

According to Alake, states are not excluded from participating in mining activities. He said they could become directly involved in commercial mining by setting up Special Purpose Vehicles (SPVs) and obtaining mining titles through the appropriate legal procedures.

He added that some state governments had already secured mining licences using the approved process, demonstrating that states could participate in the industry without breaching federal regulations.

The minister further assured the SSDC that his ministry would support efforts to develop the South-South’s mineral resources, which he said could generate fresh investment, create employment and contribute to long-term economic growth.

While the South-South is traditionally associated with Nigeria’s oil and gas industry, Alake said the region also possesses considerable solid mineral deposits that could support the Federal Government’s efforts to diversify the economy.

Giving an update on the impact of reforms in the mining industry, Alake said the sector had attracted more than $2.6bn in foreign direct investment. He added that the reforms had also increased government revenue and encouraged the development of mineral processing facilities, creating employment opportunities in different parts of the country.

In her remarks, SSDC Director-General Usoro Offiong Akpabio pledged that the commission would ensure its programmes remained consistent with Federal Government policies.

She said the commission was interested in working with the ministry on initiatives focused on responsible mining, environmental innovation and the formalisation of artisanal mining through cooperation with security agencies and state governments.

Both parties also agreed to pursue joint investment and stakeholder engagements across the South-South region to expose investors to viable mineral opportunities while reducing regulatory conflicts.