Call for Independent Regulator in Nigeria’s Solid Minerals Sector

Experts urge the establishment of an independent regulatory body to boost foreign investments

The Federal Government has been advised to create an independent regulatory agency for the solid minerals sector to maximise the influx of foreign investment. This recommendation aims to enhance the economic potential of the sub-sector, currently overseen by the Ministry of Solid Minerals.

Professor Peter Akper, an expert in Mining Law and Policy, highlighted this need during the seventh inaugural lecture organised by the Nigerian Institute of Advanced Legal Studies in Abuja on Thursday. In his lecture, titled “Toward Realising the Potential of the Mining Sector: Policy, Legal and Institutional Reforms Imperatives for Nigeria,” Akper stressed that the absence of an independent regulator has led to disordered mining activities, hampering the sector’s economic benefits.

Akper argued that the extractive industry should be regulated similarly to other economic sectors, such as power, telecommunications, and oil and gas, to ensure transparency and optimal revenue generation. He pointed out that the government’s dual role as administrator and regulator in managing mineral resources worth N750bn has been problematic.

“The fact that the sector doesn’t have an independent regulator to effectively regulate the sector has led to the prevalence of disorderly mining activities with a negative impact on the human and physical environment,” Akper said. He drew parallels with other sectors that have benefitted from independent regulatory bodies, such as the Nigerian Communication Commission in telecommunications and the Nigerian Electricity Regulatory Commission in power.

Akper emphasized the need for a transparent bidding process in the mining sector, akin to the competitive bid rounds seen in the oil industry. “The issue of transparency around granting titles and even revenue generation is lost because we don’t have a bidding process,” he added.

The current regulatory framework within the Ministry of Solid Minerals, comprising departments like the Mines Inspectorate, Mines Environmental Compliance, and Artisanal and Small-Scale Mining, lacks the capacity to function as effective regulators, Akper noted. “The establishment of an independent regulator for the mining sector is an idea whose time has come and is only a matter of time,” he asserted.

In his address, NIALS Director-General Professor Mohammed Ladan acknowledged the reformative steps taken by the current administration to improve the sector. However, he urged the government to implement decisive policies to capitalise on the current global rush for green energy.