Solid Minerals Exporters Owe FG ₦17bn Unpaid Royalty, Says Minister

On May 24, 2021

Minister of Mines and Steel Development, Mr Olamilekan Adegbite, on Monday lamented that exporters of solid minerals owe Federal Government ₦17 billion in unpaid royalty.

At a stakeholders’ consultative forum in Abuja to review the draft mineral exports’ guidelines, Adegbite disclosed that most of the solid minerals export were made without valid permit from the ministry.

He noted that between 2013 and 2017, 2,670 mineral exports were made but only 56 got the permit.

He, however, expressed his conviction that the implementation of the guidelines would go a long way to bringing sanity to the solid mineral extractive industry, and further informed direct investors’ decision.

The guidelines are in five segments with 11 steps, which include: Documentation and source; pre-shipment inspection; exit point document; shipment; and sanctions.

The proposed document, according to Adegbite, would reduce the usual time for an export cycle from an uncertain current timeframe to 26 working days.

Of these, the processing of exit point documentation and shipment will take five and three working days respectively, as desired by PEBEC.

He called on the stakeholders to acquaint themselves with the provisions of the guidelines and take advantage of the environment created by it to foster their businesses.

Also in a keynote address, Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, said government was in a hurry to improve procedures, documentation and regulations in the Nigerian solid mineral sector.

The Presidency has rubbished the recent resolution of Southern states pressing for the ban on open grazing by cattle herders in the region, accusing the governors of playing politics to demonstrate their power.

This was contained in a statement issued by Garba Shehu, Senior Special Assistant to the President (Media & Publicity) on Monday.

It maintained that the southern governors did not offer any solution to the farmers/ herders crisis, which has bedevilled the nation for decades.

The governors in a recent meeting in Asaba, Delta state, had resolved to ban open grazing, drawing pungent criticism from the Attorney General of the Federation and Minister of Justice, Abubakar Malami.

The Presidency declared that the southern governors’ stance has questionable constitutional legality given the right of citizens to enjoy the same rights and freedom as everyone else in all the states of the federation.

It recalled that President Muhammadu Buhari had already approved specific measures to bring the incessant farmers/herders clashes to an end.

The statement read: “President Muhammadu Buhari has expressed a strong resolve to address the conflicts of herders and farmers in a sustained and lasting manner that should lead to the emergence of a permanent solution to the frequent clashes between them, as well as the associated problem of the gun-wielding ‘killer herdsmen.’

“The President had approved a number of specific measures to bring a permanent end to the frequent skirmishes as recommended by Alhaji Sabo Nanono, the Minister of Agriculture in a report he submitted and the President signed off on it back in April, well before the actions of the Southern Governors Forum which attempts to place a ban on open grazing and other acts of politicking intended by its signatories to demonstrate their power.

“It is very clear that there was no solution offered from their resolutions to the herder-farmer clashes that have been continuing in our country for generations.

“But the citizens of the southern states – indeed citizens of all states of Nigeria – have a right to expect their elected leaders and representatives to find answers to challenges of governance and rights, and not to wash their hands off hard choices by, instead, issuing bans that say: “not in my state.”

“It is equally true that their announcement is of questionable legality, given the Constitutional right of all Nigerians to enjoy the same rights and freedoms within every one of our 36 states (and FCT) – regardless of the state of their birth or residence.

“Fortunately, this declaration has been preempted, for whatever it is intended to achieve and Mr President, who has rightly been worried about these problems more than any other citizen in consultation with farmers and herders alike, commissioned and approved an actionable plan of rehabilitating grazing reserves in the states, starting with those that are truly committed to the solution and compliant with stated requirements.

“With veterinary clinics, water points for animals, and facilities for herders and their families including schooling – through these rehabilitated reserves, the Federal Government is making far-reaching and practical changes allowing for different communities to co-exist side-by-side: supporting farmers to till their fields, herders to rear their livestock and Nigerians everywhere to be safe.

“The entire country is acutely aware of the strain the COVID-19 pandemic has taken on public finances, for both Federal and States.

“Still, given the pressing urgency of addressing the perennial challenges, the federal funding for the project that has been delayed is now being partly unlocked.

“Actual work for the full actualisation of the modern reserve system in a few of the consenting states should take off in June.”