In September 2016, the Nigerian government through its Federal Executive Council (FEC) finally adopted the 103 paged “Roadmap for the Development of the Solid Minerals Sector.” This concluded a process which commenced on March 1, 2016 when a 16 man Committee on the Roadmap for the Development of the Solid Minerals Sector was empaneled by the Minister of Solid Minerals, Dr. Kayode Fayemi to formulate a course to stimulate the rapid growth of the sector. The Ministerial Committee concluded its deliberations on March 31 2016 and its recommendations were subjected to review by other stakeholders and equally circulated for input to all Governors of the 36 states in Nigeria including the FCT.
The 2016 Roadmap represents the latest mining sector initiative, since the 2012 Roadmap and the passage of the Nigerian Minerals and Mining Act (2007) and Nigerian Mineral and Metals Policy (2008), which amongst other things, created a modern Mining Cadastral Office, refined the tax code and expanded the airborne mapping of the country to sharpen knowledge of the mineral endowments.
The 2016 Roadmap is based on the identification of the current status and hindrances to the development of the mineral resources of Nigeria and proposes solutions to overcome such barriers. It prioritises activities for implementation and provides the time frame for all activities. It creates scenarios and models for successful implementation and monitoring of activities, while also developing a consensus strategy for the buy-in of all stakeholders.
The 2016 Roadmap by providing policy certainty, addresses several sector challenges, which are of major concern to industry participants, stakeholders, institutions and other enablers in the sector, It address challenges such as infrastructure, governance, fiscal incentives and geoscience, particularly the weak mechanisms for gathering, disseminating and archiving critical geological data required by investors and policy makers.
The 2016 Roadmap recommends a set of 8 critical levers for success that the government can put in place to improve the ecosystem for the minerals and mining sector were recommended. These are: i) Integrated Strategy, Proactively Communicated ii) Investor Friendly Regulatory Environment iii) Coordinated Infrastructure Investments iv) Community Partnership v) Investment Funding vi) Institutional Reform: vii) Geoscientific Value Add viii) Mining as Development Catalyst.
The Committee also reviewed how other countries such as Guinea Democratic Republic of Congo (DRC) and Cameroon have used similar levers to improve the competitiveness of their mining sector. It therefore incorporated into the 2016 Roadmap, competitive investor incentives in Nigeria when compared with several other major mining countries, in Africa including a more favourable tax regime and royalties.
A major distinguishing feature between the 2016 Roadmap and its predecessor, the 2012 Roadmap, is the determination of the government to set up an independent regulatory agency, different from the ministry, which has been serving mainly as a facilitator for the mining industry. To date, the Ministry has doubled as both facilitor for business opportunities in the industry and regulator, giving rise to conflicts of regulatory functions.
The new regulatory agency is to be made up of the Inspectorate and Environmental Compliance departments of the ministry. The Artisans and Small Scale units of the ministry would also form part of the regulatory agency.
The 2016 Roadmap also emphasises partnership between the Federal and State governments together with the overlapping of functions between the Federal Ministry of Mines and Steel Development and the various state Ministries for Mines.
A copy of the Roadmap is available via the following link: http://www.minesandsteel.gov.ng/wp-content/uploads/2016/09/Nigeria_Mining_Growth_Roadmap_Final.pdf
