Kasim Sumaina in Abuja
Indigenous operators in the Nigerian
mining sector are not as successful as their foreign counterparts due to
factors limiting their development and growth, a mining consultant,
Adeyemo Titilope, has said.
Titilope, an engineer with an
Abuja-based geophysical and geotechnical services firm, Geocardinal
Engineering Services Limited, said most of the indigenous operators in
the mining sector lacked the requisite technical capacity to excel.
Besides, he said the regulatory
environment is so weak to ensure effective compliance with the existing
laws guiding operators in the country’s mining industry.
Also, the conflict between the federal
and state governments in the management of mineral resources in the
country, he said, had resulted in double taxation, which is negatively
impacting the growth of operators in the sector.
“Government has always said it wants to
diversify the economy away from oil into the solid minerals and
agricultural sectors,” he said.
“But, the diversification plan is felt only in the agriculture sector. Mining is not affected. The core professionals, with the right technical capacity, are not there.
“But, the diversification plan is felt only in the agriculture sector. Mining is not affected. The core professionals, with the right technical capacity, are not there.
“That is why the sector is not growing.
That is why the indigenous operators are not succeeding. We need to
enhance the capacity of indigenous operators for the sector to grow.
“If we really want to diversify the
economy and reap any dividend of the investment, the sector must be
driven by professionals, like what is happening in established mining
destinations like Australia and South Africa,” he added.
Titilope, who also consults for some of
the state governments on mining issues, said most operators in Nigeria
lack the technical know-how to make the sector work.
In addition, he said some of the mining
companies engage in activities that damage the environment. He wants
government to ensure that those who have the capacity to mine are given
the guidelines based on the established regulatory framework to obey
environmental law or land reclamation law.
For the sector to grow, he said
government needs to enhance the capacity of small-scale and artisanal
miners as well as government agencies in charge of monitoring the mining
industry, by training them on industry best practices.
He said the professional miners could be
sent to understudy the operations in advanced mining economies like
Australia, Canada and South Africa for them to learn how to deploy
available resources into developing the sector.
Foreign companies, he said, were doing
well mining in Nigeria, because they spent their resources to build
their technical capacity and expertise.
“We need to build the indigenous capacity for mining for the industry to succeed in growing. The regulatory framework needs to be strengthened as in Canada, to ensure only qualified professionals are allowed into the mining business,” he said.
“We need to build the indigenous capacity for mining for the industry to succeed in growing. The regulatory framework needs to be strengthened as in Canada, to ensure only qualified professionals are allowed into the mining business,” he said.
He said some foreign miners have left
the country, because they were not able to cope with the pressures as a
result of excessive tax demands from the state governments.
“The biggest challenge the mining
industry is facing is that of a weak regulatory enforcement environment.
These is one of the things that need to be strengthened.
“When the institution is strengthened, there will be a transfer of
manpower efficiency and technical know-how on how to do mining
efficiently,” he said.
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