Group decries over-regulation of mining sector

The Gemstones Miners and Marketers Association of Nigeria (GMMAN) has decried what it described as the over-regulation of the mining sector in Nigeria.

Niran Ajibade, the association’s president, made this known in an interview with the newsmen on Friday in Abuja.

He said that the situation was creating difficulties for mining operations across the country.

Mr Ajibade attributed the situation to state governments’ interferences in mining operations.

According to him, this is driven by their desire to control mineral resources within their territories to generate revenue for their own use.

He said that even though mining was on the exclusive list of the federation, state governments continued to throw the sector into confusion.

The group’s president said that the states caused confusion by establishing parallel agencies similar to those of the federal government.

“The state governments have started banning mining operations, and they are also establishing their own parallel agencies.

“As a result, the sector is now over-regulated, and we are reporting to too many government agencies.

“Some of them have imposed bans on mining and have set up task forces.

“They go to the mining sites and burn down equipment and infrastructure there,” he said.

He said that mining stakeholders had already appealed to the Minister of Solid Minerals Development, Dele Alake, to intervene in the matter.

Ajibade noted that over-regulation was causing multiple taxation through the levies imposed by the states.

He said that prompt action was required to address the situation.

This, he said, was because President Bola Tinubu’s administration was determined to diversify the country’s economy, and attract Foreign Direct Investment.

According to Ajibade, repositioning the mining sector also requires that mining operators have access to affordable funding with a single-digit interest rate.

He explained that it would enable them to boost their businesses, which would have a multiplier effect on the economy.

The association’s president said that GMMAN was also focusing on ways to support its members with credit facilities from the government.

According to him, this will ensure that income from the sector is maximised.

He further said the association was consulting with relevant government agencies on showcasing Nigeria’s gemstones to international markets at trade fairs.

This is especially as the country has a competent private sector, he said.

“We are in discussion with the Nigeria Exports Council and the Ministry of Solid Minerals Development.

”This is to see how they can organise some people with materials to go to some of these international shows,” he said.

Ajibade said that part of the association’s efforts to market Nigeria’s gemstone subsector and enhance it was through gemstone expos and conferences.

He recalled that earlier this month the association held one in in Ibadan.

“On Aug. 19 to 21st, we organised the Nigerian Gemstone and Jewelry EXPO and conference in Ibadan.

“It was part of our efforts at marketing Nigerian gemstones and in addressing the challenges in the sector.

“We brought experts to speak on issues in the sector, teach members how to identify and grade stones.

“How to process, cut and polish, and also make beads out of them, as well as introduction to jewelry making to build capacity,” he said.