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Nigerian Mining Act to be replaced

The Federal Executive Council (FEC) has approved a new bill to be sent to the National Assembly to replace the old law guiding mining activities in Nigeria. Olamilekan Adegbite, Country’s Minister of Mines and Steels Development confirmed the report and said the law in operation is the 2007 Nigeria Mineral and Mining Law that has become obsolete.

The bill was passed in the chambers with some amendments. The Attorney General will be sending the bill, which is the Nigerian Minerals and Mining Act 2023, to the National Assembly.

Nigerian Mining Act

“There’s a renewed focus and it’s a new frontier for economic growth in Nigeria. So we need to update the law to (be) in line with modern realities and the laws with some amendments. The members of the National Assembly are fully with us on this and are part of the process. They promised us a speedy process so that this bill can pass and Mr President can accede to it before we leave office in May,” said Olamilekan.

Mining currently generates just 0.3% of GDP and leaves the country scrambling to import minerals, like salt and iron ore, which could be produced domestically. In contrast, the oil and gas sector produces around 10% of GDP and 65% of government revenues. The amendments are seen as the finishing touch to five years of government measures to make mining a means of weaning the country off petrodollars.

One of the key changes is that the law will give local governments the impetus to crack down on illegal mining by devolving responsibility from the federal to the state level of government.

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