The bill seeks to create a commission that would protect the rights of communities where solid minerals are mined, and ensure they benefit directly from the resources extracted from their lands.
The House of Representatives has begun consideration of a bill that could reshape relations between Nigeria's mining companies and host communities, with stakeholders sharply divided on its potential impact.
The legislation, sponsored by Sunday Dekeri (APC, Edo), passed second reading in July 2024.
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It seeks to create a commission that would protect the rights of communities where solid minerals are mined, and ensure they benefit directly from the resources extracted from their lands.
The bill came under review at a public hearing of the Committee on Solid Minerals Development on Thursday, with community leaders strongly backing its passage while some industry voices raised concerns about its overlap with existing laws.
At the hearing, representatives of mining host communities described the initiative as long overdue.
Delivering a detailed memorandum, Redzie Jugo of the Federation of Nigeria Mining Host Communities told lawmakers that for too long, mining host communities had been treated as "sacrifice zones," left in poverty and environmental degradation despite being the source of immense national wealth.
"Minerals communities must no longer be treated as sacrifice zones, but as partners and stakeholders in Nigeria's development," Mr Jugo declared.
He explained that the proposed commission, if properly designed and led by representatives of host communities themselves, would guarantee fairer outcomes.
According to him, the framework should ensure that mining communities are adequately represented in decision-making, that a fair share of mineral wealth is reinvested locally, while development projects are tailored to urgent social, environmental, and economic needs.
Mr Jugo stressed that the bill goes beyond financial obligations, as it symbolises the dignity and justice long denied to host communities.
He praised the committee for what he called a "groundbreaking" initiative and assured lawmakers of the Federation's full support. He added that mining host communities are ready to work as partners with government and investors to ensure the sector's growth does not come at the expense of their livelihoods and environment.
On the other hand, Teslim Jimoh, a mining consultant with Dangote Industries Ltd, said while the bill is well intentioned, some of its provisions could complicate Nigeria's mining landscape if not carefully aligned with existing laws.
He explained that the Minerals and Mining Act already defines the federal government as the sole custodian of mineral resources and provides for host community obligations through surface rents and community development agreements.
He said, "This bill can actually kill investment rights. It is in clash with the Minerals and Mining Act which has specified the obligations of the investors to the community.
"The community does not own the minerals. It's the federal government. The surface land is what belongs to the community."
According to him, these mechanisms, though often poorly enforced, remain the legal foundation of engagement between mining investors and communities.
Mr Jimoh warned that introducing new obligations such as mandatory equity ownership and profit-sharing for host communities, as contained in the bill, may discourage investment.
He added that many mining companies already struggle with regulatory hurdles and high operational costs, and that any additional burden could drive investors away.
Instead, he recommended that the government strengthen enforcement of existing community development agreements, which by law must be signed and renewed every five years before mining can begin.
Committee Chairperson Gaza Gbefwi, however, stressed that the House remains committed to putting the welfare of host communities first.
He noted that weak enforcement of community development agreements had left mining regions underdeveloped, even as companies continued to profit from their resources.
He drew parallels with the South-south agitation that led to oil sector reforms, insisting that Nigeria must avoid repeating mistakes in the mining sector.
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According to him, the commission envisioned by the bill could become a vehicle for justice, equity, and shared prosperity if properly designed.
Mr Gbefwi assured stakeholders that the committee would work closely with the Ministry of Solid Minerals and industry operators to address grey areas and harmonise the bill with existing laws.
He said lawmakers would not support any legislation that undermines investment, but equally would not allow communities to remain impoverished in the midst of wealth.
Historical background
Nigeria's mining sector was once a cornerstone of the economy, with tin, columbite, and coal from Plateau and Enugu driving exports and providing thousands of jobs.
However, decades of neglect, weak regulation, and the shift to oil revenues left mining host communities abandoned.
It is against this history that lawmakers and communities are pushing for a legal framework that ensures mining host communities no longer remain on the margins of Nigeria's resource wealth.
