The misconceptions about #PAGMI, and about solid minerals mining and fiscals in Nigeria need to be addressed. Some of it is driven by ignorance, which is fine, nobody knows everything. As for the elements that are driven by bigotry and mischief - unacceptable!
A thread:
A thread:
The basic principles applying to oil and gas in Nigeria similarly apply to solid minerals:
a. Both belong to the Exclusive List
b. All revenues accruing go into the Federation Account, which belongs to the three tiers of Government.
c. 13% Derivation Principle
a. Both belong to the Exclusive List
b. All revenues accruing go into the Federation Account, which belongs to the three tiers of Government.
c. 13% Derivation Principle
Mining revenues, including from gold, also go into Federation Account. And solid minerals-producing States also get 13% derivation. Unlike oil and gas that has 9 producing States, solid minerals are far more widely distributed: 36 States and the FCT.
Of course mining revenues for now are much less than oil and gas, only a small fraction, but the vision of course is for that to change, considering the huge potential Nigeria has. So many minerals, so much quantity. #PAGMI of course is one of the moves to achieve this.
There’ve been attempts to portray gold mining in Nigeria as a “Northern” thing. This is FALSE. Nigeria’s Gold Belt actually stretches across several parts of the North West and SOUTH WEST, as well as several smaller occurrences outside of these two regions. cc. @Saatah
Also, investors & participants in gold mining operations come from every part of Nigeria. One of the 2 licensed gold refineries (under construction) in Nigeria in Ogun State. Other one is in FCT. The biggest gold exploration project currently is in Osun: mining-technology.com/projects/segil…
Another big misconception is the comparison between artisanal and small scale miners (ASM) on the one hand, and the illegal oil refineries of the Niger Delta. There’s no basis for comparison. One has a legal basis, the other doesn’t. I’ll explain.
People hear ‘Artisanal and Small Scale Mining’ and think it’s a synonym for illegal mining. It’s not. The laws of Nigeria recognize Artisanal and Small-Scale Mining. They work with holders of valid mining Licenses/Titles, host communities, and authorized buyers of solid minerals.
The Ministry of Mines and Steel Development @fmmsdngr actually has a Department for Artisanal and Small Scale Mining. These artisanal miners are legally recognized - and supported - as long as they work with validly licensed players in the mining sector. 
That’s different from illegal miners - who can be small, medium or large scale - and are not licensed. Hence “illegal”. They’re the mining equivalent of the Niger Delta’s illegal - unlicensed - refineries. The illegality means they are liable to clampdown, arrest & prosecution.
So that point about licensing is important. All legal mining operations in Nigeria - whether oil and gas or solid minerals - must be licensed. In oil and gas, DPR issues the licenses. In solid minerals, it’s the MCO - the Mining Cadastre Office (MCO). The DPR of solid minerals.
So that idea that #PAGMI is somehow a concession to illegal mining is wholly false. It’s not true at all. All the participants in PAGMI must be licensed. The law recognizes artisanal miners, but also requires that they be affiliated/working with validly licensed players.
Interestingly, Nigeria also recognizes small-scale refining of crude oil. Hence the whole idea of MODULAR refineries, enthusiastically supported by @NigeriaGov. I’ve done a million threads about it. But they must be licensed, not some guys in the bush stealing & cooking crude.
Those who want to make discriminatory comparisons between oil & gas on one hand, and solid minerals mining on the other, have no basis. @NigeriaGov is giving the same level of enthusiasm to its support for both. Check out @OfficialNCDMB support for Modular Refineries among others
Licenses for the exploration and mining of all natural resources in Nigeria, whether oil and gas, or solid minerals, are issued by the Federal Government, not States. Always keep this in mind. And anyone who meets the requirements is entitled to apply for a license.
Also: #PAGMI will only support LICENSED small-scale miners, mining cooperatives, & registered Mineral Buying Centres. It has no business w/ illegal/unregistered players
The model also not unique to Nigeria. Other countries practice similar models, supporting artisanal miners.
The model also not unique to Nigeria. Other countries practice similar models, supporting artisanal miners.
The role of the Private Sector and State Govts in #PAGMI cannot be overemphasized. It’s actually primarily about them. They are the key players and drivers. FG’s role is primarily support, coordination, and of course catalytic financing. But the engine is private sector.
