Minister Alake Warns Against Mining Shutdowns by States: A Threat to Foreign Investment in Nigeria

The Minister of Solid Minerals Development, Mr. Dele Alake, warned that arbitrary shutdowns of mining operations by state governments threaten Nigeria’s efforts to attract Foreign Direct Investments (FDI). He announced a fact-finding committee to investigate a dispute between Osun State and Thor Explorations Limited, emphasizing that mining regulations are a federal responsibility. Alake urged collaboration to avoid disruptions that could impact economic growth and employment.

In a recent statement, Mr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has urged against the indiscriminate shutdown of mining operations by state governments, emphasizing that such actions could severely jeopardize the federal government’s initiatives to attract Foreign Direct Investment (FDI). This warning was issued during the announcement of a fact-finding committee set up to assess the ongoing dispute between the Osun State government and Thor Explorations Limited regarding issues of taxation and operational regulations. Mr. Alake underscored the need for caution, noting that mining regulations fall strictly under the purview of the federal government and are not within the scope of authority for state-level governance. He has tasked the committee, led by Dr. Mary Ogbe, the Permanent Secretary at the Ministry, with investigating the concerns and complaints raised by both parties, in an effort to mediate the situation and restore productive cooperation. The minister highlighted that the federal government has actively promoted investment opportunities within Nigeria’s solid minerals sector both locally and internationally. He expressed his concerns that arbitrary closures initiated by state governments could derail these efforts, consequently discouraging foreign investments and potentially leading to divestment by firms already operating in the country. “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” Mr. Alake remarked. He reiterated the federal government’s commitment to fostering productive economic activities to enhance growth, increase employment, and stimulate community development. Any disruption in industrial production could hinder these efforts and negatively impact workers’ ability to secure income, compounding socio-economic challenges.

The context of this discussion arises from tensions between state governments and private mining companies in Nigeria, reflecting a broader concern regarding the management of natural resources and investment climates. Mr. Alake’s remarks come amidst increasing scrutiny of local governance practices that may conflict with national policies aimed at attracting investment in solid minerals and ensuring the country’s economic stability. The establishment of a fact-finding committee illustrates the federal government’s intention to mediate disputes while reinforcing its authority over mining operations.

In conclusion, Mr. Dele Alake’s call for collaboration and restraint among state governments and mining companies is crucial for the orderly development of the mining sector in Nigeria. By fostering dialogue and ensuring adherence to federal regulations, the government aims to sustain its investment appeal and bolster economic growth in the mineral-rich nation. The ongoing efforts to resolve disputes like that of the Osun State and Thor Explorations Limited underscore the importance of maintaining industrial harmony to protect workers and ensure continued production.

Original Source: www.arise.tv