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The Senate has taken a significant step towards curbing illegal mining and associated banditry, as it passed a bill to establish a specialised security outfit for a second reading on Thursday.
The bill, sponsored by Mohammed Onawo, proposed the creation of the Nigerian Mine Rangers Service, a security outfit to prevent illegal mining activities across the country.
Illegal miners in the country have promoted kidnapping and banditry in some of the states where Nigerian mineral resources are being mined.
To curb their activities, the Federal Government, through the Ministry of Solid Minerals Development, introduced mining marshals, an inter-agency security outfit that incorporated special operatives from the Nigeria Police and the Nigeria Security and Civil Defence Corps, among others.
The Senate, however, called for the establishment of a specialised security outfit mandated by law to curb illegal mining and its associated issues in the country.
Presenting the bill, Onawo said the NMRS would be responsible for safeguarding mining operations, enforcing mining and environmental regulations, ensuring safety compliance and promoting sustainable mining practices.
“The proposed Mine Rangers Service will play a key role in curbing illegal mining, rescuing trapped miners, providing emergency medical care, investigating mining accidents, and enforcing mining regulations,” Onawo said during the debate.
He added that the bill was designed to help Nigeria harness its mineral resources more effectively and diversify its economy away from oil dependency.
Several senators supported the bill, with Orji Uzor Kalu noting that Nigeria lost approximately $18.9bn annually to illegal mining.
He said the proposed NMRS could significantly reduce this loss while tackling banditry.
“This specialised security outfit will help stop the yearly loss of $18.9bn to illegal miners and combat banditry at mining sites across the country,” Kalu stated.
The Deputy Senate President, Barau Jibrin, also lauded the bill, noting its potential to address not only illegal mining but also criminal activities linked to mining operations.
“We need a special security arrangement in the mining sector, and this bill provides just that. It will also help identify and combat criminals involved in illegal mining and banditry,” Jibrin said.
The Senate Committee on Solid Minerals was tasked with further reviewing the bill and reporting back in two weeks.
Meanwhile, the Osun State government has accused the management of Segilola Gold Project, a mining company operating in the state, of refusing to remit taxes and dividends due to the state from its investment in the company.
The government vowed to ensure that the company paid the state the amount it owed, valued at over N60bn in monetary value and redeemable shares.
The Special Adviser to the Osun State Governor on Mining and Mineral Resources, Prof Lukman Jimoda, while addressing journalists in Osogbo on Wednesday, said the government’s probe into the operations of Segilola Gold Project being managed by subsidiaries of Thor Explorations Ltd, a United Kingdom-based company listed on the Toronto Stock Exchange, had uncovered several infractions.
Jimoda said the state’s investigation revealed various unethical business practices, including tax evasion, use of proxies, and failure to comply with environmental rules and regulations, among others.
He said Osun had not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.
Presenting his report to journalists in Osogbo on Thursday, the financial consultant to the Office of Mining and Mineral Resources, Dr Wale Bolorunduro, held that “For the past 20 months, Segilola has refused to honour its commitment to commence payments on the accrued financial considerations due to Osun State on the transformational acquisition of Osun interest between 2016 and 2019.
“The efforts and demand of Osun State to realise our claims, which is over N60bn in monetary value and redeemable shares as financial considerations for acquiring the state’s interest in Tropical Mines Ltd have always been rebuffed by Segilola Operating Resources Ltd.
“At least four meetings had been held with Governor Ademola Adeleke and the CEO of SROL, Mr Segun Lawson, in attendance and with promises made to commence payment only for the company to renege on its promises and chose to misrepresent the state at the Ministry of Solid Minerals.
“The refusal to remit taxes from both direct employees and service providers, as well as the evasion of other financial obligations, highlights a deeper issue of corporate governance and transparency.”
Bolorunduro insisted that the state would explore lawful means to ensure what was due to it was paid by the company.
Responding through a statement to the allegations, the Country Manager of SROL, Austin Menegbo, said “Our company has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.
“We maintain detailed records and have receipts for all royalty payments made to the Federal Government, as well as tax remittances to the state government. These documents are readily available for verification.
“The claims of environmental and operational non-compliance are not true as we have sufficient evidence to prove that we have followed all necessary protocols for environmental assessments and regulatory filings, including environmental compliance monitoring and mitigation of potential environmental impacts.
“As one of Nigeria’s leading mining companies, we remain committed to contributing to the economic growth of the state and the country while adhering to the highest ethical and operational standards.”
