Minister of Solid Minerals Dele Alake Warns States Against Shutting Down Mining Operations

Minister Dele Alake, has issued a stern warning to state governments about shutting down mining operations. He emphasized that states do not have the constitutional authority to undertake such actions, highlighting that mining falls exclusively under the jurisdiction of the Federal Government. His remarks come in response to recent moves by certain state governments, including Gombe, Kogi, and Osun, to intervene in mining operations, particularly regarding issues related to taxation and operational disruptions.

Dele Alake reiterated that states should refrain from actions that could impede mining activities, as these decisions lie solely with the Federal Government. By stepping in without proper authority, state governments risk derailing investments and creating uncertainty in the sector. The minister’s statement comes at a crucial time as Nigeria seeks to attract more foreign investment into its mining industry.

Federal Government Holds Sole Authority Over Mining Activities

Dele Alake made it clear that the Federal Government, and not state authorities, has exclusive control over mining activities within the country. He reminded the public and state officials that mining is on the Federal Government’s exclusive legislative list, meaning that no other level of government has the power to regulate, control, or halt mining operations. This clarification is intended to resolve the growing tensions between states and the Federal Government over resource control.

Dele Alake’s statement underscores that while states can raise concerns regarding environmental and operational issues, they must do so through appropriate federal channels. The constitutionality of mining management is clear, and any overreach by state governments could result in legal confrontations.

Osun State’s Segilola Mining Shutdown Sparks Federal Response

The Osun State Government’s recent decision to close down Segilola Mining Company, citing taxation and operational concerns, has drawn the attention of the Ministry of Solid Minerals. Dele Alake cautioned that such actions, taken without consulting the Federal Government, undermine national economic policies. The closure of Segilola, a significant player in Nigeria’s mining industry, risks sending a negative message to potential foreign investors.

Dele Alake pointed out that while states have a role in ensuring local compliance with environmental laws and taxation policies, they must adhere to the constitutional provisions that place mining regulation solely within the Federal Government’s domain. The Osun incident, in particular, highlights the need for greater coordination between state and federal bodies.

Indiscriminate State Actions Threaten Foreign Investment in Mining

The Minister also warned that arbitrary closures of mining operations by states could discourage much-needed foreign direct investment (FDI). Nigeria’s mining sector is in a growth phase, with several international companies looking to establish operations. Disruptive actions, such as the shutdown of mining companies by state governments, send a message of instability to investors and could lead to divestment by existing operators.

Foreign investors are particularly sensitive to regulatory uncertainty, and Nigeria must provide a stable and predictable business environment. Dele Alake’s warning is aimed at protecting the sector’s future by ensuring that all stakeholders adhere to the constitutional provisions governing mining activities.

Constitutional Framework for Mining: A National Mandate

The Nigerian Constitution places mining on the exclusive legislative list, making it a matter that only the Federal Government can regulate. Dele Alake’s reminder of this provision is a direct response to growing confusion over the roles of state governments in resource management. Mining, like oil and gas, falls under federal jurisdiction to ensure uniformity and effective national oversight.

State governments, however, have expressed concerns over their limited role in mining, particularly in revenue sharing and environmental impact. Dele Alake’s position is clear: while states can advocate for their interests, they must operate within the confines of the law, ensuring that the Federal Government’s mandate remains intact.

Call for Collaboration Between Federal and State Governments

Despite the tensions, Dele Alake called for collaboration between federal and state governments to ensure the sustainable development of Nigeria’s mining sector. He urged states to consult the Ministry of Solid Minerals before taking actions that could disrupt mining operations. Effective communication and cooperation, he said, are essential to preventing misunderstandings and ensuring that both national and local interests are served.

Dele Alake’s appeal reflects a broader vision of shared responsibility, where states play a supportive role in mining development without overstepping constitutional boundaries. By fostering dialogue, Nigeria can harness its vast mineral wealth for the benefit of all citizens.