Yinka Kolawole in Osogbo
A development finance expert, Dr. Wale Bolorunduro, yesterday praised the federal government’s efforts to deploy solid minerals as a driver of economic growth and foreign exchange diversification.
Speaking in Osogbo yesterday on Environmental, Social, and Governance (ESG) practices in the mining sector, Dr. Bolorunduro noted that with modern technology, the environmental impacts of mining can be effectively managed.
He added that governance responsibilities must be jointly upheld by operators, regulators, and government authorities.
He, however, warned that unregulated mining activities, the rush for mineral wealth, and the displacement of artisanal miners—particularly in Northern Nigeria—pose security risks that governments must address from the outset, in line with their constitutional responsibility to ensure the security and welfare of citizens.
Bolorunduro emphasised that the most critical issue in mining development is the delivery of measurable social and economic benefits to host communities.
He remarked that while the Nigerian Minerals and Mining Act (NMMA) 2007 provides for Community Development Agreements, he argued that the framework does not adequately quantify the benefits due to host communities.
He therefore advised mining regulators and operators to emulate the Petroleum Industry Act (PIA) 2021, which mandates operators to contribute three per cent (3 per cent) of their actual annual operating expenditure to Host Communities Development Trust Funds.
According to him, such a quantifiable and transparent mechanism is essential for sustainable development, inclusive growth, and peaceful coexistence between mining operators and host communities.
The expert however cautioned that Nigeria must avoid repeating the mistakes of the oil-producing regions, noting that “what does not get measured does not get done.”
