Expert Urges Nigerian Mining Sector to Adopt Petroleum Industry Act Model for Host Community Benefits

Dr. Wale Bolorunduro, a financial expert, commended the Nigerian government's efforts in deploying solid minerals as a driver for economic growth and foreign exchange diversification. He highlighted the importance of Environmental, Social, and Governance (ESG) practices in the mining sector, emphasizing the need for modern technology and responsible environmental management.

Dr. Bolorunduro warned against unregulated mining activities, which could lead to wealth displacement and security risks, particularly in northern Nigeria. He stressed the critical need for mining development to deliver measurable social and economic benefits to host communities.

Bolorunduro pointed out that the Nigerian Mining and Minerals Act of 2007 lacks a framework to quantify benefits for host communities, unlike the Petroleum Industry Act of 2021, which mandates operators to contribute 3% of annual operating expenditures to host community development trust funds. He cautioned Nigeria to avoid repeating the mistakes made in oil-producing regions by ensuring transparency and sustainable development in the mining sector.