The 4th Sustainability in the Extractive Industries (SITEI 2015) Conference with the theme ‘Unlocking the Hidden Potential in the Extractive Industries’ has made 16 recommendations to the government and other stakeholders on how the Nigerian extractive industries can function at its full potential.
At the conference held on Thursday, 19th November, 2015 at the NAF Conference Centre, Abuja, delegates agreed that the organiser, CSR-in-Action in partnership with the Nigerian Extractive Industries Transparency Initiative (NEITI) presented a timely platform for progressive thinkers and thought leaders to shine the spotlight on the boundless, yet untapped, potential that lies fallow in the extractive industries in Nigeria, and proffered actionable solutions.
The communiqué of SITEI 2015 that recorded active participation from key stakeholders including the State Minister for Solid Minerals, Abubakar Bwari, as well as industry leaders from the private sector, the public sector and civil society organisations, recommended the need to develop and enforce a legal, regulatory and fiscal framework that supports the private sector (Investment friendly); There should be increased capacity building in the industry by employing more geoscientists; Government should significantly invest in data gathering initiatives to provide the right information for the sector and help set up bankable projects; Strengthen Public institutions that monitor illegal mining; The recommendations of the mining road map must be adhered to; The PIB should be revised so that incentives to invest in the extractive sector (Gas) is encouraged.
Others recommendations include that, Government should implement and enforce recommendations on the gas master plan; An attractive gas pricing regime should be instituted, create scenario of willing seller and buyer; The visibility of NEITI’s report as an instrument to drive accountability; Private sector participation in infrastructural development; Reduce legislations and approval process; The need to develop the mining ports in the light of the huge potentials of the extractive industry; Drive awareness of the funds available to the extractive industry; The EIA Act (Environmental Impact Assessment) should be amended to take care of the host communities; and Promote artisanal miners activities by helping them form cooperatives in order to get governmental support.
The key highlights of SITEI 2015 where participants were treated to a wealth of thought-provoking insights into the state of the Nigerian extractive industries include; The Industry is capital intensive; There are political uncertainties; The incentives to encourage the private sector are not sufficient; Private sector investors are interested in creating value in the solid minerals and gas sector; The IOCs are leaving the mid-stream; The sector/ industry is a knowledge based; Poor data to give confidence to reliable investment and access to capital; Nigeria is not yet a mining hub; Mining sites are isolated and lack accessible roads and infrastructure; Value is not added to some mined minerals except for very few before export; Nigeria has only a single lab which can certify resources however this lab is not certified; The Country has produced an average of 20,000 geologist over the last 10years, however the growth of the sector is not reflective of this; Nigeria has huge gas reserves which makes it rank above 10th position in the world.
Others are; Nigeria wants to diversify to be an integrated oil and gas country instead of that driven strictly by just oil; Nigeria is the second highest gas flaring nation in the world. This should be converted into revenues; Nigeria’s gas reserves were identified as a result of mining for oil, the reserves could be significantly more to put Nigeria within the top 4 countries with high gas reserves if specifically focused.
To ensure that the deliberations of the conference yield tangible results, CSR-in-Action said it would provide opportunities for participants at the conference to be a part of the Post-SITEI Working Group to be co-chaired by PwC, and/or also attend the Post-SITEI Training on Energy & Mining to be facilitated by its training partner Robert Gordon University, Aberdeen, UK.